Monday, December 30, 2024

Jimmy Carter: Non-Positional Symbolic Leadership

The linking of leadership with a position, whether atop a government or a corporation, is so well established that it is easy for us to overlook U.S. President Carter as a leader because he was such a micromanager while in office. Carter’s steady leadership by example, and thus by acting as a symbol, began after he had lost re-election. Nelson Mandela of South Africa had led as a symbol in civil rights before he was elected president, and Gandhi effectively exercised ethical political, moral and religious leadership without holding any office. The reductionism or, at the very least, the mere association of leadership with holding an office biases how we evaluate leaders, as distinct from governors.  

During his presidency, Carter was recurrently labeled as a technocratic micromanager. This proclivity was no doubt formed from his vocational background as a nuclear engineer in the navy. A perspective does not get more micro than that. Such a perspective is at odds with being atop of a large organization, not to mention the U.S. Government in occupying its presiding office. Whereas President Reagan could be criticized for too much of the “the vision thing” at the expense of being the chief executive of federal agencies, at least visionary leadership fits very well with the office, whereas a technocratic orientation does not.

To be sure, Carter was hardly a failure in office, despite the general sense of the country during his last year in office as Reagan was campaigning in part on government being part of the problem. Even though Reagan strongly backed Paul Volker’s strong anti-inflation “medicine” at the Federal Reserve Bank even as its high discount rate exacerbated the unemployment part of “stagflation,” which had pummeled Carter’s popularity during his years in office, Carter had achievements that lasted well past his presidency.

As per one journalist’s analysis at the end of 2024, Carter’s “administration pursued the antitrust case vs AT&T which led to its break-up early in [the Reagan] administration. That, and the deregulation of telecommunications that followed in the 1990s, helped to lead to technological advances for the US economy, including personal computers and the internet. And he passed and signed bills to deregulate both the US airline and trucking industries, which significantly lowered the cost of moving both people and goods, also making the US economy more competitive. But most of the effectives of those policies weren’t felt during his one term in office, and thus, most people don’t associate them with Carter.”[1] He also deregulated the energy sector, which opened up market-incentives for exploration which would make the U.S. energy-sufficient. This is no small feat, considering the leverage the oil-producing states (OPEC) had over the U.S. in 1974 and 1979 as reduced gasoline supplies resulted in long lines at gas stations and thus frustrated voters.

In foreign policy, Carter anticipated his work at the Carter Center by successfully negotiating a peace treaty between Egypt and Israel, which bore fruit decades later when Egypt did not attack Israel amid the genocide of Palestinians in Gaza beginning in 2023. Even Carter’s successful negotiation to bring the American hostages home from Iran was not generally evident before Carter left office because the Iranian government held off the release until Reagan had been sworn in as president; Carter had angered the Iranians by having given permission to the Shah of Iran to get medical treatment in the United States.

The long-term benefits of some of Carter’s most significant work as president may seem ironic, given that president’s micromanaging approach at the expense of exercising paradigmatic visionary leadership. Even in running for re-election, Carter simply could not compete with Reagan’s orientation to enunciating a new paradigm as an ideal vision not only of the U.S, but of the world as well (e.g., peace through strength in dealing with the U.S.S.R.). Fortunately, long-term benefits from Carter’s work did not end on the day that Reagan because the 40th American president. For Carter was instrumental in knocking out some hitherto intractable diseases in Africa and in furthering the reputation of democracy internationally by monitoring elections in vulnerable countries. His labor in constructing houses in the Habitat for Humanity organization was a symbol that drew attention not only to poverty, but to shelter as a fundamental human right—something virtually unheard of in American culture. Moreover, his forty years of post-presidency work steadily etched humanitarianism in an otherwise occupied American consciousness, and perhaps even globally as well—certainly in Africa. From his example, a vision is evident of the salience that humanitarianism and honest democracy can have even in government policy. To be sure, his self-discipline in office following Nixon and Ford so as not to present the American people with another dishonest (Nixon) and enabling/corrupt (e.g., Ford’s pardon) president sent a message that government can indeed be led honestly, which has doubtless long-term benefits. There was no day of national mourning either for Nixon or Ford—or even Reagan, whose emphasis on visionary leadership fit the presidency so well. Indeed, praises for Carter upon his death were bipartisan—something that was clearly not the case when Reagan died.

In short, it is shortsighted to evaluate former heads of government based only on what they did while and office, and especially on the impacts from the decisions before the next election. This is not to say that the American people were wholly misguided in handing Reagan a landslide victory, for Reagan, unlike Carter, was willing to give Americans the hard economic medicine necessary to end first inflation, then recession. Moreover, Reagan’s orientation to the job of presiding by enunciating a societal (and world) vision rather than by micromanaging by taking small decisions meant that he was the more fitting candidate for office.

Perhaps had Carter volunteered to build houses and engaged foundations to eradicate stubborn diseases in Africa while he was in office, he might have been more in line with the use of symbol to sketch a vision both for American government and society, but this is doubtful because the perception of his weakness relative both to OPEC (and Iran, given the failed rescue attempt and no follow-up attempt) and “stagflation” was based on something actual. In contrast, Reagan proffered a strong state in tackling inflation, which happened, and U.S. budget deficits, which did not happen, and peace through strength in dealing with the U.S.S.R., a Communist dictatorship with nuclear weapons. It is important in remembering a former head of government to look realistically at not only what one did both before and after holding office, but also what things were like while the person had formal power. This is especially so in looking at leadership, which does not depend on being exercised in a formal office, even if the office is tailor-made for leadership as distinct from management. Carter was too much of a manager while in office, and he excelled at leadership vision via symbol (and example) outside of office.



1. Christ Isidore, “Analysis: Jimmy Carter’s Economic Legacy Is Stronger Than Most Remember,” CNN.com, December 30, 2024.


Saturday, April 20, 2024

On the Reputational Capital of a Business Leader on a Societal Stage

Is it better that companies be publicly or privately held? Such a question is of such magnitude that glossy, simplistic answers should be eschewed. This is not to say that the answer is situational in nature. Rather, it is more likely that each comes with pluses and minuses from the perspective of an economic system as a whole. As business “leaders” give their advice, it is important to keep in mind whether any personal or institutional conflicts of interest exist and thus could warp the space itself of the advice. Yes, I am intimating Einstein’s theory of general relativity here. Rather than provide an answer without having studied the matter sufficiently, I will provide a way to look at the advice given by Jamie Dimon, CEO of JPMorgan Chase.

In 1996, the number of publicly traded companies in the U.S. peaked at 7,300; less than 30 years later, that number stood at 4,300.[1] Companies were increasingly staying private. Jamie Dimon was not happy. “The total should have grown dramatically, not shrunk,” he wrote in his 2024 shareholder letter.[2] Private equity funds were behind the trend of taking or keeping a company private. Although it is true that such institutional investors can “boost their profits as quickly as possible for a quick sale down the line,”[3] it is also true that private companies do not face stakeholder pressure to maximize quarterly profit reports. Neither system is perfect, but the orientation of the managements of publicly traded companies to their respective quarterly earnings reports is legion.

For his part, Dimon wrote, “This trend is serious.”[4] He pointed to “intensified reporting requirements, high litigation expenses costly regulations, overbearing board governance, shareholder activism, heightened public scrutiny and ‘the relentless pressure of quarterly earnings’” as reasons why a publicly traded company might go private.[5] If these factors are so onerous,  perhaps being privately-held is better, economically speaking. Nevertheless, Dimon was concerned. But rather than assume that his warning is the result of business expertise, we should be prudent by noting that “Dimon’s company, of course, makes a huge amount of money from taking companies public, so he’s not exactly an impartial observer.”[6] So even though “Dimon said his concerns are broader than JPMorgan’s bottom line,” we should not be so naïve as to take him at his word.

To be credible societally,  business CEO seeking to be a business leader on the societal stage cannot simply advise that which is in one’s company’s financial interests. If it is, then unless the CEO has enough reputational capital on the societal stage from having given advice for the good of the economy at the expense of one’s own firm’s interests, then the public is wise to be skeptical.

The gravitational pull on his analysis (from his orb, JPMorgan) can be detected from his statements on the quarterly earnings reporting of publicly traded companies. “There is something very positive about detailed and disciplined quarterly financial and operating reporting,” he wrote in his statement to shareholders. Is it to be supposed that managements of privately held companies owned by institutional investors face no pressure to maintain accurate accounting? It seems to me that making quarterly reports public would only increase a management’s orientation to quarterly performance at the expense of long-term profitability—excessively so. Yet Dimon only notes that CEOs and boards of directors of publicly traded companies “should resist the undue pressure of quarterly earnings, and it is clearly somewhat their fault when they don’t.”[7] Any financial person on Wall street would easily dismiss any moral sway of “should resist” and admit to us that Dimon’s reliance on ethical responsibility would only be dead on arrival on the street. Dimon’s straw-man assurance that moral suasion is sufficient to eliminate excessive focus on quarterly profits of publicly traded companies is evidence of his bias in favor of publicly traded companies doubtless because JPMorgan makes money in taking companies public. 

In other words, in extolling the benefits of that system of business while nearly dismissing its major weakness with an inadequate fix, the gravitational pull on Dimon can be detected. Not owning up to it only deepens a CEO’s lack of reputational capital societally. It would have been much better had he owned up to the bias in his view and claimed that there was still some merit to some of his points than try to hide his real agenda.  

See: More on business ethics at JPMorgan Chase.


1. Nicole Goodkind, “The Stock Market Is Shrinking and Jamie Dimon Is Worried,” CNN.com, April 9, 2024.
2. Ibid.
3. Ibid.
4. Ibid.
5. Ibid.
6.  Ibid.
7.  Ibid.