1 00:00:03,960 --> 00:00:08,200 Speaker 1: Live from our nation's capital. This is Bloomberg Sound on. 2 00:00:08,800 --> 00:00:11,200 Speaker 1: The parties are divided in terms of the effect that 3 00:00:11,240 --> 00:00:14,120 Speaker 1: the stimulus is going to have. This inflation debate has 4 00:00:14,200 --> 00:00:17,040 Speaker 1: really been heating up the effect of what the Biden 5 00:00:17,040 --> 00:00:22,480 Speaker 1: administration is spending on political capital. Bloomberg Sound on. The insiders, 6 00:00:22,600 --> 00:00:26,239 Speaker 1: the influencers, the insights, a group of centrifts are the 7 00:00:26,360 --> 00:00:29,840 Speaker 1: key senators to watch. Jill Biden get. Number one focus 8 00:00:29,880 --> 00:00:33,280 Speaker 1: in addition to the COVID health crisis is jobs. I 9 00:00:33,320 --> 00:00:35,879 Speaker 1: don't think we have red roads and blue roads, and 10 00:00:35,960 --> 00:00:38,680 Speaker 1: that's the way we're looking at this. Schoomberg Sound on 11 00:00:39,080 --> 00:00:44,400 Speaker 1: with Devin Siling on Bloomberg Radio. President Biden hits the 12 00:00:44,479 --> 00:00:49,879 Speaker 1: policy trail, selling stimulus as four dollar stimulus checks hit 13 00:00:50,000 --> 00:00:54,840 Speaker 1: bank accounts over the weekend. Meanwhile, Secretary of Treasury Jenny 14 00:00:54,920 --> 00:00:59,120 Speaker 1: Yellen eyes a new tax proposal. Will she tax the rich? 15 00:00:59,680 --> 00:01:02,680 Speaker 1: And end we get the latest on infrastructure, A lot 16 00:01:02,720 --> 00:01:05,120 Speaker 1: to talk about with our all star policy panel and 17 00:01:05,160 --> 00:01:08,319 Speaker 1: Congressman Blaine luke Meyer, and we begin tonight with the 18 00:01:08,560 --> 00:01:11,560 Speaker 1: big policy story, which is of course President Biden selling 19 00:01:11,600 --> 00:01:14,760 Speaker 1: stimulus today at the White House, talking about the need 20 00:01:14,840 --> 00:01:17,160 Speaker 1: to stay on top of the money sent for virus 21 00:01:17,160 --> 00:01:20,720 Speaker 1: relief plan and get the economy back on track. Here 22 00:01:20,800 --> 00:01:23,560 Speaker 1: sound on this from President Biden. We can get our 23 00:01:23,600 --> 00:01:26,800 Speaker 1: economy back on track by helping hundreds of thousands of 24 00:01:26,880 --> 00:01:29,520 Speaker 1: small businesses open to stay open, and that we can 25 00:01:29,520 --> 00:01:33,679 Speaker 1: give people this nation a fighting chance again with relief checks, 26 00:01:34,080 --> 00:01:37,919 Speaker 1: lower childcare costs, lower healthcare costs, and so much more. 27 00:01:38,520 --> 00:01:43,000 Speaker 1: That's our job, that's our responsibility, and the process will 28 00:01:43,040 --> 00:01:45,480 Speaker 1: be growing the economy as well. We're gonna have to 29 00:01:45,520 --> 00:01:48,000 Speaker 1: stay on top of every dollar spent through the American 30 00:01:48,040 --> 00:01:51,840 Speaker 1: Rescue Plan, and that's what we're gonna do. Meanwhile, Secretary 31 00:01:51,840 --> 00:01:54,960 Speaker 1: of the Treasury Janet Yellen was appeared over the weekend 32 00:01:55,000 --> 00:01:57,680 Speaker 1: on ABC news Is This Week to talk about the 33 00:01:57,680 --> 00:02:00,920 Speaker 1: American Rescue Plan the stimulus Bill, and she sold host 34 00:02:01,000 --> 00:02:04,400 Speaker 1: George Stephanopolis that the economy must be kick started and 35 00:02:04,440 --> 00:02:09,000 Speaker 1: that inflation is not a substantial threat. Here's the sound 36 00:02:09,040 --> 00:02:12,200 Speaker 1: on that. I don't think it's a significant risk and 37 00:02:12,240 --> 00:02:16,040 Speaker 1: if it materializes, will certainly monitor for it, but um, 38 00:02:16,040 --> 00:02:18,200 Speaker 1: we have tools to address it. She went on to 39 00:02:18,240 --> 00:02:22,160 Speaker 1: say that she believes deficits are under control and we'll 40 00:02:22,160 --> 00:02:26,520 Speaker 1: be manageable. We have to make sure that the economy, 41 00:02:26,639 --> 00:02:30,799 Speaker 1: that the budget is on a sustainable path, and uh, 42 00:02:30,840 --> 00:02:34,280 Speaker 1: this is something that we can afford in the longer run. 43 00:02:34,440 --> 00:02:38,640 Speaker 1: We need to get deficits under control. Jeane Schanzano is 44 00:02:38,680 --> 00:02:41,960 Speaker 1: with me along with John Hart, a Republican strategist and 45 00:02:42,000 --> 00:02:46,000 Speaker 1: the former communications director to Senator Tom Coburn. John is 46 00:02:46,080 --> 00:02:49,359 Speaker 1: also the co author of two books with Senator Coburn, 47 00:02:50,000 --> 00:02:54,200 Speaker 1: The Debt Bomb, Perfect Topic for Today and Breach of Trust. 48 00:02:54,480 --> 00:02:58,640 Speaker 1: All right, John, I'll start with you, just because Secretary 49 00:02:58,720 --> 00:03:01,320 Speaker 1: Yellen says that she doesn't believe inflation is a risk, 50 00:03:01,400 --> 00:03:05,560 Speaker 1: and she believes that the deficits will ultimately have to 51 00:03:05,600 --> 00:03:09,320 Speaker 1: be kept under control. One point nine trillion dollars John, 52 00:03:10,880 --> 00:03:12,640 Speaker 1: that's a lot of money, Kevin, and it's great to 53 00:03:12,639 --> 00:03:14,760 Speaker 1: be on you know. I I come at this with 54 00:03:14,840 --> 00:03:17,120 Speaker 1: three assumptions. I think number one is we live in 55 00:03:17,120 --> 00:03:21,079 Speaker 1: all the finite resources. Number two is not all spending 56 00:03:21,240 --> 00:03:24,280 Speaker 1: is created equal. And the number three, if something can't 57 00:03:24,280 --> 00:03:26,600 Speaker 1: go on forever, it will stop. And of course that's 58 00:03:26,639 --> 00:03:30,280 Speaker 1: the her her sign principle. So you know, I'm skeptical 59 00:03:30,360 --> 00:03:32,680 Speaker 1: that the Biden stimulus is going to be all that effective, 60 00:03:32,800 --> 00:03:35,120 Speaker 1: just based on on the track record of what we 61 00:03:35,200 --> 00:03:37,560 Speaker 1: saw with the Recovery Act under President of the bomb 62 00:03:39,240 --> 00:03:43,080 Speaker 1: tim and go ahead. Oh no, I was just gonna say, Genie, 63 00:03:43,120 --> 00:03:45,440 Speaker 1: I mean to that point, I mean President Biden is 64 00:03:45,480 --> 00:03:48,440 Speaker 1: going to be visiting different states over the next couple 65 00:03:48,480 --> 00:03:51,480 Speaker 1: of weeks, and I mean, you hear what John and 66 00:03:51,800 --> 00:03:54,040 Speaker 1: is saying and many Republicans are arguing, which is that 67 00:03:54,120 --> 00:03:56,760 Speaker 1: this is just too much money, too soon. Well, and 68 00:03:56,800 --> 00:03:59,000 Speaker 1: I think you know one of the reasons to John's point, 69 00:03:59,040 --> 00:04:02,120 Speaker 1: and I agree, his title couldn't be any more relevant 70 00:04:02,160 --> 00:04:05,160 Speaker 1: to the discussion. So thank you. John's hope it doesn't happen. 71 00:04:05,520 --> 00:04:08,320 Speaker 1: That's true. That's true. But to the point when as 72 00:04:08,320 --> 00:04:10,720 Speaker 1: we compare this to oh A and oh nine, I 73 00:04:10,760 --> 00:04:13,360 Speaker 1: think that's one of the reasons that we know. That's 74 00:04:13,400 --> 00:04:16,640 Speaker 1: one of the reasons the administration pushed so hard and 75 00:04:16,760 --> 00:04:20,279 Speaker 1: went to quote unquote alone without reaching across the aisle, 76 00:04:20,560 --> 00:04:24,400 Speaker 1: because they had a very strong sense that Obama didn't 77 00:04:24,400 --> 00:04:27,560 Speaker 1: go big enough because he needed to get Republicans and 78 00:04:27,600 --> 00:04:30,039 Speaker 1: they didn't want to repeat that because they wanted to 79 00:04:30,080 --> 00:04:32,960 Speaker 1: make sure that this was going to be effective. So 80 00:04:33,000 --> 00:04:35,800 Speaker 1: I think we're hearing from the administration very strongly that 81 00:04:35,839 --> 00:04:38,160 Speaker 1: they feel this is going to be effective. I do 82 00:04:38,320 --> 00:04:40,839 Speaker 1: think hanging over their head is this question of if 83 00:04:40,920 --> 00:04:43,720 Speaker 1: there is inflation, which you're Jenny Ellen said over the 84 00:04:43,760 --> 00:04:46,679 Speaker 1: weekend again and again that she doesn't think is going 85 00:04:46,760 --> 00:04:49,560 Speaker 1: to be dramatic, and they have tools by which to 86 00:04:49,680 --> 00:04:54,120 Speaker 1: manage that. Um. And we've heard several economists many say 87 00:04:54,160 --> 00:04:56,599 Speaker 1: that you're better you have we have no choice and 88 00:04:56,960 --> 00:04:59,719 Speaker 1: once in a century pandemic, but to go big and 89 00:04:59,720 --> 00:05:01,840 Speaker 1: a rest at all at once, or we are going 90 00:05:01,880 --> 00:05:03,640 Speaker 1: to be in trouble. So I think that's what the 91 00:05:03,680 --> 00:05:06,479 Speaker 1: administration is banking on here, you know, I think I 92 00:05:06,520 --> 00:05:08,840 Speaker 1: think to bring it back to John's point. And by 93 00:05:08,880 --> 00:05:11,440 Speaker 1: the way, our executive producer, Christine Barat is that I 94 00:05:11,440 --> 00:05:13,560 Speaker 1: told John to get wonky. And we're already a couple 95 00:05:13,560 --> 00:05:15,839 Speaker 1: of minutes in the show and you're talking about herb Stein. 96 00:05:16,320 --> 00:05:18,560 Speaker 1: So I think I think we can check that box 97 00:05:19,040 --> 00:05:23,000 Speaker 1: that we've that we've espicially gotten wonky in the first block. Um. 98 00:05:23,040 --> 00:05:25,160 Speaker 1: But but to that point, I mean, you know, when 99 00:05:25,200 --> 00:05:27,680 Speaker 1: you when you do a zoom out for lack of 100 00:05:27,680 --> 00:05:29,520 Speaker 1: a better word, and you look at all of the 101 00:05:29,640 --> 00:05:33,680 Speaker 1: increase in in UH cash for lack of a better word, 102 00:05:33,680 --> 00:05:37,000 Speaker 1: and into this economy, not just over the next couple 103 00:05:37,040 --> 00:05:39,400 Speaker 1: of months, but truly over the next couple of years. 104 00:05:39,440 --> 00:05:41,040 Speaker 1: This is not just going to be a let's press 105 00:05:41,040 --> 00:05:43,680 Speaker 1: a button and then one point nine trillion dollars goes 106 00:05:43,720 --> 00:05:46,000 Speaker 1: into the economy. It's going to take a couple of years. 107 00:05:46,880 --> 00:05:50,240 Speaker 1: I asked this respectfully, But is it Is it going 108 00:05:50,279 --> 00:05:54,159 Speaker 1: to be disposed evenly? Or are certain sectors going to 109 00:05:54,240 --> 00:05:57,840 Speaker 1: not benefit but be at a disadvantage because they're not 110 00:05:57,960 --> 00:06:03,120 Speaker 1: getting the same amounts of um liquidity into their industries 111 00:06:03,160 --> 00:06:04,840 Speaker 1: that others are. Do you know what I mean? If 112 00:06:04,880 --> 00:06:06,960 Speaker 1: you if you put if you plug one hole in 113 00:06:07,000 --> 00:06:09,320 Speaker 1: a in a you know, a leaky cauldron, it comes 114 00:06:09,320 --> 00:06:12,960 Speaker 1: out somewhere else. Yeah, I can speak to that. I 115 00:06:12,960 --> 00:06:14,920 Speaker 1: think you know. I'm concerned on a couple levels. I 116 00:06:14,920 --> 00:06:16,760 Speaker 1: think number one is that if you look at the 117 00:06:16,880 --> 00:06:20,840 Speaker 1: multiplier effect of the Obama stimulus, one of the best 118 00:06:20,880 --> 00:06:24,120 Speaker 1: surveys done recently, Valerie Ramy, looked at ten years of studies, 119 00:06:24,720 --> 00:06:28,440 Speaker 1: said the multiplier effect was between point six and one 120 00:06:28,440 --> 00:06:31,360 Speaker 1: point one. And of course one is a wash. One 121 00:06:31,440 --> 00:06:33,480 Speaker 1: is that a dollar and produced a dollar of output. 122 00:06:34,080 --> 00:06:35,680 Speaker 1: So there's a strong case to be made that the 123 00:06:35,720 --> 00:06:39,200 Speaker 1: Obama stimulus wasn't effective, and by quote doubling the output 124 00:06:39,800 --> 00:06:41,760 Speaker 1: or doubling the amount of spending, it's not going to 125 00:06:41,839 --> 00:06:46,320 Speaker 1: make it more effective. But but so it displaces capital 126 00:06:46,400 --> 00:06:50,680 Speaker 1: and misallocates capital. But what it does longer term is 127 00:06:50,720 --> 00:06:53,880 Speaker 1: it makes it more difficult for Congress to get its 128 00:06:53,880 --> 00:06:57,640 Speaker 1: head wrapped around and politically to embrace the kind of 129 00:06:57,680 --> 00:07:00,280 Speaker 1: spending that could actually have a better multiplier of fact, 130 00:07:00,640 --> 00:07:03,960 Speaker 1: looking at infrastructure, looking at basic research and development, a 131 00:07:04,040 --> 00:07:06,640 Speaker 1: lot of climate type of research that should be done, 132 00:07:06,839 --> 00:07:10,320 Speaker 1: is going to be more difficult because we've just spent 133 00:07:10,400 --> 00:07:12,240 Speaker 1: one point nine trillion dollars and it's going to be 134 00:07:12,360 --> 00:07:18,440 Speaker 1: much harder to get Republicans on board with any future investments. 135 00:07:19,040 --> 00:07:21,280 Speaker 1: You know, I'm not convinced, and I hear that argument, 136 00:07:21,320 --> 00:07:24,840 Speaker 1: but I'm not convinced Republicans would have gotten on board 137 00:07:25,040 --> 00:07:27,920 Speaker 1: even if this spending bill had been, you know, on 138 00:07:27,920 --> 00:07:31,600 Speaker 1: board with immigration and infrastructure and these other big, big 139 00:07:31,960 --> 00:07:34,560 Speaker 1: packages that we here are going to be pushed out 140 00:07:34,560 --> 00:07:37,160 Speaker 1: pretty soon. I'm not sure that they would have been 141 00:07:37,160 --> 00:07:40,840 Speaker 1: willing to go along with everything they have politically, and 142 00:07:40,880 --> 00:07:43,800 Speaker 1: it looketorally on the line as we look at two. 143 00:07:44,240 --> 00:07:46,800 Speaker 1: So I think, you know, while I think the President 144 00:07:46,880 --> 00:07:50,720 Speaker 1: is going to continue to talk about bipartisanship, they have 145 00:07:50,840 --> 00:07:55,480 Speaker 1: redefined bipartisanship to say the American public wants this, including 146 00:07:55,600 --> 00:07:59,120 Speaker 1: vast majorities of or at least majorities of Republicans, and 147 00:07:59,200 --> 00:08:02,920 Speaker 1: that means it's by partisan. I agree with John. I 148 00:08:02,960 --> 00:08:05,400 Speaker 1: don't think I think we're going to see big spending 149 00:08:05,440 --> 00:08:07,640 Speaker 1: bills on infrastructure. I think we're going to see a 150 00:08:07,680 --> 00:08:10,640 Speaker 1: piecemeal approach on some of these things. But I'm also 151 00:08:10,720 --> 00:08:14,240 Speaker 1: not convinced that if this bill hadn't gone forward, Republicans 152 00:08:14,240 --> 00:08:18,119 Speaker 1: would have been on board for the rest of it. John, Uh, 153 00:08:18,160 --> 00:08:20,200 Speaker 1: I was coming up, We're going to talk about the 154 00:08:20,240 --> 00:08:23,000 Speaker 1: tax proposal, but I still want to stick with stimulus 155 00:08:23,040 --> 00:08:26,400 Speaker 1: because I still think it is it is the the big, 156 00:08:26,840 --> 00:08:29,040 Speaker 1: the big story driving the day, and I think it 157 00:08:29,400 --> 00:08:33,120 Speaker 1: colors the the tax debate, the looming tax of it. 158 00:08:33,200 --> 00:08:35,760 Speaker 1: I guess that we're going to be having. But you know, 159 00:08:35,800 --> 00:08:40,600 Speaker 1: when you look at at where um the pandemic loans 160 00:08:41,480 --> 00:08:44,720 Speaker 1: and and how they've even been doled out. Uh. The 161 00:08:44,760 --> 00:08:48,000 Speaker 1: Senate Banking Committee is questioning whether Goldman Sacks, for example, 162 00:08:48,040 --> 00:08:51,320 Speaker 1: paid dividends at the expense of lending to businesses and 163 00:08:51,360 --> 00:08:55,160 Speaker 1: households during the pandemic, as lawmakers are starting to be 164 00:08:55,320 --> 00:08:59,040 Speaker 1: more skeptical about the money that's being doled out. So 165 00:08:59,160 --> 00:09:02,320 Speaker 1: Chairman of the Banking Minie, for example, Shared Brown, and yes, 166 00:09:02,360 --> 00:09:04,520 Speaker 1: Elizabeth Warren, we're gonna be talking about her a lot 167 00:09:04,520 --> 00:09:08,559 Speaker 1: this hour. They sent a letter to Goldman h A 168 00:09:08,679 --> 00:09:12,280 Speaker 1: CEO David Solomon UH last week and they're asking how 169 00:09:12,360 --> 00:09:15,520 Speaker 1: their banking unit made use of a temporary weakening of 170 00:09:15,559 --> 00:09:19,200 Speaker 1: capital capital requirements last year. I bring this point because 171 00:09:19,240 --> 00:09:24,800 Speaker 1: the scrutiny from lawmakers who set up these programs, it's 172 00:09:24,800 --> 00:09:27,040 Speaker 1: like they're they set up the programs and now they're 173 00:09:27,400 --> 00:09:31,040 Speaker 1: they're scrutinizing the private sector that's doling them out, and 174 00:09:31,120 --> 00:09:35,040 Speaker 1: I just think it's a go ahead, John No. And 175 00:09:35,080 --> 00:09:37,840 Speaker 1: I mean that's you're you're touching on a critically important 176 00:09:37,840 --> 00:09:43,160 Speaker 1: issue because Congress today is not well positioned or capable 177 00:09:43,760 --> 00:09:45,719 Speaker 1: of doing the oversight that needs to be done in 178 00:09:45,800 --> 00:09:48,320 Speaker 1: quote normal times. But they set up this is what 179 00:09:48,440 --> 00:09:50,280 Speaker 1: I struggle with. I hate to interrupt you, but let 180 00:09:50,320 --> 00:09:52,640 Speaker 1: me ask a better question. And the tough it's like 181 00:09:52,679 --> 00:09:55,199 Speaker 1: they set up the rules or they set up that 182 00:09:55,640 --> 00:09:58,440 Speaker 1: they gave the they doled out the hand of the cards, 183 00:09:58,440 --> 00:10:00,960 Speaker 1: and now they're judging how the cards are being played, 184 00:10:01,120 --> 00:10:06,320 Speaker 1: you know what I mean? Right right exactly, Congress adounce 185 00:10:06,400 --> 00:10:10,240 Speaker 1: other people for their own failure to develop targeted legislation 186 00:10:10,360 --> 00:10:14,480 Speaker 1: that helps the American people. That's that's really how Congress 187 00:10:14,559 --> 00:10:19,480 Speaker 1: operates and and and how this bill is executed, as 188 00:10:19,520 --> 00:10:22,320 Speaker 1: as Barack Obama can tell us, because of everything from 189 00:10:22,360 --> 00:10:25,080 Speaker 1: the Affordable Care Act to his own stimulus package, is 190 00:10:25,160 --> 00:10:28,959 Speaker 1: critically important politically and economically and in every other way. 191 00:10:29,160 --> 00:10:33,000 Speaker 1: And that's why we see Biden with Gene Sperling trying 192 00:10:33,040 --> 00:10:36,400 Speaker 1: to get somebody to make sure that this is rolled out. 193 00:10:36,440 --> 00:10:40,360 Speaker 1: But of course, one point nine trillion dollars, let's be honest, 194 00:10:40,640 --> 00:10:43,040 Speaker 1: there are going to be problems in this and and 195 00:10:43,040 --> 00:10:46,040 Speaker 1: and I don't see any way around that. But as 196 00:10:46,080 --> 00:10:49,720 Speaker 1: the President is, you know, taking it seriously, trying to 197 00:10:49,840 --> 00:10:53,360 Speaker 1: make sure that the execution goes at least according to 198 00:10:53,559 --> 00:10:55,959 Speaker 1: a way that the American people can look at it 199 00:10:56,200 --> 00:10:59,120 Speaker 1: and feel that they can trust the government on this. Well, 200 00:10:59,120 --> 00:11:02,520 Speaker 1: I said this before or an over the last couple 201 00:11:02,559 --> 00:11:03,920 Speaker 1: of months, I thought that was one of the most 202 00:11:03,920 --> 00:11:06,720 Speaker 1: surprising things as a reporter, just to see all of 203 00:11:06,720 --> 00:11:10,840 Speaker 1: the stimulus funding get released and not a bipartisan communicative 204 00:11:10,920 --> 00:11:14,719 Speaker 1: plan on either side in terms of how small businesses 205 00:11:15,320 --> 00:11:17,040 Speaker 1: could be able to get access to it. I was 206 00:11:17,120 --> 00:11:21,480 Speaker 1: just completely baffled, especially that that there wasn't a bipartisan 207 00:11:21,520 --> 00:11:24,760 Speaker 1: effort to communicate to main street, to communicate to restaurants 208 00:11:25,040 --> 00:11:27,559 Speaker 1: in a way that people just didn't have to guess 209 00:11:27,559 --> 00:11:29,800 Speaker 1: where to go. I thought that was really surprising. Speaking 210 00:11:29,800 --> 00:11:31,920 Speaker 1: of Senator Elizabeth Warren, did you see that she wants 211 00:11:31,920 --> 00:11:37,520 Speaker 1: to get a stamp for Jack Carrouac from Lowell, Massachusetts. 212 00:11:38,720 --> 00:11:40,240 Speaker 1: That was one of the press releases the pop to 213 00:11:40,280 --> 00:11:43,199 Speaker 1: my in box today. So maybe Jack Carrollac on the road, 214 00:11:43,960 --> 00:11:47,120 Speaker 1: but Jack Carlac on a stamp. I'm Kevin Sirley. This 215 00:11:47,160 --> 00:12:04,240 Speaker 1: is Limbert. This is Bloomberg Sound On with Kevin sil 216 00:12:04,720 --> 00:12:11,400 Speaker 1: on Bloomberg Radio. I'm Kevin Sirelli, Chief Washington correspondent for 217 00:12:11,480 --> 00:12:18,320 Speaker 1: Bloomberg Television and for Bloomberg Radio. Genie Shanzano, Bloomberg Politics contributor, 218 00:12:18,360 --> 00:12:22,760 Speaker 1: and John Hart, Republican strategist. In the break, our executive 219 00:12:22,760 --> 00:12:25,560 Speaker 1: producer Christine Barratto was giving me it was getting on 220 00:12:25,600 --> 00:12:29,199 Speaker 1: my case, as they say in the BIZ, I mispronounced. 221 00:12:29,280 --> 00:12:32,960 Speaker 1: I said Lowell, Massachusetts as Lowell. Did I say a right, 222 00:12:33,080 --> 00:12:37,720 Speaker 1: Jennie Lowell Listen. I I spent years in Massachusetts, just 223 00:12:37,800 --> 00:12:40,960 Speaker 1: like Christine, and I went to the university hometown US. Yeah, 224 00:12:41,320 --> 00:12:44,200 Speaker 1: and I could tell you that there's a specific way 225 00:12:44,240 --> 00:12:47,240 Speaker 1: you say things in Massachusetts that only Christine Barratta can 226 00:12:47,320 --> 00:12:49,079 Speaker 1: do it. Well, it's home town. I talked about Dell 227 00:12:49,120 --> 00:12:51,600 Speaker 1: going up on this program. We gotta give Barrot's hometown 228 00:12:51,920 --> 00:12:54,280 Speaker 1: a shout out. And then she sends me the paper record. 229 00:12:54,400 --> 00:12:57,000 Speaker 1: This all started because Senator Elizabeth Warren I promised I'm 230 00:12:57,000 --> 00:12:59,800 Speaker 1: gonna land this plane. Senator Elizabeth Warren put out a 231 00:12:59,800 --> 00:13:03,559 Speaker 1: press released today that she and the other Senator Marky 232 00:13:03,640 --> 00:13:08,080 Speaker 1: they want to have a Jack Kerouac US postal stamp 233 00:13:08,120 --> 00:13:13,599 Speaker 1: because Jack Kerouac is from where not Lowell, Lowell, Massachusetts. 234 00:13:13,640 --> 00:13:16,240 Speaker 1: So Barata sends me this article from what she refers 235 00:13:16,320 --> 00:13:19,320 Speaker 1: as the paper of record of Lowell, the Lowell Sun, 236 00:13:19,400 --> 00:13:23,760 Speaker 1: that says George Clooney appears in Lowell's Belvedere neighborhood for 237 00:13:23,800 --> 00:13:28,160 Speaker 1: a movie Shoot the things I learned here that Jess 238 00:13:28,240 --> 00:13:31,720 Speaker 1: Christine Barratta it's also George Clooney and Lowell and and 239 00:13:31,800 --> 00:13:34,480 Speaker 1: by the way, Kevin, try to say Wooster, that was 240 00:13:34,559 --> 00:13:37,600 Speaker 1: one we had. Yeah, because it looks right, John, you know, 241 00:13:37,679 --> 00:13:40,760 Speaker 1: it looks like Worcester. All I know is how to 242 00:13:40,800 --> 00:13:46,480 Speaker 1: say I went to Penn State. Okay. Senator Elizabeth Warren. 243 00:13:46,559 --> 00:13:50,400 Speaker 1: Let's oh. Senator Elizabeth Warren has uh as we as 244 00:13:50,440 --> 00:13:53,800 Speaker 1: we know, has proposed raising taxes on billionaires and the 245 00:13:53,880 --> 00:13:55,800 Speaker 1: ultra wealthy. And it comes at a time in which 246 00:13:55,800 --> 00:13:59,800 Speaker 1: the administration is starting to pivot toward tax reform. And 247 00:14:00,000 --> 00:14:03,280 Speaker 1: father Bouche, who's a member of President Joe Biden's Council 248 00:14:03,360 --> 00:14:07,040 Speaker 1: of Economic Advisors, spoke with my colleague David Weston earlier 249 00:14:07,120 --> 00:14:10,880 Speaker 1: today about the long list of urgent and important needs 250 00:14:10,920 --> 00:14:14,400 Speaker 1: for the next economic package, focusing on infrastructure as well 251 00:14:14,440 --> 00:14:18,920 Speaker 1: as addressing climate change. I talk about this because now 252 00:14:18,960 --> 00:14:21,800 Speaker 1: it's unclear whether they're going to release a tax proposal 253 00:14:21,880 --> 00:14:24,800 Speaker 1: ahead of infrastructure. To take a listen to the sounds 254 00:14:24,840 --> 00:14:27,840 Speaker 1: on this from Heather Bouche at the White House. Those 255 00:14:27,880 --> 00:14:29,880 Speaker 1: at the top of the income distribution, you know, of 256 00:14:29,880 --> 00:14:32,560 Speaker 1: seeing their incomes not be subject to the same kind 257 00:14:32,600 --> 00:14:36,320 Speaker 1: of shocks, and you know, the stock market has continued 258 00:14:36,360 --> 00:14:39,120 Speaker 1: to do quite well over the course, especially the latter 259 00:14:39,120 --> 00:14:41,160 Speaker 1: half of the year, So that gives us a lot 260 00:14:41,200 --> 00:14:43,920 Speaker 1: of room to think about where revenue can come from. 261 00:14:44,080 --> 00:14:46,280 Speaker 1: And the folks at the top who've been able to 262 00:14:46,320 --> 00:14:49,080 Speaker 1: benefit from this economy, um and haven't been this hard 263 00:14:49,080 --> 00:14:50,800 Speaker 1: to hit. There's a lot of room there to think 264 00:14:50,800 --> 00:14:54,040 Speaker 1: about what kinds of revenue we can raise. John, you know, 265 00:14:54,880 --> 00:14:59,080 Speaker 1: I'm struck that Secretary yelling on the Sunday shows did 266 00:14:59,080 --> 00:15:01,760 Speaker 1: not take a position and on Senator Warren's wealth tax. 267 00:15:02,480 --> 00:15:05,800 Speaker 1: But when we're talking about trillions of dollars of infrastructure 268 00:15:05,960 --> 00:15:10,200 Speaker 1: and uh, the first question is a reporter has is 269 00:15:10,240 --> 00:15:12,240 Speaker 1: how are you going to pay for it? Um? And 270 00:15:12,480 --> 00:15:14,360 Speaker 1: I mean, at what point does the administration have to 271 00:15:14,440 --> 00:15:16,360 Speaker 1: lay out that vision for how they plan to pay 272 00:15:16,360 --> 00:15:19,320 Speaker 1: for it? Well, look, I plotted them for for asking 273 00:15:19,320 --> 00:15:20,920 Speaker 1: the right question how to pay for it? But I 274 00:15:21,000 --> 00:15:22,760 Speaker 1: think a wealth tax is probably the worst thing you 275 00:15:22,760 --> 00:15:24,640 Speaker 1: could do right now. You know, if you if you 276 00:15:24,680 --> 00:15:26,880 Speaker 1: want less of something, you tax it. And we need 277 00:15:26,880 --> 00:15:29,800 Speaker 1: more growth, need more economic activities. So I think in 278 00:15:29,840 --> 00:15:32,320 Speaker 1: any kind of tax, whether it's a wealth tax or 279 00:15:32,360 --> 00:15:35,040 Speaker 1: any other corporate increases not it's not a great idea, 280 00:15:35,160 --> 00:15:37,920 Speaker 1: but but but specifically on the wealth tax idea. You know, 281 00:15:38,120 --> 00:15:41,640 Speaker 1: the question I always asked progressives is who knows how 282 00:15:41,680 --> 00:15:44,360 Speaker 1: to spend Bill Gates? Is money the best? Because Bill 283 00:15:44,360 --> 00:15:49,640 Speaker 1: Gates still how to spend Bill Gates? Really, I shouldn't 284 00:15:49,640 --> 00:15:52,640 Speaker 1: have said that. Go ahead, I don't don't. You may 285 00:15:52,720 --> 00:15:59,360 Speaker 1: you may know how to spend money better than you know. Again, 286 00:15:59,400 --> 00:16:04,360 Speaker 1: it's like, let's in sentenced in a in a common 287 00:16:04,360 --> 00:16:06,600 Speaker 1: sense way here, and I just I think it's a 288 00:16:06,720 --> 00:16:10,400 Speaker 1: it's a terrible way to go at that, genie. One 289 00:16:10,440 --> 00:16:12,760 Speaker 1: of the things that the administration has campaigned on, and 290 00:16:12,800 --> 00:16:14,480 Speaker 1: now that they're in office, that we're all starting to 291 00:16:14,520 --> 00:16:18,920 Speaker 1: talk about again is raising the corporate tax right at 292 00:16:18,920 --> 00:16:22,720 Speaker 1: a time when you know, quite frankly, I talked to 293 00:16:22,800 --> 00:16:24,760 Speaker 1: Republicans that have been on this program as you know 294 00:16:25,160 --> 00:16:27,680 Speaker 1: that they've said the best way to attract business to 295 00:16:27,760 --> 00:16:31,040 Speaker 1: the United States is to keep the lower uh corporate 296 00:16:31,040 --> 00:16:34,080 Speaker 1: tax rates. So, I mean, this is setting up for 297 00:16:34,120 --> 00:16:38,600 Speaker 1: a massive partisan and ideological debate, is it not? It is. 298 00:16:38,800 --> 00:16:41,400 Speaker 1: And one of the things that I think Joe Biden 299 00:16:41,480 --> 00:16:44,320 Speaker 1: is going to have to clarify sooner rather than later 300 00:16:44,800 --> 00:16:48,160 Speaker 1: is of course, his plan never included this you know, 301 00:16:48,440 --> 00:16:52,880 Speaker 1: ultra millionaire tax that that Elizabeth Warren has been talking about. 302 00:16:53,280 --> 00:16:57,840 Speaker 1: And yet, as you mentioned, Janet Yellen Um, Uh, the 303 00:16:58,320 --> 00:17:01,640 Speaker 1: jen Psaki and others have not said that it is 304 00:17:01,720 --> 00:17:05,440 Speaker 1: off the table either. And jen Psaki, to your points, 305 00:17:05,480 --> 00:17:09,800 Speaker 1: specifically raised the issue of increasing the corporate tax. And 306 00:17:09,840 --> 00:17:12,639 Speaker 1: so I think they're going to have to clarify sooner 307 00:17:12,840 --> 00:17:15,879 Speaker 1: rather than later how they want to pay for what 308 00:17:16,119 --> 00:17:18,679 Speaker 1: some people are saying is in the range of a 309 00:17:18,720 --> 00:17:23,720 Speaker 1: two three trillion dollar infrastructure bill, amongst other things. None 310 00:17:23,760 --> 00:17:26,480 Speaker 1: of that has been clarified. And of course we see 311 00:17:26,640 --> 00:17:30,359 Speaker 1: a lot of Elizabeth Warren Um progressives getting roles in 312 00:17:30,400 --> 00:17:33,240 Speaker 1: the administration that could push them in that direction. But 313 00:17:33,320 --> 00:17:36,959 Speaker 1: it's all unclear at this point and certainly not what 314 00:17:37,080 --> 00:17:40,920 Speaker 1: Joe Biden campaigned on. Well, you mentioned, uh, infrastructure, Let's 315 00:17:40,920 --> 00:17:42,439 Speaker 1: take it a listen to some of the sound on 316 00:17:42,480 --> 00:17:46,520 Speaker 1: infrastructure from Secretary of Transportation Peet Buddha. Judge here is 317 00:17:46,920 --> 00:17:51,000 Speaker 1: visiting a UPS facility in land Over, Maryland. Earlier today 318 00:17:51,040 --> 00:17:54,520 Speaker 1: he was that was delivering vaccines to d C in Maryland. 319 00:17:54,560 --> 00:17:57,840 Speaker 1: Take a listen to Secretary Buddha Judge conversations are taking 320 00:17:57,880 --> 00:18:00,760 Speaker 1: place right now as you've seen over office meetings with 321 00:18:00,800 --> 00:18:04,360 Speaker 1: the President and leaders from both parties, from both houses. 322 00:18:04,440 --> 00:18:07,120 Speaker 1: And uh uh, it's fair to say that in short order, 323 00:18:07,119 --> 00:18:09,040 Speaker 1: you're you're gonna be seeing more. You know. I don't 324 00:18:09,080 --> 00:18:11,080 Speaker 1: want to jump all over the place, and and Tom 325 00:18:11,160 --> 00:18:13,280 Speaker 1: Keen is always so good about keeping me focused. But 326 00:18:13,760 --> 00:18:16,919 Speaker 1: I will say, in a week in which Secretary of 327 00:18:16,960 --> 00:18:19,840 Speaker 1: State Tony B. Lincoln is meeting with his Chinese counterparts 328 00:18:20,080 --> 00:18:23,520 Speaker 1: in Alaska for the first meeting of the administration between 329 00:18:23,600 --> 00:18:26,440 Speaker 1: China and the United States, uh, in which we've got 330 00:18:26,440 --> 00:18:29,600 Speaker 1: a semiconductor shortage, all of these issues are going to 331 00:18:29,720 --> 00:18:32,679 Speaker 1: come to the forefront, particularly raising the corporate tax rate. 332 00:18:32,960 --> 00:18:36,639 Speaker 1: Would that really attract investments in the United States? We 333 00:18:36,680 --> 00:18:39,920 Speaker 1: will find out. I'm Kevin sereally Congressman Blaine Luca Meyer. 334 00:18:40,000 --> 00:18:56,960 Speaker 1: Up next, This is Bloomberg. My name is Kevin Curreli 335 00:18:57,040 --> 00:18:59,840 Speaker 1: and the chief Washington correspondent for Bloomberg Television as well 336 00:19:00,040 --> 00:19:04,879 Speaker 1: as for Bloomberg Radio, accompanied by Bloomberg Politics contributor Jennie 337 00:19:04,920 --> 00:19:09,000 Speaker 1: sean Zo and John Hart, co founder of C three 338 00:19:09,280 --> 00:19:13,920 Speaker 1: Solutions of Republican Strategists and the former communications director for 339 00:19:14,040 --> 00:19:18,119 Speaker 1: a Senator Tom Copp Coburn as well. UM. Alright, folks, 340 00:19:18,200 --> 00:19:21,239 Speaker 1: let's talk before we talk about UM immigration. I do 341 00:19:21,280 --> 00:19:25,040 Speaker 1: want to touch on UH some of the virus news 342 00:19:25,080 --> 00:19:28,200 Speaker 1: because here in Washington, d C. Mayor Muriel Bowser as 343 00:19:28,680 --> 00:19:32,040 Speaker 1: lifted some restrictions and that sets to go into effect 344 00:19:32,320 --> 00:19:35,000 Speaker 1: next week and she will also get this. She will 345 00:19:35,080 --> 00:19:39,359 Speaker 1: also allow some fans in the stands for the Nationals 346 00:19:39,440 --> 00:19:43,240 Speaker 1: and d C United. Last week, Nats players wrote to 347 00:19:43,320 --> 00:19:47,080 Speaker 1: the mayor criticizing her for not doing it as other 348 00:19:47,800 --> 00:19:51,960 Speaker 1: UH sports stadiums and sports teams across the country had 349 00:19:52,000 --> 00:19:54,400 Speaker 1: already gotten that approved. I thought that was an interesting 350 00:19:54,400 --> 00:19:58,000 Speaker 1: little bit of nuance. UM. But meanwhile, more nations are 351 00:19:58,080 --> 00:20:02,840 Speaker 1: halting the astra Zeneca shot UM. Germany, Italy, Spain, and 352 00:20:02,920 --> 00:20:07,360 Speaker 1: France have suspended use of Astro astra Zenica's COVID nineteen 353 00:20:07,440 --> 00:20:11,159 Speaker 1: vaccine amid a health scare related to reports of blood clotting. 354 00:20:11,160 --> 00:20:13,760 Speaker 1: I'm reading from the Bloomberg terminal. The moves are creating 355 00:20:13,800 --> 00:20:18,000 Speaker 1: yet another delay for the European Unions inoculation campaign. For 356 00:20:18,080 --> 00:20:21,520 Speaker 1: a second straight week, new coronavirus cases in the United 357 00:20:21,560 --> 00:20:25,920 Speaker 1: States rose at the slowest pace since the pandemic began. 358 00:20:25,960 --> 00:20:28,680 Speaker 1: So some good news. Puerto Rico warned residents to be 359 00:20:28,800 --> 00:20:33,640 Speaker 1: vigilant after detecting Brazilian and California variants of interest on 360 00:20:33,840 --> 00:20:37,280 Speaker 1: the island. But again that Astra Zeneca news and Europe 361 00:20:37,320 --> 00:20:41,960 Speaker 1: really dominating a lot of the COVID conversation um throughout 362 00:20:41,960 --> 00:20:45,600 Speaker 1: the day. So Germany, Italy and France again have suspended 363 00:20:45,640 --> 00:20:49,119 Speaker 1: the use of astra Zeneca's COVID nineteen vaccine amid a 364 00:20:49,200 --> 00:20:52,240 Speaker 1: health scare related to reports of blood clotting. They joined 365 00:20:52,240 --> 00:20:56,800 Speaker 1: countries including the Netherlands and Ireland, that have already halted 366 00:20:56,840 --> 00:20:59,520 Speaker 1: the use of the product. The developments are yet another 367 00:20:59,560 --> 00:21:04,440 Speaker 1: blow to a vaccination campaign that's proving embarrassingly slow and 368 00:21:04,480 --> 00:21:08,960 Speaker 1: politically damaging for governments across the EU. Genie. I gotta 369 00:21:09,040 --> 00:21:12,480 Speaker 1: say United States, and I'm not you know, I mean, 370 00:21:12,760 --> 00:21:16,280 Speaker 1: both administrations I would argue deserve some credit here, uh, 371 00:21:16,359 --> 00:21:18,959 Speaker 1: for we're not having that problem here in the United States. 372 00:21:19,400 --> 00:21:23,200 Speaker 1: They do and and you know we're scientists as well. Yeah, 373 00:21:23,280 --> 00:21:25,879 Speaker 1: we heard Dr Faucci over the weekend, and you know, 374 00:21:25,960 --> 00:21:28,800 Speaker 1: it is striking to think that a year ago we 375 00:21:28,880 --> 00:21:31,920 Speaker 1: did not have a vaccine and within you know less 376 00:21:31,920 --> 00:21:34,119 Speaker 1: than a year. We have a vaccine. It is being 377 00:21:34,200 --> 00:21:37,240 Speaker 1: rolled out. We're told by the President every adult who 378 00:21:37,240 --> 00:21:39,040 Speaker 1: wants it will be able to get it by May one. 379 00:21:39,200 --> 00:21:42,840 Speaker 1: I mean that is, you know, a huge, huge accomplishment. 380 00:21:43,119 --> 00:21:47,280 Speaker 1: But to your point about Europe, it does feel good, 381 00:21:47,280 --> 00:21:49,520 Speaker 1: But I think we also have to know another country 382 00:21:49,560 --> 00:21:52,520 Speaker 1: that did this very well was China, and they built 383 00:21:52,560 --> 00:21:55,840 Speaker 1: their economy after that. You contrast that with what's going 384 00:21:55,880 --> 00:21:59,399 Speaker 1: on in Europe, and I think that is incredibly striking. Well, 385 00:21:59,440 --> 00:22:05,080 Speaker 1: I would add as real into that. Go ahead, Um no, 386 00:22:05,280 --> 00:22:07,000 Speaker 1: But but to that point, I mean, yeah, I think 387 00:22:07,040 --> 00:22:09,119 Speaker 1: I still think China's gonna have a lot of questions 388 00:22:09,160 --> 00:22:12,320 Speaker 1: to answer, especially during this week, when will be careful, 389 00:22:12,400 --> 00:22:14,480 Speaker 1: we will be talking a lot about that tomorrow and 390 00:22:14,880 --> 00:22:18,040 Speaker 1: keeping a careful watch on those talks with Secretary b 391 00:22:18,040 --> 00:22:22,359 Speaker 1: Lincoln as well as his counterparts when they meet in 392 00:22:22,400 --> 00:22:27,199 Speaker 1: Alaska later this week. Okay, immigration is is driving a 393 00:22:27,200 --> 00:22:30,760 Speaker 1: lot of conversation this week as well. Congressman Kevin McCarthy, 394 00:22:30,800 --> 00:22:34,880 Speaker 1: did you hear this? Congressman Kevin McCarthy, a Republican from California, 395 00:22:34,960 --> 00:22:38,480 Speaker 1: the top Republican of course in the House of Representatives. Uh, 396 00:22:38,560 --> 00:22:42,520 Speaker 1: he led a delegation to the border in al Paso, Texas, 397 00:22:42,520 --> 00:22:46,600 Speaker 1: where he called the influx of unaccompanied young people the 398 00:22:46,680 --> 00:22:50,760 Speaker 1: Biden crisis. The Biden crisis is what House Republicans are 399 00:22:50,800 --> 00:22:53,720 Speaker 1: calling this. So Speaker Pelosi's office they put out a 400 00:22:53,720 --> 00:22:57,800 Speaker 1: statement that said, quote, McCarthy is desperately trying to distract 401 00:22:57,880 --> 00:23:01,439 Speaker 1: Americans from the fact that every single House Republican voted 402 00:23:01,520 --> 00:23:04,159 Speaker 1: to block of relief bill. I want to play for 403 00:23:04,200 --> 00:23:08,960 Speaker 1: you what UH Minority Leader McCarthy said at the border earlier. 404 00:23:09,040 --> 00:23:11,440 Speaker 1: Here's the sound on this. It's fascinating. Take a listen. 405 00:23:12,080 --> 00:23:14,240 Speaker 1: I came down here because I heard of the crisis. 406 00:23:14,640 --> 00:23:17,480 Speaker 1: It's more than a crisis. This is a human heartbreak. 407 00:23:17,880 --> 00:23:21,560 Speaker 1: This crisis is created by the presidential policies of this 408 00:23:21,600 --> 00:23:24,679 Speaker 1: new administration. There's no other way to claim it than 409 00:23:24,720 --> 00:23:29,000 Speaker 1: a Biden border crisis. John, Is this the Biden border crisis? 410 00:23:29,040 --> 00:23:32,040 Speaker 1: Why are we seeing such an increase of immigration suddenly 411 00:23:32,040 --> 00:23:35,840 Speaker 1: talking about this? Well, I think, yeah, he's personally to blind, 412 00:23:35,920 --> 00:23:37,760 Speaker 1: but look, I mean, I think to be intellectually honest, 413 00:23:37,760 --> 00:23:40,960 Speaker 1: to be the immigration is a is a multi state, 414 00:23:41,040 --> 00:23:44,879 Speaker 1: multination issue where you have economic conditions that that created 415 00:23:44,920 --> 00:23:47,000 Speaker 1: sentence for people to cross the border. But I do 416 00:23:47,119 --> 00:23:50,360 Speaker 1: think there is some merit to McCarthy's position that that 417 00:23:50,480 --> 00:23:55,400 Speaker 1: Biden's uh more open borders position has incentivized a lot 418 00:23:55,400 --> 00:23:58,280 Speaker 1: of bad actors to take advantage of what they perceived 419 00:23:58,280 --> 00:24:01,120 Speaker 1: to be a more force border. Uh. Look, I think 420 00:24:01,119 --> 00:24:03,800 Speaker 1: I think President Trump did some good things on immigration, 421 00:24:03,880 --> 00:24:07,520 Speaker 1: but he messaged it in a terrible way for the 422 00:24:07,560 --> 00:24:10,000 Speaker 1: most part. So I think we need to go back 423 00:24:10,040 --> 00:24:12,480 Speaker 1: to the shining sitting on a hill that Reagan talked about. 424 00:24:13,000 --> 00:24:15,639 Speaker 1: It has it has walls, yes, but it has doors 425 00:24:15,640 --> 00:24:17,440 Speaker 1: for people who have the will and art account here. 426 00:24:18,320 --> 00:24:22,040 Speaker 1: But the this situation now in the Biden administration, and 427 00:24:22,080 --> 00:24:26,280 Speaker 1: we all remember the the immigration uh conversations to use 428 00:24:26,280 --> 00:24:29,080 Speaker 1: a neutral word from the Trump years. But the AP 429 00:24:29,240 --> 00:24:31,800 Speaker 1: is reporting the US government plans to house up to 430 00:24:32,000 --> 00:24:37,240 Speaker 1: three thousand immigrant teenagers at a convention center in downtown 431 00:24:37,359 --> 00:24:40,399 Speaker 1: Dallas as it struggles to find space for a surge 432 00:24:40,400 --> 00:24:43,199 Speaker 1: of migrant children at the border who have strained the 433 00:24:43,200 --> 00:24:47,159 Speaker 1: immigration system. Just two months into the Biden administration, Genie 434 00:24:47,359 --> 00:24:50,879 Speaker 1: from the a P American authorities encountered people crossing the 435 00:24:50,920 --> 00:24:55,240 Speaker 1: border without legal status more than one hundred thousand times 436 00:24:55,320 --> 00:24:59,000 Speaker 1: in February, a level higher than all but four months 437 00:24:59,000 --> 00:25:03,080 Speaker 1: of Donald Trump's presidency. This is absolutely not where that 438 00:25:03,520 --> 00:25:07,760 Speaker 1: what the numbers are astonishing. Another number I heard was 439 00:25:08,840 --> 00:25:13,080 Speaker 1: increase in crossings or attempted crossing since January. That's not 440 00:25:13,160 --> 00:25:16,880 Speaker 1: where the Biden administration wanted to be. Certainly, I would 441 00:25:17,320 --> 00:25:23,000 Speaker 1: agree with John and applaud his obvious intellectual being. Intellectually honest, 442 00:25:23,200 --> 00:25:28,639 Speaker 1: we do here absolutely because you know, let's when we 443 00:25:28,720 --> 00:25:31,440 Speaker 1: take a step back, it's very easy to say, oh, 444 00:25:31,560 --> 00:25:35,919 Speaker 1: Biden's policies have caused this. Yet this is cyclical. This 445 00:25:36,040 --> 00:25:39,680 Speaker 1: kind of migration unfortunately comes in waves. It has It's 446 00:25:39,720 --> 00:25:43,719 Speaker 1: the result of much larger forces than just Joe Biden 447 00:25:43,840 --> 00:25:46,960 Speaker 1: being elected and people somewhere else hearing that he wants 448 00:25:47,000 --> 00:25:49,320 Speaker 1: open borders. John, come back, because I got to ask 449 00:25:49,359 --> 00:25:51,359 Speaker 1: you about your farm. I didn't get the chance to 450 00:25:51,359 --> 00:25:54,160 Speaker 1: do it, but I'm very interested in that farm. Sean Hart, 451 00:25:54,240 --> 00:25:57,720 Speaker 1: Republican strategist and former COMPS director for Senator Tom Cobert 452 00:25:57,840 --> 00:26:01,879 Speaker 1: coburn Um and author of The Depth Bob. I'm Kevin Seili. 453 00:26:01,920 --> 00:26:15,879 Speaker 1: This is Bloomberg. This is Bloomberg Sound On with Kevin 454 00:26:15,960 --> 00:26:23,040 Speaker 1: Sill on Bloomberg Radio. I'm Kevin Sirelli, Chief Washington correspondent 455 00:26:23,160 --> 00:26:27,160 Speaker 1: for Bloomberg Television of Bloomberg Radio, accompanied by none other 456 00:26:27,240 --> 00:26:30,800 Speaker 1: than the Bloomberg Politics contributor Jeanie Schanz, you know, and 457 00:26:30,880 --> 00:26:35,880 Speaker 1: Congressman Blaine Luke. Kemeyer joins us on the television line. 458 00:26:35,880 --> 00:26:40,360 Speaker 1: He's a Republican representing Missouri's third congressional district. He's also 459 00:26:40,440 --> 00:26:43,040 Speaker 1: the ranking member of the House Small Business Committee and 460 00:26:43,080 --> 00:26:46,680 Speaker 1: a senior member on the House Financial Services Committee. Congressman, 461 00:26:46,720 --> 00:26:48,439 Speaker 1: great to talk with you again. I just got this 462 00:26:48,520 --> 00:26:53,639 Speaker 1: headline in my Bloomberg VP Harris Kamala Harris on whether 463 00:26:53,760 --> 00:26:58,240 Speaker 1: tax hikes are going to be in the recovery bill 464 00:26:58,920 --> 00:27:01,760 Speaker 1: in order to pay for the next recovery bill, and 465 00:27:01,840 --> 00:27:03,560 Speaker 1: she says, quote, I want to make sure I have 466 00:27:03,640 --> 00:27:06,159 Speaker 1: this right quote. We haven't really figured out what the 467 00:27:06,200 --> 00:27:08,520 Speaker 1: next phase is going to be, to be honest with you, 468 00:27:08,920 --> 00:27:11,240 Speaker 1: and we're going to make those decisions. You know, this 469 00:27:11,400 --> 00:27:13,280 Speaker 1: just happened last week, and we want to get on 470 00:27:13,320 --> 00:27:15,040 Speaker 1: the road and make sure people know what it is. 471 00:27:15,320 --> 00:27:18,240 Speaker 1: So I'll keep you posted. That's not a no. Congressman. 472 00:27:20,400 --> 00:27:23,880 Speaker 1: Thank you, Kevin. Gonna be with you again. Always a pleasure. Right. 473 00:27:24,920 --> 00:27:27,639 Speaker 1: You know, if you talk to the Democrats behind the 474 00:27:27,680 --> 00:27:30,040 Speaker 1: scenes and then the elevators and on the on the 475 00:27:30,080 --> 00:27:32,000 Speaker 1: floor of the House when nobody else is around, what 476 00:27:32,160 --> 00:27:34,680 Speaker 1: I'll tell you you get ready. It's coming this fall. 477 00:27:34,720 --> 00:27:36,520 Speaker 1: They're trying to figure out how to frame it, how 478 00:27:36,560 --> 00:27:38,760 Speaker 1: to work it. You know, it probably will come through 479 00:27:38,760 --> 00:27:42,760 Speaker 1: another reconciliation bill with some kindness later on this fall. 480 00:27:42,800 --> 00:27:45,479 Speaker 1: And because it only one votes in the Senate and 481 00:27:45,520 --> 00:27:50,080 Speaker 1: so they know that it will never pass without going 482 00:27:50,160 --> 00:27:52,480 Speaker 1: that route. So and it doesn't mean it does limit 483 00:27:52,520 --> 00:27:55,440 Speaker 1: what they can do. However, they still can raise most 484 00:27:55,480 --> 00:27:59,919 Speaker 1: tanks with this and they love the money in your pocket. 485 00:28:00,000 --> 00:28:04,000 Speaker 1: Are gonna go get it. Congressman, It's Genie Chanzano from 486 00:28:04,000 --> 00:28:06,679 Speaker 1: New York. It's being great to talk to you. I 487 00:28:06,720 --> 00:28:10,240 Speaker 1: wanted to ask you today. The President was out promising 488 00:28:10,920 --> 00:28:14,399 Speaker 1: much more oversight than he says. What's happened for his 489 00:28:14,480 --> 00:28:17,720 Speaker 1: bill under the Trump administration, and he talked about their 490 00:28:17,760 --> 00:28:20,600 Speaker 1: failure to do that. And a lot has been reported 491 00:28:20,640 --> 00:28:24,199 Speaker 1: about some of the fraud and suspicious activities surrounding the 492 00:28:24,280 --> 00:28:28,680 Speaker 1: p p P program. So how confident are you and 493 00:28:28,760 --> 00:28:30,760 Speaker 1: what can do you think Congress can do at this 494 00:28:30,840 --> 00:28:35,119 Speaker 1: point to make sure that oversight this time around, particularly 495 00:28:35,160 --> 00:28:39,800 Speaker 1: with the p p P works Well, I you know, honestly, 496 00:28:39,840 --> 00:28:43,080 Speaker 1: I think the first round wasn't too bad, considering that 497 00:28:43,640 --> 00:28:47,400 Speaker 1: you know, SPA did fourteen days worth of work in 498 00:28:47,840 --> 00:28:50,080 Speaker 1: our fourteen years out the work in fourteen days, and 499 00:28:50,160 --> 00:28:53,440 Speaker 1: so all things considered, Uh, there was about two hundred 500 00:28:53,520 --> 00:28:56,080 Speaker 1: eighty million dollars. There was some question about out three 501 00:28:59,280 --> 00:29:04,120 Speaker 1: billion dollars tranch and so, uh that's about a one 502 00:29:04,160 --> 00:29:07,560 Speaker 1: ten thousands of an air apprecio. So I think it's 503 00:29:07,600 --> 00:29:09,160 Speaker 1: not too bad. And I'd love to have that in 504 00:29:09,200 --> 00:29:11,480 Speaker 1: a private sector in my own life, one ten thousands 505 00:29:11,520 --> 00:29:14,120 Speaker 1: of an air factor. But uh, sale is too much 506 00:29:14,160 --> 00:29:15,920 Speaker 1: and we need to And there was a lot of 507 00:29:16,040 --> 00:29:18,280 Speaker 1: you know, the treasure went back and and reclaimed some 508 00:29:18,320 --> 00:29:20,440 Speaker 1: of those dollars. And yes, same time you have a 509 00:29:20,440 --> 00:29:23,000 Speaker 1: government program, there's gonna be some some folks who won't 510 00:29:23,000 --> 00:29:24,880 Speaker 1: track advantage of it in the wrong way and there 511 00:29:24,920 --> 00:29:27,719 Speaker 1: needs to be some oversight. And I served on the 512 00:29:27,760 --> 00:29:30,520 Speaker 1: COVID over site committee all last year and that's one 513 00:29:30,520 --> 00:29:32,120 Speaker 1: of the things that we were trying to do is 514 00:29:32,160 --> 00:29:35,440 Speaker 1: to provide that oversight to make sure that the money 515 00:29:35,680 --> 00:29:38,720 Speaker 1: went to the right people in the right way. Um. Uh, 516 00:29:38,840 --> 00:29:41,120 Speaker 1: you know, I think you know, the second round is 517 00:29:41,200 --> 00:29:44,000 Speaker 1: being some of the dollars going out the doors being 518 00:29:44,000 --> 00:29:46,840 Speaker 1: delayed as a result of a lot of more I 519 00:29:47,000 --> 00:29:49,560 Speaker 1: doubting and tea crossing to prohibit the will prohibit that 520 00:29:49,680 --> 00:29:52,640 Speaker 1: from happening. And so it's, um, some of the folks 521 00:29:52,640 --> 00:29:55,120 Speaker 1: a little bit happy with the delays and getting their funding, 522 00:29:55,160 --> 00:29:59,400 Speaker 1: but um, it's coming, and uh it is due to 523 00:30:00,320 --> 00:30:02,920 Speaker 1: more strange oversight that was put in place when we 524 00:30:03,040 --> 00:30:06,240 Speaker 1: put it together back in December. So I think there's uh, 525 00:30:06,480 --> 00:30:08,200 Speaker 1: you know, we want to continue to watch it. That's 526 00:30:08,240 --> 00:30:10,400 Speaker 1: one of the jobs of our committee and uh the 527 00:30:10,400 --> 00:30:13,480 Speaker 1: Small Business Committee as well as Financial Services Committee that 528 00:30:13,560 --> 00:30:15,480 Speaker 1: sort of loon and we don't want to continue to 529 00:30:15,480 --> 00:30:18,400 Speaker 1: private oversight. But uh, I think there's a lot of 530 00:30:18,400 --> 00:30:20,600 Speaker 1: stuff that's been built into the bills and to the 531 00:30:20,640 --> 00:30:23,480 Speaker 1: procedures and processes as we put it together, you know, 532 00:30:23,640 --> 00:30:25,640 Speaker 1: to follow up on that. I know you've been doing 533 00:30:25,680 --> 00:30:29,720 Speaker 1: some bipartisan work on the committee to extend some of 534 00:30:29,760 --> 00:30:34,400 Speaker 1: the Small Business Administration's paycheck protection program, because that deadline 535 00:30:34,440 --> 00:30:37,320 Speaker 1: is March thirty one, and you've been working on a 536 00:30:37,400 --> 00:30:40,320 Speaker 1: deal to extend it for two more months with some 537 00:30:40,400 --> 00:30:46,160 Speaker 1: of your Democratic UH counterparts, including the Small Business Committee 538 00:30:46,200 --> 00:30:51,080 Speaker 1: chairwoman um Uh as well as some of the other 539 00:30:51,160 --> 00:30:53,640 Speaker 1: folks on on the committee. What what do you what 540 00:30:53,680 --> 00:30:57,560 Speaker 1: do you? What can you tell us about that extension? Yeah, 541 00:30:57,600 --> 00:30:59,560 Speaker 1: I think you know, we were looking at a situation 542 00:30:59,600 --> 00:31:04,080 Speaker 1: where the the s b AH once I guess to 543 00:31:04,160 --> 00:31:06,920 Speaker 1: Mars thirty one, any loans that in a plipline that 544 00:31:06,920 --> 00:31:11,080 Speaker 1: are not finished up get dropped so the individual could 545 00:31:11,120 --> 00:31:13,240 Speaker 1: do everything they needed to do to apply in a 546 00:31:13,280 --> 00:31:15,960 Speaker 1: timely manner. And if there's a coding air or it's 547 00:31:16,000 --> 00:31:19,440 Speaker 1: just a processing situation, they could be in a situation 548 00:31:19,520 --> 00:31:21,920 Speaker 1: where they wouldn't get the money at all because U 549 00:31:22,200 --> 00:31:25,320 Speaker 1: s b A is backed up on these things. So, UH, 550 00:31:25,360 --> 00:31:27,640 Speaker 1: there's some money left in the program. They're using it 551 00:31:27,720 --> 00:31:29,880 Speaker 1: about the rate about two billion dollars a day, but 552 00:31:29,920 --> 00:31:32,800 Speaker 1: there's probably going to be somewhere around a hundred between 553 00:31:34,080 --> 00:31:35,720 Speaker 1: being left by the end of the month here. So 554 00:31:36,560 --> 00:31:39,479 Speaker 1: we thought that it would be prudent UH to make 555 00:31:39,520 --> 00:31:42,600 Speaker 1: sure number one, those people are doing the right thing, UH, 556 00:31:42,880 --> 00:31:45,880 Speaker 1: we're able to get their dollars UH and have sb 557 00:31:46,040 --> 00:31:48,480 Speaker 1: A not just drop these loans continue to work on 558 00:31:48,520 --> 00:31:51,200 Speaker 1: them until they're all done. And so we had a 559 00:31:51,320 --> 00:31:53,960 Speaker 1: third sixty day extension on the program itself, in another 560 00:31:54,000 --> 00:31:56,360 Speaker 1: thirty days to recipe to wrap it up. So I 561 00:31:56,400 --> 00:31:58,360 Speaker 1: think that would probably be enough to get through the 562 00:31:58,480 --> 00:32:01,160 Speaker 1: entire program, get through the entire tronch of money, and 563 00:32:01,240 --> 00:32:03,280 Speaker 1: at that point we'll see if there's a need for more. 564 00:32:04,120 --> 00:32:06,400 Speaker 1: I'm guessing well, probably won't be, because it looks to 565 00:32:06,400 --> 00:32:10,160 Speaker 1: me like the economy is gearing up here. Things look 566 00:32:10,200 --> 00:32:13,840 Speaker 1: pretty good, and actually the numbers of folks applying are 567 00:32:13,920 --> 00:32:17,360 Speaker 1: are slowing down significantly, so but we'll see. Now we're 568 00:32:17,440 --> 00:32:19,280 Speaker 1: you know, this is a prognance and very successful, and 569 00:32:19,280 --> 00:32:21,120 Speaker 1: we want to make sure that it continues to help 570 00:32:21,160 --> 00:32:24,000 Speaker 1: those that it's intended to help, which are the worst 571 00:32:24,520 --> 00:32:27,680 Speaker 1: they've been hit by the COVID thing from Flancia standpoint 572 00:32:27,720 --> 00:32:30,400 Speaker 1: and um, and it's been successful in doing this, so 573 00:32:30,440 --> 00:32:33,200 Speaker 1: we want to continue it if it's necessary. But I 574 00:32:33,200 --> 00:32:35,040 Speaker 1: think it's it's getting close to the end here, and 575 00:32:35,080 --> 00:32:37,840 Speaker 1: we don't want to have a permanent programmer. This is 576 00:32:37,880 --> 00:32:40,560 Speaker 1: something of it was temporary, and I think we need 577 00:32:40,600 --> 00:32:43,400 Speaker 1: to look at in that way. Congressman Blaine Lucamer's with US, 578 00:32:43,440 --> 00:32:46,360 Speaker 1: A Republican from Missouri Star Congressional District. Did you see 579 00:32:46,400 --> 00:32:49,600 Speaker 1: this over the weekend? Secretary Yelling said that US inflation 580 00:32:49,720 --> 00:32:55,440 Speaker 1: risk remains small and manageable. Do you agree with that assessment? Well, 581 00:32:56,000 --> 00:32:59,160 Speaker 1: yes and no. I think short term yes, long term no. 582 00:33:00,000 --> 00:33:03,000 Speaker 1: I think short term, Um, you know, they're still gonna 583 00:33:03,040 --> 00:33:04,880 Speaker 1: be I think our recovery is going to be slow. 584 00:33:04,960 --> 00:33:07,040 Speaker 1: The inflation problem is going to be slowed from the 585 00:33:07,080 --> 00:33:09,640 Speaker 1: standpoint that, Uh, people are still not going to be 586 00:33:09,680 --> 00:33:12,560 Speaker 1: engaged as fully as they could be. And even once 587 00:33:12,600 --> 00:33:15,280 Speaker 1: we get fully engaged, you're still gonna have problems with 588 00:33:15,360 --> 00:33:19,040 Speaker 1: supply chain. Uh. And and there's still some folks who 589 00:33:19,200 --> 00:33:21,280 Speaker 1: because they are gonna be able to sit on this 590 00:33:21,360 --> 00:33:26,200 Speaker 1: unemployment money that's in this bill until late summer here, Uh, 591 00:33:26,320 --> 00:33:27,760 Speaker 1: they're not going to be going back to work. So 592 00:33:27,800 --> 00:33:29,640 Speaker 1: it's gonna be a little more difficult again for the 593 00:33:29,680 --> 00:33:34,400 Speaker 1: businesses to manufacture products or provide services. And whenever they're 594 00:33:34,400 --> 00:33:37,440 Speaker 1: going at a percent hiring it a hundred percent, that's 595 00:33:37,440 --> 00:33:40,200 Speaker 1: when you start getting inflation because you're producing and people 596 00:33:40,200 --> 00:33:43,360 Speaker 1: are buying. But if you're not producing, it's hard to 597 00:33:43,360 --> 00:33:47,000 Speaker 1: get there. So but long term, I think that there's 598 00:33:47,000 --> 00:33:49,960 Speaker 1: a possibility of that because we've thrown there's there's still 599 00:33:49,960 --> 00:33:53,280 Speaker 1: a trellion dollars left that we didn't spend yet before 600 00:33:53,320 --> 00:33:55,240 Speaker 1: we even to this one point nine in the in 601 00:33:55,320 --> 00:33:59,000 Speaker 1: the the the economy here. Uh so when all his 602 00:33:59,120 --> 00:34:01,640 Speaker 1: money is able to be spent, there could be a 603 00:34:01,640 --> 00:34:06,040 Speaker 1: good possibility that it would be uh inflationary factor. But 604 00:34:06,120 --> 00:34:09,480 Speaker 1: I think short term now, long term, UM, I wouldn't 605 00:34:09,480 --> 00:34:12,600 Speaker 1: bet against it. And Congressman especially and let me finish, 606 00:34:12,840 --> 00:34:15,040 Speaker 1: especially with energy prices, I think that's the key on 607 00:34:15,040 --> 00:34:18,160 Speaker 1: on the long term. I'm sorry, no, no, I'm sorry, 608 00:34:18,200 --> 00:34:20,479 Speaker 1: I didn't hear you talking. So I wanted to ask 609 00:34:20,520 --> 00:34:23,760 Speaker 1: you about a slightly different issue that you raised several 610 00:34:23,800 --> 00:34:26,839 Speaker 1: weeks ago, because it's something that my students ask about 611 00:34:26,840 --> 00:34:30,600 Speaker 1: all the time as they have been investing. UM, should 612 00:34:30,640 --> 00:34:34,360 Speaker 1: there be increased regulation on short selling? It's something I 613 00:34:34,400 --> 00:34:37,399 Speaker 1: know you talked about, UM, And I'm sorry to say 614 00:34:37,440 --> 00:34:39,400 Speaker 1: that we have a lot of students who are you know, 615 00:34:39,480 --> 00:34:46,200 Speaker 1: heavily invested, not economically, but psychologically in this now. Well, yeah, 616 00:34:46,280 --> 00:34:49,960 Speaker 1: my committee had a hearing on the game stop situation 617 00:34:50,040 --> 00:34:52,680 Speaker 1: the other day, and you know, I asked the question 618 00:34:52,760 --> 00:34:57,080 Speaker 1: of of the witnesses during that hearing, I said, did 619 00:34:57,080 --> 00:34:59,560 Speaker 1: the system work the right way? And you know by 620 00:34:59,719 --> 00:35:03,400 Speaker 1: by seeing that these hedge funds had shortened the stock 621 00:35:03,480 --> 00:35:06,640 Speaker 1: to tune it about a hundred and there was a 622 00:35:06,680 --> 00:35:08,759 Speaker 1: group of folks who were watching that and so an 623 00:35:08,760 --> 00:35:12,360 Speaker 1: opportunity to to do something and they did. It was 624 00:35:12,400 --> 00:35:14,399 Speaker 1: at the market correcting itself or is there a deed 625 00:35:14,400 --> 00:35:17,120 Speaker 1: for tran more transparency and or the need for for 626 00:35:17,280 --> 00:35:20,520 Speaker 1: some some other things in there to stop that from happening. 627 00:35:20,960 --> 00:35:22,799 Speaker 1: And it was kind of interesting to listen to the 628 00:35:23,400 --> 00:35:26,200 Speaker 1: to the hedge fund guys really didn't want to I 629 00:35:26,239 --> 00:35:28,120 Speaker 1: didn't say that, you know that they want to admit 630 00:35:28,160 --> 00:35:30,319 Speaker 1: that they got you know, tricked and fooled and taking 631 00:35:30,360 --> 00:35:33,880 Speaker 1: advantage of a bunch of rookies out here. That's what happened. 632 00:35:33,880 --> 00:35:36,200 Speaker 1: I mean, they had they had some folks who were 633 00:35:36,239 --> 00:35:39,200 Speaker 1: just ordinary guys. They were you know, they were sharp cookies, 634 00:35:39,239 --> 00:35:41,280 Speaker 1: but they were watching the market on a daily basis 635 00:35:41,280 --> 00:35:44,080 Speaker 1: on their own. They weren't playing the advised money but 636 00:35:44,160 --> 00:35:47,360 Speaker 1: their own and loby hole. They got together and started 637 00:35:48,000 --> 00:35:52,359 Speaker 1: working together, and they took advantage of the situation brought 638 00:35:52,400 --> 00:35:56,080 Speaker 1: those hedge funds down. So it's I really, you know, 639 00:35:56,239 --> 00:35:58,160 Speaker 1: I asked I. In fact, I asked the guy who 640 00:35:58,320 --> 00:36:02,200 Speaker 1: was the main Maine Guff of Wall Street Web there 641 00:36:02,280 --> 00:36:05,879 Speaker 1: and our Wall Street bet for on Reddit, and he said, look, 642 00:36:06,040 --> 00:36:08,520 Speaker 1: so I think knowing any more of his transparency, for 643 00:36:08,640 --> 00:36:13,560 Speaker 1: more transparency, I think we're fine. All right, We're gonna well, 644 00:36:13,600 --> 00:36:14,960 Speaker 1: we don't know either, but come back and tell us. 645 00:36:15,000 --> 00:36:18,080 Speaker 1: That's connressm Blaine Lucamyer. We always appreciate his time. March's 646 00:36:18,120 --> 00:36:20,640 Speaker 1: Women's History Month, and here with today's installment is Bloomberg's 647 00:36:20,640 --> 00:36:23,160 Speaker 1: for Nay Young one This day in Women's History. In 648 00:36:23,239 --> 00:36:27,440 Speaker 1: nineteen forty six, former First Lady Eleanor Roosevelt is appointed 649 00:36:27,600 --> 00:36:32,440 Speaker 1: US Representative to the United Nations. President Harry Truman appointed her. 650 00:36:32,920 --> 00:36:36,919 Speaker 1: Roosevelt contributed greatly to U n policymaking, serving as Chair 651 00:36:36,960 --> 00:36:39,800 Speaker 1: of the Human Rights Commission. She was the only woman 652 00:36:39,800 --> 00:36:42,880 Speaker 1: serving on the sixth person delegation that would eventually produce 653 00:36:43,000 --> 00:36:47,400 Speaker 1: the Universal Declaration of Human Rights in December night Now. 654 00:36:47,440 --> 00:36:51,600 Speaker 1: Because of Roosevelt's massive contributions to international human rights and law, 655 00:36:51,960 --> 00:36:54,880 Speaker 1: President Truman would later call her the First Lady of 656 00:36:54,920 --> 00:36:59,200 Speaker 1: the World. Roosevelt served in this position until nineteen fifty 657 00:36:59,239 --> 00:37:04,800 Speaker 1: two that today in women's history. I'm Morinita Young, Bloomberg Radio, Jennie, 658 00:37:05,160 --> 00:37:07,800 Speaker 1: Jennie Schanzen. Are you gonna be here on St. Patty's Day? 659 00:37:08,239 --> 00:37:10,840 Speaker 1: I'm gonna be around. I'm half Irish, I must celebrate. 660 00:37:11,400 --> 00:37:14,759 Speaker 1: I'm half Irish too. I already got my family sent 661 00:37:14,840 --> 00:37:17,160 Speaker 1: me Irish potatoes, and I already ate them. I was 662 00:37:17,200 --> 00:37:20,279 Speaker 1: supposed to save them, but I I can't. I can't 663 00:37:20,320 --> 00:37:23,160 Speaker 1: just have one. I'm Kevin Surreally, this is Bloomberg