Tariffs, Tech, and Towers

During a recent speech at the Milken Institute, U.S. Secretary of the Treasury Scott Bessent outlined several key economic policies that left me with a few questions.

“The President’s signature tax legislation will prevent an enormous tax hike on Main Street by…”

1. Making the small business deduction permanent
2. Providing tax credits for research and innovation in high-tech industries
3. Restoring 100% equipment expensing while extending it to new factory construction

During his speech, Bessent mentioned signing an order to reduce the federal approval process for new energy and construction processes from several years to a few months. This would allow you to put capital to work to build America (similar to what Karen Bass said during her State of the City Address).

While watching this speech, I noticed Bessent stressed the significance of energy, referencing it a total of five times. Notably, he mentions the word “energy” three times in this one section. He stated, “The building renaissance will be fueled by the President’s energy dominance agenda. Energy is the base layer of all economic activity. That’s why the administration champions an all-of-the-above approach to energy development to drive down the cost of doing business.”

From what I understand here, Bessent is predicting a rush in construction and economic growth in real estate development because of the President’s energy policies. He believes that affordable and abundant energy is the main ingredient for all economic activity, including building and development. An “all-of-the-above” approach means supporting the development of all types of energy sources: fossil fuels (oil, gas, coal), nuclear power, and renewable energy (solar, wind, etc.). The ultimate goal of this approach is to increase the overall energy supply and thereby lower energy costs. Lower energy costs could essentially reduce the cost of doing business across all sectors, including real estate, thus fueling the building renaissance.

While watching this speech and sit down interview with Michael Milken, I had more questions than answers. From this point on, I dove into studying what is truly unfolding in America. Beyond the rhetoric, beyond underlying agendas, and beyond the constant shifts in headlines and external opinions, my commitment is to meticulously analyze economic developments, report on crucial insights, simplify complex economic policies and emerging trends into clear language, and uncover actionable strategies designed to empower others in their business ventures, enabling them to navigate the evolving landscape, identify prime opportunities, and build lasting legacy and success.