A Giant of Economic Policy: Remembering George Shultz
It's an honor to reflect on the legacy of George Shultz, a figure whose influence on economic policy resonates even today. I won't be diving into current economic conditions or monetary policy, but rather, focusing on the remarkable accomplishments of a man I've long admired.
I've held George Shultz in high regard since my college days. He's a role model, a sentiment I echoed when addressing Princeton's Class of 2025, marking my own graduation's 50th anniversary.
Like many, I entered the world after college without a concrete plan, but with a desire to blend private-sector work with public service. Figures like George Shultz, whose picture graced our Princeton eating club, were inspirational. My father, a labor lawyer, also played a part, representing a major steel company and sharing Shultz's respect for workers and the collective bargaining process.
Over the years, I followed George's career with great interest. I never imagined I'd have the privilege of meeting him, which I did after joining the Fed in 2012. I recall lively economic discussions during group lunches at his Stanford conference room. He even hosted us for a memorable, albeit chilly, round of golf.
Today, we celebrate George's broad economic achievements and the extraordinary man he was. Several key traits stand out.
He possessed strong principles, unwavering integrity, common sense, and a practical approach to policy-making. He deeply believed in the wisdom of markets, preferring minimal government intervention. This philosophy guided his views on collective bargaining, wage and price controls, and exchange rates.
But here's where it gets controversial... He wasn't an absolutist. He recognized that public policy has a role in addressing market failures. As a successful policymaker, George brought academic rigor to the practical, often messy, world of policy. He tackled major issues through four cabinet appointments with remarkable success, continuing to contribute long after leaving public office, especially in healthcare reform, climate change, and nuclear disarmament.
He was also deeply concerned about racial discrimination in the workplace and society, using his authority to expand opportunities for minorities. He believed this was both a moral and economic imperative.
He adhered to his principles while treating everyone with honesty and respect, even those with whom he disagreed. Labor leaders welcomed his appointment as Secretary of Labor. He excelled at guiding people toward agreement, often allowing parties to reach their own conclusions, fostering ownership and adherence to the agreements. His friendships and collaborations transcended political boundaries.
He often said, "Trust is the coin of the realm," emphasizing that mutual trust is essential for progress. His integrity formed the basis of that trust. His example offers valuable lessons for all who aspire to public service.
What do you think? Do you agree with Shultz's approach to market intervention, or do you believe in a more hands-off approach? Share your thoughts in the comments below!
