Trump never read anything because he never learned how to read. Biden, do you know how to read? Prove it. Read this. You better read it and you better agree with it.

The Wall Street Journal

BUSINESS

JOURNAL REPORTS: LEADERSHIP

CEOs’ Advice to the Biden Administration

Among the suggestions: re-engage with allies, less disruption and go slow on reinstituting regulations.

December 13, 2020

The Wall Street Journal’s CEO Council met Dec. 8 during a tumultuous time in the U.S.—a pandemic and economic downturn, a divisive presidential election, trade relations upended, and the aftermath of broad public protest over racial and economic inequality.

What should be done? The CEOs had advice for the incoming administration of President-elect Joe Biden, a partial agenda for the nation through the lens of business.

Of the 282 global CEOs attending the virtual meeting, 116 broke into four task-force groups to address key issues the country faces. A Journal editor moderated each of the sessions with the understanding that comments wouldn’t be attributed so debate could be candid.

The CEOs weren’t shy about wanting a fresh approach.

First, they advised the incoming administration to find productive ways to re-engage with allies and international organizations. “Don’t pull up the drawbridges,” said one CEO. Other recommendations: Rejoin the Paris climate accord, revive America’s role in the Trans-Pacific Partnership trade pact, bolster the U.S. commitment to the North Atlantic Treaty Organization, and open the door wider to talented immigrants.

The reason? To boost the U.S. economy in the short run. And, in the longer run, to build alliances needed to stave off the commercial and security threat posed by China.

One executive said he hoped the nationalist impulse of the past four years was a “blip” in the history of U.S. engagement internationally in the aftermath of World War II. Big border-spanning companies like those in the CEO Council tend to be internationalist by nature. So, in more than one task force, CEOs underscored the need to explain to average Americans the benefits of engagement. Better marketing and having real benefits to sell—that’s one way to help blunt nationalism, they said.

Second, a little less disruption, please. Companies, just like stock markets, like consistency and predictability, not big swings in policy. How else can chief executives make long-term plans?

The CEOs advised President-elect Biden to go slow on raising corporate taxes (no surprise there) and on reinstituting regulations cut by the Trump administration. (Mr. Biden is looking at consumer finance and energy.) Business knows the policy landscape will be changing under a new president, but the CEOs asked for moderation and a long-range plan.

“We can’t afford regulatory uncertainty,” one executive said. “We need policy we can count on for a decade to come.” Similarly, a big shift in tax policy three years after the last big shift creates more uncertainty and could increase costs—something that companies can’t afford in the middle of a pandemic, the executives contended.

Add tariffs to that list of disruptions. The Trump administration used tariffs to try to force China to open its market, abide by global trade conventions and stop stealing U.S. technology. The strategy had limited effect. But the backwash for U.S. companies was notable.

“Tariffs create disruption,” one executive said. Another complained that the tariffs raised his costs, forcing him to revamp his supply chain and move manufacturing jobs out of the U.S.

Don’t just disrupt, the executives concurred. Find a less concussive approach to problems, like strategizing with allies to pressure China to conform.

Third, build consensus. Reach across party lines, the CEOs urged. Listen to others, walk in their shoes and then make your decision. In other words, don’t stoke polarization. The CEOs who examined how the pandemic is affecting economic growth shook their heads over the fact that wearing a face mask—the first line of defense against getting or spreading infection—had become politicized. That struggle makes it harder to reopen their companies.

The executives encouraged Mr. Biden to resist promoting widespread lockdowns. Several said they were able to operate their businesses safely using social-distancing protocols and masks. The workplace isn’t the problem, they contended. It’s the home.

“We’ve had lines we’ve had to shut down because someone had a family gathering,” one chief executive said.

Build consensus and then pursue policy in moderation, the CEOs reiterated, whether that applies to rejoining the Paris climate accord or crushing the coronavirus.

And fourth, invest. Invest creatively in core needs of the nation, the CEOs advised. Invest in STEM education for K through 12 schools to boost technical proficiency and reduce inequality in the workplace. Invest in programs that teach the workforce needed skills, and optimize opportunities for people of all races and educational backgrounds (in fact, create a federal Office of Reskilling). Invest in basic research to power the next generation of scientific and commercial innovation and enterprise.

Which gets back to the CEOs’ admonition to build consensus—in this case, consensus on how to raise the money for all of that investing.

Did someone say corporate tax hike?

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What CEOs Want

What do business leaders want from the incoming administration? Here’s a rundown of their wish list in four key areas: the economy; America’s role in the world; trade and China policy; and inequality and inclusion in the workplace and society.

Managing the Economy

• Education: Focus on reskilling workers, both white-collar and blue-collar. Expand Pell grants. Consider national curriculums with a business focus.

• Regulations: Don’t rush to re-regulate businesses, which can’t afford added costs right now, and they need certainty. A big change in the tax code, just three years after the last one, would be counterproductive

• Coronavirus: Support targeted social-distancing measures, not broad lockdowns. Some businesses can operate safely. Let them.

• Divisions: The country is divided. Even mask-wearing has become politicized. Reach out to people of all political persuasions to talk to them, not criticize them.

America’s Role in the World

• China: Define an agenda for dealing with China that incorporates allies more effectively.

• International Organizations: Re-engage with the world generally and with international organizations specifically.

• Internationalism: Restore Americans’ faith in internationalism by showing it can work for them.

• R&D: Reinvest in research, development and people.

Trade and China Policy

• Tariffs: Steer away from applying tariffs as a preferred tool, and instead use them highly selectively.

• China: Deploy an approach of ‘targeted reciprocity’ with China.

• Multilateralism: Ally with other like-minded nations rather than relying on a largely bilateral approach.

• WTO: The World Trade Organization needs to be reformed to help it address the disadvantage companies have competing against China’s subsidized state-owned enterprises.

Inequality and Inclusion in the Workplace and Society

• Reskilling: Create incentives for companies to undertake reskilling programs.

• Disabilities: Create incentives for companies to employ people with disabilities.

• A new federal office: Create an Office of Reskilling in the federal government.

• STEM: Invest in STEM education for grad.

—John Bussey, Elena Cherney, Charles Forelle, Jamie Heller and Gerald F. Seib

Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved.

Appeared in the December 14, 2020, print edition as 'Wish List From CEOs.'