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Tuesday, November 22, 2016

Exclusive Interview: How Jared Kushner Won Trump The White House

NOV 22, 2016 @ 06:00 AM

 

Jared Kushner (Jamel Toppin for Forbes)

Steven Bertoni ,  

FORBES STAFF I cover the Forbes Under 30 franchise, technology and entrepreneurs.  This story appears in the December 20, 2016 issue of Forbes. Subscribe

It’s been one week since Donald Trump pulled off the biggest upset in modern political history, and his headquarters at Trump Tower in New York City is a 58-story, onyx-glassed lightning rod. Barricades, TV trucks and protesters frame a fortified Fifth Avenue. Armies of journalists and selfie-seeking tourists stalk Trump Tower’s pink marble lobby, hoping to snap the next political power player who steps into view. Twenty-six floors up, in the same building where washed-up celebrities once battled for Trump’s blessing on The Apprentice, the president-elect is choosing his Cabinet, and this contest contains all the twists and turns of his old reality show.

Winners will emerge shortly. But today’s focus is on the biggest loser: New Jersey governor Chris Christie, who has just been fired from his role leading the transition, along with most of the people associated with him. The episode is being characterized as a “knife fight” that ends in a “Stalinesque purge.”

The most compelling figure in this intrigue, however, wasn’t in Trump Tower. Jared Kushner was three blocks south, high up in his own skyscraper, at 666 Fifth Avenue, where he oversees his family’s Kushner Companies real estate empire. Trump’s son-in-law, dressed in an impeccably tailored gray suit, sitting on a brown leather couch in his impeccably neat office, displays the impeccably polite manners that won the 35-year-old a dizzying number of influential friends even before he had gained the ear, and trust, of the new leader of the free world.

“Six months ago Governor Christie and I decided this election was much bigger than any differences we may have had in the past, and we worked very well together,” he says with a shrug. “The media has speculated on a lot of different things, and since I don’t talk to the press, they go as they go, but I was not behind pushing out him or his people.”

The speculation was well-founded, given the story’s Shakespearean twist: As a U.S. attorney in 2005, Christie jailed Kushner’s father on tax evasion, election fraud and witness tampering charges. Revenge theories aside, the buzz around Kushner was directional and indicative. A year ago he had zero experience in politics and about as much interest in it. Suddenly he sits at its global center. Whether he plunged the dagger into Christie–Trump insiders insist the Bridgegate scandal did him in–is less important than the fact that he easily could have. And that power comes well-earned.

Kushner almost never speaks publicly–his chats with FORBES mark the first time he has talked about the Trump campaign or his role in it–but interviews with him and a dozen people around him and the Trump camp lead to an inescapable fact: The quiet, enigmatic young mogul delivered the presidency to the most fame-hungry, bombastic candidate in American history.

“It’s hard to overstate and hard to summarize Jared’s role in the campaign,” says billionaire Peter Thiel, the only significant Silicon Valley figure to publicly back Trump. “If Trump was the CEO, Jared was effectively the chief operating officer.”

“Jared Kushner is the biggest surprise of the 2016 election,” adds Eric Schmidt, the former CEO of Google, who helped design the Clinton campaign’s technology system. “Best I can tell, he actually ran the campaign and did it with essentially no resources.”

No resources at the beginning, perhaps. Underfunded throughout, for sure. But by running the Trump campaign–notably, its secret data operation–like a Silicon Valley startup, Kushner eventually tipped the states that swung the election. And he did so in manner that will change the way future elections will be won and lost. President Obama had unprecedented success in targeting, organizing and motivating voters. But a lot has changed in eight years. Specifically social media. Clinton did borrow from Obama’s playbook but also leaned on traditional media. The Trump campaign, meanwhile, delved into message tailoring, sentiment manipulation and machine learning. The traditional campaign is dead, another victim of the unfiltered democracy of the Web–and Kushner, more than anyone not named Donald Trump, killed it.

That achievement, coupled with the personal trust Trump has in him, uniquely positions Kushner to be a power broker of the highest order for at least four years. “Every president I’ve ever known has one or two people he intuitively and structurally trusts,” says former secretary of state Henry Kissinger, who has known Trump socially for decades and is currently advising the president-elect on foreign policy issues. “I think Jared might be that person.”

JARED KUSHNER’S ASCENT from Ivanka Trump’s little-known husband to Donald Trump’s campaign savior happened gradually. In the early days of the scrappy campaign, it was all hands on deck, with Kushner helping research policy positions on tax and trade. But as the campaign gained steam, other players began using him as a trusted conduit to an erratic candidate. “I helped facilitate a lot of relationships that wouldn’t have happened otherwise,” Kushner says, adding that people felt safe speaking with him, without risk of leaks. “People were being told in Washington that if they did any work for the Trump campaign, they would never be able to work in Republican politics again. I hired a great tax-policy expert who joined under two conditions: We couldn’t tell anybody he worked for the campaign, and he was going to charge us double.”

Kushner’s role expanded as the Trump ticket gained traction–so did his enthusiasm. Kushner went all-in with Trump last November after seeing his father-in-law pack a raucous arena in Springfield, Illinois, on a Monday night. “People really saw hope in his message,” he says. “They wanted the things that wouldn’t have been obvious to a lot of people I would meet in the New York media world, the Upper East Side or at Robin Hood [Foundation] dinners.” And so this Harvard-educated child of privilege put on a bright-red Make American Great Again hat and rolled up his sleeves.

A power vacuum awaited him at Trump Tower. When FORBES visited the Trump campaign floor in the skyscraper a few weeks before Kushner’s Springfield epiphany, there was literally nothing there. No people–and no desks or chairs or computers awaiting the arrival of staffers. Just campaign manager Corey Lewandowski, spokesperson Hope Hicks and a strategy that centered on Trump making headline-grabbing statements, often by calling in to television shows, supplemented by a rally once or twice a week to provide the appearance of a traditional campaign. It was the epitome of the super-light startup: to see how little they could spend and still get the results they wanted.

Kushner stepped up to turn it into an actual campaign operation. Soon he was assembling a speech and policy team, handling Trump’s schedule and managing the finances. “Donald kept saying, ‘I don’t want people getting rich off the campaign, and I want to make sure we are watching every dollar just like we would do in business.’ ”

That structure provided a baseline, though still a blip compared with Hillary Clinton’s state-by-state machine. The decision that won Trump the presidency started on the return trip from that Springfield rally last November aboard his private 757, dubbed Trump Force One. Chatting over McDonald’s Filet-O-Fish sandwiches, Trump and Kushner talked about how the campaign was underutilizing social media. The candidate, in turn, asked his son-in-law to take over his Facebook initiatives.

Despite his itchy Twitter finger, Trump is a Luddite. He reportedly gets his news from print and television, and his version of e-mail is to handwrite a note that his assistant will scan and attach. Among those in his close circle, Kushner was the natural pick to create a modern campaign. Yes, like Trump he’s primarily a real estate guy, but he had invested more broadly, including in media (in 2006 he bought the New York Observer) and digital commerce (he helped launch Cadre, an online marketplace for big real estate deals). More important, he knew the right crowd: co-investors in Cadre include Thiel and Alibaba’s Jack Ma–and Kushner’s younger brother, Josh, a formidable venture capitalist who also cofounded the $2.7 billion insurance unicorn Oscar Health.


I called some of my friends from Silicon Valley, some of the best digital marketers in the world, and asked how you scale this stuff,” Kushner says. “They gave me their subcontractors.”

At first Kushner dabbled, engaging in what amounted to a beta test using Trump merchandise. “I called somebody who works for one of the technology companies that I work with, and I had them give me a tutorial on how to use Facebook micro-targeting,” Kushner says. Synched with Trump’s blunt, simple messaging, it worked. The Trump campaign went from selling $8,000 worth of hats and other items a day to $80,000, generating revenue, expanding the number of human billboards–and proving a concept. In another test, Kushner spent $160,000 to promote a series of low-tech policy videos of Trump talking straight into the camera that collectively generated more than 74 million views.

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