WEBVTT - Biden Looks to Raise Global Pressure on Putin With Xi Call 0:00:01.800 --> 0:00:04.440 This is Bloomberg Business Week. I'm Carol Masser and I'm 0:00:04.480 --> 0:00:07.280 Bloomberg Quick Takes Tim Stanovk. We're here every day bringing 0:00:07.320 --> 0:00:09.840 you the latest news from the world to business and finance, 0:00:09.840 --> 0:00:13.680 plus technology, politics, economics, all purtnising the power of Business 0:00:13.680 --> 0:00:17.159 Week reporters and editors, not to mention our journalists and 0:00:17.120 --> 0:00:20.440 analysts in more than twenty countries. You can download Bloomberg 0:00:20.440 --> 0:00:23.480 Business Week on iTunes, SoundCloud, or Bloomberg dot Com. You 0:00:23.480 --> 0:00:25.439 can also listen to our radio show at two pm 0:00:25.440 --> 0:00:28.400 Eastern Time on Bloomberg Radio or watch us on YouTube 0:00:28.400 --> 0:00:32.879 search Bloomberg Global News. Earlier this year, Anthem came out 0:00:32.920 --> 0:00:35.280 talking about medical costs this year, saying they would still 0:00:35.320 --> 0:00:39.080 be elevated due to COVID nineteen. Really a sign that 0:00:39.120 --> 0:00:41.800 the pandemic will continue to cast a shadow over the 0:00:41.800 --> 0:00:45.520 health industry as it is in its third year the pandemic. 0:00:45.880 --> 0:00:48.440 Just yesterday, Tim two, we heard from the US Federal 0:00:48.479 --> 0:00:52.120 Reserve about its campaign to tackle the overall fastest US 0:00:52.159 --> 0:00:57.200 inflation in four decades, and that certainly includes things like healthcare. 0:00:57.280 --> 0:01:00.200 It's so interesting, Carol, when we talk about inflationary pre sure, 0:01:00.200 --> 0:01:02.720 we often talk about gas prices. We talked about food prices, 0:01:02.720 --> 0:01:05.399 and we don't necessarily talk about health health prices because 0:01:05.400 --> 0:01:08.160 we're used to them going up. Um. But let's get 0:01:08.200 --> 0:01:10.240 into it with g By, Professor of Health Policy and 0:01:10.280 --> 0:01:13.240 Management at Johns Hopkins Bloomberg School of Public Health. The 0:01:13.319 --> 0:01:15.319 Johns Hopkins Bloomberg School of Public Health. It is supported 0:01:15.319 --> 0:01:19.440 by Michael R. Bloomberg, founder of Bloomberg LP and Bloomberg Philanthropies. 0:01:19.840 --> 0:01:22.000 G really really good to have you with us. Um, 0:01:22.040 --> 0:01:24.520 what have you been focused on at the Johns Hopkins 0:01:24.560 --> 0:01:27.040 Bloomberg School of Public Health when it comes to inflationary 0:01:27.080 --> 0:01:32.000 pressure on the health care industry? Thank you, Kim Sanko Carroll. 0:01:32.280 --> 0:01:35.920 I have been focusing on the hospital cost structure because 0:01:35.959 --> 0:01:40.199 that would be the driving force for a price inflation 0:01:40.400 --> 0:01:43.720 in the hospital setting. Okay, we'll tell us a bit 0:01:43.720 --> 0:01:46.280 more about that. When you say hospital cost structure, Um, 0:01:46.360 --> 0:01:49.440 you know, gee, it's probably I'm safe to say that 0:01:49.440 --> 0:01:51.600 there's folks in our audience are like, okay, so what 0:01:51.720 --> 0:01:56.640 does that mean, building beds, medicines, what does it mean? Yes, 0:01:56.880 --> 0:02:00.400 our study found that they labor cost and the medical 0:02:00.520 --> 0:02:05.200 supply costs are the key components for hospital costs. So 0:02:05.360 --> 0:02:10.720 due to the labor shortages, especially nursing shortages, labor costs 0:02:10.720 --> 0:02:14.080 has risen dramatically for hospitals. How much and then how 0:02:14.160 --> 0:02:15.880 much has how much has it gone up? Like if 0:02:15.960 --> 0:02:18.240 is there a number you can give it to us. Sure, 0:02:18.600 --> 0:02:22.800 Sometimes hospitals have to hire traveling nurses because there's no 0:02:22.960 --> 0:02:26.440 local nurses to hire, and the price can be doubling 0:02:26.560 --> 0:02:30.000 or traveling what the hospital has been paying for their 0:02:30.080 --> 0:02:32.680 own local nurses. But we've heard a lot of stories 0:02:32.720 --> 0:02:34.640 about that, and in fact, the pay has been so 0:02:34.680 --> 0:02:37.640 good for these traveling nurses that you find some nurses 0:02:37.720 --> 0:02:40.800 quitting to go join these traveling nursing firms because they 0:02:40.800 --> 0:02:43.560 can make so much more money. G Who gets affected 0:02:43.600 --> 0:02:46.760 the most when we think about inflationary pressures when it 0:02:46.800 --> 0:02:51.240 comes to healthcare? Who who are the victims out there? Unfortunately? 0:02:51.280 --> 0:02:54.240 I think the middle class working Americans will be the 0:02:54.280 --> 0:02:57.960 main victims of healthcare price inflations. You know, they are 0:02:58.000 --> 0:03:02.240 more financially vulnerable than also individuals. More importantly, they are 0:03:02.280 --> 0:03:07.320 more exposed to health care inflation than the lower income individuals. 0:03:07.400 --> 0:03:10.960 Why because lower income in populations sometimes they were often 0:03:11.000 --> 0:03:14.440 they're road in MEDICAIDS and other type payers subsidize. The 0:03:14.520 --> 0:03:18.240 program was very limited out of pocket explosives. But the 0:03:18.280 --> 0:03:21.359 middle class working Americans, in many cases, they are under insured, 0:03:21.600 --> 0:03:24.679 so they have not only to pay the high premiums, 0:03:24.800 --> 0:03:26.760 also had to pay on a pocket when they have 0:03:26.840 --> 0:03:29.880 a medical episode. I feel like, um gee, that this 0:03:30.040 --> 0:03:33.920 is so much um part of a larger story that 0:03:34.000 --> 0:03:36.680 we have been talking for the last couple of decades. 0:03:36.720 --> 0:03:39.560 I think about, you know, when the Clintons were in 0:03:39.560 --> 0:03:42.240 the White House, when Bill Clinton was president and his 0:03:42.280 --> 0:03:45.160 wife at that time, first Lady Hillary Clinton. You know, 0:03:45.160 --> 0:03:47.560 it was working on healthcare for the first go round, 0:03:47.880 --> 0:03:49.920 uh and putting something together, and of course it was 0:03:50.000 --> 0:03:52.560 until President Obama that we actually got something through. But 0:03:52.760 --> 0:03:55.720 we continue to look at the cost of healthcare obviously 0:03:55.720 --> 0:03:59.320 exacerbated right now because of these inflationary times that were within, 0:03:59.640 --> 0:04:04.000 but as something bigger or more broadly broken with the system. 0:04:04.040 --> 0:04:05.880 I mean, anybody who picks up a medical bill or 0:04:06.200 --> 0:04:09.080 hospital bill. We're so grateful if we have insurance because 0:04:09.160 --> 0:04:11.720 so much is covered, but we're always blown away by 0:04:11.760 --> 0:04:17.760 the costs. Absolutely, Thank you, Carroll. Your previous healthcare reforms 0:04:17.920 --> 0:04:22.400 have been focused on expanding insurance coverage. Right, But as 0:04:22.440 --> 0:04:25.600 we have seen, extended coverage has not yet solved the 0:04:25.760 --> 0:04:28.840 longstanding problem of the cost as well as in the 0:04:28.960 --> 0:04:32.440 poor outcomes that have really plagued the US healthcare system. 0:04:34.240 --> 0:04:37.680 So you know, in my study we found that, you 0:04:37.720 --> 0:04:41.880 know which, the current the highly subsidized insurance systems give 0:04:42.000 --> 0:04:47.040 consumers and providers very little incentive opportunity right to provide 0:04:47.160 --> 0:04:50.200 or speak appropriate to care that it is efficient and 0:04:50.240 --> 0:04:54.360 the tree affordable. Why. I believe that is the main 0:04:54.440 --> 0:04:58.200 reasons underlying the high cost of law outcomes. So let's 0:04:58.240 --> 0:05:01.040 professor by push the solutions here and try to give 0:05:01.120 --> 0:05:03.680 us an understanding of what your research has said about 0:05:03.720 --> 0:05:06.200 the right way to solve these problems. And look inflationary pressure, 0:05:06.200 --> 0:05:08.080 it's everywhere right now, we heard that from the Fed 0:05:08.160 --> 0:05:10.520 chair yesterday. But when it comes specifically to healthcare, how 0:05:10.520 --> 0:05:15.880 do you bring costs down? I believe the government has 0:05:15.960 --> 0:05:19.320 limited ability to bring healthcare down. Let's look at the 0:05:19.600 --> 0:05:23.559 Affordable Care Act, right. In order for that legislation to pass, 0:05:24.080 --> 0:05:27.640 the Congress has to have the support from the industry, 0:05:27.760 --> 0:05:31.720 and industry will not give Congress the power to redeo 0:05:31.839 --> 0:05:34.480 the price that will hurt their own interests, right, So 0:05:34.680 --> 0:05:37.239 I do believe eventually we need some kind of market 0:05:37.360 --> 0:05:41.960 force competition to help lower the cost. So for example, 0:05:42.240 --> 0:05:44.760 we should like the patients be able with the payers, 0:05:45.040 --> 0:05:49.160 be able to do comparison shopping like transparency and give 0:05:49.240 --> 0:05:53.480 them better insurance options, and also easing the government regulations 0:05:53.560 --> 0:05:57.360 that actually add a cost and efficiency to the system. Well, 0:05:57.400 --> 0:05:59.120 we all talk about you. You know, you look at 0:05:59.160 --> 0:06:01.360 some other countries. Maybe it's not apples to apples in 0:06:01.440 --> 0:06:04.240 terms of health care systems, but there seems to be 0:06:04.760 --> 0:06:08.039 some better ways of certainly rating in cost um. Gee 0:06:08.080 --> 0:06:09.920 we gotta run, Thank you so much. Gee buy. She 0:06:10.240 --> 0:06:12.920 is Professor of Health Policy and Management at Johns Hopkins 0:06:12.920 --> 0:06:15.960 Bloomberg School of Public Health, of course, supported by Michael R. Bloomberg, 0:06:16.000 --> 0:06:19.320 founder of Bloomberg LP and Bloomberg Philanthropies. Joining us on 0:06:19.400 --> 0:06:21.720 the phone from Washington, d C. You know, it's funny 0:06:21.760 --> 0:06:23.800 I think about the new issue Bloomberg Business Week. We're 0:06:23.800 --> 0:06:25.160 gonna get into it in a little bit. It's the 0:06:25.240 --> 0:06:30.000 equality issue. And it's finally, you know, the inequalities in 0:06:30.040 --> 0:06:34.159 the system really tackling people who are actually doing something 0:06:34.279 --> 0:06:37.080 to make things better. And I think health care. It's 0:06:37.120 --> 0:06:41.120 just so tricky. Not a lot of optimism. No, well, 0:06:41.520 --> 0:06:44.320 it's very entrenched and there's a lot of money at stake. 0:06:44.720 --> 0:06:48.960 All right, you're listening to Bloomberg. You're listening to Bloomberg 0:06:49.040 --> 0:06:52.680 Business Week with Carol Messer and Bloomberg Quick Takes Tim 0:06:52.760 --> 0:06:57.200 Stinovic on Bloomberg Radio. Well, geopolitical relationships, they are definitely 0:06:57.240 --> 0:06:59.719 being tested amid the Russian invasion and war with Ukraine. 0:06:59.760 --> 0:07:02.600 And keeping with that, President Joe Biden is meeting with 0:07:02.680 --> 0:07:05.920 Chinese President jijimping to try and coax him interacting at 0:07:05.960 --> 0:07:08.640 pressure on Moscow to end its war in Ukraine. It 0:07:08.640 --> 0:07:10.800 will be present Biden's first phone call with the Chinese 0:07:10.840 --> 0:07:13.960 president since the invasion began. Oh, to be a fly 0:07:14.120 --> 0:07:16.040 on the virtual wall, as I said earlier, Yeah, that 0:07:16.040 --> 0:07:18.760 would certainly be something. Jody Schneider is political news director 0:07:18.800 --> 0:07:20.960 at Bloomberg Television in Radio. She joins us from the 0:07:20.960 --> 0:07:24.720 Bloomberg studio in Washington, d C. And you can see 0:07:24.720 --> 0:07:27.000 her via zoom as well if you're watching us on YouTube, 0:07:27.400 --> 0:07:30.840 um or via you know, a camera, an actual camera, 0:07:30.920 --> 0:07:33.360 not via zoom, because she's in one of our studios. Jody, Um, 0:07:34.040 --> 0:07:36.080 what is the latest when it comes to diplomatic talks. 0:07:36.240 --> 0:07:39.080 When when we think about Russia's invasion of Ukraine, thinking 0:07:39.120 --> 0:07:42.320 beyond what Biden and She are going to talk about tomorrow, 0:07:42.560 --> 0:07:46.440 just what we've learned today. Yeah, Tim, Well, diplomatic is 0:07:46.440 --> 0:07:49.760 an interesting word in this sense. I'm not sure how 0:07:49.880 --> 0:07:52.600 much actual diplomacy is going on. We do have, as 0:07:52.600 --> 0:07:57.360 you noted, Joe Biden and She jumping speaking tomorrow and 0:07:57.760 --> 0:08:01.000 that has um, you know, all the world watching. But 0:08:01.200 --> 0:08:03.800 at the same time, UM, we don't know that the 0:08:03.920 --> 0:08:08.000 expectations are very high for that that talks. I think 0:08:08.040 --> 0:08:10.160 it's more kind of what it sounds like is a 0:08:10.320 --> 0:08:13.720 check in both on Russia Ukraine, but also they haven't 0:08:13.760 --> 0:08:16.680 spoken in a while, and trade and other things could 0:08:16.760 --> 0:08:19.320 come up. Uh. At the at the same time, we 0:08:19.480 --> 0:08:23.960 have in the talks with h Russia, between Russia and Ukraine, 0:08:24.320 --> 0:08:26.240 and it seems odd that there are talks going on, 0:08:26.400 --> 0:08:29.560 but there are talks going on. But a Kremlin official 0:08:30.040 --> 0:08:33.840 spokesperson said the report of major progress in the talks 0:08:34.360 --> 0:08:37.640 was wrong, but he said talks would still continue. So 0:08:37.880 --> 0:08:41.360 we're not seeing a whole lot there, but they are talking, uh. 0:08:41.640 --> 0:08:45.200 And the problem, of course is that neither side really 0:08:45.280 --> 0:08:48.559 wants to move off of its points that need to 0:08:48.720 --> 0:08:52.320 happen before they'll have serious progress and talks. Ukraine says 0:08:52.360 --> 0:08:54.400 it has to have a ceasefire, it has to have 0:08:54.520 --> 0:08:57.120 a withdrawal of Russian troops and they have to promise 0:08:57.200 --> 0:09:01.480 they won't come back. And Russia says it needs Ukraine, UH, 0:09:01.720 --> 0:09:04.720 basically to give up its hopes of NATO and its 0:09:04.760 --> 0:09:07.599 hopes of being part of the rest of Europe. I 0:09:07.640 --> 0:09:09.760 gotta say, Jody, tib and I've been talking a lot 0:09:09.920 --> 0:09:14.080 about China, the relationship with the US Russia. Which relationship 0:09:14.240 --> 0:09:17.080 is more important? UH. And we've done that with our 0:09:17.120 --> 0:09:19.120 Andy Brown of New Economy. We've also done it with 0:09:19.160 --> 0:09:22.480 Tiff Roberts, who as the former Bloomberg business Week editor 0:09:22.720 --> 0:09:24.719 and was based in China. Both of them understand the 0:09:24.760 --> 0:09:27.080 region a lot. I want to ask you, though, because 0:09:27.120 --> 0:09:31.560 you understand politics, you understand how the diplomatic sausage is done. 0:09:31.640 --> 0:09:34.439 I mean, tell me how this goes down when you 0:09:34.559 --> 0:09:36.640 have diplomacy. As you said, I almost feel like I 0:09:36.679 --> 0:09:38.880 need to use quotes about it around it between two 0:09:38.920 --> 0:09:41.319 superpowers like the U S and China, How does it 0:09:41.400 --> 0:09:44.000 go down in a situation that's very tense, like the 0:09:44.040 --> 0:09:46.920 one we are in today. Lots of formalities and sugarcoat 0:09:46.960 --> 0:09:50.160 of conversation or are there get real moments between the 0:09:50.240 --> 0:09:55.160 two leaders. Yeah, I think again between China and the US. 0:09:55.320 --> 0:09:57.280 I think the fact that they're getting on the phone 0:09:57.320 --> 0:09:59.880 and talking is important in and of itself. And we 0:10:00.040 --> 0:10:02.199 said this during the trade talks when they may not 0:10:02.360 --> 0:10:04.920 be going you know, they weren't going particularly well, and 0:10:05.200 --> 0:10:08.559 that they may not have big uh you know asks 0:10:08.760 --> 0:10:12.520 and and certainly not big to do lists. Uh. We're 0:10:12.559 --> 0:10:14.920 not necessarily achieved off those calls, but the fact that 0:10:15.040 --> 0:10:18.120 they had them, that they're still talking is important. And 0:10:18.360 --> 0:10:21.400 I think what's important in this uh. And and we've 0:10:21.440 --> 0:10:24.560 written about this, you know, it's stories on the terminal. 0:10:25.040 --> 0:10:28.640 Uh is that uh for she for for she jumping 0:10:28.800 --> 0:10:32.360 At this point, he's got a lot on his plate, right. Uh. 0:10:32.440 --> 0:10:35.600 The economy is not going exactly the way they want. 0:10:35.920 --> 0:10:38.959 They're still they're locking down major cities. Shenzhen, across the 0:10:39.040 --> 0:10:42.160 border from Hong Kong is in lockdown, a place that 0:10:42.440 --> 0:10:45.319 you know, was a thriving technology hub they called the 0:10:45.360 --> 0:10:48.959 Silicon Valley of China. They wanted to be that nothing's 0:10:49.000 --> 0:10:51.880 going on there now it's in total lockdown. Uh they 0:10:51.960 --> 0:10:53.679 have you know, there's a lot of things going on 0:10:53.720 --> 0:10:56.520 in China, and now there's this on the world stage. 0:10:57.080 --> 0:11:01.920 She jumping had Vladimir Putin for a visit before the Olympics. 0:11:01.960 --> 0:11:04.480 He attended the Olympics, all seem well. We think the 0:11:04.559 --> 0:11:06.840 message there was if you're going to go into Ukraine, 0:11:07.160 --> 0:11:09.280 do not do it while the Olympics are still on. 0:11:09.360 --> 0:11:12.920 Wait until the Olympics are over, which which Vladimir Putin did. 0:11:13.200 --> 0:11:16.839 But now I think even China is sort of walking away, 0:11:17.080 --> 0:11:21.240 not necessarily walking away from overall support. That relationship between 0:11:21.600 --> 0:11:26.080 uh Putin and Ji Jianping remains, and the relationships into 0:11:26.160 --> 0:11:28.760 the country's obviously, But at the same time, we've heard 0:11:28.800 --> 0:11:33.360 in recent days rhetoric from China that really seems to say, well, 0:11:33.720 --> 0:11:36.760 we are not we don't want to become a pariah 0:11:36.840 --> 0:11:39.280 on the world stage over this. For instance, the rhetoric 0:11:39.480 --> 0:11:43.760 to to Ukraine about you China will not be unfriendly 0:11:43.840 --> 0:11:48.120 to Ukraine, which is a very interesting statement. Yeah, it 0:11:48.240 --> 0:11:51.240 certainly is. All right, Jodi, thank you so much. Jody Schnyder. 0:11:51.320 --> 0:11:54.079 She is political news director of Limberg Television Radio. She's 0:11:54.120 --> 0:11:56.480 joining us from our ny I one studio in the 0:11:56.640 --> 0:12:01.120 nation's capital. This is Bloomberg business Week with Carol Messer 0:12:01.360 --> 0:12:05.559 and Bloomberg Quick Takes Tim Stenovic on Bloomberg Radio. The 0:12:05.600 --> 0:12:07.400 new issue of Bloomberg Business Week it is out. The 0:12:07.480 --> 0:12:10.679 domestic cover is about baby Bonds, one of the stories 0:12:11.040 --> 0:12:13.760 making up the annual Equality Issue coverage, which this year 0:12:13.800 --> 0:12:16.800 looks at people really trying to make change and bring 0:12:16.880 --> 0:12:19.360 about change, actual actions being done in better our world. 0:12:19.600 --> 0:12:21.800 Joel Weber is editor at Bloomberg Business Week. He's with 0:12:21.880 --> 0:12:24.640 us in the Bloomberg Interactive Broker Studios. Along with us, 0:12:24.880 --> 0:12:27.520 is the author of that cover story, Ben Steve Bermani's 0:12:27.520 --> 0:12:30.240 personal finance editor at Bloomberg News with us again in 0:12:30.280 --> 0:12:33.760 the Bloomberg Interactive Broker Studio. Ben's story is the US cover, 0:12:33.840 --> 0:12:36.440 as Carol mentioned, of the business Week magazine Equality Issue, 0:12:36.480 --> 0:12:38.960 available on news stands, on the Bloomberg and at Bloomberg 0:12:39.040 --> 0:12:42.800 dot com slash business Week. Uh, Joel, because this is 0:12:42.840 --> 0:12:46.640 the cover story here in the US, the Equality Issue. UH, 0:12:46.760 --> 0:12:49.040 talk to us a little bit about about why this story, 0:12:49.160 --> 0:12:51.880 why baby Bonds, is the one that you are focusing 0:12:51.960 --> 0:12:55.559 on as sort of the overall arching concept for the 0:12:55.640 --> 0:12:59.800 equality issue. Well, we wanted something that really could tie 0:12:59.840 --> 0:13:04.120 that package together, and they're, like you mentioned one of 0:13:04.160 --> 0:13:06.280 the elements that that we tried to do with this 0:13:06.360 --> 0:13:09.000 equality issue is like, look, we can talk about the problems, 0:13:09.040 --> 0:13:11.719 but there's also places that we're beginning to see some 0:13:11.840 --> 0:13:15.000 progress and and baby buns which aren't actually baby buns, 0:13:15.040 --> 0:13:17.000 but we'll get there in a second, are are an 0:13:17.080 --> 0:13:20.439 early example of that. And there's been chatter at sort 0:13:20.440 --> 0:13:22.559 of a federal level, but where it's actually where the 0:13:22.640 --> 0:13:25.520 movement's actually happening is on a state level. And been 0:13:25.640 --> 0:13:28.280 found a really interesting character that we could drive that 0:13:28.360 --> 0:13:31.160 story through UM and then the art department just came 0:13:31.240 --> 0:13:33.800 up with this an amazing you know, fake baby bond 0:13:33.920 --> 0:13:39.000 that UM I thought was iconic. Right it's and often 0:13:39.040 --> 0:13:40.880 when we think about the cover, how do I make 0:13:40.920 --> 0:13:43.920 that iconic and breakthrough? And obviously we have an international 0:13:44.000 --> 0:13:47.280 cover that's all about UM yet uh you know, ongoing 0:13:47.320 --> 0:13:50.360 coverage of Ukraine and Russia and the fallout there. But 0:13:50.480 --> 0:13:52.679 this was also was something that I just wanted to 0:13:52.720 --> 0:13:54.800 make sure that we continue to prioritize because look like 0:13:54.880 --> 0:13:58.960 here we are going on two years post George Floyd. 0:13:59.120 --> 0:14:01.959 We do accounting that in the issue, and it's also like, 0:14:02.080 --> 0:14:04.320 let's make sure that we continue to prioritize this coverage 0:14:04.400 --> 0:14:09.240 going forward. But let's talk about Ben's story because it's 0:14:09.280 --> 0:14:12.559 not a baby bond, it's actually a trust fund. And 0:14:12.920 --> 0:14:15.640 what why is it breaking through on a state level 0:14:15.960 --> 0:14:18.240 when it when it didn't do that on a on 0:14:18.320 --> 0:14:22.760 a federal one yet. Well, I think after George Floyd's murder, 0:14:23.240 --> 0:14:26.160 state lawmakers, local lawmakers were just scrambling looking for a 0:14:26.280 --> 0:14:29.440 solution and they this is something that Derrick Hamilton's the 0:14:29.480 --> 0:14:31.600 subject of this story, has been talking about for more 0:14:31.640 --> 0:14:34.800 than a decade UM. And he's a progressive economist. He 0:14:34.920 --> 0:14:37.760 was a big Bernie Sanders supporter. But this is an 0:14:37.800 --> 0:14:41.560 idea that seems to be getting much broader um appeal 0:14:41.920 --> 0:14:44.280 um mostly Democrats, but there are some Republicans who have 0:14:44.320 --> 0:14:47.720 signed on as well. And the idea is give give 0:14:47.760 --> 0:14:49.960 a certain amount of money to kip babies when they're born. 0:14:50.720 --> 0:14:54.040 Um these states, they're only setting aside about three thousand dollars, 0:14:54.080 --> 0:14:55.800 which doesn't seem like very much, but you invest it 0:14:55.880 --> 0:14:57.800 and that could be more than ten thousand dollars by 0:14:57.840 --> 0:15:00.480 the time they're eighteen, and then allow them to use 0:15:00.560 --> 0:15:06.240 that for some wealth building purposes like education, UM, homeownership, UM, 0:15:06.560 --> 0:15:09.280 starting a business. And the idea is, let's let's use 0:15:09.360 --> 0:15:12.120 this as a one tool of many, maybe to narrow 0:15:12.200 --> 0:15:14.160 the racial wealth gap, which is, as we know, is 0:15:14.360 --> 0:15:18.040 very persistent and has been um lasted for decades. Even 0:15:18.080 --> 0:15:20.160 as Black Americans have made huge progress in a lot 0:15:20.240 --> 0:15:24.440 of other areas, their wealth really hasn't. The wealth gap 0:15:24.520 --> 0:15:27.360 has not narrowed at all. Oh go ahead, please, So 0:15:28.160 --> 0:15:31.320 narrowing the wealth gap is the ultimate goal here, right, 0:15:32.280 --> 0:15:34.160 or or creating a device that can help do that. 0:15:34.360 --> 0:15:36.160 I think I know how that's going to go over 0:15:36.200 --> 0:15:37.760 on the left side of the aisle. How has it 0:15:37.800 --> 0:15:39.920 gone over on the right side of the aisle? Well? 0:15:40.000 --> 0:15:42.240 The thing is this is this is UM. You know, 0:15:42.520 --> 0:15:46.600 when Derrick Hamilton's um started talking about this UM, he 0:15:46.760 --> 0:15:49.480 was basically he had been talking about reparations and he 0:15:49.520 --> 0:15:52.680 still talks about reparations. But people were like, well, let's 0:15:52.920 --> 0:15:55.600 give us something that's actually gonna pass, something that's actually 0:15:55.640 --> 0:15:58.120 gonna work. UM and I get through the legislature as 0:15:58.160 --> 0:16:02.040 we came up with this. But the idea is, um, uh, 0:16:02.960 --> 0:16:05.680 let's let's make this race neutral. This isn't as focused 0:16:05.720 --> 0:16:08.000 on Black Americans, as focused on focused on every kid 0:16:08.960 --> 0:16:12.280 in America. Potentially, if you have the full Derrick Hamilton, 0:16:12.440 --> 0:16:15.720 like a much more expansive, generous federal program, but then 0:16:15.800 --> 0:16:18.360 you give the most money to the poorest kids. And 0:16:18.440 --> 0:16:22.000 because race and wealth are so correlated in this country, um, 0:16:22.160 --> 0:16:25.320 you actually end up giving a real boost to Black Americans. 0:16:25.320 --> 0:16:27.320 But you also give a big boost of rural areas, 0:16:27.400 --> 0:16:30.880 which are for the most part represented by Republicans these days. 0:16:31.240 --> 0:16:35.000 And there's been huge capital drain out of rural communities 0:16:35.320 --> 0:16:37.400 where people are growing up and they're getting into young 0:16:37.440 --> 0:16:39.240 adulthood and they don't have the capital to start that 0:16:39.320 --> 0:16:42.920 business or to go to vocational school or whatever. So um, 0:16:44.480 --> 0:16:47.720 these folks who are passing these things, that's Washington State 0:16:47.840 --> 0:16:52.080 is working on something. Massachusetts, UM, Connecticut and DC already 0:16:52.120 --> 0:16:55.640 have them. They're really trying to appeal to everyone across 0:16:55.720 --> 0:16:58.160 the spectrum, saying by saying this is can this can 0:16:58.200 --> 0:17:00.760 help people in your community? Well, and it really speaks 0:17:00.760 --> 0:17:02.360 to and I feel like we are all getting smarter 0:17:02.400 --> 0:17:04.080 about the words we use. Right, we still talk about 0:17:04.359 --> 0:17:06.639 making more money or making you know, higher income. But 0:17:06.680 --> 0:17:08.639 it's not about that. It's about wealth creation, right, and 0:17:08.680 --> 0:17:12.000 that comes through generational wealth, it comes through homes. And 0:17:12.119 --> 0:17:15.720 there's many people, as we know we keep identifying that 0:17:15.760 --> 0:17:17.359 have been left behind and this is a way to 0:17:17.440 --> 0:17:20.239 give them a leg up. Yeah, you know that's one 0:17:20.240 --> 0:17:23.000 of them. Create wealth. Yeah, and wealth that This is 0:17:23.040 --> 0:17:25.600 one of the core concepts behind baby bond. Is it 0:17:25.680 --> 0:17:28.879 just the importance of wealth? Like making more money in 0:17:29.440 --> 0:17:32.400 one year? Okay, so you make four thousand dollars more 0:17:32.760 --> 0:17:34.960 and you're able to save you know, a thousand of it. 0:17:35.440 --> 0:17:37.240 Is that really going to change your life in a 0:17:37.320 --> 0:17:39.520 significant way? Is that I'm going to change your children's 0:17:39.520 --> 0:17:41.800 life or your grand children's life. Probably not. But what 0:17:41.880 --> 0:17:44.480 if you can build build um some home equity, What 0:17:44.560 --> 0:17:47.480 if you can get a college degree that will really 0:17:47.920 --> 0:17:50.119 triple your earnings or or could you do your earnings 0:17:50.160 --> 0:17:52.440 over your lifetime? Those are the things that really build 0:17:52.520 --> 0:17:55.440 wealth over multiple generations. And those that those are the 0:17:55.480 --> 0:17:59.240 opportunities that Black Americans and other poor Americans have not 0:17:59.320 --> 0:18:04.600 been allowed to do all up over years. So then 0:18:04.680 --> 0:18:06.159 just in the last minute that we have with you, 0:18:07.560 --> 0:18:11.240 the confidence that you have based on your reporting that 0:18:11.800 --> 0:18:14.760 there will be widespread adoption of this on a state 0:18:14.880 --> 0:18:17.880 or or local level versus that federal level that you'll 0:18:18.080 --> 0:18:21.520 will refer to earlier. So we already have these programs 0:18:21.560 --> 0:18:24.920 in Connecticut, in d C. And um, we think it 0:18:24.960 --> 0:18:27.320 will probably get I think it's going to get some 0:18:27.440 --> 0:18:30.600 momentum in some blue states, UM, a few others. New 0:18:30.680 --> 0:18:33.720 York has there's a proposal there as well. So I 0:18:33.800 --> 0:18:37.000 think it's all going to depend on how maybe how 0:18:37.080 --> 0:18:38.840 this money is going to be used and is it 0:18:38.880 --> 0:18:41.159 actually going to make a difference. Um, you know, I 0:18:41.280 --> 0:18:44.159 think the results will maybe create the political will to 0:18:44.280 --> 0:18:47.239 do something much more significant on the federal level if 0:18:47.320 --> 0:18:49.919 this is a successful policy, right, Like I do think 0:18:49.960 --> 0:18:52.280 everybody's gonna be watching right as it rolls out, as 0:18:52.320 --> 0:18:54.280 it's put to use, and the difference that makes in 0:18:54.320 --> 0:18:58.040 these individuals lives. Let's hope it does. Um, great story, Ben, 0:18:58.119 --> 0:19:01.280 Thank you so much. Ben Stepherman, Personal Finance editor, Bloomberg News, 0:19:01.560 --> 0:19:03.840 along with Chill Weber, Editor Bloomberg business Week. Check out 0:19:03.840 --> 0:19:06.720 the new issue of Business Week. It is the equality issue. 0:19:07.160 --> 0:19:10.720 You're listening to Bloomberg Business Week with Carol Messer and 0:19:10.840 --> 0:19:15.359 Bloomberg Quick Takes, Tim Stinovic on Bloomberg Radio. Well, the 0:19:15.440 --> 0:19:17.840 oracle of Omaha himself, we know he likes to get 0:19:17.880 --> 0:19:20.680 greedy when others are being too fearful, which may explain 0:19:20.760 --> 0:19:24.320 Berkshire Hathaway raising its stake in Occidental Petroleum by more 0:19:24.359 --> 0:19:27.400 than eighteen million shares. Are more shares, I should say 0:19:27.480 --> 0:19:30.240 this week. So let's find out and put it into 0:19:30.320 --> 0:19:32.600 context of what Buffett and Berkshire up to. Let's bring 0:19:32.760 --> 0:19:35.200 catch to Glinsky. She's finance reporter at Bloomberg News. She 0:19:35.280 --> 0:19:38.640 follows all things Warren Buffett and Berkshire and the finance base, 0:19:38.720 --> 0:19:41.560 along with Justin Zach's Bloomberg News Equities report at Bloomberg News, 0:19:41.640 --> 0:19:44.320 both here in our interactive broker studio. Alright, Cat to 0:19:44.480 --> 0:19:47.280 lay it out for us, what is Berkshire up to? 0:19:47.520 --> 0:19:49.600 It's been a busy past few weeks, Berkshire, they have 0:19:49.720 --> 0:19:52.320 been that way. Yeah, they've been all in on Occidental stock. 0:19:52.400 --> 0:19:55.479 And even this week Monday through Wednesday, they bought um 0:19:55.680 --> 0:19:58.320 eighteen point one million additional shares. So now they have 0:19:58.400 --> 0:20:01.639 a total common equity stake, have seven point one billion 0:20:01.720 --> 0:20:04.440 dollars in Accidental and that's just in addition to the 0:20:04.640 --> 0:20:07.399 ten billion dollars in preferred stock and warrants they already 0:20:07.440 --> 0:20:09.800 owned in the company. You know you you brought up. 0:20:09.840 --> 0:20:11.399 Can I just say, Timmy, you brought up on our 0:20:11.400 --> 0:20:13.680 planning call? You're like, what was it? Somebody who was 0:20:13.760 --> 0:20:17.080 just selling? Right? Yeah? So I I saw this and 0:20:17.160 --> 0:20:18.320 I was like, wait, So I saw this, you know 0:20:18.320 --> 0:20:19.680 a couple of weeks ago when I con sold, and 0:20:19.720 --> 0:20:21.119 I was like, Okay, maybe it's time to get out 0:20:21.160 --> 0:20:24.280 of the energy trade. But what is Buffett getting into 0:20:24.320 --> 0:20:27.040 the energy trade? Signal justin right now about that it 0:20:27.080 --> 0:20:29.520 still has room to run because it's up. What it's 0:20:29.560 --> 0:20:32.240 the only sector that's up this here, Yeah, it's up. 0:20:32.320 --> 0:20:35.480 The sector itself is up thirty percent, while Occidental is 0:20:35.600 --> 0:20:40.760 up over It's the uh biggest gainer among all SMP 0:20:40.880 --> 0:20:45.080 five components. Haliburton is the next at So that can 0:20:45.119 --> 0:20:47.640 just show you and what it What's interesting for Buffett 0:20:47.720 --> 0:20:50.480 is most people think of Buffett as a value investor. 0:20:50.600 --> 0:20:53.560 You don't think of him as chasing these huge returns. 0:20:54.040 --> 0:20:57.000 And I think with these recent purchases Monday through Wednesday, 0:20:57.080 --> 0:20:59.480 he did wait for oil came down from about one 0:21:00.280 --> 0:21:03.280 in two about and he brought back in. But it's 0:21:03.280 --> 0:21:06.080