New book exposes lies behind the myth of Trump's business acumen

MSNBC

17 Sept 202412:00

Summary

TLDRThe video script recounts Donald Trump's tumultuous journey with his casino businesses, which included multiple bankruptcies. It reveals that Trump's 1982 claim of a $100 million net worth was vastly inflated, and he was actually cash-strapped. His strategy involved securing a casino license and an investor, Holiday Inn, to finance his Atlantic City venture. The script also discusses Trump's relationship with his father, Fred Trump, who was the real money man behind Donald's fortune, and how Trump's public image as a successful businessman was often more illusion than reality, with many of his ventures failing or underperforming.

Takeaways

🏢 The Trump Plaza Hotel and Casino was demolished in 2021, marking a significant moment in the history of Donald Trump's casino businesses, which faced multiple bankruptcies.
💼 In 1982, Donald Trump claimed to be worth $100 million when Forbes Magazine published its first list of the 400 richest Americans, but he was actually worth around $5 million and was experiencing financial difficulties.
📈 Trump obtained a casino license from the New Jersey Casino Control Commission and secured $50 million from Holiday Inn to build a casino in Atlantic City, with a profit-sharing agreement.
🔨 To convince Holiday Inn of his financial capability, Trump staged a scene with earth-moving machinery at the construction site, showcasing an image of progress and success.
👨‍👦 The relationship between Donald Trump and his father, Fred Trump, was crucial to Donald's financial success, with Fred being the primary source of funding behind his son's ventures.
💰 Fred Trump's wealth and business acumen were downplayed by Donald, who often portrayed himself as a self-made billionaire, despite inheriting and significantly benefiting from his father's fortune.
🏗️ Trump's business practices involved a lot of showmanship and image creation, such as staging the construction site for the Holiday Inn executives and later creating a fake boardroom for 'The Apprentice' TV show.
📉 Despite the public image of success, many of Trump's businesses, including a Chicago tower and a DC hotel, performed poorly and were often subsidized by other income sources.
🤝 Trump's charisma and persuasive abilities allowed him to secure investments and opportunities from smart and accomplished individuals, even when his track record was not entirely successful.
💬 The public's perception of Trump as a successful businessman has been a persistent narrative, despite evidence suggesting that much of his wealth and success was inherited and not self-generated.

Q & A

What event took place in 2021 mentioned in the script?
-The demolition of the Trump Plaza Hotel and Casino occurred in 2021.
How many Trump casinos filed for bankruptcy according to the script?
-Multiple Trump casinos filed for bankruptcy, but the exact number is not specified in the script.
In what year did Forbes Magazine first publish its list of the 400 richest Americans, and was Donald Trump on it?
-Forbes Magazine first published its list of the 400 richest Americans in 1982, and Donald Trump was on the list.
What was the discrepancy between Donald Trump's claimed net worth and his actual net worth in 1982 according to the script?
-Donald Trump claimed to be worth $100 million in 1982, but he was actually only worth about $5 million.
What significant event happened in Donald Trump's business career in 1982?
-In 1982, Donald Trump obtained a license from the New Jersey Casino Control Commission to operate a casino in Atlantic City and found an investor, Holiday Inn, to help finance the project.
What was the arrangement between Donald Trump and Holiday Inn regarding the financing of the casino project?
-Holiday Inn agreed to give Donald Trump $50 million in cash to build the casino, and then Trump and Holiday Inn would split the profits.
What was the initial impression Donald Trump wanted to create for Holiday Inn executives when they visited the site?
-Donald Trump wanted to create the impression that the project was underway by hiring every piece of earth-moving machinery he could find and having them push around.
What was the nickname or alias Donald Trump used in his early career?
-Donald Trump used the alias 'Donald Barron Trump' in his early career.
How did the script describe the relationship between Donald Trump and his father, Fred Trump?
-The script describes the relationship as beneficial to Donald Trump, with Fred Trump being the money man behind Donald's entire fortune.
What was one of the first lucky breaks mentioned in the script that benefited Donald Trump?
-One of the first lucky breaks mentioned was the inheritance and enhancement of wealth from his father, Fred Trump, which was partly due to tax fraud.
What was the condition set by Holiday Inn's CEO before they would proceed with the casino deal?
-The condition was that things had to be underway with the project, which meant that Donald Trump needed to show progress on the casino construction.

Outlines

00:00

🏢 The Rise and Fall of Trump's Casino Empire

The paragraph discusses the demolition of Trump Plaza Hotel and Casino in 2021, marking the end of a series of financial failures for Donald Trump's casino businesses, which included multiple bankruptcies. It then takes a historical dive back to 1982, when Trump first claimed to be worth $100 million, a figure greatly exaggerated from his actual net worth of around $5 million. Despite financial struggles, Trump secured a casino license in Atlantic City, New Jersey, and partnered with Holiday Inn to finance the project with a $50 million cash injection, on the condition of splitting profits. The narrative highlights Trump's tendency to exaggerate his wealth and success, and how he leveraged this to secure investments, exemplified by the story of impressing Holiday Inn executives with a show of activity at the construction site.

05:02

💰 Trump's Fortune: Inheritance and Tax Fraud

This paragraph delves into the origins of Donald Trump's wealth, emphasizing the significant financial support he received from his father, Fred Trump. It challenges the narrative that Trump built his fortune solely through his own business acumen, revealing that he was born into wealth and further benefited from tax fraud schemes. The discussion points out the irony of Trump's public image as a self-made man, contrasting it with the reality of his reliance on family wealth and the downplaying of his father's contributions. The paragraph also touches on Trump's relationship with his father, Fred, who was the real 'money man' behind the Trump fortune, and how Fred's strict business procedures were eventually undermined by Donald's more flamboyant and risky approach to business.

10:06

🌐 The Illusion of Trump's Business Success

The final paragraph addresses the perception of Donald Trump as a successful businessman, questioning the legitimacy of this image. It discusses the 'stagecraft' involved in creating the set for 'The Apprentice,' which was necessary because Trump's actual offices were not as impressive as the image he wanted to project. The paragraph also highlights Trump's ventures post-'The Apprentice,' such as the Chicago Trump Tower and the Old Post Office hotel in DC, which were financially unsuccessful and required significant subsidies. The discussion suggests that Trump's persuasive charisma has been a key factor in his ability to convince people of his business prowess, despite a pattern of financial failures and the need for external support to sustain his ventures.

Mindmap

Keywords

💡Demolition

Demolition refers to the process of tearing down buildings or structures. In the context of the video, it is used to describe the destruction of the Trump Plaza Hotel and Casino in 2021, symbolizing the downfall of Trump's casino business ventures. The script mentions 'the demolition of the Trump Plaza Hotel and Casino back in 2021' to illustrate the failure of Trump's casino businesses.

💡Bankruptcy

Bankruptcy is a legal status where an individual or a business is unable to repay their outstanding debts. The video discusses how 'multiple Trump casinos ended up filing for bankruptcy,' highlighting the financial troubles that plagued Trump's casino empire and casting doubt on his business acumen.

💡Forbes Magazine

Forbes Magazine is a well-known publication that covers business, investing, technology, entrepreneurship, and leadership. The video references 'Forbes Magazine published its list of the 400 richest Americans' in 1982, where Trump claimed to be worth $100 million, but was 'really only worth about $5 million,' indicating discrepancies between his public claims and actual financial status.

💡Casino Financing

Casino Financing refers to the process of securing funds to establish or expand casino operations. The video describes how Trump obtained a license to operate a casino in Atlantic City and found an investor, Holiday Inn, to finance the project, illustrating the reliance on external funding for his business ventures.

💡Harrah's Holiday Inn Casino

Harrah's Holiday Inn Casino is a reference to the partnership between Trump and Holiday Inn to build a casino. The video mentions 'Trump started the Harrah's Holiday Inn Casino,' emphasizing the collaborative nature of the project and the role of partnerships in his business endeavors.

💡Tax Fraud

Tax Fraud involves the willful attempt to evade or defeat the tax laws, typically by underreporting income or overstating deductions. The video suggests that Trump's wealth was 'enhanced by tax fraud,' implying that his financial success may have been partly due to illegal activities rather than legitimate business practices.

💡Inheritance

Inheritance refers to the process of receiving assets or wealth from a deceased person. The video discusses how Trump 'inherited' wealth from his father and how this inheritance was a significant factor in his financial success, indicating that his fortune was not solely self-made.

💡The Apprentice

The Apprentice is a reality television series where Donald Trump was the host and executive producer. The video mentions 'The Apprentice' as a show that contributed to Trump's public image as a successful businessman, despite the show's producers having to 'create a whole other area' to present a more luxurious image than what actually existed.

💡Charisma

Charisma refers to a compelling charm or appeal that can influence others. The video suggests that Trump has an 'innate charisma' that has allowed him to persuade people and gain opportunities, even when his business ventures have been unsuccessful, highlighting the role of personal charm in his career.

💡Public Perception

Public Perception is the collective opinion or belief that people have about a person, event, or situation. The video discusses how Trump has been able to 'convince people over and over again' of his business success, despite evidence to the contrary, showing the power of image and reputation in shaping public perception.

💡Financial Losses

Financial Losses refer to a decrease in wealth or value. The video details various instances of Trump's businesses incurring losses, such as 'he lost 7 to $10 million every year' on a hotel in DC, and having to subsidize golf courses in the UK, demonstrating the financial challenges faced by his ventures.

Highlights

The Trump Plaza Hotel and Casino was demolished in 2021, marking the end of a series of financial failures for Trump's casino businesses.

In 1982, Donald Trump claimed to be worth $100 million, but was actually only worth around $5 million and was losing money.

Trump obtained a casino license in Atlantic City, New Jersey, and secured $50 million from Holiday Inn to build the casino, with a profit-sharing agreement.

To convince Holiday Inn of his financial stability, Trump staged a scene with earth-moving machinery to create an illusion of progress.

Trump's success was not due to business acumen but rather a series of lucky breaks and advantageous circumstances.

Fred Trump, Donald's father, was the real money man behind his son's fortune, providing substantial financial support.

Donald Trump inherited wealth and further benefited from his father's tax fraud schemes.

Fred Trump was portrayed as a small-time businessman, despite being the main financial backer of Donald's ventures.

Donald Trump's early businesses were heavily subsidized by his father's wealth, contradicting his self-made narrative.

Fred Trump allowed his son to take over the business and even supported Donald's claims of surpassing him, despite the reality.

The relationship between Donald and Fred Trump was central to Donald's business endeavors and his public image.

The set of 'The Apprentice' was a fabrication, created to project an image of wealth and success that did not align with the actual state of Trump's offices.

Donald Trump's public persona as a successful businessman is questioned, given the financial struggles of his ventures post-'The Apprentice'.

Despite the facade, Trump's charisma and persuasive abilities have been key in convincing people to invest in his projects.

Investors in Trump's projects often focus on the idea of protecting a besieged Trump, rather than the financial viability of the investments.