WEBVTT - Rahm Emmanuel Talks Midterm Election Results

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio, news.

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<v Speaker 2>Let's get more analysis of the incoming Congress. Bloomberg Surveillance

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<v Speaker 2>co-host Anne-Marie Hordern is joined by former Chicago Mayor Rahm Emanuel.

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<v Speaker 1>Anne-Marie.

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<v Speaker 3>Good morning, Dani.

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<v Speaker 1>That's right.

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<v Speaker 3>Not just the former Chicago mayor, of course, former White

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<v Speaker 3>House chief of staff to President Obama and the former

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<v Speaker 3>ambassador to Japan.

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<v Speaker 1>So thank you so much.

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<v Speaker 3>For joining us this morning.

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<v Speaker 1>Thanks for having me.

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<v Speaker 3>I think our viewers, Ram, just want to get a

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<v Speaker 3>sense from you on your reaction to last night. And

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<v Speaker 3>I will say, we spoke on the phone a few

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<v Speaker 3>weeks ago. You were actually in South Carolina. And you

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<v Speaker 3>said you are not thinking about this in the way

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<v Speaker 3>it's going to play out. You thought it was going

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<v Speaker 3>to be seismic.

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<v Speaker 1>And you were right. It was.

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<v Speaker 2>Yeah.

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<v Speaker 1>So a couple of things.

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<v Speaker 4>One, this is a repudiation of Trump and the Republicans.

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<v Speaker 4>What the Democrats do in 2027 will determine whether they

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<v Speaker 4>have won. by building a broad-based coalition that solidifies what

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<v Speaker 4>happened last night.

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<v Speaker 1>Republicans, independents, voting for Democrats and giving them a second look.

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<v Speaker 4>We can decide whether this election is transactional or transformational.

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<v Speaker 4>What I saw in South Carolina, and let me kind

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<v Speaker 4>of draw this out for the viewers. This is very

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<v Speaker 4>similar to 06 when I chaired the effort to take

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<v Speaker 4>back the House and make Nancy Pelosi Speaker. Unpopular presidents, check, check.

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<v Speaker 4>Unpopular war, check, check. Unpopular corruption, check, check. Rising gas prices, check, check.

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<v Speaker 4>Here's the difference. In 06, people were tired of six

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<v Speaker 4>years of Republican rule and disappointed in President Bush.

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<v Speaker 1>Here they are angry. at President Trump, that's.

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<v Speaker 4>Why you see these numbers of turnout across all parts significant.

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<v Speaker 1>Why are they angry?

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<v Speaker 4>He says, I'm gonna put money in your pocket, and

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<v Speaker 4>they watched him two years putting money in his own pocket.

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<v Speaker 4>He said, I'm gonna end endless wars, he starts an

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<v Speaker 4>endless war. He says, I'm gonna bring prices down, and

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<v Speaker 4>through tariffs in the war, they spike.

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<v Speaker 1>Nobody, Emery likes to be played as a chump.

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<v Speaker 4>And he played them like fools, and they gave him

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<v Speaker 4>a two-by-four upside his head.

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<v Speaker 3>So this is a referendum on Trump, though.

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<v Speaker 1>100%.

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<v Speaker 3>This is not voters saying, I agree with all these

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<v Speaker 3>Democratic policies.

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<v Speaker 1>It's a repudiation, not a vindication.

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<v Speaker 3>So where does this leave the Democrats, then?

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<v Speaker 1>Because people, from what you're saying.

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<v Speaker 3>People are not going out and saying, we agree with

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<v Speaker 3>everything some of these Democratic candidates had to.

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<v Speaker 4>What Democrats have to do, in my view, in 2027

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<v Speaker 4>is deliver on change in speed. That means you should

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<v Speaker 4>have hearings, follow the money, where did it go, who gave,

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<v Speaker 4>who paid, but deliver a lobbying.

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<v Speaker 1>And ethics bill.

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<v Speaker 4>Last one was when Senator Obama and Congressman Emanuel in 2007.

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<v Speaker 4>Deliver a raise in the minimum wage. Deliver a restriction

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<v Speaker 4>and repeal of these punitive tariffs. deliver healthcare reform you

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<v Speaker 4>can get done on the legislative basis. That would vindicate

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<v Speaker 4>change and reestablish trust. And here's the one thing I

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<v Speaker 4>would say, and I've said this when we were in

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<v Speaker 4>South Carolina, I had just given this speech, so I

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<v Speaker 4>want to say it here. Look, the young men and

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<v Speaker 4>women on the USS Abraham Lincoln, I've been on that ship,

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<v Speaker 4>my two kids are Navy Reservists. They were at sea

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<v Speaker 4>for 322 days.

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<v Speaker 1>Rancid food, no bathrooms. The U.S. Congress, 100 days in session.

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<v Speaker 1>Get to work. Roll up your sleeves with speed and

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<v Speaker 1>with substance. Deliver change.

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<v Speaker 4>And if Democrats do that, the Republicans, non-MAGA Republicans that

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<v Speaker 4>voted for you are going.

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<v Speaker 1>To say, you know what? I'm good with this. Does

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<v Speaker 1>Trump work with them? He has no other choice.

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<v Speaker 3>Because he says that he has veto power.

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<v Speaker 1>He's leaning into that. Well, there's no doubt.

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<v Speaker 4>Now, everything I just mentioned to you, let's just take

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<v Speaker 4>that apart. You, I would put in there the five things.

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<v Speaker 4>For all three branches, ban on stock trading, ban on

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<v Speaker 4>prediction market participation, mandatory blind trust, mandatory retirement or term limits,

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<v Speaker 4>and what I call the Kushner rule, no foreign money

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<v Speaker 4>while in service and two years after.

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<v Speaker 1>There's a lot of Republicans who agree with this. That's right.

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<v Speaker 4>Even in Trump's administration agree with this. Republicans will vote

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<v Speaker 4>for it, and the president has a decision. Sign it,

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<v Speaker 4>we win. Veto it, we win. Minimum wage, sign it,

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<v Speaker 4>Republicans will vote for it.

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<v Speaker 1>Sign it, we win. Veto, we win.

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<v Speaker 4>The tariffs will be, there will be a lot of Republicans,

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<v Speaker 4>if you look at the advertising, against his tariff.

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<v Speaker 1>Policy, and he has to make a decision.

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<v Speaker 4>So he has a say, and my usual approach when

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<v Speaker 4>I was mayor, when I was also chief of staff,

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<v Speaker 4>we're going to find common ground, and when we don't,

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<v Speaker 4>I'm going to stand my ground.

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<v Speaker 3>If this is a repudiation on Trump and not an

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<v Speaker 3>enforcement on these Democratic candidates, what is your advice and

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<v Speaker 3>have you spoken to Senator Chuck Schumer, Hakeem Jeffries? How

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<v Speaker 3>are they going to bridge the more progressive wing of

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<v Speaker 3>your party to the centrists?

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<v Speaker 4>Well, look, by picking issues that unite Democrats. So, ethics reform,

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<v Speaker 4>and I'll give you an example, and this is a

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<v Speaker 4>thing that leadership has to do. As I said, I'm

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<v Speaker 4>for the hearings because I think it's important to find

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<v Speaker 4>out what's going on with this Venezuela money.

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<v Speaker 1>Where'd it go?

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<v Speaker 4>You don't know, you're a business channel. You have no idea.

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<v Speaker 4>And that's money that's supposed to, there. Now you can

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<v Speaker 4>go towards impeachment, And that will be a food fight

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<v Speaker 4>with no result. You can do lobbying and ethics reform,

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<v Speaker 4>unites the Democrats, divides Republicans, and that will get signed

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<v Speaker 4>into law. So you have to seek the key on

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<v Speaker 4>both politics, whether it's legislative or electoral. What unites our

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<v Speaker 4>team and divides the other side? And if you seek

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<v Speaker 4>that bipartisanship, now, look.

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<v Speaker 1>Have you spoken to them at all about this? I've communicated.

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<v Speaker 1>Do I look quiet and silent or shy? No. Well,

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<v Speaker 1>you're never quiet and silent.

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<v Speaker 4>So here's what I would say, but I don't reveal

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<v Speaker 4>those kind of conversations, but know that I've had conversations.

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<v Speaker 4>Here's what I would say to you that's important. You

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<v Speaker 4>now have a senator in South Carolina, a senator in Kansas.

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<v Speaker 4>Things that haven't happened before. Since the 30s. 1939 in Kansas.

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<v Speaker 4>You now have possibly a senator in Mississippi. And you

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<v Speaker 4>have a governor in Georgia. You have a governor in Nevada.

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<v Speaker 1>Texas. And Texas.

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<v Speaker 4>That is not because there is a giant pull for DSA.

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<v Speaker 4>That was a giant pull, and this is the key part,

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<v Speaker 4>It was Democrats, independents, and non-MAGA Republicans that gave us

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<v Speaker 4>this majority.

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<v Speaker 1>Build on that coalition. Don't put at risk a South

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<v Speaker 1>Carolina senator. Now, I was in.

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<v Speaker 3>Is that the Democrats' biggest risk?

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<v Speaker 1>Well, you've got to be.

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<v Speaker 4>Strategic about it, and you've got to be thoughtful about it.

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<v Speaker 4>You've got to deliver change that also, as I said,

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<v Speaker 4>brings Democrats together.

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<v Speaker 1>Now, one of the rules I had as.

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<v Speaker 4>Mayor, one of the rules I used to say, or

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<v Speaker 4>comments I used to say to President Obama... In politics,

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<v Speaker 4>sound is not always fury. Sometimes it's just sound. Just

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<v Speaker 4>because somebody is loud doesn't mean they represent a lot

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<v Speaker 4>of people. A lot of people intimidated the Biden White

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<v Speaker 4>House not to deal with the border.

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<v Speaker 1>They didn't represent the American people. They just were loud.

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<v Speaker 4>I can go through the list with you, but you

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<v Speaker 4>get that gist. And so you have to know the

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<v Speaker 4>difference between sound and fury. Now, I think there are

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<v Speaker 4>a lot of things that will bring Democrats together.

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<v Speaker 1>Focus on those. Bring the energy.

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<v Speaker 4>But I also want to say something that is not

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<v Speaker 4>just a substance. The American people want to see speed.

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<v Speaker 4>And the Democrats sometimes get very focused on the rules

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<v Speaker 4>and not on the results. Focus on the results, not

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<v Speaker 4>on the rules and the process and in that effort.

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<v Speaker 4>Like I would say today, I will give you an example.

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<v Speaker 4>First two months, we're gonna have an ethics bill out

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<v Speaker 4>of the House. You forget that in 06, when Nancy

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<v Speaker 4>gets the gavel, we're caucus chair, we pass the six

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<v Speaker 4>in 06 in 100 hours.

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<v Speaker 1>Move.

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<v Speaker 2>Speed counts.

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<v Speaker 1>Do you think they're going to do that? Yes.

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<v Speaker 3>Or do you think it's going to be a lot

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<v Speaker 3>of noise around hearings? The incoming oversight chair said, quote,

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<v Speaker 3>lawyer up.

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<v Speaker 4>You should have hearings because there's a lot of corruption

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<v Speaker 4>out there. And I'm from Chicago. I have a high

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<v Speaker 4>standard when it comes to corruption. You should have those hearings.

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<v Speaker 4>But if you don't deliver lobbying and ethics reform, those

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<v Speaker 4>hearings was just about.

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<v Speaker 1>Vindication. Not vindication. Vindictiveness. Deliver.

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<v Speaker 4>That change so that the Republicans who took a bet

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<v Speaker 4>on the Kansas senator, the Republicans that took a bet

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<v Speaker 4>on a Democratic senator in Texas, then you'll have said

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<v Speaker 4>to that coalition, that was a good bet.

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<v Speaker 3>Let's talk about 2028.

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<v Speaker 1>Let's say we did and we don't. No, let's talk

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<v Speaker 1>about 2028.

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<v Speaker 3>Who do you think this puts in prime position?

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<v Speaker 4>Oh, look, that's a fair question, but not the right

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<v Speaker 4>time to ask the question.

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<v Speaker 1>I think what you will see— Well, because you're probably

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<v Speaker 1>going to run. Well, look, here's how I look at it.

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<v Speaker 4>In 2024, the party didn't have a choice. We were

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<v Speaker 4>told to. 2020, the same thing. 2016, you got to.

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<v Speaker 1>Go back to 08.

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<v Speaker 4>It's been 20 years since our party had a good thrashing,

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<v Speaker 4>and we should have a good thrashing.

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<v Speaker 1>We should have a good debate.

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<v Speaker 4>Now, as I joke, 2028, it's going to be Baskin

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<v Speaker 4>and Robbins.

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<v Speaker 1>You're going to have 31 flavors.

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<v Speaker 4>And if I decide to do this, I'm going to

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<v Speaker 4>be Rocky Road.

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<v Speaker 3>Okay, but here's the problem. Can someone like you win

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<v Speaker 3>a primary in the Democratic coalition?

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<v Speaker 2>Sure.

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<v Speaker 1>Even when you have.

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<v Speaker 3>very left-wing progressive candidates that are also likely going to

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<v Speaker 3>throw their name in the wing.

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<v Speaker 1>That's great. That's good.

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<v Speaker 4>Look, I'm good with across the board having a good thrashing.

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<v Speaker 4>But here's what I know. In Michigan, or take Ohio,

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<v Speaker 4>or take Wisconsin, or you can also go to Maine.

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<v Speaker 4>Four states, Minnesota being blue, Ohio being red, Michigan being

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<v Speaker 4>a battleground. You had a governor and a Senate candidate

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<v Speaker 4>The governors all came out of the pragmatic wing of

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<v Speaker 4>the party, and the senators all came out of the

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<v Speaker 4>progressive wing. In those states, from blue to red to purple,

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<v Speaker 4>the pragmatic governor won by an average 2.5% better than

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<v Speaker 4>the progressive. Now, you could take a lark and just

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<v Speaker 4>think that this election says that we are now the

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<v Speaker 4>majority party and the country believes it. agrees with Democrats,

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<v Speaker 4>or you can say, okay, there's a lesson here, and

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<v Speaker 4>I believe when you look across the board in New

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<v Speaker 4>Jersey governor's race, five primary candidates, the most conservative wins,

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<v Speaker 4>and the second, or rather the third, was also on

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<v Speaker 4>the moderate to conservative side. So look, I just think

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<v Speaker 4>ideology and the way I look at it. Look, when

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<v Speaker 4>I was mayor, I took on a failed education system

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<v Speaker 4>that was failing our kids. When I was the president's

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<v Speaker 4>chief of staff, I took on a failed financial system

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<v Speaker 4>and a failed health care system. When I was President

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<v Speaker 4>Clinton's senior advisor, I took on a The NRA and

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<v Speaker 4>the insurance companies are two separate.

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<v Speaker 1>Giving kids, 10 million kids, healthcare they never had.

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<v Speaker 4>I've never accepted the status quo when it fails the

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<v Speaker 4>American people.

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<v Speaker 1>And if people like that, great. If not, I'll go

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<v Speaker 1>fly fishing.

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<v Speaker 3>I know you're a good fly fisher. I know you're

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<v Speaker 3>not here to make any sort of big announcement for 2028,

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<v Speaker 3>but Danny, I have to say, the former Chicago mayor,

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<v Speaker 3>former Chief of Staff to President Obama, former Ambassador to Japan,

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<v Speaker 3>Does at the end sound like he's excited potentially about

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<v Speaker 3>throwing his name in the ring for 2028? Yeah, maybe

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<v Speaker 3>one extra.

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<v Speaker 1>It's all the Starbucks coffee.

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<v Speaker 2>We need to get you some more Starbucks coffee. I

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<v Speaker 2>think that's the only answer to this. Thank you so much.

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<v Speaker 1>Thanks.

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<v Speaker 2>Both of you for joining for that excellent conversation. Anne-Marie

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<v Speaker 2>Hordurd and Rahm Emanuel, whose career spans many legislative, executive

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<v Speaker 2>and diplomatic roles.