[Richard Quest, Cnn:] In the space of one year, markets have soared to records, trade deals have been torn to pieces and the economic world has been turned on its head. I'm Richard Quest. This I the "World of Trumponomics." Good evening. When Donald Trump became America's 45th President, so began a business experiment perhaps unlike any other. The man who made his name in real estate promised to bring a billionaire's touch to governing. Over the course of the next hour, you and I will hear from some of the executives and the politicians who have watched the world change before their eyes. Because from taxes to trade, there was a sense that things would never be the same again.
[Quest:] President Trump has brought the mentality of the corner office to the oval office. A series of executive orders to short circuit lengthy legislative processes, long winded interagency negotiations. Negotiations carried out in public on NAFTA, TPP and the border wall. And board room meetings to schmooze top leaders. Think of the way he is running the U.S. as America Inc. This time, or today it was executives from Harley- Davidson, as well as union leaders who made it to the Oval Office. And put it into context, it follows meetings with automakers, drug executives and tech bosses. And tomorrow he'll be having more meetings, this time with his strategy group on the economy, which is predominantly business leaders. Never have we seen or at least in recent times have we seen a new U.S. president paying court and running things like a businessman or woman. Trump is running America Inc. His position is the fixer in chief. And his ambitions don't stop at the water's edge.
[Donald Trump, President Of The United States:] The world is in trouble, but we're going to straighten it out. OK? That's what I do. I fix things. We are going to straighten it out. Believe me, when you hear about the tough phone calls I'm having, don't worry about it.
[Quest:] You just don't hear politicians and new presidents speaking like that. From trade to manufacturing to foreign relations, the theme remains the same. Donald Trump and Donald Trump alone can take charge and fix America's ills. It's the core decree of the chief executive.
[Trump:] Well you need somebody. Because politicians are all talk, no action. We need a leader that wrote the "Art of the Deal." Our leaders have to get tougher. This is too tough to do it alone, but you know what, I think I'm going to be forced to. Because I used to be part of the club, I'm the only one that can fix it. I alone can fix it. I want to do things that haven't been done. I will never ever let you down. America will start winning again. Winning like never before.
[Quest:] Strip away the hyperbole and you realize when you look at the last two weeks, he's doing exactly what he said. Carlos Gutierrez says that the government must adapt to this PresidentCEO business mentality. Now, he should know Mr. Gutierrez that is he served in government and business. He was the commerce secretary and he was the chief executive of the cereal company Kellogg. I put it to him that Mr. Trump has come into the White House like a CEO in a hurry to get things done.
[Carlos Gutierrez, Former Us Commerce Secretary:] If you look at the way he has placed people in positions, he has come in with the same strategic themes that he had during the campaign. And he's gone out to find people who can execute his strategy. You know, and you look across his cabinet, he has done a pretty good job of that. The point here is that he does set the strategy, but he will get involved in tactical areas. He will get involved in the tactics, in the negotiating tactics. And that is where the COO needs to keep things on the rail.
[Quest:] From what you've seen so far, I mean I think of people like Lee Iacocca who lead, follow or get out of the way. From what you've seen so far, is he acting more like a president or more like a chief executive?
[Gutierrez:] Well, you know, I tend to believe that there are a lot of similarities between the two. But I would say President Trump is leaning toward a CEO. He is behaving like a CEO. He has issues that he is interested in. He is not as concerned with process and not as concerned with procedural matters. But getting his message out and getting results. So, yes, I would say that right now he is leaning toward CEO. Whether he will adjust his style to the executive branch and the processes, the inter- agency processes that already exist, that is to be seen. But in the meantime, I think the solution needs to be that his organization needs to be adapted to his style.
[Quest:] But here is the real problem with what I've just heard you say. If you have people like we believe Steve Bannon, the chief strategist, who believed the system is so broken that it can only be rebuilt after it's been blown up, or at least been destroyed and then rebuilt from the bottom. What do you do then?
[Gutierrez:] It appears that what's happening here is that there are two groups that perhaps are being developed. There is the institutional traditional group, which is Preibus. And then there is Bannon. Who as you say, you know, he's coming to shake things up. There are different roles. The chief of staff is the chief operating officer. He operates the day to day. And Bannon is the chief strategist. So, where's policy going? Where are we going in the long term? You know, what direction are we headed? And that is where the coordination needs to exist. My concern here, and I think the thing to watch, is are we going to see factions. And will there be a Reince Priebus faction, and will there be a Steve Bannon faction.
[Quest:] In this case, we have a chief exec President who seems to foster the factional form of government believing it brings out the best in all. Is he right?
[Gutierrez:] I think that if the President wants these factions, the President can have these factions. But from the standpoint of his people, if there is one thing that his people owe him is to be on his team. So, the idea of playing politics below the president, I think they can create problems beyond just what, you know, what the President would like to see or the fact that he likes debate. So, if there's going to be debate, let the President drive the debate. But I think his people owe to him to be team players and to be on one team. And to, you know, look after the eater good and not their own territory and not their own image. And that's going to be the issue to watch. Because the President surrounded himself with some very large egos.
[Quest:] The President has not always relied on Congress to push through his agenda. Within days of taking office, he signed executive orders that rolled back years of regulation. He approved giant pipelines. And he cut environmental red tape, often controversially. With a few strokes of the presidential pen, he turned years of policy on its head. And for his allies in Congress like Senator Jim Inhofe, it was a breath of fresh air.
[Sen. Jim Inhofe , Oklahoma:] Look, Richard, this President has had a war on for fossil fuels since long before he was even in the White House. And when I go back to Oklahoma and people ask questions. You know, right now, we are 89 percent dependent upon fossil fuels and nuclear to our ability to provide the power to run this country. Now what happens if he is successful and takes that away? And that's just logic and I know you and I don't agree. And a lot of people on the other side are very upset with this President winning. Because we've seen the last for a while anyway of the Obama types of programs.
[Quest:] Now, Senator, one area though which is not strictly speaking in your environmental area, but is coming up again and again and again, and it is that question of returning American jobs and manufacturing to the United States. Time and again, we are told that it will create more jobs. But the alternative argument of course is that those jobs at higher paying jobs will create higher cost of goods for American consumers. Now, whether it is cars or shoes, if you are bringing it back from Mexico to the U.S., which is a higher cost production base, those costs will be passed on surely.
[Inhofe:] Well, you know, I the higher paying job argument, you might have a point there. But we're talking about gross jobs. We're talking about unemployment. We're talking about increasing the economic activity of this country. And that is what's going to bring us out of what I would refer to as the Obama recession. And we're now in a position to actually, get that done. You talk about how does it affect the environment. The Chinese, for example, right now they are putting out new coal fire plant every ten days. Now they're not interested at all in any kind of an agreement whether it's Paris or anyplace else. But what's going to happen now when we are not able to provide the jobs here and they go to some place like China, that doesn't have any restrictions, it's going to increase not decrease the environmental problems.
[Quest:] By the summer, the historic nature of this presidency was now abundantly clear. Trade deals such as the TPP had been scrapped and regulations just been torn up. Relationships with allies and enemies have been redefined. Richard Haass had called it "adhocracy." A leadership style favored by Franklin D. Roosevelt. One where decisions are made on the fly and done so at a dizzying pace. Haass is the president of Council on Foreign Relations, and was even mentioned as a possible Secretary of State of State early on in the Trump administration. For him, "adhocracy" is a dangerous game to play.
[Richard Haass, President, Council On Foreign Relations:] What I think they are doing is essentially doing a policy of some intimidation, some coercion. There's focusing on trade deficits and imbalances. And they're hoping that they can get Mexico or China to do things, to essentially compromise on certain positions unless they pay some kind of trade retaliation with the United States.
[Quest:] Stay with me on this issue of adhocracy. Are we seeing a perfect example of which you write so elegantly, with this ad hoc meeting with President Putin with a single translator from the other side, which to neophyte in politics would say, well you know, what is wrong with that, I'm getting to know the man. But you say the political world is defined by relationships rather than transactions. And Donald Trump is comfortable with an approach to running his presidency on what worked for him in the private sector. That sort of chat worked for him.
[Haass:] Well, it won't work for him in foreign policy because governing is about relationships. And also governing is about tradeoffs. So, if he is going to be speaking to a Russian leader, he's got to think about the full menu of U.S.Russia relations and also U.S.Russian relations don't take place in a vacuum. It is against the backdrop of North Korea, of Syria, of Europe, U.S. relations with allies. So, I'm not terribly comfortable with the President of the United States sitting down with Mr. Putin without an American official present. Without an interpreter, without a notetaker and without talking points. I just don't think that kind of improvisation is the way to conduct foreign policy.
[Quest:] So, the difficult question to try to finish with to you, sir, is we might just have to get used to it if that is the way he wishes to do it. He is the President of the United States.
[Haass:] Absolutely. And he decides what is the style of decision making and governing in hl administration. But also look at what happened with health care. There are clear limits to this kind of adhocracy, improvisation, call it what you will. And it is not working for him. So yes, he can stick with it for four years. There is no one who's going to force any decision-making system on it, but at some point, the results or lack of results are going to speak for themselves.
[Quest:] Some business leaders were skeptical about Donald Trump's strategy, others downright hostile. As we continue Trumponomics, you'll hear from the billionaire who's trying to have the president impeached.