TrUMp's Approach to Business Deals: Negotiation Skills or Pure Luck?
Regarding Donald Trump's approach to business deals, the assertion that he relies on pure luck rather than negotiation skills is a common refrain. However, the truth is much more complex and often darker.
Has Trump Had Luck in His Deals?
It is true that some of Trump's ventures have indeed faced bankruptcy or have not performed as expected. The infamous Trump University scandal and the unsuccessful Trump Taj Mahal casino are but two examples. Yet, Trump often presents himself as a master negotiator and a savvy businessman, as highlighted by the semi-biographical book The Art of the Deal, which he ghostwrote with journalist Tony Schwartz. But beneath this facade lies a different reality.
The Reality of Trump's Business Dealing
For Trump, business deals are not about mutually beneficial outcomes; they are zero-sum games. In other words, he aims to benefit at the expense of his partners, often leaving them worse off. This approach is not driven by genuine business acumen but by a manipulative and often illegal methodology.
Manipulative Tactics in Business Dealings
Trump's business partners often found themselves in awkward situations when providing goods or services to the Trump Organization. He would identify perceived flaws in the work, and offer a pitifully low settlement (typically 5-10% of the contract price) while insisting on a take-it-or-leave-it attitude. When legal action ensued, Trump would employ dilatory tactics to wear down his creditor, leveraging the slow-moving U.S. court system to his advantage.
This strategy is not merely theoretical; it was honed by his mentor, attorney Roy Cohn. Cohn, who served as chief counsel to Senator Joseph McCarthy during the infamous ‘Red Scare’ of the 1950s, taught Trump the nuances of using the legal system to his advantage. These tactics included dragging out lawsuits indefinitely, incurring high legal fees to the detriment of the creditor, and ultimately causing them to either capitulate due to financial strain or face bankruptcy.
Case Study: Wearing Down Creditors
A prime example of this strategy is seen in a multitude of lawsuits filed against the Trump Organization. These legal battles were protracted through countless continuances and delays, all of which added to the financial burden of the plaintiffs. By running up these costs, Trump ensured that many of his business partners either settled or declared bankruptcy, thus eliminating any future business dealings.
Conclusion
In summary, Donald Trump's approach to business deals is fraught with manoeuvring and manipulation, rather than genuine business acumen. His tactics, honed over a lifetime, involve treating business partners as opponents and employing legal and financial maneuvering to extract maximum benefit. Luck may have played a role in some of his ventures, but it does not encapsulate the overarching narrative of his business dealings.