CEOs Need to Stop Outsourcing Politics
For decades, global capitalism ruled. But with national security now overshadowing economic priorities, leaders must adapt.
CEOs should know this place inside and out.
Photographer: Joe Raedle/Getty Images North AmericaThe Israel-Iran War. The Trump tariffs. The October 7th attacks. The Russian invasion of Ukraine. The Covid-19 pandemic and the inflation that followed. “Once-in-a-generation events” that could previously be written off as Black Swans are now occurring routinely. Many were caused by government actions, and all resulted in government interventions that are likely to have sweeping economic impacts.
At least since the end of the Cold War, and likely since the end of World War II, few American CEOs outside the defense industry have been evaluated on or chosen because of their understanding of politics. Most have delegated their dealings with government and international relations to lobbyists tasked with pushing for lower taxes and deregulation. That’s no longer possible. Just as no competent leader would outsource key decisions about finance, strategy or marketing, a successful CEO now needs to be hands-on when it comes to questions of global government and politics.