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Speaker 1: Sound on the insiders, the influencers, the insiders fighting. Has

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Speaker 1: commented again and again that he will unite the country.

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Speaker 1: Who would be in saf Biden has to watch in

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Speaker 1: terms of moderate detectors. The House has been voting for

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Speaker 1: this stimulus package basically for months. Bloomberg Sound On with

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Speaker 1: Kevin Surrey on Bloomberg Radio. My name is Kevin Cirelli.

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Speaker 1: I am the chief Washington correspondent for Bloomberg Television and

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Speaker 1: for Bloomberg Radio. We begin tonight with the big story.

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Speaker 1: Federal Reserve Chairman Jerome Powell reiterated today on Capitol Hill

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Speaker 1: that the labor market has a long way to go

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Speaker 1: as it recovers from jobs lost in the pandemic. I've

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Speaker 1: got sound on this from his testimony before the House

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Speaker 1: Financial Services Committee. Take a listen. We have ten million

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Speaker 1: fewer people working on payroll jobs than we had just

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Speaker 1: one year ago today, and that the unemployment rate, the

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Speaker 1: reported rates six point three percent. That if you include

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Speaker 1: people who were in the labor four sun indeed working

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Speaker 1: in February, and a couple of other adjustments, you get

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Speaker 1: to almost a ten percent unemployment rate. So there's a

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Speaker 1: lot of slack in the labor market and a long

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Speaker 1: way to go to maximum employment. Let's go right to

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Speaker 1: Capitol Hill where the Budget Committee Chairman John Yarmouth, a

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Speaker 1: Democrat from Kentucky, is joining us. Mr Chairman, thank you

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Speaker 1: for joining us. I gotta be candid here. There's a

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Speaker 1: real partisan debate that has emerged on minimum wage that's

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Speaker 1: a part of this one point nine trillion dollars stimulus deal.

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Speaker 1: You heard it right there from the Fed chairman, the

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Speaker 1: need for more economic support. When can that minimum wage

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Speaker 1: get raised? Well, we we hope in a in a

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Speaker 1: couple of weeks, we're going to put it in. I

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Speaker 1: mean it's in the House build that we're gonna pass

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Speaker 1: on Friday night, Uh, taking it to fifteen dollars an

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Speaker 1: hour by and uh. You know it may face some

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Speaker 1: challenges in the Senate, but we're gonna we're gonna pass

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Speaker 1: it here in the House and see what the Senate

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Speaker 1: does with it. When you here, Republicans say that the

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Speaker 1: minimum wage is just something that financially the country nor

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Speaker 1: small businesses can afford. What is your response to that criticism. Well,

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Speaker 1: my response is that you know, six eight months ago,

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Speaker 1: we were paying tribute honoring people like the grocery shelf

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Speaker 1: stockers and bus drivers and sanitation workers and and people

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Speaker 1: who were doing jobs that we never thought were really critical,

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Speaker 1: and now we found out that they're critical, and I

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Speaker 1: think and now it's time that we actually reward them

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Speaker 1: financially for the important work that they're doing. But beyond

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Speaker 1: those people, we haven't raised the federal minimum wage since

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Speaker 1: two thousand and seven, that was my my first month

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Speaker 1: on the job here. And meanwhile, most most areas of

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Speaker 1: the country are already at ten eleven, twelve dollars an

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Speaker 1: hour or more. So what we found in places like

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Speaker 1: Seattle and other places is that when you raise the

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Speaker 1: minimum wage, the economy actually prospers. You have so many

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Speaker 1: more people who are out being spenders and and all

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Speaker 1: of that money goes back into those economies and it

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Speaker 1: ends up being a growth stimulus proposal and not something

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Speaker 1: that kills jobs. You know, I was struck by this

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Speaker 1: that the in addition to the minimum wage, the Republicans

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Speaker 1: are also raising the issue that they feel that they

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Speaker 1: don't want to have to bail out states that they

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Speaker 1: argue are controlled by Democrats, and and that and and

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Speaker 1: that quite frankly, that that they shouldn't be that their

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Speaker 1: taxpayer constituents shouldn't be on the hook for it. Uh,

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Speaker 1: what's your you know? Do you agree? I take it

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Speaker 1: you don't agree with that assessment. No. I had a

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Speaker 1: meeting the other day with the U S Conference of Mayors,

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Speaker 1: for instance. There were a lot of Republicans on that

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Speaker 1: Zoom meeting, and all of them are very enthusiastic about

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Speaker 1: this package. People like Jim Justice in West Virginia and

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Speaker 1: Asa Hutchinson in Arkansas, very very red states. I think

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Speaker 1: this is a good idea. They need the help. And know,

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Speaker 1: I know that the states have differed in how much

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Speaker 1: revenue they have lost, but every state has suffered an

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Speaker 1: economic impact. And the money that we're providing here doesn't

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Speaker 1: just go to make up for lost revenues. It also

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Speaker 1: enables states to do things that helps save businesses and

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Speaker 1: helps save institutions in their their community and their state.

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Speaker 1: So this is this is something that is is way

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Speaker 1: beyond just replacing tax revenue. And again, I don't think

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Speaker 1: we have red, red roads and blue roads, at least

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Speaker 1: I'm not. I haven't seen many or red water systems

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Speaker 1: or blue water systems, or red schools or blue schools,

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Speaker 1: and and and that's the way we're looking at this.

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Speaker 1: Every state has been impacted. Sherman Yarmouth. I always find

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Speaker 1: this fascinating that you were actually the congressman for Senate

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Speaker 1: Majority for Leader McConnell's congressional district. I never knew that

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Speaker 1: until my show Fred this morning. How's that relationship? Well,

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Speaker 1: I've known Mitch for a long time, since nineteen sixty eight.

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Speaker 1: I was a Republican actually until nineteen eighty have. We've

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Speaker 1: obviously gone in very different directions since then. You know,

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Speaker 1: we're civil, we get along, but on policy we're we're

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Speaker 1: poles apart. As you're excited, all right, I gotta ask

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Speaker 1: you one more question, just by knowing you're tight on time.

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Speaker 1: But before I let you go, could a COVID stimulus

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Speaker 1: fine passage along with a budget vote to get into

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Speaker 1: the wheats here? I'm sorry, Kevin, I missed that, gonnad COVID?

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Speaker 1: Could it find it? Could it find it with a

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Speaker 1: budget vote? The time? But yeah, yeah, we're gonna, I mean,

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Speaker 1: we're we're doing it with the budget reconciliation process. We're

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Speaker 1: going to Rules Committee on Friday morning. We're bringing the

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Speaker 1: budget reconciliation to build the American Rescue Plan to the

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Speaker 1: floor Friday night, and uh, we'll pass it and then

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Speaker 1: send it along to the Senate. The Senate will do

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Speaker 1: with it what it will next week, and presumably we'll

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Speaker 1: get it back the week of March eight, and then

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Speaker 1: we'll get it signed into law. All right, we'll leave

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Speaker 1: it there. I know you're busy, and I can hear

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Speaker 1: it in the background right there on Capitol Hill. That's

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Speaker 1: a Budget Committee Chairman John Yarmouth joining us, the Democrat

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Speaker 1: from Kentucky. Really, I guess some busy times back there

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Speaker 1: on Capitol Hill. Let's bring into this conversation. Our team

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Speaker 1: are Bloomberg Politics contributor of Rick Davis, who was listening

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Speaker 1: to that interview of Rick. I mean you hear it

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Speaker 1: right there, just the tension on the issue of minimum wage,

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Speaker 1: as well as the response that Democrats are amounting to

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Speaker 1: this ongoing criticism that Republicans don't want to bail out

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Speaker 1: democratic states. Yeah. I think you picked the one key

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Speaker 1: issue within this package that actually is the news item,

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Speaker 1: and that is that the Republicans want to strip out

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Speaker 1: this minimum wage uh component to the stimulus package, and

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Speaker 1: the Democrats are holding firm they see a lot of

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Speaker 1: popularity around this package, and and they see an opportunity

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Speaker 1: to raise the race. I wouldn't be surprised that if

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Speaker 1: this gets stripped out in the Senate version, which I

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Speaker 1: think everybody expects it to be done, that there isn't

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Speaker 1: a standalone bill in the House to keep pressing this

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Speaker 1: issue of minimum wage in the House of Representatives. You know,

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Speaker 1: and I was struck by Senator Chuck Schumer today and

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Speaker 1: I believe you've got the sound on this and our

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Speaker 1: and our last Senator Chuck Schumer said that Republicans want

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Speaker 1: everyone on board to try to sink the latest stimulus bill.

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Speaker 1: Here's the sound on that from Schumer. According to report

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Speaker 1: and CNN, Republican leaders are maneuvering to get every single

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Speaker 1: Republican A member to oppose the emerging legislation. Make no mistake,

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Speaker 1: Republicans opposed the American Rescue Plan to the detriment of

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Speaker 1: the country. Let's bring into this conversation Roger zach him.

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Speaker 1: He is the director of the Ronald Reagan Institute and

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Speaker 1: the former Deputy Assistant Secretary of Defense and former General

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Speaker 1: Counsel for the US House Armed Services Committee. Roger, it's

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Speaker 1: great to have you on the program? What you know

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Speaker 1: you hear that from Schumer. The political battle lines really

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Speaker 1: being drawn out of the likely advancement of this one

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Speaker 1: point nine trillion dollars stimulus bill as it heads to

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Speaker 1: the Senate next week. Yeah, I mean it's not surprising. UH,

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Speaker 1: it's part of in uh. At one point nine trillion dollars,

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Speaker 1: with a lot of Democratic priorities, you're gonna have Republicans

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Speaker 1: pushing back. If they wanted to fashion a bipartisan bill,

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Speaker 1: it would look quite different. Obviously focusing on those areas

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Speaker 1: of the spending bill that I go directly to COVID nineteen. UH.

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Speaker 1: As you get to some of these other areas, the

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Speaker 1: connection to code becomes more attenuated, particularly where the money

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Speaker 1: won't be spent in some cases out eight uh. And

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Speaker 1: so the Democrats they have the majorities in both chambers

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Speaker 1: and they're taking advantage of it. Hey, Roger, this Rick Davis,

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Speaker 1: and thank you for being on the program and having

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Speaker 1: served in the Reagan White House. I I remember the

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Speaker 1: President used to say, you know, I go into a

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Speaker 1: legislative fight for of what I want, but I'll sign

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Speaker 1: a bill for eighty percent of what I can get

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Speaker 1: and should there have been a better effort by this

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Speaker 1: administration to try and call together what has been UH

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Speaker 1: in four previous UH stimulus bills, a bipartisan effort to

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Speaker 1: solve this problem economically. Well, yeah, you're channeling Reagan there

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Speaker 1: and great to be with you. And and the answer is,

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Speaker 1: I think from Republican standpoint, absolutely yes. And perhaps I

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Speaker 1: wonder if President Biden is thinking the same. He's got

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Speaker 1: other priorities UH for his administration and to come out

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Speaker 1: with you know what the Wall Street journals called this

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Speaker 1: blowout spending bill. UH, it may limit his ability that

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Speaker 1: his President Biden's ability together things done because they seem

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Speaker 1: to be going for of what they want. You know.

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Speaker 1: I think that point specifically in terms of regardless of

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Speaker 1: the outcome and it's likely going to pass on this

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Speaker 1: economic stimulus pack, the effect of the of what the

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Speaker 1: Biden administration is spending on political capital, not just the

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Speaker 1: top line budget number, but the but the political capital

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Speaker 1: that is being expended by this White House, by Democratic leadership,

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Speaker 1: is going to play a significant role in the cost

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Speaker 1: of negotiations that they are able to do with the

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Speaker 1: Democratic Socialists and the far left flank of their party

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Speaker 1: on issues pertaining to immigration and yes, including to infrastructure.

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Speaker 1: But to bring it back to the immediacy of the

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Speaker 1: current debate, you know, FED Chairman J. Powell once again

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Speaker 1: reiterated today in his testimony that that it could take

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Speaker 1: more than three years to achieve their inflation goal. And

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Speaker 1: this inflation debate has really been heating up amongst all

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Speaker 1: of the policy wonks here in Washington, d C. And

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Speaker 1: up there on Wall Street. Here's the sound on this

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Speaker 1: from FED Chairman J. Powell, take a lesson. We want

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Speaker 1: inflation to average superman over time. And the reason we

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Speaker 1: want that is that we want inflation expectations to be

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Speaker 1: anchored right and not excellent below two percent. We believe

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Speaker 1: we can do it. Believe we will do it. It

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Speaker 1: may take more than three years, but you know, we'll

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Speaker 1: update that every quarter, we update that assessment and we'll see,

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Speaker 1: we'll see how that goes. Rick Davis to to punch

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Speaker 1: it to you here, I mean, he's pushing back on

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Speaker 1: concerns of prices rising and overheating. But has he been

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Speaker 1: able to divorce himself from the political back and forth

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Speaker 1: that is going on over this stimulus. Yeah, I think

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Speaker 1: to some degree he's He's coming out of a period

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Speaker 1: of deflationary activity, right, and that hasn't helped the economy.

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Speaker 1: The markets have responded well to what's been happening on

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Speaker 1: the stimulus front for the last two years. But I

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Speaker 1: think that Chairman Palace just trying to put some rational

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Speaker 1: bumpers around this inflation argument. And and for him to

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Speaker 1: come out today and say, look, we've got a target

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Speaker 1: at two percent and it may take us three years

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Speaker 1: to get there, should calm the markets down a bit.

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Speaker 1: That that that the that the FED doesn't have a

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Speaker 1: perspective on inflation that is going to, you know, let

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Speaker 1: the markets get out of control. So I think what

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Speaker 1: he's trying to do is be respectful the inflation but

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Speaker 1: still make the case, as you pointed out earlier, Kevin,

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Speaker 1: that um that we need a stimulus. He's been very

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Speaker 1: kg about whether or not he wants this stimulus, but

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Speaker 1: but he does want more activity, and the unemployment number

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Speaker 1: is what he seems to be mostly focused on. And

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Speaker 1: I can just keep going back to the fact that

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Speaker 1: to to your point, the Central Bank is saying, yes,

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Speaker 1: we need more stimulus, and even Republicans are talking about

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Speaker 1: hundreds of billions of dollars. They differ, of course, in

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Speaker 1: terms of that top line number. Much more coming up

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Speaker 1: next time, Kevin. So, really, this is Bloomberg. This is Bloomberg.

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Speaker 1: Sound on with Bloomberg Radio. My name is Kevin Sireli.

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Speaker 1: I'm the chief Washington correspondent for Bloomberg Television and for

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Speaker 1: Bloomberg Radio. Beautiful day here in the Nation's capital. I

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Speaker 1: gotta tell you I've got spring fever. You know, I

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Speaker 1: I snuck a jog in. Don't tell the boss. On

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Speaker 1: my lunch break, Rick Davis is with us Bloomberg Politics contributor, Rick,

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Speaker 1: I mean, spring is here. My dad got scheduled for

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Speaker 1: a vaccine. There is a light at the end of

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Speaker 1: the tunnel. We got to inject some optimism out there.

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Speaker 1: Am I right, my friend, I'm feeling it. I'm feeling it.

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Speaker 1: I'm now feeling very guilty. I didn't get outside to run.

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Speaker 1: I did run inside this morning, but it was too

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Speaker 1: cold outside by the time I was up. But I totally,

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Speaker 1: I honestly feel like this is a different, uh period

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Speaker 1: of time where you know, maybe COVID is gonna get tackled.

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Speaker 1: We've got all these vaccines happening. Good, good work. For

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Speaker 1: your father to get get a get a shot. Get this.

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Speaker 1: I gotta give credit to my cousin who actually lives

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Speaker 1: in Hong Kong. I have a cousin in Hong Kong,

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Speaker 1: and uh she was staying up because well, I guess

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Speaker 1: she wasn't staying up at the time. Difference worked in

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Speaker 1: the favor. She kept hitting, refreshed and then got him

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Speaker 1: in to a place back in Delco where I grew up.

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Speaker 1: So anyway, shout out to my cousin for that good news.

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Speaker 1: Good news, more people getting vaccines. Gotta have that optimism.

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Speaker 1: It was a better day for me, I guess than

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Speaker 1: for the leaders of the Republican Party in the House

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Speaker 1: that they're at their press conference. Uh did you see this,

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Speaker 1: Rick Davis. So they gave a press conference Leader McCarthy

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Speaker 1: and Congresswoman Liz Cheney, and one of the reporters asked

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Speaker 1: about whether or not former President Donald Trump should speak

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Speaker 1: at Sea Pack this weekend. If this sound bite doesn't

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Speaker 1: illustrate what's happening right now in the Republican Party, I

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Speaker 1: don't know what does. Here's the sounds on this exchange.

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Speaker 1: It really captures it. Here here it is take a

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Speaker 1: listen especially how this President Trump should be speeding should

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Speaker 1: this weekend Congress ms Cheney, that's up to seat back.

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Speaker 1: I've been clear in my views about the President Trump

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Speaker 1: and and the extent to which, well, extent which in

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Speaker 1: January six, Uh, I don't I don't believe that he

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Speaker 1: should be playing a role in the future of the party.

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Speaker 1: I mean, Rick Davis. Wow. Wow, You've got Kevin McCarthy

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Speaker 1: saying yes, he should speak, Liz Cheney saying no, he

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Speaker 1: should not. Yeah. And this comes just a few weeks

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Speaker 1: after a vote of confidence within the GOP caucus in

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Speaker 1: the House that that kept Liz Cheney in a in

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Speaker 1: a seat that of leadership. So I gotta tell you

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Speaker 1: it is is a party that has now got a

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Speaker 1: fault line. And that fault line is Donald Trump and

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Speaker 1: and and it's and it's even more distinct when you

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Speaker 1: move over to how Mitch McConnell, the leader of the

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Speaker 1: caucus in the Senate, feels about the same situation. Yeah,

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Speaker 1: Roger Zackheim's with us. He's the director of the Ronald

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Speaker 1: Reagan Institute, Roger Roger, is that the Party of Reagan anymore?

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Speaker 1: Or is it a divide between McCarthy and Cheney. Listen,

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Speaker 1: the party of Reagan and Lincoln. UH. And I know

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Speaker 1: that because speakany Republican and I'll tell you that. But

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Speaker 1: in terms of the future of the party, UH, that's

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Speaker 1: the debate, UM, and the clip you shared captured it.

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Speaker 1: Whether the Republican Party UH wants have President Trump continues

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Speaker 1: to find it where the other Republicans want to move

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Speaker 1: on and find other voices to leave the party. UM.

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Speaker 1: And that won't be resolved in today's conference. Is going

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Speaker 1: to play out UH in the coming weeks, months, and years. Frankly,

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Speaker 1: so Roger, and we're going to talk about about your

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Speaker 1: conversations on the national security front coming up in the

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Speaker 1: next half hour, and you just had a brilliant interview

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Speaker 1: with Senator Tom Cotton of Arkansas for his positions on China,

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Speaker 1: and we're gonna get to that. But another part of

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Speaker 1: your role as the director of the Ronald Reagan Institute

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Speaker 1: is you talk with incredibly influential republic kinds. And so,

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Speaker 1: how does this party unify ahead of the mid terms

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Speaker 1: when the leaders are so bullish on recapturing control of

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Speaker 1: the House of Representatives, When you've got such a clear

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Speaker 1: divide right now between McCarthy and Cheney, and it's spilling

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Speaker 1: over where they're standing next to each other on the

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Speaker 1: same stage socially distance of a press conference for the caucus. Well,

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Speaker 1: I think you put your finger on it. It's how

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Speaker 1: do you win? How do you become majority party? And

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Speaker 1: they got very close in the House of Representatives, uh,

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Speaker 1: in the last election. Um, and that's what it's going

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Speaker 1: to define the direction they go elected. Officials want to

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Speaker 1: be elected, they want to stay elected, they want to

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Speaker 1: have the government majority. They've failed to do that in

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Speaker 1: the last election. And depending on the recipe they put

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Speaker 1: together for two will to determine whether it's a party

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Speaker 1: that double downs on the ideas and principles that were

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Speaker 1: advanced in the last administration or if they go in

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Speaker 1: a different directions. Yeah, I was just gonna yeah, I mean,

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Speaker 1: you point out the elections of the future. Two are

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Speaker 1: going to define a lot of that. And and obviously

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Speaker 1: we know Kevin McCarthy is working hard to try and

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Speaker 1: get every help he can, and that would include Donald Trump,

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Speaker 1: you know, for a Republican majority in the House. But

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Speaker 1: when you look at the Senate, it's a totally different

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Speaker 1: picture where you have you know, ten of the thirty

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Speaker 1: ten of the fourteen Democratic seats that are up or

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Speaker 1: in states that Donald Trump won in two thousand and sixteen,

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Speaker 1: and only two of the states that are up for

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Speaker 1: Republicans twenty in total, Biden one in this last term. So, uh,

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Speaker 1: it's a completely different, uh animal of a different color,

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Speaker 1: so to speak, when it comes to what Republican priorities

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Speaker 1: are and depending on whether it's a statewide race or

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Speaker 1: a district race, and who the primary might be. Uh,

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Speaker 1: that's a really great point. I'm curious to see if

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Speaker 1: there's any oxygen in the room for a new type

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Speaker 1: of Republican in the party of a new generation when

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Speaker 1: you've got so many of these household name politicians drowning

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Speaker 1: out so much of the noise. Much more coming up next,

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Speaker 1: we go to one of those Republicans on the hill.

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Speaker 1: That's coming up next. I'm Kevin Surreally. This is Bloomberg

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Speaker 1: broadcasting live from our nation's capital, Bloomberg to New York,

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Speaker 1: Bloomberg eleven Frio to San Francisco, Bloomberg to the country,

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Speaker 1: Sirius XM General one and around the globe, the Bloomberg

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Speaker 1: Business app and Bloomberg Radio dot Com. This is Bloomberg

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Speaker 1: sound on with Kevin Sorelli. Up next on the telephone line,

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Speaker 1: you Congressman James Coohmer of Republican representing Kentucky's first congressional district.

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Speaker 1: He wrote to Chairwoman Carolyn Maloney today urging for transparency

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Speaker 1: on Governor Andrew Cuomo. Accompanied by none other than Rick Davis,

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Speaker 1: Bloomberg Politics contributor, joining us on the telephone line. Congressman

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Speaker 1: James Khmer, Republican, representing Kentucky's first congressional district. He's also

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Speaker 1: the top Republican on the House Oversight and Government Reform Committee. Congressman,

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Speaker 1: I want to talk to you about stimulus, but but

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Speaker 1: first I want to get to a letter that you

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Speaker 1: sent UH to UH regarding Governor Andrew Cuomo with regards

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Speaker 1: to issuing a subpoena to the chairwoman of the committee,

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Speaker 1: Caroline Maloney of New York about transparency as it relates

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Speaker 1: to deaths and nursing homes. UH. Have you gotten a

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Speaker 1: response yet from the chairwoman. We have not gotten a

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Speaker 1: response yet. We sent a letter today. I would be

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Speaker 1: surprised that she even responded because the Select subcommittee that

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Speaker 1: has been investigating everything related to COVID is a subcommittee

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Speaker 1: of the full Committee of Oversight. So this subcommittee has

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Speaker 1: been on top of all the wrongdoing with respect to

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Speaker 1: Cuomo's nursing home policy and transferring COVID possipations and nursing

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Speaker 1: homes from day one. In fact, I think this sub

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Speaker 1: select subcommittee is the committee that first broke the news

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Speaker 1: on that. So, uh, the people of America, especially the

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Speaker 1: families in New York have lost loved ones, deserved transparency.

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Speaker 1: They deserve to know what actually happened, what was the

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Speaker 1: decision making process. Did Governor Cuomo in fact deflate the

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Speaker 1: numbers on the actual nursing home death And I think

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Speaker 1: that that's something that the Oversight Committee should take up

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Speaker 1: since we spent so much time and resources on the

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Speaker 1: Select Committee. So, uh, Maloney should do this. It's her state,

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Speaker 1: it's her committee, and we'll just be waiting to hear

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Speaker 1: her response. We're gonna keep a careful eye on that story.

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Speaker 1: But let's also now turn to the financial matters of

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Speaker 1: the day. Uh, particularly this one point nine trillion dollars

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Speaker 1: stimulus plan that is likely going to pass out of

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Speaker 1: the House of Representatives on Friday, and then it of

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Speaker 1: course goes to the Senate. Are you detailed in the

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Speaker 1: Fox News op ed on the COVID spending that this

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Speaker 1: is the wrong time, uh, and the wrong plan for

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Speaker 1: the wrong time. Elaborate why you are against this plan. Well,

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Speaker 1: you have already passed four trillion dollars in bipartisans stimulus,

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Speaker 1: and we've learned recently that almost a trillion dollars of

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Speaker 1: that initial fort trillion has been unspent. So if you

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Speaker 1: can imagine, four trillion dollars is more money than the

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Speaker 1: federal government can even spend. Now the Democrats want to

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Speaker 1: pass another two trillion dollars. Only nine of this two

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Speaker 1: trillion dollar stimulus plan that the Democrats are trying to

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Speaker 1: push through, less than nine is COVID related. That that

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Speaker 1: deals with putting Kobe shots in in people's arms and

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Speaker 1: and testing and things like that. The bill for it's

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Speaker 1: a wish list. It's a liberal wish list for polo

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Speaker 1: sas three hundred and fifty billion for state local governments,

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Speaker 1: So it's rewarding states that kept their state shut down. Uh.

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Speaker 1: It's a hundred thirty five million for the national en

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Speaker 1: downloads for ART twelve billions for for an aid fifty

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Speaker 1: million for planned parents. And these aren't the things that

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Speaker 1: I think we need to be borrowing money from our

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Speaker 1: children and grandchildren to pay for today. And that's what

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Speaker 1: I've said about this bill. It's immoral because of what

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Speaker 1: it does to the national debt that our children and

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Speaker 1: grandchildren are going to have to pay for. Money goes

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Speaker 1: for individuals. Yes, you know, you point out that you

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Speaker 1: you you can't find a trillion dollars worth of the

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Speaker 1: four training that's already been allocated UH to COVID relief.

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Speaker 1: And I'm curious because we've heard a lot of different

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Speaker 1: numbers as to what's outstanding from the Trump administration COVID

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Speaker 1: relief funds. And where is that money? I mean, that's

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Speaker 1: the biggest number I've heard out in the public and

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Speaker 1: UH and and and is it in accounts that are

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Speaker 1: accessible to be applied to the current crisis. It's scattered

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Speaker 1: in different funds. You have a lot of unspent PPP funds,

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Speaker 1: you have unspent state local funds. The Cares Act was

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Speaker 1: a broad piece of legislation that was very open ended,

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Speaker 1: and a lot of agencies, local municipalities, a lot of

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Speaker 1: UH entities that got money from from the Cares Act

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Speaker 1: for healthcare related expenses for economic stimulus. They're just hoarding

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Speaker 1: that money because they don't need it. And we listed

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Speaker 1: in Oversight committee hearing all the different municipalities that were

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Speaker 1: represented by Democrat members on the committee, who who represent

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Speaker 1: citties that haven't spent thirty five of their COVID funds,

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Speaker 1: but yet they're asking for three d and fifty billion

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Speaker 1: more in state local funds. It's unneeded. Uh. I fear

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Speaker 1: that we keep training money. Not only does it run

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Speaker 1: the DAT up on our children grandchildren, also going to

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Speaker 1: create inflation. So I think this is bad policy, and

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Speaker 1: the American taxpayers deserved and know we're the original for

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Speaker 1: trillion to spend. They don't even have that answer. I'm

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Speaker 1: going to rip up the script here because I would

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Speaker 1: be remiss if I didn't ask you this question. People

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Speaker 1: when they think of Kentucky, they often think of, you know,

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Speaker 1: bourbon right, but you've actually put HEMP and the CBD

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00:25:50,880 --> 00:25:54,199
Speaker 1: market on the map in Kentucky. You are one of

431
00:25:54,240 --> 00:25:58,760
Speaker 1: the leading Republicans in in in the caucus. Really Congressman

432
00:25:59,119 --> 00:26:02,000
Speaker 1: James Comber, who's at us, who's really pushing for there

433
00:26:02,080 --> 00:26:06,320
Speaker 1: to be more research and development in this UH emerging industry.

434
00:26:06,880 --> 00:26:12,720
Speaker 1: What's the most prescient issue pertaining the hemp industry as

435
00:26:12,720 --> 00:26:16,800
Speaker 1: it relates to economic development in your district? Well, in

436
00:26:16,880 --> 00:26:19,200
Speaker 1: my district, there was a lot of hemp grown by

437
00:26:19,480 --> 00:26:24,400
Speaker 1: Kentucky farmers for CBD oil, and the FDA will not

438
00:26:24,880 --> 00:26:27,320
Speaker 1: make a decision on which direction they want to go

439
00:26:27,480 --> 00:26:30,199
Speaker 1: with respect to CBD oil. You have a lot of

440
00:26:30,200 --> 00:26:32,960
Speaker 1: CBD oil that's on the market today, and I take

441
00:26:33,040 --> 00:26:35,479
Speaker 1: CBD oil. I've been very public about that. I think

442
00:26:35,560 --> 00:26:42,199
Speaker 1: it's a very good alternative UH medicine type, but it

443
00:26:42,240 --> 00:26:44,400
Speaker 1: needs to be regulated. You have a lot of companies

444
00:26:44,440 --> 00:26:47,640
Speaker 1: that are are good actors, and you have a lot

445
00:26:47,640 --> 00:26:49,960
Speaker 1: of companies that are bad actors that are selling products

446
00:26:50,000 --> 00:26:52,440
Speaker 1: that that really don't have what they what they need.

447
00:26:52,480 --> 00:26:56,320
Speaker 1: So we want to regulate a ute pseudical right. Come

448
00:26:56,320 --> 00:26:58,320
Speaker 1: back on and talk to us more about that, because

449
00:26:58,359 --> 00:27:00,720
Speaker 1: I think that's a that's something an issue you to watch.

450
00:27:00,840 --> 00:27:03,600
Speaker 1: That's much more coming up next to me, pivot to geopolitics.

451
00:27:03,640 --> 00:27:07,080
Speaker 1: That's Congressman James Comber taking us down to Kentucky. I'm

452
00:27:07,160 --> 00:27:22,919
Speaker 1: Kevin CURRELLI, this is Bloomberg. This is Bloomberg's Sound On

453
00:27:23,280 --> 00:27:28,600
Speaker 1: with Kevin s on Bloomberg Radio. I'm Kevin Currelly, chief

454
00:27:28,600 --> 00:27:32,440
Speaker 1: Washington correspondent for Bloomberg TV and Radio. Accompanied by Rick Davis,

455
00:27:32,440 --> 00:27:37,480
Speaker 1: Bloomberg Politics contributor, and Roger Zackheim, who is the director

456
00:27:37,520 --> 00:27:40,919
Speaker 1: of the Ronald Reagan Institute. Let's pivoting out to what

457
00:27:41,119 --> 00:27:44,840
Speaker 1: I think is arguably the most important geopolitical story of

458
00:27:45,040 --> 00:27:51,280
Speaker 1: the day. President Biden's signing executive orders to study the

459
00:27:51,400 --> 00:27:55,480
Speaker 1: US dependence upon the global supply chain. He is calling

460
00:27:55,520 --> 00:27:58,720
Speaker 1: for there to be a one day review period. Uh.

461
00:27:58,760 --> 00:28:01,520
Speaker 1: And candidly, this is all about China, UH, and the

462
00:28:01,600 --> 00:28:05,560
Speaker 1: relationship that the United States has on China, particularly as

463
00:28:05,600 --> 00:28:08,399
Speaker 1: we have a shortage on a host of different products,

464
00:28:08,440 --> 00:28:14,520
Speaker 1: including semiconductor chips. This is gonna have massive implications for Japan, Taiwan,

465
00:28:14,920 --> 00:28:18,960
Speaker 1: Australia even to some extent um. And and there are

466
00:28:18,960 --> 00:28:22,080
Speaker 1: our plants, there are auto industry plants, folks that are

467
00:28:22,119 --> 00:28:25,720
Speaker 1: sitting idle across this country right now and threatening to

468
00:28:25,720 --> 00:28:29,040
Speaker 1: put US workers out of work. This is the one area,

469
00:28:29,119 --> 00:28:33,080
Speaker 1: I'll be frank with you, where Republicans and Democrats do

470
00:28:33,240 --> 00:28:37,919
Speaker 1: actually agree that the United States is too dependent upon China.

471
00:28:38,000 --> 00:28:41,120
Speaker 1: For its supply chains uh. And whether it's Senator Marsha

472
00:28:41,160 --> 00:28:45,200
Speaker 1: Blackburn of the Republican Party or increasingly Senator Tom Cotton

473
00:28:45,840 --> 00:28:49,800
Speaker 1: of Arkansas or Democrats like Chairman of the Intel Committee,

474
00:28:49,800 --> 00:28:52,760
Speaker 1: Mark Warner, They've been really talking about this for for

475
00:28:52,840 --> 00:28:55,320
Speaker 1: quite some time. I want to go to Roger first,

476
00:28:55,360 --> 00:28:58,640
Speaker 1: because you actually spoke with Senator Cotton just a couple

477
00:28:58,640 --> 00:29:02,720
Speaker 1: of days ago and about these issues. Do you think

478
00:29:02,760 --> 00:29:05,840
Speaker 1: that this is just long overdue geopolitical policy that the

479
00:29:05,920 --> 00:29:08,800
Speaker 1: US start to distance itself in order to better positioned

480
00:29:08,800 --> 00:29:15,680
Speaker 1: itself in catastrophic situations from its reliance on China. I mean,

481
00:29:15,720 --> 00:29:19,640
Speaker 1: it's been building for some time now. One of the

482
00:29:19,640 --> 00:29:22,520
Speaker 1: most significant achievements of the Trump administration was to focus

483
00:29:22,560 --> 00:29:27,520
Speaker 1: squarely on the competition is what policymakers call it, with China,

484
00:29:27,840 --> 00:29:29,720
Speaker 1: and so we saw today out of the Biden White

485
00:29:29,760 --> 00:29:34,200
Speaker 1: House was continuity on this issue. Set COVID nineteen is

486
00:29:34,200 --> 00:29:39,520
Speaker 1: only reinforced and made Americans truly internalized what dependency on

487
00:29:39,720 --> 00:29:43,440
Speaker 1: China means and what it could mean to our security.

488
00:29:43,600 --> 00:29:45,560
Speaker 1: The only differences if you read the White House fact

489
00:29:45,600 --> 00:29:50,560
Speaker 1: sheet about this executive order, it doesn't name China as

490
00:29:50,560 --> 00:29:53,720
Speaker 1: you were called the Trump administration. Uh, never missed an

491
00:29:53,760 --> 00:29:58,920
Speaker 1: opportunity to name China. You know, that's name the virus after.

492
00:29:59,120 --> 00:30:05,200
Speaker 1: I believe I'm gonna you know, I think that's it

493
00:30:05,320 --> 00:30:07,480
Speaker 1: is fascinating that they have decided. What do you think

494
00:30:07,520 --> 00:30:09,360
Speaker 1: that means? I mean, let me follow up, Roger. Why

495
00:30:09,400 --> 00:30:11,680
Speaker 1: didn't they name China in their fact sheet in a

496
00:30:11,760 --> 00:30:16,160
Speaker 1: policy that is specifically all about China, Because it's not

497
00:30:16,280 --> 00:30:20,840
Speaker 1: just about China. Uh, and it was focusing on America's

498
00:30:21,320 --> 00:30:25,640
Speaker 1: need really too, uh, not just be less dependent, but

499
00:30:25,720 --> 00:30:30,120
Speaker 1: often to onshore within the United States. But it actually

500
00:30:30,120 --> 00:30:33,920
Speaker 1: surprised me. Uh. President Biden spoke at an international conference

501
00:30:34,080 --> 00:30:38,400
Speaker 1: virtually about a week ago or so, and uh, yeah,

502
00:30:38,880 --> 00:30:42,240
Speaker 1: I had no issue calling out China. Uh. He talked

503
00:30:42,240 --> 00:30:44,600
Speaker 1: about that it was the competition would continue, that's why

504
00:30:44,600 --> 00:30:48,600
Speaker 1: there's continuity, and also identified areas of cooperation. But it

505
00:30:48,680 --> 00:30:50,880
Speaker 1: is surprising to me that when you're talking about, you know,

506
00:30:50,920 --> 00:30:54,200
Speaker 1: the criticality supply chains and on shoring bringing this manufacturing

507
00:30:54,280 --> 00:30:56,680
Speaker 1: back to the United States at a moment when we're

508
00:30:56,680 --> 00:30:59,440
Speaker 1: still within this global pandemic, and as you reference, we

509
00:30:59,480 --> 00:31:01,800
Speaker 1: have NFL afterwards in the auto industry that can get

510
00:31:02,360 --> 00:31:04,640
Speaker 1: the chips they need, Uh, you might as well call

511
00:31:04,640 --> 00:31:07,800
Speaker 1: it out. We all knew who he helps in the room. Yeah,

512
00:31:07,800 --> 00:31:10,000
Speaker 1: And I was gonna say, if we could just dial

513
00:31:10,080 --> 00:31:14,240
Speaker 1: back to what Kevin said earlier about, um, the conversation

514
00:31:14,280 --> 00:31:17,520
Speaker 1: you had with Senator Cotton. I mean, obviously not from

515
00:31:17,560 --> 00:31:22,000
Speaker 1: the same ideological perspective as President, but the paper he

516
00:31:22,040 --> 00:31:25,800
Speaker 1: wrote that you all were discussing beat China targeted decoupling.

517
00:31:26,240 --> 00:31:30,000
Speaker 1: This is exactly what Biden announced today. Decoupling on computer chips,

518
00:31:30,040 --> 00:31:35,280
Speaker 1: decoupling on you know, e V batteries, pharmaceuticals, rare earth minerals,

519
00:31:35,840 --> 00:31:38,920
Speaker 1: all of those are are the things we've become dependent

520
00:31:39,000 --> 00:31:43,400
Speaker 1: upon with China. And and it's it's certainly seems to

521
00:31:43,480 --> 00:31:48,400
Speaker 1: me that without saying so, he's he's mimicking the arguments

522
00:31:48,440 --> 00:31:57,400
Speaker 1: being made by a very conservative Senator Tom Cotton. And

523
00:31:57,400 --> 00:32:00,840
Speaker 1: and and you know Tom Cotton is not ment words

524
00:32:00,920 --> 00:32:03,400
Speaker 1: and and the title of his report, UM makes that

525
00:32:03,520 --> 00:32:08,400
Speaker 1: pretty clear beat China. Uh. Tom Cotton was emphasizing this

526
00:32:08,560 --> 00:32:12,479
Speaker 1: area of economic security and dependence on China. And there

527
00:32:12,480 --> 00:32:15,200
Speaker 1: are a lot of Democrats, uh in the Congress, Charlie

528
00:32:15,240 --> 00:32:19,160
Speaker 1: Schummer probably one of the biggest proponents of economic security

529
00:32:19,840 --> 00:32:22,480
Speaker 1: um and for a long time has been talking about

530
00:32:22,520 --> 00:32:26,600
Speaker 1: less dependence and actually saying that trade with China is

531
00:32:26,640 --> 00:32:29,880
Speaker 1: something needs to be addressed and and and being a

532
00:32:29,880 --> 00:32:33,720
Speaker 1: a pure free trader actually undermines our security. So you're right,

533
00:32:33,760 --> 00:32:36,719
Speaker 1: there is by parts of consensus around a lot of this,

534
00:32:36,840 --> 00:32:41,120
Speaker 1: although Tom Cotton uh certainly introduced the logical component where

535
00:32:41,160 --> 00:32:46,080
Speaker 1: he called out China using President Reagan rhetoric as an

536
00:32:46,080 --> 00:32:49,280
Speaker 1: even evil empire. You know. And one of those Democrats

537
00:32:49,280 --> 00:32:53,440
Speaker 1: as Congressman Tom Malinowski. He is a Democrat from New Jersey,

538
00:32:53,960 --> 00:32:58,080
Speaker 1: uh and and actually served in the Obama administration state's apartment.

539
00:32:58,320 --> 00:33:01,560
Speaker 1: He's actually been at the or front. He's the first Democrat,

540
00:33:01,600 --> 00:33:04,040
Speaker 1: I believe in in this Congress to say that the

541
00:33:04,120 --> 00:33:09,240
Speaker 1: United States ought not to participate in the upcoming Winter

542
00:33:09,400 --> 00:33:13,160
Speaker 1: Olympic Games. Uh. And there have been a host of

543
00:33:13,160 --> 00:33:15,960
Speaker 1: of different Republicans who have already come out and said

544
00:33:16,000 --> 00:33:20,480
Speaker 1: that the United States should not participate in the Winter

545
00:33:20,560 --> 00:33:23,760
Speaker 1: Olympic Games, which of course Beijing is hosting, because of

546
00:33:23,840 --> 00:33:26,920
Speaker 1: China's human rights abuses and a host of other issues.

547
00:33:27,600 --> 00:33:31,280
Speaker 1: Another one of those Republicans is Congressman John Katko, a

548
00:33:31,320 --> 00:33:35,320
Speaker 1: Republican of New York. When you talk to whether it's

549
00:33:35,600 --> 00:33:38,640
Speaker 1: Tom Senator cotton On on the right, or even Secretary

550
00:33:38,640 --> 00:33:43,320
Speaker 1: of State Tony B. Lincoln UH in the Biden administration, Roger,

551
00:33:43,920 --> 00:33:48,320
Speaker 1: it's it's quite clear that there's this developing framework and

552
00:33:48,320 --> 00:33:51,200
Speaker 1: and it's the one area that the previous administration would

553
00:33:51,240 --> 00:33:55,320
Speaker 1: have with this current one in agreement of developing an

554
00:33:55,320 --> 00:33:59,840
Speaker 1: alliance in the West with regards to cybersecurity, with regard

555
00:34:00,080 --> 00:34:04,520
Speaker 1: to promoting UH techno democracies as the blink in States

556
00:34:04,520 --> 00:34:09,360
Speaker 1: Department has dubbed it, and getting our allies to to

557
00:34:09,560 --> 00:34:13,000
Speaker 1: participate in in clean so called as the Trump administration

558
00:34:13,080 --> 00:34:17,879
Speaker 1: labeled it, five gen networks, and promoting continuity that would

559
00:34:17,880 --> 00:34:22,000
Speaker 1: allow for that type of assurance amongst our allies that

560
00:34:22,040 --> 00:34:27,120
Speaker 1: we're all reliance upon the same type of cyber protections.

561
00:34:27,520 --> 00:34:31,600
Speaker 1: Do you think that this executive order today is a

562
00:34:31,640 --> 00:34:36,239
Speaker 1: part of that broader strategy, Roger, without question. I mean,

563
00:34:36,239 --> 00:34:38,560
Speaker 1: they're going to study this for a hundred days, but

564
00:34:38,719 --> 00:34:42,719
Speaker 1: it's pretty clear the direction are going. This kind of

565
00:34:42,760 --> 00:34:48,239
Speaker 1: overlap between America UH needs for mass security and American

566
00:34:48,280 --> 00:34:52,279
Speaker 1: manufacturing is something that the Biden administration wants to get

567
00:34:52,280 --> 00:34:56,600
Speaker 1: its arms around and will develop policies UH that can

568
00:34:56,760 --> 00:35:00,800
Speaker 1: make us less dependent. Uh. They will u as allies

569
00:35:00,840 --> 00:35:04,280
Speaker 1: and make allies part of the solution, which is important.

570
00:35:04,360 --> 00:35:08,440
Speaker 1: And the difference here is between democratic countries, countries that

571
00:35:08,480 --> 00:35:11,880
Speaker 1: embrace freedom, countries that are open. Uh. They will be

572
00:35:11,880 --> 00:35:14,120
Speaker 1: on our side, and we need to make sure we

573
00:35:14,200 --> 00:35:18,480
Speaker 1: have economically sound approaches to work with them to relieve

574
00:35:18,520 --> 00:35:21,840
Speaker 1: not only our dependency in China, let's relieve their dependency

575
00:35:21,840 --> 00:35:24,640
Speaker 1: on China. We're not talking about exporting soybeans, you know,

576
00:35:24,920 --> 00:35:28,120
Speaker 1: that's not the problem, or even you know, uh kind

577
00:35:28,120 --> 00:35:31,600
Speaker 1: of low end manufacturing goods. It's the stuff that really

578
00:35:31,600 --> 00:35:35,799
Speaker 1: will determine who will be uh the economic powerhouse and

579
00:35:36,000 --> 00:35:40,080
Speaker 1: by extension, the national security powerhouse for the century. That's

580
00:35:40,080 --> 00:35:42,840
Speaker 1: what's that stage here, Rick Davis. I mean when you

581
00:35:42,840 --> 00:35:45,840
Speaker 1: when you listen to Sir Roger Zackheim, who of the

582
00:35:45,920 --> 00:35:49,480
Speaker 1: Ronald Reagan Institute, UH discussed that. I mean, there really

583
00:35:49,560 --> 00:35:52,880
Speaker 1: is from a geopolitical sense, continuity of where Republicans and

584
00:35:52,920 --> 00:35:56,120
Speaker 1: Democrats are in terms of the desired outcome, but there

585
00:35:56,239 --> 00:35:59,319
Speaker 1: is massive difference in terms of the rhetorical approaches that

586
00:35:59,400 --> 00:36:02,040
Speaker 1: both are the part these take. Who is set to

587
00:36:02,200 --> 00:36:07,640
Speaker 1: gain internationally from this as we have covered it, UH,

588
00:36:07,920 --> 00:36:12,360
Speaker 1: wanting to decouple on in certain industries from China. Is

589
00:36:12,360 --> 00:36:16,160
Speaker 1: it Japan for example, is it Australia for example? Well,

590
00:36:16,160 --> 00:36:19,359
Speaker 1: I think Roger makes a good point about alliances and

591
00:36:19,600 --> 00:36:23,240
Speaker 1: in the West. UH, when you start talking about trusted foundery,

592
00:36:23,280 --> 00:36:25,799
Speaker 1: you know what are the products we're going to care about.

593
00:36:25,920 --> 00:36:29,000
Speaker 1: We are the biggest consumer in the world. Uh. And

594
00:36:29,080 --> 00:36:32,319
Speaker 1: so when we turn to our Western allies and say,

595
00:36:32,360 --> 00:36:34,640
Speaker 1: you know what we would prefer either, if we can't

596
00:36:34,680 --> 00:36:36,600
Speaker 1: make it at home, we'd buy it from you. So

597
00:36:36,719 --> 00:36:40,960
Speaker 1: do we trust the manufacturing processes for chips in Australia

598
00:36:41,040 --> 00:36:43,920
Speaker 1: and do they have the capacity to service our needs?

599
00:36:44,120 --> 00:36:48,080
Speaker 1: Let's buy their Europe is exactly the same situation. Here's

600
00:36:48,080 --> 00:36:53,560
Speaker 1: how we can circle the Western nations liberal democracies alliance

601
00:36:53,960 --> 00:36:58,279
Speaker 1: around uh industry, giving preference to those companies that don't

602
00:36:58,360 --> 00:37:02,560
Speaker 1: have China exposure, and therefore isolate China on the economic

603
00:37:02,719 --> 00:37:06,520
Speaker 1: terms that we can probably handle over the next ten years.

604
00:37:07,160 --> 00:37:08,880
Speaker 1: All Right, We're gonna have to leave it there. Bloomberg

605
00:37:08,920 --> 00:37:13,080
Speaker 1: Politics contributor Rick Davis and Roger Zackheim, director of the

606
00:37:13,160 --> 00:37:15,800
Speaker 1: Ronald Reagan Institute, be sure to go to their website

607
00:37:15,800 --> 00:37:20,040
Speaker 1: to check out his conversation with Senator Tom Cotton. February

608
00:37:20,160 --> 00:37:23,480
Speaker 1: is Black History Month, and Bloomberg Radio is celebrating pivotal

609
00:37:23,480 --> 00:37:26,480
Speaker 1: moments in US Black history each day. Here with today's

610
00:37:26,760 --> 00:37:30,760
Speaker 1: installments is Bloomberg's Nita Young On This Day in Black History.

611
00:37:30,800 --> 00:37:34,400
Speaker 1: In eighteen sixty four, Rebecca Lee Crumpler becomes the first

612
00:37:34,480 --> 00:37:37,239
Speaker 1: Black woman to receive an m d degree. To put

613
00:37:37,239 --> 00:37:40,200
Speaker 1: that into perspective, in eighteen sixty there were only three

614
00:37:40,320 --> 00:37:43,400
Speaker 1: hundred women out of fifty four thousand, five and forty

615
00:37:43,400 --> 00:37:46,359
Speaker 1: three physicians in the United States. None of them were

616
00:37:46,400 --> 00:37:51,040
Speaker 1: African American. Crumpler first worked as a nurse in Charlestown, Massachusetts,

617
00:37:51,080 --> 00:37:54,240
Speaker 1: before she was accepted into the New England Female Medical College.

618
00:37:54,640 --> 00:37:57,200
Speaker 1: It was during a time when male physicians claimed women

619
00:37:57,200 --> 00:38:00,319
Speaker 1: did not have the physical strength to practice medicine. In

620
00:38:01,080 --> 00:38:04,640
Speaker 1: three Crumpler released book of Medical Discourses, which was one

621
00:38:04,680 --> 00:38:07,800
Speaker 1: of the first medical books written by an African American.

622
00:38:08,440 --> 00:38:11,120
Speaker 1: That's today in Black history. I'm really need a young

623
00:38:11,480 --> 00:38:15,239
Speaker 1: Bloomberg Radio and that does it for me. My name

624
00:38:15,320 --> 00:38:19,040
Speaker 1: is Kevin Surreley. I'm the chief Washington correspondent for Bloomberg

625
00:38:19,080 --> 00:38:22,799
Speaker 1: TV and for Bloomberg Radio coming up. All throughout the week,

626
00:38:22,840 --> 00:38:26,640
Speaker 1: we're going to continue to talk about that economic stimulus bill.

627
00:38:27,760 --> 00:38:29,360
Speaker 1: This is Bloomberg