By Barry Eitel
SAN FRANCISCO (AA) – The era of the “global elite” is over, the head of General Electric (GE) said Monday in an annual letter to investors.
The letter by Jeffrey Immelt, part of a 32-page report from the company, covered a wide range of subjects but focused on globalization and the rise of protectionist trade theories supported by the administration of President Donald Trump.
"Are we witnessing the end of globalization?” Immelt wrote. “I don’t think so. It is the end of the 'global elite,' those who see the world only from financial centers or a website.”
Immelt said GE can find success without favorable trade deals because of a strategy aimed at selling products in countries where they are built.
Since taking office last month, Trump has abandoned the Trans-Pacific Partnership trade agreement between 12 Asian, South American and North American nations. He has also called for a border tax on goods manufactured in other countries that are imported to the U.S.
In a rare public speaking engagement last week at a conservative conference, Trump’s chief strategist, Steve Bannon, called for an age of “economic nationalism”.
Immelt voiced measured criticism of protectionist policies as well as praise for Trump’s push to deregulate American industry.
“For an American company, our country is diverging from the rest of the world,” said Immelt. “We will be less of a leader in trade. Meanwhile, we are stripping away years of bad regulatory and economic practices to promote competitiveness.”
Immelt also critiqued American businesses, saying that corporations are partly responsible for the anxieties in the U.S. workforce.
“American business needs to invest more,” he said. “Over the past years, capital investment has declined substantially. Out-sourcing, purely to achieve lower wages, is too easy. The massive industry consolidations that we see today haven’t helped, because they have choked off innovation and reduced investments in a competitive workforce.”
Stock of GE closed slightly less than 1 percent Monday, to $29.94.