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  SPIEGEL Interview with US Commerce Secretary Gutierrez: 'Isolationist Policies Would Be a Big Mistake'

SPIEGEL Interview with US Commerce Secretary Gutierrez 'Isolationist Policies Would Be a Big Mistake'

Part 2: 'Shocking Examples of Wrongdoing'

Gutierrez: I think there are many different US companies, not one "Corporate America." The owners of the company hire a CEO and the job is to make sure that the owners receive a return on their investment. In order to do that, the CEO has to take care of his employees, he has to take care of his customers. That's how the system works.

SPIEGEL: In theory.

REUTERS

Gutierrez would like to see the US and Europe cooperate more closely on intellectual property. Here, an employee in a textile factory in China.

SPIEGEL: But the US car industry, to name an example, is in dramatic decline. The CEO of General Motors is responsible for losses of more than $50 billion. But has just been confirmed by the board of directors. Again, what's wrong with "Corporate America?"

Gutierrez: I think you need to look at every company individually.

SPIEGEL: But why are CEOs currently so unpopular in the US? Is it a result of corporate greed, the lack of social responsibility on their part -- or both?

Gutierrez: Of course, there have been some shocking examples of wrongdoing. The Enron-scandal was very, very unfortunate. And if I were an employee of Enron, I would be very angry with the people at the top. But how can you be in favor of jobs and be against business?

SPIEGEL: In some areas, though, even business leaders are calling for government intervention -- on healthcare, for instance. Many Americans only have health insurance as long as they are employed. That is not just dangerous, but is also extremely expensive for American companies. Why not introduce universal healthcare in the US?

Gutierrez: I believe in free markets, but the government has a role to play in healthcare. So now, tax breaks are given to corporations to give healthcare to employees. But only to corporations, not to individuals. So they receive their healthcare from their company through insurance but they never get to see a bill. They don't even know how much they pay for an X-ray and whether that could be done cheaper or more efficiently. There is simply not enough competition.

SPIEGEL: What about environmental policy in times of exploding oil prices? Should it be left to market forces to solve the problem, or should the government intervene?

Gutierrez: Government needs to play a role in that. But we have to be careful. We know global climate change is a global phenomenon. If we were to do some very aggressive unilateral regulations that all of a sudden make it easier to build a plant in China than to build a plant in the US, then we lose more jobs.

SPIEGEL: Recently, you hit the campaign trail for the Republican presidential candidate John McCain. That is rather unusual for a sitting US Secretary of Commerce.

Gutierrez: I did some work as a citizen. In this office, I am here as a Secretary of Commerce. I can tell you that I believe in economic policies that make taxes lower, that make the creation of small businesses easier. Seventy percent of the jobs in the US are small businesses, not the big multinational corporations that everybody knows.

SPIEGEL: In his campaign, McCain has started to focus on the classic Republican issue of lower taxes. Is he correct in doing so?

Gutierrez: Like many others, I believe that we have to make our taxes even lower to be more competitive in a world where Spain or other European countries are also taking taxes down.

SPIEGEL: Is that feasible? The US is already struggling with a huge budget deficit and an eroding infrastructure. Many streets, schools, bridges are in a terrible condition.

Gutierrez: Our tax revenue today is about 18.6 percent of GDP, and the average historic rate is 18.3 percent. That does not tell me that we are not collecting enough taxes. What it does tell me is that we are probably spending too much, and spending on things that are not generating returns.

SPIEGEL: Nevertheless, many Americans are deeply frustrated with the current economic situation. Will that frustration decide the election in November?

Gutierrez: I know that people are very concerned about the economy. But even though there is concern about globalization, I think there is equal concern about isolationism. I also believe that Americans do not forget what happened on 9/11 very easily, and the national security is still extremely important.

SPIEGEL: From your experience as a CEO and in government, what requirements should a presidential candidate fulfil?

Gutierrez: When I hired someone, I always paid a lot of attention to two things: One is references. And the other one is, tell me what you have done. Show me your resume.

SPIEGEL: You were the youngest CEO in the history of Kellogg's. Isn't an infusion of fresh blood as important as experience?

Gutierrez: I tell you: The best indicator of what someone will do is what they have done -- not so much what they tell you.

Interview conducted by Gregor Peter Schmitz and Gabor Steingart

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