天美传媒

How can citizens and business leaders steer society out of these politically tumultuous times that threaten economic stability?

The financier and business news analyst Steven Rattner visited 天美传媒鈥檚 New York campus this week for an Alumni Lessons in Leadership breakfast to discuss this question with Professor Bill Baker.

Rattner is a regular in the op-ed pages of the New York Times and on MSNBC鈥檚 鈥淢orning Joe.鈥� He served as President Barack Obama鈥檚 鈥渃ar czar鈥� and is the chairman and CEO of Willett Advisors LLC, which manages Michael Bloomberg鈥檚 considerable personal and philanthropic assets.

The morning鈥檚 conversation was as eclectic as Rattner鈥檚 CV, touching on Chinese debt, 鈥減olitical supernova鈥� Alexandra Ocasio-Cortez, the death of local newspapers and government incompetence. But the common thread was contemporary global economic and geopolitical uncertainty and how to steer our way out of it.

鈥淭here鈥檚 always uncertainty in life,鈥� Rattner said when asked if the reality of uncertainty matches the widespread perception of it. 鈥淏ut I think we鈥檙e at an inflection point in the global economy. We are in the U.S., and to some degree in Europe, in the late stages of a very long economic recovery. Economists like to say recoveries don鈥檛 die of old age, except they do.鈥�

Governments failing to produce solutions

As Rattner sees it, the challenge facing the developed economies of the U.S., Europe and Japan is restoring substantial growth. While that鈥檚 a very tall order, Rattner is confident that there鈥檚 a way to do it. However, solutions don鈥檛 lie in either tax cuts or creating expensive projects without giving a thought to the costs involved.

鈥淲hat鈥檚 going on to some degree is that our government, across administrations and both parties, has failed to solve a lot of problems,鈥� he said. 鈥淥ne outlet for frustration is to put programs in place and not pay for them. Another outlet is to turn to business and say, government isn鈥檛 doing its job, so we want you to do it for us.鈥欌��

Rattner stressed his belief that business leaders should act 鈥渆thically, morally and with a broad perspective.鈥� But he does not think they should be called upon to put out the fires started by politicians or to singlehandedly rebuild communities and improve crumbling infrastructure.

When that happens, he said, 鈥測ou are then endangering capitalism. And capitalism is deeply flawed, but also the best economic system in the history of the world. I worry that if ask businesses to both make money and good products and, also, solve societal problems, we run the risk of diminishing businesses鈥� effectiveness.

鈥淲e should direct our frustrations to the right place. And that place is often Washington.鈥�

Laments loss of local press

The press wields great power in taking Washington to task, and Rattner was happy to note that prestigious outlets like the New York Times, Washington Post, Wall Street Journal and Financial Times are in good health. He added, though, that 鈥渓ocal papers are dying. And the problem with that, and it鈥檚 a scary one, is that these local papers played a very important role in keeping local governments accountable.鈥�

Ultimately, the power to ease uncertainty lies with individual 鈥渃itizens of the developed world鈥� and the leaders they elect to office. Given today鈥檚 upheaval, Rattner is optimistic that people might soon head to voting booths saying, 鈥淚 just want someone sensible.鈥�

The conversation ended on an upbeat note, with Rattner saying that while polarization is a problem, it鈥檚 one that has historically accompanied periods of massive technological innovation such as ours. But the turmoil can be calmed. Rattner admitted that restoring economic growth and social stability will require 鈥渕aking tough choices,鈥� but any temporary pain will fade against broad, long-term improvements.