WEBVTT - ICYMI: The Latino-Driven Economy

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

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<v Speaker 2>You're listening to Bloomberg Business Week with Carol Masser and

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<v Speaker 2>Tim Stenoveek on Bloomberg Radio. Let's talk a little bit

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<v Speaker 2>about the US economy and specifically the role of Latinos

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<v Speaker 2>in the US economy. According to this year's US Latino

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<v Speaker 2>GDP report, they found that the GDP from latinos hit

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<v Speaker 2>a record high in twenty twenty three, up to four

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<v Speaker 2>point one trillion dollars. That's up from three point seven

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<v Speaker 2>trillion dollars in twenty twenty two. Needless to say, Latinos

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<v Speaker 2>are a huge part of the US economy, and I

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<v Speaker 2>think a lot of people have questions right now about

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<v Speaker 2>what immigration policies and what deportation policies mean for that number.

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<v Speaker 2>We've got with us right now. Anna Valdez, she's President

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<v Speaker 2>CEO of the nonprofit the Latino Donor Collaborative. She joins

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<v Speaker 2>us this afternoon from Los Angeles on a good to

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<v Speaker 2>have you with us this afternoon.

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<v Speaker 1>How would you say the InCom.

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<v Speaker 2>Just describe the how you look at the definition here

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<v Speaker 2>of latinos and of how you're measuring the data and

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<v Speaker 2>their economic impact here.

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<v Speaker 1>Absolutely, first, let me tell you that this report that

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<v Speaker 1>I'm going to talk about was done by Arizona State University.

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<v Speaker 1>We work with the Economics Center there, and so what

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<v Speaker 1>we found is that after measuring the Latino GDP in

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<v Speaker 1>the United States, and remember Tom and Emily that all

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<v Speaker 1>these numbers are based on official numbers, and we do

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<v Speaker 1>that so that the credibility is there, so that there

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<v Speaker 1>is no way out of it. And so after measuring

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<v Speaker 1>it for eight years this year, which are the numbers

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<v Speaker 1>from twenty twenty three, as you know, those numbers don't

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<v Speaker 1>come until two years later, the Latino GDP of the

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<v Speaker 1>unit in the United States. Remember this is US Latinos.

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<v Speaker 1>They produced four trillion dollars in GDP. So that you guys,

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<v Speaker 1>and of course our audience understand if Latinos in the

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<v Speaker 1>US would be an economy by themselves, they would be

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<v Speaker 1>the fifth largest economy in the world. And these numbers

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<v Speaker 1>are always surprising when it's the first time you've heard them, right,

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<v Speaker 1>because of course there is this, you know, some unfortunate

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<v Speaker 1>perception that Latinos come to this country and they don't

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<v Speaker 1>contribute and they are actually working with the system. The

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<v Speaker 1>truth is that a large part of the GDP of

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<v Speaker 1>the United States is produced by this cohort.

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<v Speaker 3>What sectors of the economy are Latinos contributing the most to, so.

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<v Speaker 1>You know, traditionally Emily, of course we see that, you know, manufacturing,

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<v Speaker 1>and you know how housing and all this you know fields,

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<v Speaker 1>right the agricultural part, and we're very important and they're

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<v Speaker 1>still very important. What is really interesting of the latest

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<v Speaker 1>reports in the last three years is that the sectors

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<v Speaker 1>like AI, technology, medicine, and all these different fields where

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<v Speaker 1>you usually not relate, right you know, Latinos to the

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<v Speaker 1>growth are happening. And in the report you'll see that

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<v Speaker 1>in the case for example of AI, Latinos over index

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<v Speaker 1>Latino businesses over index in terms of use of AI

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<v Speaker 1>compared to any others ANA.

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<v Speaker 2>I'm wondering about what this impact could be on the

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<v Speaker 2>economy because if we think about mass deportation, the images

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<v Speaker 2>that we're seeing play out right now, what we're seeing

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<v Speaker 2>happen in cities and around the US right now, how

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<v Speaker 2>does this affect workforce growth in the US. Because Latinos

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<v Speaker 2>have been the main force behind workforce growth in recent years,

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<v Speaker 2>and even though a large portion the majority of Latinos

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<v Speaker 2>in the us are US born. Now, I think this

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<v Speaker 2>could still have an effect.

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<v Speaker 1>This has tremendous effects, and not only because you know

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<v Speaker 1>of the actual happenings, but also because of the perception

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<v Speaker 1>right people, as you've seen, you know, people that have

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<v Speaker 1>been here legally, people that are citizens are sometimes just

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<v Speaker 1>generalized within this almost cohort profiling right of you know,

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<v Speaker 1>deportations very very focused on the Latino community. And you

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<v Speaker 1>asked me, how does this affect Well, just think about it.

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<v Speaker 1>According to the Department of Labor and the Census, seventy

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<v Speaker 1>eight percent of all the new workforce in the next

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<v Speaker 1>ten years will come from the Latino community. So if

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<v Speaker 1>you are thinking that, as you know, there is a

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<v Speaker 1>lack of workforce in some of those industries already right

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<v Speaker 1>in actually in all industries already, right before the pandemic,

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<v Speaker 1>there were eleven million jobs not filled because of lack

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<v Speaker 1>of workforce. After the pandemic there were Today there are

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<v Speaker 1>six million jobs not fit. So imagine without this workforce,

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<v Speaker 1>or at least reduced this workforce. You know, and I

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<v Speaker 1>don't know if you've seen it, but I'm sure you have.

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<v Speaker 1>You know, we see, we hear the CEO of Target

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<v Speaker 1>and the see of Constellation Brands and the CEO of

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<v Speaker 1>Jack in the Box saying what's happening. We need workers,

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<v Speaker 1>we also need consumers. And last number, because you brought

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<v Speaker 1>it up, eighty percent of Latinos eighty one percent of

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<v Speaker 1>Latinos are American citizens, nine percent are here with documents

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<v Speaker 1>which means green card and work permits and student permits.

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<v Speaker 1>And only nine percent of Latinos are undocumented. But still

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<v Speaker 1>the way things are going, you know, this deportation movement

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<v Speaker 1>is not limited to undocumented people.

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<v Speaker 3>Well, let's talk about the job market before we let

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<v Speaker 3>you go. Are there more jobs to be filled for

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<v Speaker 3>the Latino community specifically, or is there more demand for

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<v Speaker 3>jobs or more supply of workers than there actually are

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<v Speaker 3>jobs to be had.

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<v Speaker 1>Again, we go back to the numbers of Department of Labor, right,

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<v Speaker 1>And of course we've heard the industry, the dairy industry

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<v Speaker 1>and of course the agricultural farmers right movements, the meat packing.

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<v Speaker 1>But also we here we're as you know, we're bringing

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<v Speaker 1>engineers from other places, right when you know you have

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<v Speaker 1>the Latino cocord over indexing in growth in the engineering

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<v Speaker 1>you know faculties in the United States. So Emily I

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<v Speaker 1>think we're talking about a lack of workforce in general,

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<v Speaker 1>but also a lot of opportunity from a community that

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<v Speaker 1>is extremely young. The average age for Latinos in the

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<v Speaker 1>United States is twelve years old. The average age of

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<v Speaker 1>not Latinos is fifty eight years old. Oh wow, So

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<v Speaker 1>imagine how that's going to look in six years the

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<v Speaker 1>average age is twelve and another number that will be

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<v Speaker 1>shocking is thirty percent of all births according to the

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<v Speaker 1>Census our Latino.

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<v Speaker 2>It's a fascinating demographic story. It's one we're going to

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<v Speaker 2>continue to follow. Anna, thanks for taking your time in

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<v Speaker 2>for your patients this afternoon as we covered so much

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<v Speaker 2>breaking news. Ana Valdez, President and CEO of the nonprofit

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<v Speaker 2>The Latino Donor Collaborative