How optimism fuels the economy, w/U.S. Chamber of Commerce CEO Suzanne Clark

This episode discusses how optimism among business leaders influences the economy and addresses challenges faced by the U.S. in maintaining a healthy business environment.

1. Business leaders are fundamentally optimistic, which fuels economic activity and enterprise.
2. The perception of the economy by CEOs often differs from public sentiment, reflecting a divide between business confidence and general consumer anxiety.
3. Regulatory challenges and geopolitical tensions are significant concerns for businesses of all sizes.
4. Strategic international communication, especially with major economies like China, is crucial for maintaining global business relations.
5. The episode underscores the importance of acknowledging and addressing both the strengths and challenges within the U.S. free enterprise system.

1: Introduction

Bob Safian introduces Suzanne Clark and sets the stage for a discussion on business optimism. Bob Safian: "I'm here with Suzanne Clark, the CEO of the U.S. Chamber of Commerce."

2: The Role of Optimism in Business

Clark discusses the natural optimism in business and its necessity for economic progress. Suzanne Clark: "You don't start a business if you aren't fundamentally optimistic about its success."

3: Challenges Facing Businesses

Exploration of internal and external challenges businesses face today, including regulatory environments and public perception. Suzanne Clark: "Businesses face worker shortages, wage inflation, and supply chain concerns."

4: U.S. and China Relations

Clark details her trip to China, discussing the complexities of international trade and diplomacy. Suzanne Clark: "It's crucial that our countries maintain open lines of communication."

5: Government Impact on Business

A critical look at how U.S. government policies affect the operational landscape for businesses. Suzanne Clark: "Regulatory overreach feels unprecedented, affecting the business climate and innovation."

1. Cultivate optimism within your team to foster a positive and proactive business environment.
2. Stay informed on regulatory changes to navigate challenges effectively.
3. Engage in community and international business groups to enhance strategic relationships.
4. Prioritize clear communication in international dealings to mitigate risks and misunderstandings.
5. Monitor consumer sentiment to better align business strategies with market realities.

Is the state of the U.S. economy good or bad right now? Stock markets have soared, but consumers remain wary. Are CEOs and investors deluding themselves? Or do Main Street Americans expect too much? Suzanne Clark, CEO of the US Chamber of Commerce, has uncommon insight into this perplexing dichotomy. She talks with Rapid Response host Bob Safian about what she’s hearing from businesses in the U.S. and abroad. Plus, she shares details from her recent high-profile visit to China. Also: why bringing your full self to work may not be a good idea, and how optimism drives economic growth and progress.

People

Suzanne Clark, Bob Safian

Companies

U.S. Chamber of Commerce

Books

None

Guest Name(s):

Suzanne Clark

Content Warnings:

None

Tucker Ligursky

Hi listeners, it's Tucker Ligursky. As a researcher on masters of scale, I use the innovations of AI on a daily basis, and with an increasingly overcrowded market, it's hard to discern which ones are truly beneficial for my work, not to mention safe. That's where Grammarly comes in. My job requires me to prepare dozens of documents every day, and with Grammarly, I'm able to make my dossiers and research documents clear, more direct, and more concise. In fact, I recently discovered that Grammarly users spend 66% less time editing content, which is a huge advantage since our most precious resource is undoubtedly time.

What I love about Grammarly is its commitment to responsible AI. My team works tirelessly to produce top quality podcasts, and its vital that we keep our data secure. Grammarly has been around for 14 years and has maintained a business model dedicated to never selling your data, which means you can trust it with your most sensitive information. Join me and over 70,000 teams who trust Grammarly to work faster and hit their goals while keeping their data secure. Visit Grammarly.com to learn more.

That's Grammarly.com dot.

Suzanne Clark

Did you see what just happened in the pandemic? Did you see how we came together? Do you see what's happening in the economy? And yet you have politicians in both parties just bashing business all the time. What's at stake for our country is are we going to preserve a messy, flawed system that's the best system in the world and keep making it better?

Are we going to acknowledge what the free enterprise system has done because we have so much more it still has to solve? That's Suzanne Clark, the CEO of the US Chamber of Commerce. Suzanne advocates for businesses in front of global leaders and here in the US, at a moment of global conflict, adversarial policy, politics, big tech lawsuits. I wanted to take the temperature on the state of the economy with someone who represents millions of anxious businesspeople. I was eager to ask Clark about her recent visit to China and also explore the impact of us government regulation on progress and innovation.

Bob Safian

I'm Bob Safian, and this is rapid response.

We'll start the show in a moment. Afterward, from our premier brand partner, Capital one business.

Aparna Saran

I woke up in the middle of the night because I had this nightmare that we were front page news that we've done the stupidest mistake of our life by making this pivot. That's Aparna Saran, chief marketing officer for Capital one business, and she's recalling a moment from her previous position at Capital one when she was heading up a team designing a new business card. We had just made the decision to go all in and sunset the prior version of the product, which was honestly the cash cow for our business when we made that decision within a senior leadership meeting. As someone who had been on the journey to build this out for five plus years, it was really exciting. But by the time the weekend hit, I started to feel the responsibility and the pressure.

We are taking this big bet on something that I've built. Perhaps you've been there. You've made a pivotal decision. And then panic sets in. How would Aparna calm her butterflies and steer her team through this pivot?

We'll find out later in the show. It's all part of the Refocus playbook, a special series where capital one business highlights stories of business owners and leaders using one of Reed's theories of entrepreneurship. Today's playbook insight have multiple plan B's.

Bob Safian

I'm Bob Safian. I'm here with Suzanne Clark, the CEO of the US Chamber of Commerce. Suzanne, thanks for joining us. Well, thanks for having me. So you started the year talking about the state of american business and emphasizing optimism.

So now we're three months in. Stock market is way up. Are you just as optimistic? Are you more optimistic? Look, I think the state of american business is almost always optimistic.

Suzanne Clark

Right. It's core level. You don't say start a podcast if you don't think anyone's gonna listen to it. You don't flip the sign to open on your coffee shop if you don't think someone's gonna come in. Right.

I mean, it's all an act of optimism. And so almost every business person I meet is optimistic about their chances. Right. About their business. At the same time, to your point, as the year wears on, they have their own concerns.

Bob Safian

Many everyday Americans seem much less enthusiastic than sometimes the numbers we see from CEO's. Right. Do you have a sense of what that disconnect is about? Well, first of all, I think it's fair, right. There are people out there that are really suffering, that feel left behind, that see rent prices or housing shortages or costs at the grocery store and are having real impact on their lives.

Suzanne Clark

And so I think we have to admit that that's happening and that there's work still to do to help more people be lifted up. Slowing the rate of inflation is not the same thing as prices going down overnight. Right. And I do think the housing shortage is underreported when we talk to state and local chambers across the country. It's become their number one issue.

Bob Safian

But it's strange, right? If your consumers and your customers are anxious that you as a business leader would be like, yeah, things are great. Well, you know, it's interesting. We were just out of the field with this quarterly poll we do with MetLife. 65% of small businesses said they feel really good about the health of their business.

Suzanne Clark

65%. That same group of people, only 32% of them felt good about the health of the overall economy. Right. So you have these small business people in communities saying, I feel good. I can serve my customers, I can serve my employees.

I feel good about my business. But, boy, I don't know what's going on out there. Right? So I think there are just two stories out there. I know you're a former small business owner yourself.

Bob Safian

The chamber represents small businesses and big businesses. Is there a difference in what you hear right now from bigger businesses versus smaller businesses? Oddly, no. To me, it's a little bit of a myth that they're that different. Their concerns are alike.

Suzanne Clark

Worker shortage, wage inflation, supply chain concerns. You know, you hear the geopolitical uncertainty. You hear the same concerns no matter what the size of the businesses. The geopolitical uncertainty that you mentioned. That seems to be something worrying us.

Bob Safian

CEO's, is that something you're hearing a lot about as well? Absolutely. You know, we have about 80 people who work full time and international. And so, so we are lucky to have a lot of experts and to host a lot of heads of state. We've got the prime minister of Japan coming in next week.

Suzanne Clark

Remember how important it is again for small businesses to be able to export to a lot of these countries? So both our small guys and our big guys are really interested in the global market. And when suddenly there's war in Europe, war in the Middle east, hooties blowing up ships. So suddenly, you know, we've got ships going around the cape of Goodhorn and taking an extra two weeks on the supply chain. It does two things, really specific concerns and just uncertainty.

Right. And what is capital hate more than uncertainty? You're a kind of diplomat for american business globally. As you mentioned, you talk with prime ministers and chancellors, and notably you made a trip to China earlier this year. It's something that a stream of other us executives and leaders are now doing.

Bob Safian

Why did you make that trip? What did you learn? We went to China for a couple of reasons. While there are really important red lines around national security and trade, that should not happen with China. There's always this green lane of just normal trade that will happen between two huge economies.

Suzanne Clark

Part of the reason for my trip was to work on the yellow area, to talk to China about intellectual property theft, to talk about what it feels like to american companies doing business there as the state secrets rules are coming out, and how hard it can be to do discovery there and due diligence there in order to have m and a activity. And so what are the places where they want more foreign direct investment? But american companies can find it hard and uncertain to do business there. But I'll tell you, the main reason for my trip is it's really important that our two countries are in the habit of communication. After President Xi and President Biden met in San Francisco, we resumed military to military communications.

If you think for a minute how scary it is that that didn't exist, you know that we were 224 year olds in airplanes. Making a mistake away from an incident with no way for leadership to talk to each other was a really dangerous place. So the fact that we've reestablished military to military communications, that business communities are talking, that there's any kind of commercial working groups to work through some of these irritants, is really important. Between these two countries. You met with chinese leaders, with the premier.

Bob Safian

What was the feeling of the meeting? The thing that has been interesting to me in this job as I've traveled the world and met with heads of state, is how almost exactly alike it is. No matter where you are, you're almost always brought into a waiting room of some sort. And then you go into a grander room, and you sit in a big, fluffy chair that exactly matches the head of state's chair. And there's a little table in between you.

Suzanne Clark

And then your delegations sit in straight back chairs along the side. I have done this in every country that you can imagine. They're almost always exactly alike. And when we've hosted heads of state here, my team will set up a very similar setup. The book I'm going to write sometime is how funny it is to be female and do this because I'm usually too small for the chair.

So you end up, like, perching on the end of a chair, trying to look important and have executive posture, and yet you're, like, tilted on the end of a chair awkwardly. While usually male head of state is able to really own his space, you're just perched awkwardly on the end. But the setup is almost always exactly the same. We did meet with the premier. We did it in the great hall of the people.

It is as grand as you would imagine that to be beautiful murals and chandeliers and a very senior ranking delegation on the side. And in a pretty frank conversation about the uncertainty in both of our economies and what that means, the Chinese believe that we really are decoupling, not de risking, despite the administration and secretary Raimondo doing a good job of saying that's not true. And we really believe that their regulatory uncertainty and their business climate uncertainty is making it riskier and more expensive to do business there. The mood, the tenor of the conversation is pretty clear. It's not opaque.

Bob Safian

I mean, you don't have that much time, so you don't want to take too long. But at the same time, there are certain niceties and risks around being too blunt. Well, there are also risks of not being blunt. You know, I mean, it's not good for an American of any sort with any sort of official duty to go over there and not be blunt and not take hard news. Right.

Suzanne Clark

Important part of our trip to go over and talk about the real challenges. What's interesting about tone and tenor when you're in a country where they have consecutive translation, is that you spend a fair amount of time hearing tone and watching body language before you understand the words. And so that can be pretty interesting thinking, wow, there's a lot of emotion behind whatever he's saying. Then you have to wait a beat to find out what those words were. And some of that emotion was around, I think the chinese feeling that we're calling everything national security.

You know, we had just come out with a decision about cranes and they were saying, see, you're saying everything is national security. And I think Americans believe, well, that one is. So, you know, I think there is some real debate between the two countries. So back here at home, I know your organization's focus overall is on the free enterprise system. One of your colleagues used the phrase to me about unprecedented micromanagement by the US government.

Bob Safian

I wanted to ask you about how you feel about that and what you mean by that. I mean, there's AI regulation, there's FTC blocking JetBlue's merger, there's Department of Justice action against Apple. And I don't want to put words in your mouth because this came from one of your colleagues, but is there a challenge that you see in the way the free enterprise system is operating in the US relative to the US government right now? I think what's happening in the Biden administration is regulatory overreach that feels unprecedented to us. It's possible that the business community has used those words so many times over the years that it feels like we're crying wolf when we say it again.

Suzanne Clark

But this time we think there's a real wolf. And so the concern that we have is, first of all, that we're not setting priorities well. Right? So the decision, if we want, if we've decided that we need to move the country to EV's, then we're going to have to prioritize mining and we're going to have to prioritize restoring the electric grid. But if we're not going to have mining and we're not going to invest in the electrical grid, but we're going to make people buy cars and trucks that they can't charge, that's not strategic.

That's not a strategic plan. So often what we hear from businesses who, by the way, want clean air, want clean water, would like safe food, you know, are all for good regulation. They want an effective government that does only what it's supposed to do and does it well. And one of the problems with government that's doing too much is that it's frequently not doing the things that only it could do. I think something we don't talk about enough is all of the regulation and black box at the FTC slowing of m and a activity, it's easy to think, oh, that's good, that's good.

It's going to keep people from getting too big. But the sad part of that story is the small guy just missed his exit. The big guy can survive without buying that small guy. It can wait through the cycle. But the small guy could have just missed their exit right.

When interest rates were going up. Right. So I think there's some pain still out there. I mean, to give you an example, we did a study of the S and P 500. We looked at their ten ks over ten years, watched and categorized what they were naming as their biggest risks.

And across a decade, the mentions of public policy risk went up almost 30%. That means that american companies are filing that the biggest escalating risk is coming from their own government. That's really startling. I mean, I guess there are two ways I can interpret that, right? Some is about sort of guardrails that the government might be putting on there, but some of those policy risks might also be about the political uncertainty and instability as our country has become more polarized.

Bob Safian

And a change of administration in the White House is just such a dramatic shift that that kind of uncertainty becomes very difficult for businesses to plan and operate. Well, aren't they related? Right. Because if ten of the last twelve elections have been swing elections. That means that government policy goes guardrail to guardrail every two to four years.

Suzanne Clark

So, you know, you're an expert, you talk to people all the time. Do you know a business that only has a two year plan, an 18. Month plan, I mean, but those guardrails have become so much farther apart too. I guess like, I know you're talking to people here, you're talking to people abroad. You know, politically in the US, it's like there's talk that this presidential election is the most monumental ever.

Bob Safian

Do you hear that from leaders when you're talking to them abroad? Unfortunately, our allies are concerned about uncertainty in the United States. And I think it should be disheartening to Americans to think that our allies look at us and say, what's happening over there? I don't get it. Right.

Suzanne Clark

And what we hear from our adversaries is we love it. Like the more uncertainty the better. What I hear from CEO's, I think privately they're getting really tired of the oxymoronic world they live in, where the Edelman Trust barometer will say business is the only institution that still has any trust. And yet you have politicians in both parties just bashing business all the time, right? And I think these CEO's are like, did you see what just happened in the pandemic, how we came together?

Do you see what's happening in the economy? You know, when two, 2.3 million more job openings than people looking for work, right? That means everybody who has a job wants a job. Maybe it's not the job they want, maybe they have a higher aspiration. But business is doing a lot of good out there.

And I think getting tired of being beaten up about it by people who just want to score political points. Clark makes a good point. As we get closer to the November elections, we're likely to hear more skewering of big business. But its important to acknowledge the positive impact that businesses have made, particularly in the last four years. After the break, Clark reveals why she thinks its harmful for employees to bring their whole selves to work and why the professional expectations put onto young people today can be suffocating.

Bob Safian

Well be right back.

Well be back in a moment, after a word from our premier brand partner, Capital one business.

Aparna Saran

There was panic that set in that night because I didn't want to let people down. We're back with Aparna Saran of Capital one business. She was recalling the time she woke up in a cold sweat, terrified that the new product she had been working on might fail. So the next morning, she sat down and wrote an email. It was Sunday morning, and I said, you know what?

I'm going to just share this with my peers. It was very emotional. It was like sort of a cry for help. Aparna realized that if the new product didn't take off, she needed a plan b, preferably multiple plan B's. I'm inviting them to be the thought partners so that we are mitigating as much risk as possible and we have contingency plans in place as we make this move.

You'd write something like this and your heart is pounding. Should I send. This was a super vulnerable moment for me. But then I was like, I'm going to just send this. Like, what's the worst that will happen?

It can't be worse than being on the front page of the newspaper. So she held her breath and hit send. What happened next would surprise even her. We'll hear about that later in the show. It's all part of Capital one.

Business's spotlight on business leaders following Reids refocused playbook.

Bob Safian

Before the break, CEO of the US chamber of Commerce Suzanne Clark talked about optimism and anxiety among us business leaders. Now she challenges the notion of bringing your full self to work and encourages us all to rethink our priorities. Let's jump back in.

I want to ask you, in the private conversations I've had with business leaders, one of the things I'm hearing is this sort of heightened uneasiness about addressing, like, certain kinds of social and cultural issues. Like in a short time they've gone from feeling like they need to take a stand on everything to now being fearful about taking a stand on anything. Right? Whether that's diversity in DEi or climate in ESG or Israel and Gaza. What are you hearing from leaders about that kind of challenge and how do you advise them to think about it?

Suzanne Clark

Look, I think, first of all, remember that book bowling alone? The idea that people were still going to bowl but not in leagues. It's really come true, right? People aren't joining churches and synagogues the way that they used to. My grandfather was an elk and in the rotary.

And people just aren't doing those things the way that they used to. And so they come to work and that might be the community that they have. And what we see is then people want to act out their whole selves in this community, in this one place. And my personal view is that we have to tell people, you can't. Right?

We're a 50 50 country. You think you know, what the person, the next cubicle thinks or the next Zoom box. But you might be wrong. Right. And so how do we evolve to a place where we can respect that?

People want to be community activists or political activists and give them time or space to do that, but help evolve to a place where you can't bring all of your pieces to work and have it be the only outlet for that? I've been doing this to you. In this chat, you're often asked, like, how do CEO's and businesses feel about this or about that? Is there a topic that you're surprised that you're not getting questions about, that you think you should or wish you should? I do think that we are not, as a country, prioritizing very well.

You know, I don't. It's not clear to me why we can't say we need to fix these three things. Yes, there's a list of 100. We're gonna fix these three things. And when they're on their way, we'll get to four, five, and six.

Right. We're at a place as a country where we think we can do all of the things at the same time, and it just doesn't work. And so I'm confused, maybe as a human, about strategic prioritization that we all understand in our own homes and our own budgets and our own businesses, but that we don't expect our leaders to fulfill in any way. Right. It's so interesting listening to you, because when you read the newspaper, watch tv, the challenges that we hear about business are business creating them by them being too big or them abusing their power.

Bob Safian

And what you're saying in a lot of ways is that the biggest challenges that business is facing is that the government is not creating an appropriately fertile landscape for those businesses to build the future that we want to have. I think the market takes care of things that get too big. The number of companies that are in the Fortune 500 today, that were there in the eighties is much smaller than the average citizen believes it is. It's a more fluid situation than I think people realize. And the idea that you still need government to step in on a real monopoly, sure.

Suzanne Clark

I mean, there's fair government regulation and fairness matters and competition matters. But when every merger is bad and anything big is bad, well, that's ridiculous too. I've thought about how the folks at JetBlue must feel like we would be too big if we were part of spirit. We still won't be as big as the folks we're competing against. You know, or as Apple says to the Department of Justice, like you say, we dominate the US market.

Bob Safian

We're playing in an international market and we don't dominate that. And like, you know, these are complicated and difficult questions. Obviously, if you look at our big tech companies, it's the one thing our adversaries cannot beat us at. They have not been able to figure it out, right? So if you think about the wars of the future and how they can be fought over tech and tech infrastructure and how all that's going to work, they've got to be laughing at us.

Suzanne Clark

That the one thing they can't figure out how to mimic or build or defeat, we're talking about taking down on our own out of a system of fairness. Right? Like what is the strategic priority here? You were first at the US chamber from 1997 to 2007. Then you left for a while before coming back.

Bob Safian

The challenges you faced back then, iraq war.com bubble. Does any of that feel familiar today? What's different about what you see now and what's different about what the chamber does now? The difference to me feels like cadence and pace and scale. So if you say inflation's at a 40 year high, you're definitionally saying that no one in leadership has ever experienced inflation like this, right?

Suzanne Clark

But we don't think about it in that human term. So if you think about the same time, no one in leadership had ever experienced a global pandemic. Nobody had ever experienced those supply chain disruptions. No one had ever experienced inflation like this. And so I think that is what's different.

Cadence of change, pace of change, and the drama of the past couple of years. Yeah, well, and I guess in that context, when you are a business leader and you are running a business, you may feel like you have a different kind of responsibility. Like people are looking to you for things that maybe weren't the purview of a business person in the same way that they are today. At the end of the day, you have to be a competent executive for your employees and your customers and your shareholders and your investors, and that has to be the most important service that you can provide. But increasingly, to do those things, you're called on in a leadership way that nobody else ever was.

You know, my grandfather came out of world War Two in the navy, used his GI bill to buy his in laws a house, never went to college, got a job, got a great job and supported his family for decades. And if you asked him what his purpose was, first of all, he would have laughed at you. But second of all, he would have said, I took care of my family, I took care of my community. And now we say to these young people, we gotta do that. You gotta take care of your family, you gotta take care of your community, but you gotta have a mission, and you gotta have a purpose, and you have to have, like, somehow we've gotten away from taking care of your family, taking care of your community as a life's purpose.

You have to also save the whales or something. You know, you have to do all of those things while having this other purpose. And I just think these young people today, they're so hard on themselves. And I try to tell them, business can be a great calling that allows you to be philanthropic, that allows you to create opportunities for other people, that allows you to solve problems. You know, it reminds me of what you were saying before about prioritization.

Bob Safian

Overall, I think as individuals, we do the same thing. The world is so interconnected that we feel like we have responsibility for all kinds of things. But as you say, you can't necessarily have impact on everything. It kind of ends where we started, right? Which is.

Suzanne Clark

It's why in however long, whatever period of time I have this job, it can't be about the individual fight for an individual business or an individual fight for an individual industry. It's gotta be about promoting and defending the whole system. Are we gonna preserve a messy, flawed system that's the best system in the world and keep making it better? Are we going to acknowledge what the free enterprise system has done because we have so much more, it still has to solve, right? Educational opportunities for more people, housing for more people, healthcare for more people.

That's going to be solved through innovation and technology and business. Right? So what's at stake is usually losing respect for and interest in and passion for the very job creators and problem solvers that can help us get through this complicated time. Suzanne, thank you so much for doing this. Thank you so much for the opportunity.

Bob Safian

Since talking with Clark, I've been thinking about the idea of purpose and the pressure I put on myself to do more than just take care of my family. It's a balance, right? I don't want to be insular and selfish, and wider issues do impact my family's future, the larger community. I suppose what I'm after, like a lot of ambitious business minded folk, is to have a healthy mix, to take care of my own, but also recognize the privileges that I have and to apply some of that toward helping others. I hope this podcast is a reflection of that larger goal and that you find it helpful as you try to navigate that balance too.

I'm Bob Safian, thanks for listening.

And now a final word from our brand partner, Capital one business.

Aparna Saran

Throughout the day, text messages and emails kept pouring in. Whatever you need, just let us know. We're back one more time with Aparna Saran of Capital one business. She was telling us about a Sunday morning email she fired off in a moment of panic. Minutes later, her inbox was overflowing and the support she found wasn't just emotional, it was practical.

We talked about detailed contingency plans and we created our go to market strategy. Before we are in full rollout mode, we had stage gates so that we could test and quickly learn and iterate. And within a matter of six months, as we were rolling things out channel by channel, those stage gates would allow us to pivot if we saw something that we didnt like. That day, Aparna learned a lesson that stayed with her having multiple plan BS doesnt just expand your options, it gives you new opportunities. The best way to pivot is actually open doors for thoughtful conversations because humility in knowing that you actually dont know everything, as well as the empathy in knowing that disruption is always drastic and abruptly helps you go through that pivot with other people in a very different way.

Capital one business is proud to support entrepreneurs and leaders working to scale their impact from Fortune five hundred s to first time business owners. For more resources to help drive your business forward, visit capitalone.com businesshub. That's Capitalone.com businesshub.

Bob Safian

Rapid response is await what original I'm Bob Safien. Our executive producer is Yves Tro. The production team includes Chris Gautier, Alex Morris, Masha Makutonina and Brandon Klein. Mixing and mastering by Aaron Bastinelli original music by Eduardo Rivera and Ryan Holiday. Our head of podcast is Lital Molad.

Visit mastersofscale.com to find the transcript for this episode and to subscribe. Subscribe to our email newsletter.