Steve Forbes is currently the Editor-in-Chief for the world renowned publication, Forbes Magazine. Grandson of one of the original founder’s, B.C Forbes, Steve Forbes has always been interested in publishing and media. In grade school, you could find him doing occasional news sheets for classmates and even getting into some mischief with grading his own teachers. Because why not? They were grading him too.
By the time Forbes attended Princeton University in 1970, he helped found his first magazine, Business Today, which is still operating today by undergraduates. With this in mind, Forbes was quick to provide his own two cents to the Stevens students about economics, especially before entering the workforce. “You succeed when you meet the needs and wants of other people […] expect setbacks and failure,” Forbes said. “It is not the end of the world, pick yourself up and move forward. It happens to everybody.”
Now, Forbes is the chair and Editor-in-Chief of an acclaimed publication. He views this opportunity as “a delight and a privilege in the sense that we have a purpose that I think is unique.” Forbes was quick to add, “Back in 1917, in the first issue, my Grandfather said that the purpose of business is to produce happiness, and not to pile up money.” To Forbes, Forbes Magazine is about creativity and innovation, which enables us, as a society, to move forward and progress.
Not only is Forbes involved in the publication scene, but he has found himself involved in the political world as well. Forbes said, “I was always interested in policy and what makes the world tick.” However, he never saw himself entering elected politics until 1994 when he was the head of an organization that was emphasizing reforms and taxes. The organization was founded by Jack Kemp, who everyone had assumed was running for the presidency in 1996. It was shocking when Kemp revealed later on that he was not going to run, but “instead of complaining [Forbes] tried it” himself.
Forbes also had the opportunity to work with President Ronald Reagan, who appointed him to the head of the Board of International Broadcasting. There they were able to broadcast to “areas of the old Soviet Union, areas behind the Iron Curtain.”
Tying it to current events, Forbes found himself discussing the midterm elections that had just happened this week. “For the Republicans, it could have been worse,” he said. “I think the takeaway here is that the GOP [the Republican Party] must do more to appeal to people in the suburbs with their message.” However, Forbes mentioned that the Republican Party did mention that the economy is great, but they did not spell out what they wanted to do with taxes and made a “hash” of healthcare. “People thought they were going to be tossed on the street… but that’s not true,” Forbes reassured. Forbes was hoping for a better result but was not surprised that the GOP lost the House.
As for the economic aspect of the United States, he said that it is currently doing great. “It is doing very well,” he elaborated, “the proof of it is, we have a situation today that would have seen utterly inconceivable four years ago. And that is labor shortages. More and more people are coming back into the labor force.” However, Forbes saw a big cloud on the horizon in our economy. That smog is trade, “getting into a trade war, especially with China,” Forbes discussed, especially with our tariffs and our sales taxes. He said that this cloud will dissipate; moreover, that the disputes with China will be resolved in a few months. Hopefully, if a good agreement is achieved, Americans can see the market go up a few thousand points.
According to Forbes, trade is currently one of the major threats in the American economy today but so is the federal reserve. He jokingly said, “[The Central Bank] feels like it can guide the economy the way you can drive a car.” Forbes mentioned the theory, the Phillips Curve. To him, the Federal Reserve believes that if more people get prosperous then they have to slow things down and create some unemployment. “The code word there is when they talk about the economy overheating. Like the economy is a motor, the economy is not a motor it is we the people. You take a job and your pay goes up, you feel like you’re doing better..I don’t think that you feel overheated,” Forbes asserted. So watch out for that word “overheating.”
Forbes closed the interview with some last words for our readers, “Read Forbes and Forbes.com,” he laughed, “And from the words of my grandfather, stick-to-itiveness, stick to something.”
Forbes is scheduled to talk at Stevens Institute of Technology on November 12th. You can catch him discussing both principles and policies: free markets, free enterprise, why it works, and the conditions where it works best. He also plans on relating that to issues of today, with the economy and future tax changes.
Lastly, thank you to the Young Americas Foundation (YAF) for making this interview possible and for giving Stevens the opportunity to have Mr. Forbes present on Monday, November 12th.
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