STEVE FORBES, CHAIRMAN and Editor-in-Chief of Forbes Media, talks with business leaders Bradley Brookshire and Whit Riter during a breakfast event called Leaders and Legends at the University of Texas at Tyler on Friday. Forbes was the keynote speaker at the event, which was sponsored by UT Tyler's Soules College of Business.

Business legend Steve Forbes was the guest of honor at UT Tyler’s inaugural Leaders and Legends event for East Texas business leaders.

Forbes, the chairman and editor-in-chief of Forbes magazine and a two-time presidential candidate, touched on a broad spectrum of topics and offered his thoughts on where the economy is heading.

The biggest prediction was his belief that a trade deal with China will center on natural gas exports.

“I wouldn’t be surprised, if as part of a deal, you’d get exports (of liquefied natural gas) to China totaling hundreds of billions of dollars,” Forbes said.

The event, co-chaired by Brad Brookshire and John Soules Sr., was created as a means to help bring together business leaders, politicians and students and representatives from the college. The business leaders in attendance either employ more than 100 people or do more than $40 million in annual sales.

UT Tyler President Michael Tidwell said with these groups working together, they can achieve wonderful results for the region’s economy. Tidwell said Forbes was a natural choice for the event with his experience in the business and political worlds.

Brookshire said as his family’s company recently celebrated its 90th anniversary,

he has reflected on his own growth as chairman and now CEO of the company.

“One of the things I’ve done to help further my education as a CEO is to visit with other CEOs,” he said. “I’ve learned from other leaders and that’s what’s exciting about this forum, getting to meet great leaders and get to know them.”

Brookshire said he hopes the event will result in the business leaders finding new ways to collaborate.

Soules said that while academia tends to be looked at as different from the business world, his experience over the past year with the Soules College of Business at UT Tyler has shown him the value of the two worlds working toward common goals.

Forbes spoke about the challenges in our current economy and how businesses and politicians can come together to overcome.

He warned about the danger of using rhetoric, such as the phrase trade deficits.

“Countries don’t trade with each other,” he said. “Individuals, business and organizations trade with each other. You each get something from the transaction; it’s not a deficit. Trade is not zero-sum, trade is not warfare. Some transactions are more fun than others.”

While one side may benefit more in a particular transaction, they both get something out of it, he said.

“Trade deficit is not the equivalent of a company losing money,” he said. “It’s transactions; that’s all it is. The U.S. has had a trade deficit for the last 350 out of 400 years. Look around you at the disaster this has caused.”

In a city that serves as the regional hub for health care, Tyler also can benefit from changes to the health care system.

Forbes advocated for new approaches that encourage innovation and transparency.

“Health care is the biggest growth market ever, because there’s nothing more personal than health,” he said.

Afterward Forbes took questions from the attendees. Several focused on uncertainty in the upcoming midterm elections. While Forbes predicted Republicans will keep the Senate, he said there is uncertainty in the House, and equally as important, there is uncertainty in many gubernatorial races.

Billy Hibbs, chairman and CEO of Heartland Security Insurance Group, asked if Forbes believes a flat tax is achievable.

Forbes said he believes it will happen, but it will take a presidential candidate making a flat tax their focus.

He also said the IRS code needs a major overhaul and simplification.

Forbes also advocated for a transition away from Social Security, that would guarantee recipients still received benefits, but would begin shifting young people onto privatized savings programs.

“The problem is younger people, that’s where the system is going to go kablooey,” he said. “For them, while you have time, set up personal savings accounts.”

Forbes said creating buy-in would be essential to any transition and politicians would need to assure older voters they won’t lose anything, while gaining the trust of younger voters in a new system that will allow them to retire.

Tidwell said the Leaders and Legends event will be a new tradition bringing together business leaders and politicians about once a year for the sake of innovation, collaboration and communication.

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