1 00:00:02,480 --> 00:00:07,680 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:20,520 --> 00:00:23,200 Speaker 2: This is Wall Street Week. I'm David Weston, bringing you 3 00:00:23,239 --> 00:00:26,639 Speaker 2: stories of capitalism. Much of Wall Street joined the rest 4 00:00:26,680 --> 00:00:28,720 Speaker 2: of New York this week heading to the polls to 5 00:00:28,760 --> 00:00:32,559 Speaker 2: elect a new mayor. We explore what Mamdani's win means 6 00:00:32,600 --> 00:00:35,920 Speaker 2: for the financial capital of the world, and specifically for 7 00:00:36,080 --> 00:00:40,120 Speaker 2: real estate in the Big Apple Plus. RFK Junior says 8 00:00:40,200 --> 00:00:44,200 Speaker 2: pediatricians are making out like bandits by pushing vaccines on children. 9 00:00:44,520 --> 00:00:46,839 Speaker 2: We tell the story of why the business model is 10 00:00:46,840 --> 00:00:50,760 Speaker 2: having the opposite effect and driving doctors away from ministering 11 00:00:50,840 --> 00:00:54,760 Speaker 2: to the young. And everyone's looking for more protein in 12 00:00:54,800 --> 00:00:58,400 Speaker 2: their diet. We explore the booming business of protein supplements 13 00:00:58,520 --> 00:01:03,520 Speaker 2: and whether they're more than just another diet ad. But 14 00:01:03,640 --> 00:01:06,399 Speaker 2: we start with this week's big Supreme Court argument over 15 00:01:06,440 --> 00:01:09,959 Speaker 2: whether President Trump can keep those tariffs he imposed on 16 00:01:10,080 --> 00:01:12,960 Speaker 2: much of the world. Jennifer Hillman of the Council on 17 00:01:13,040 --> 00:01:15,959 Speaker 2: Foreign Relations takes us through what it could mean for 18 00:01:16,000 --> 00:01:17,360 Speaker 2: the President to lose. 19 00:01:18,480 --> 00:01:20,840 Speaker 3: I think what's really at stake most of all, is 20 00:01:21,040 --> 00:01:24,839 Speaker 3: whether or not the President has violated the Constitution, Because 21 00:01:24,840 --> 00:01:26,480 Speaker 3: again we have to go all the way back to 22 00:01:26,720 --> 00:01:29,440 Speaker 3: the founding of our country. You know, no taxation without 23 00:01:29,480 --> 00:01:32,920 Speaker 3: representation is on that license plate on everybody in the 24 00:01:32,920 --> 00:01:36,120 Speaker 3: District of Columbia. And what it really is saying is 25 00:01:36,200 --> 00:01:40,600 Speaker 3: the Constitution gives to the Congress, not to the President, 26 00:01:40,920 --> 00:01:45,399 Speaker 3: the power to impose taxes or tariffs. The Constitution gives 27 00:01:45,440 --> 00:01:47,960 Speaker 3: to the Congress, not to the President, the right to 28 00:01:48,080 --> 00:01:51,520 Speaker 3: regulate foreign commerce. So the issue is, how is it 29 00:01:51,600 --> 00:01:54,680 Speaker 3: that President Trump can now start to impose all of 30 00:01:54,720 --> 00:01:58,520 Speaker 3: these tariffs again, this huge increase in taxes on Americans 31 00:01:58,800 --> 00:02:00,240 Speaker 3: without the kungs. 32 00:02:00,680 --> 00:02:05,080 Speaker 2: The customerty explicitly gives to Congress the authority imposed tariffs. Yes, 33 00:02:05,440 --> 00:02:09,600 Speaker 2: can Congress delegate that authority and has it in this statute? 34 00:02:09,720 --> 00:02:12,640 Speaker 3: Right? And so the issue that is really before the 35 00:02:12,680 --> 00:02:16,120 Speaker 3: court is whether or not the Congress has handed over 36 00:02:16,320 --> 00:02:19,200 Speaker 3: this power that it has. It has the power to 37 00:02:19,240 --> 00:02:23,560 Speaker 3: impose tariffs or duties or taxes. Did it grant that 38 00:02:23,680 --> 00:02:27,880 Speaker 3: authority hand it over to the President through the passage 39 00:02:27,919 --> 00:02:32,560 Speaker 3: of this law, the International Economic Emergency Powers Act. And 40 00:02:32,880 --> 00:02:37,520 Speaker 3: the decision will largely turn on one phrase in this 41 00:02:37,720 --> 00:02:42,080 Speaker 3: IEPA statute, the phrase that says that the Congress delegated 42 00:02:42,120 --> 00:02:47,560 Speaker 3: the authority to regulate importation or exportation. And so the 43 00:02:47,639 --> 00:02:50,680 Speaker 3: issue is can you read the word regulate to be 44 00:02:50,840 --> 00:02:55,040 Speaker 3: the same thing as tax or tariff? And the argument 45 00:02:55,120 --> 00:02:58,200 Speaker 3: that most people are making, that many members of Congress, 46 00:02:58,240 --> 00:03:00,160 Speaker 3: that many of the business groups, and many of the 47 00:03:00,200 --> 00:03:03,519 Speaker 3: others that say the answer to that question is no, No, 48 00:03:03,680 --> 00:03:06,880 Speaker 3: Congress did not hand over the authority. Point to the 49 00:03:06,919 --> 00:03:10,640 Speaker 3: fact that nowhere in this IEPA statute does the word 50 00:03:10,760 --> 00:03:12,440 Speaker 3: tariff or duty appear. 51 00:03:13,080 --> 00:03:16,640 Speaker 2: If the Supreme Court upholds what the President's done, then 52 00:03:16,720 --> 00:03:19,280 Speaker 2: is clear what happens we keep charging the tariffs. What 53 00:03:19,400 --> 00:03:22,480 Speaker 2: if it actually strikes it down? What is the remedy 54 00:03:22,760 --> 00:03:25,560 Speaker 2: if in fact the court rules that these tariffs were 55 00:03:25,600 --> 00:03:27,040 Speaker 2: illegal or unconstitutional. 56 00:03:27,880 --> 00:03:30,560 Speaker 3: So if the court rules that the tariffs were illegal 57 00:03:30,600 --> 00:03:32,920 Speaker 3: from the get go, then then the tariffs must be 58 00:03:32,960 --> 00:03:36,040 Speaker 3: refunded to those that have paid them. And if we look, 59 00:03:36,160 --> 00:03:38,560 Speaker 3: you know today through at least the end of August, 60 00:03:38,600 --> 00:03:42,040 Speaker 3: that means about eighty eight to one hundred billion dollars 61 00:03:42,360 --> 00:03:45,760 Speaker 3: worth of tariffs would need to be refunded to the 62 00:03:45,800 --> 00:03:49,160 Speaker 3: importers that paid those tariffs in the first instance, because 63 00:03:49,200 --> 00:03:52,880 Speaker 3: if they're unlawful, then everyone is entitled to a refund 64 00:03:53,400 --> 00:03:54,040 Speaker 3: with interest. 65 00:03:54,640 --> 00:03:56,400 Speaker 2: Is there a mechanism for doing that. That sounds like 66 00:03:56,440 --> 00:03:57,840 Speaker 2: an enormous undertaking. 67 00:03:58,480 --> 00:04:00,680 Speaker 3: There is a mechanism, but you are correct. It is 68 00:04:00,720 --> 00:04:04,600 Speaker 3: an enormous undertaking. And it basically splits out into whether 69 00:04:04,720 --> 00:04:08,360 Speaker 3: or not the particular import of this particular item in 70 00:04:08,360 --> 00:04:11,440 Speaker 3: this particular shipment, whether or not all of the paperwork 71 00:04:11,480 --> 00:04:14,320 Speaker 3: that Customs has to do about those has closed or not. 72 00:04:15,040 --> 00:04:17,320 Speaker 2: In the end, does all of this really matter? And 73 00:04:17,360 --> 00:04:19,880 Speaker 2: we've heard f administration they have alternatives. I mean, you 74 00:04:19,920 --> 00:04:21,840 Speaker 2: know the numbers better than I do. Section three zero one, 75 00:04:21,880 --> 00:04:24,000 Speaker 2: Section two O one, section three three seven. They have 76 00:04:24,040 --> 00:04:26,760 Speaker 2: a lot of different routes that they can impose various 77 00:04:27,080 --> 00:04:28,640 Speaker 2: regulations and tariffs under. 78 00:04:29,520 --> 00:04:31,839 Speaker 3: Yes, And again, I do think it's very clear that 79 00:04:31,920 --> 00:04:35,640 Speaker 3: the president loves tariffs, and so I think if the 80 00:04:35,680 --> 00:04:38,599 Speaker 3: stream court strikes down these tariffs, I do think you 81 00:04:38,640 --> 00:04:41,520 Speaker 3: will see the President take up a number of these 82 00:04:41,600 --> 00:04:46,120 Speaker 3: other laws and try to reimpose tariffs. But for me, 83 00:04:46,279 --> 00:04:49,320 Speaker 3: there would be a pretty important distinction between them. First 84 00:04:49,360 --> 00:04:52,560 Speaker 3: of all, with the one exception of the statute that's 85 00:04:52,600 --> 00:04:56,360 Speaker 3: called section one twenty two that would allow the president 86 00:04:56,480 --> 00:04:59,360 Speaker 3: to declare that there is an emergency because we are 87 00:04:59,400 --> 00:05:05,239 Speaker 3: experiencing a major balance of payments problems or currency difficulties 88 00:05:05,720 --> 00:05:08,640 Speaker 3: that would allow the president to impose a fifteen percent 89 00:05:08,760 --> 00:05:12,640 Speaker 3: across the board tariff on goods from every country limited 90 00:05:12,720 --> 00:05:15,919 Speaker 3: to fifteen percent and limited to one hundred and fifty 91 00:05:16,000 --> 00:05:19,560 Speaker 3: days in length, unless the Congress renewed it. All of 92 00:05:19,600 --> 00:05:22,040 Speaker 3: the rest of the authorities that the President could turn 93 00:05:22,120 --> 00:05:24,960 Speaker 3: to are going to be different than what he's done. 94 00:05:24,839 --> 00:05:26,479 Speaker 2: In the normal course. We will likely get it at 95 00:05:26,520 --> 00:05:28,560 Speaker 2: ruling for the Supreme Court either later this year or 96 00:05:28,640 --> 00:05:33,040 Speaker 2: sometime next year, on this important question. At the same time, 97 00:05:33,360 --> 00:05:36,400 Speaker 2: sometimes the Court likes to, is a word, duck the problem. 98 00:05:36,800 --> 00:05:38,839 Speaker 2: What are the roots available the Supreme Court, such as, 99 00:05:38,839 --> 00:05:41,719 Speaker 2: for example, there's a dispute over subject matter jurisdiction, What 100 00:05:41,760 --> 00:05:43,440 Speaker 2: are the chances of this spot say, you know what, 101 00:05:43,800 --> 00:05:45,520 Speaker 2: we don't need to decide this, We'll remand it for 102 00:05:45,560 --> 00:05:46,440 Speaker 2: further proceedings. 103 00:05:46,760 --> 00:05:50,720 Speaker 3: That can happen to me if the Supreme Court is 104 00:05:50,760 --> 00:05:52,600 Speaker 3: going to try to take a little bit of an 105 00:05:52,640 --> 00:05:55,720 Speaker 3: off ramp, a little bit of a compromise. And again, 106 00:05:55,800 --> 00:05:58,520 Speaker 3: I think you've clearly seen the Chief Justice try to 107 00:05:58,640 --> 00:06:02,320 Speaker 3: find is there some comise. I think the compromise there 108 00:06:02,360 --> 00:06:05,120 Speaker 3: may be in whether or not the Court rules that 109 00:06:05,160 --> 00:06:08,880 Speaker 3: there is no authority to do tariffs ever under IEPA, 110 00:06:09,640 --> 00:06:12,120 Speaker 3: or whether the Court takes, as it's a little bit 111 00:06:12,160 --> 00:06:16,520 Speaker 3: of an off ramp, a view that IEPA permits some tariffs, 112 00:06:16,800 --> 00:06:20,960 Speaker 3: but potentially, for example, not the trade deficit tariffs. I mean, 113 00:06:20,960 --> 00:06:24,040 Speaker 3: the Court could, in essence say, we could read this 114 00:06:24,120 --> 00:06:28,360 Speaker 3: word regulate importation to permit some tariffs. But what the 115 00:06:28,400 --> 00:06:31,920 Speaker 3: President did in imposing this worldwide tariffs as a result 116 00:06:31,920 --> 00:06:35,120 Speaker 3: of the trade deficit, he cannot do because the Congress 117 00:06:35,160 --> 00:06:38,160 Speaker 3: has given him this separate authority under Section one twenty two. 118 00:06:38,480 --> 00:06:40,960 Speaker 3: The one thing that I think ought to give the 119 00:06:41,000 --> 00:06:46,600 Speaker 3: court real pause about interpreting this phrase regulate importation or 120 00:06:46,640 --> 00:06:50,840 Speaker 3: exportation is the fact that it is well established as 121 00:06:50,880 --> 00:06:54,000 Speaker 3: a matter of law that you should read a word 122 00:06:54,400 --> 00:06:58,360 Speaker 3: to have the same meaning. Within the statute and in 123 00:06:58,480 --> 00:07:02,200 Speaker 3: our Constitution, there is is a ban on putting tariffs 124 00:07:02,279 --> 00:07:08,040 Speaker 3: on exports. And the phrase within IEPA is regulate importation 125 00:07:08,320 --> 00:07:12,480 Speaker 3: or exportation. So what the Trump administration is asking the 126 00:07:12,480 --> 00:07:16,400 Speaker 3: Court to do is to read that phrase regulate imports 127 00:07:16,440 --> 00:07:22,840 Speaker 3: means tariff imports, but don't tariff exports because that would 128 00:07:22,880 --> 00:07:26,280 Speaker 3: be unconstitutional. And so they're asking the court to read 129 00:07:26,320 --> 00:07:30,200 Speaker 3: that word regulate to have two entirely different meanings in 130 00:07:30,240 --> 00:07:34,480 Speaker 3: the exact same phrase of the exact same statute. And that, 131 00:07:34,560 --> 00:07:37,160 Speaker 3: at least to me, is a very tall order. So 132 00:07:37,200 --> 00:07:39,440 Speaker 3: when I step back from it and say, you know, 133 00:07:39,520 --> 00:07:42,440 Speaker 3: how likely is it that the court is going to say, yes, Trump, 134 00:07:42,480 --> 00:07:44,920 Speaker 3: you can do this, I think the answer is I 135 00:07:44,960 --> 00:07:47,400 Speaker 3: think they're going to say no. And I think they're 136 00:07:47,400 --> 00:07:52,000 Speaker 3: going to say no, largely because there are other statutes 137 00:07:52,000 --> 00:07:54,960 Speaker 3: in which the president can impose tariffs. He doesn't need 138 00:07:55,280 --> 00:07:59,240 Speaker 3: to twist and bend and torture this IEPA phrase in 139 00:07:59,360 --> 00:08:03,800 Speaker 3: order to impose tariffs. And secondly, it is really hard 140 00:08:03,960 --> 00:08:07,360 Speaker 3: to see how you read this one word regulate as 141 00:08:07,360 --> 00:08:11,560 Speaker 3: having diametrically opposed meanings in the exact same phrase of 142 00:08:11,640 --> 00:08:14,600 Speaker 3: the exact same statute. And yet that's what the Trump 143 00:08:14,640 --> 00:08:17,480 Speaker 3: administration is saying that the court should be doing. 144 00:08:18,320 --> 00:08:21,880 Speaker 2: The IEPA case is foremost one of law, but it 145 00:08:21,920 --> 00:08:26,679 Speaker 2: could have enormous consequences for businesses and consumers. Former Treasury 146 00:08:26,720 --> 00:08:30,160 Speaker 2: Secretary Larry Summers says the economic argument in favor of 147 00:08:30,200 --> 00:08:32,040 Speaker 2: tariffs is hard to make. 148 00:08:33,040 --> 00:08:37,560 Speaker 4: Look, I think the tariffs are unwise economic policy. I 149 00:08:37,559 --> 00:08:41,000 Speaker 4: think on net, they push up prices. On net, they 150 00:08:41,000 --> 00:08:44,000 Speaker 4: take money out of the hands of consumers, which slow 151 00:08:44,040 --> 00:08:48,160 Speaker 4: the economy down. And they're, in that sense, a self 152 00:08:48,160 --> 00:08:52,240 Speaker 4: inflicted supply shock that makes the Fed's job, makes everybody 153 00:08:52,320 --> 00:08:56,240 Speaker 4: in the economy's job harder. So I think they are 154 00:08:56,280 --> 00:08:59,599 Speaker 4: for the most part bad policy. I don't think we 155 00:08:59,800 --> 00:09:06,000 Speaker 4: use them successfully to get important other benefits from other countries. 156 00:09:06,480 --> 00:09:10,439 Speaker 4: And so the world will be better. The United States 157 00:09:10,480 --> 00:09:14,120 Speaker 4: in particular will be better off. Indeed, the American manufacturing 158 00:09:14,160 --> 00:09:17,480 Speaker 4: sector will be better off without these tariffs. 159 00:09:17,640 --> 00:09:20,479 Speaker 2: The two magic words in the statute extraordinary and unusual, 160 00:09:20,520 --> 00:09:22,680 Speaker 2: it says, is what we need to do to declare 161 00:09:22,679 --> 00:09:26,040 Speaker 2: this national emergency? That is at least largely a factual question. 162 00:09:26,120 --> 00:09:29,679 Speaker 2: How extraordinary or unusual are these balance of trade deficits 163 00:09:29,720 --> 00:09:32,760 Speaker 2: which the President voked as an economist, How unusual are 164 00:09:32,800 --> 00:09:33,680 Speaker 2: these trade deficits? 165 00:09:34,920 --> 00:09:39,000 Speaker 4: I mean, I want to be fair, David and recognize 166 00:09:39,559 --> 00:09:41,800 Speaker 4: that there have been a lot of emergencies to find 167 00:09:41,840 --> 00:09:45,679 Speaker 4: over time, for a lot of different purposes, not all 168 00:09:45,760 --> 00:09:48,320 Speaker 4: of which would be the kind of thing that, if 169 00:09:48,320 --> 00:09:52,040 Speaker 4: they happened in my family, we would call an emergency. 170 00:09:52,480 --> 00:09:56,840 Speaker 4: So we do need to pay attention to the statutes 171 00:09:57,320 --> 00:10:00,240 Speaker 4: and the history as well as that, and that's what 172 00:10:00,280 --> 00:10:05,840 Speaker 4: the lawyers do and what the Supreme Court will deal with. 173 00:10:06,440 --> 00:10:10,440 Speaker 4: But if you ask, is the United States in some 174 00:10:10,559 --> 00:10:17,920 Speaker 4: kind of unprecedentedly disastrous situation of borrowing that is related 175 00:10:18,400 --> 00:10:22,360 Speaker 4: to a lack of tariffs, the answer is absolutely not. 176 00:10:23,400 --> 00:10:27,800 Speaker 4: If you ask the question, according to economics, are tariffs 177 00:10:28,360 --> 00:10:33,920 Speaker 4: the right response to a foreign borrowing emergency? If there 178 00:10:34,040 --> 00:10:37,600 Speaker 4: was a foreign borrowing emergency, the answer is no. The 179 00:10:37,679 --> 00:10:41,840 Speaker 4: right measures would involve reducing the budget deficit, increasing the 180 00:10:41,880 --> 00:10:47,640 Speaker 4: country's level of savings, for example. So I think it's 181 00:10:47,760 --> 00:10:51,880 Speaker 4: pretty difficult to say that there's some aspect of the 182 00:10:51,960 --> 00:10:57,920 Speaker 4: economic situation that's present today that hasn't been present for 183 00:10:58,080 --> 00:11:02,520 Speaker 4: most of the last twenty five years that would justify 184 00:11:03,160 --> 00:11:05,600 Speaker 4: the invocation of emergency. 185 00:11:06,320 --> 00:11:08,680 Speaker 2: However, we got here. We certainly have a large and 186 00:11:08,760 --> 00:11:12,199 Speaker 2: growing deficit and debt. One of the arguments that President 187 00:11:12,200 --> 00:11:14,840 Speaker 2: Trump is making is these tariffs are helping us with that. 188 00:11:15,000 --> 00:11:18,040 Speaker 2: It's bringing in revenue to reduce that debt and deficit. 189 00:11:18,120 --> 00:11:20,600 Speaker 2: Just on that limited issue, is he right? 190 00:11:22,360 --> 00:11:26,320 Speaker 4: The tariff certainly are bringing in revenue, not nearly as 191 00:11:26,400 --> 00:11:30,080 Speaker 4: much as he said they would, And I don't think 192 00:11:30,120 --> 00:11:33,320 Speaker 4: the forecasts the administration makes that they'll get a trillion 193 00:11:33,400 --> 00:11:36,600 Speaker 4: dollars of revenue over the next year or two are 194 00:11:36,840 --> 00:11:41,439 Speaker 4: likely to pan out. But yes, they are bringing in revenue, 195 00:11:42,000 --> 00:11:47,320 Speaker 4: but they are also having other effects. They're holding interest 196 00:11:47,400 --> 00:11:51,000 Speaker 4: rates higher than they would otherwise be. They are also 197 00:11:51,280 --> 00:11:56,440 Speaker 4: slowing the economy, and those things make the deficit position worse. 198 00:11:57,080 --> 00:12:01,640 Speaker 4: So I'm not sure that there's an important improvement in 199 00:12:02,000 --> 00:12:07,280 Speaker 4: the budget deficit as a consequence of these tariffs. And certainly, 200 00:12:07,320 --> 00:12:09,760 Speaker 4: if you think of the budget deficit as some kind 201 00:12:09,800 --> 00:12:14,040 Speaker 4: of emergency, these tariffs would be a very odd response 202 00:12:14,520 --> 00:12:17,360 Speaker 4: to that kind of emergency. 203 00:12:18,160 --> 00:12:21,280 Speaker 2: Coming up What Mayor Memdanni could mean for the business 204 00:12:21,280 --> 00:12:24,160 Speaker 2: of New York and particularly a real estate business that 205 00:12:24,440 --> 00:12:38,560 Speaker 2: was showing signs of coming back. This is a story 206 00:12:38,600 --> 00:12:42,600 Speaker 2: about turnarounds, for better or for worse. This week, New 207 00:12:42,720 --> 00:12:46,040 Speaker 2: York City elected its next mayor, Zora Mundani. Will take 208 00:12:46,080 --> 00:12:49,440 Speaker 2: office on New Year's Day, with promises of big changes 209 00:12:49,679 --> 00:12:50,080 Speaker 2: to come. 210 00:12:52,320 --> 00:12:54,720 Speaker 5: The future is in our hands. 211 00:12:56,160 --> 00:12:58,120 Speaker 6: The business community is kind of taking a wait and 212 00:12:58,160 --> 00:13:02,160 Speaker 6: see attitude. He's a new phenomenon until he won the 213 00:13:02,200 --> 00:13:06,280 Speaker 6: primary election in June. They really didn't know or care 214 00:13:06,360 --> 00:13:09,120 Speaker 6: who he was. He was an anonymous assemblyman. 215 00:13:09,640 --> 00:13:13,040 Speaker 2: Catherine Wilde is the president and CEO of Partnership for 216 00:13:13,120 --> 00:13:16,320 Speaker 2: New York, a group that represents businesses in the city. 217 00:13:16,679 --> 00:13:19,680 Speaker 6: The fact that what they say is which you hire 218 00:13:19,800 --> 00:13:22,880 Speaker 6: a thirty three year old kid to run a three 219 00:13:23,000 --> 00:13:27,000 Speaker 6: hundred thousand person business, And the answer is no. But 220 00:13:27,280 --> 00:13:30,640 Speaker 6: this is politics. He's been elected mayor and so now 221 00:13:30,760 --> 00:13:32,880 Speaker 6: the question for the business community is how to make 222 00:13:32,920 --> 00:13:36,520 Speaker 6: sure he's successful and that the city thrives under his leadership. 223 00:13:36,840 --> 00:13:39,080 Speaker 2: And there are two parts of being successful. One is 224 00:13:39,120 --> 00:13:41,080 Speaker 2: what he wants to do, and one is whether he 225 00:13:41,160 --> 00:13:43,680 Speaker 2: can do it. Start with the first, because this is 226 00:13:43,679 --> 00:13:47,000 Speaker 2: a really tough place to run. As you know, what 227 00:13:47,040 --> 00:13:49,400 Speaker 2: does he need to be able to effectuate whatever he 228 00:13:49,440 --> 00:13:50,599 Speaker 2: wants to get accomplished. 229 00:13:50,960 --> 00:13:53,920 Speaker 6: Well, he wants to make the city more affordable, and 230 00:13:53,960 --> 00:13:58,840 Speaker 6: he equates that to lower price of groceries, universal childcare, 231 00:13:59,200 --> 00:14:04,120 Speaker 6: free buses, and he talks about freezing the rent. When 232 00:14:04,160 --> 00:14:07,720 Speaker 6: it gets to all of those issues, obviously, the question 233 00:14:07,920 --> 00:14:11,480 Speaker 6: is how you accomplish them. If you try and do 234 00:14:11,559 --> 00:14:15,000 Speaker 6: it by raising taxes, which he's talked about, then the 235 00:14:15,080 --> 00:14:19,200 Speaker 6: affordability crisis just gets worse because the cost of rising 236 00:14:19,280 --> 00:14:22,520 Speaker 6: taxes is passed along to businesses, who pass them along 237 00:14:22,560 --> 00:14:26,160 Speaker 6: to consumers, and all New Yorkers will pay. So we've 238 00:14:26,200 --> 00:14:29,840 Speaker 6: got to find some better solutions. I was encouraged last 239 00:14:29,920 --> 00:14:34,360 Speaker 6: night in his acceptance speech when he was announced as 240 00:14:34,400 --> 00:14:38,200 Speaker 6: the mayor elect with fifty plus percent of the votes. 241 00:14:38,640 --> 00:14:41,280 Speaker 6: The first thing he started with, and he never mentioned 242 00:14:41,360 --> 00:14:43,600 Speaker 6: raising taxes last night, he started with, well, I'm going 243 00:14:43,640 --> 00:14:46,320 Speaker 6: to make a more efficient government, and that business likes 244 00:14:46,360 --> 00:14:46,600 Speaker 6: to hear. 245 00:14:46,800 --> 00:14:48,320 Speaker 2: One of the things we have in this country's ability 246 00:14:48,320 --> 00:14:50,640 Speaker 2: to vote with your feet, to actually leave and go 247 00:14:50,760 --> 00:14:53,360 Speaker 2: someplace else. To one of the questions we're asked more 248 00:14:53,400 --> 00:14:56,120 Speaker 2: often than either, is it likely that particularly some of 249 00:14:56,160 --> 00:14:58,680 Speaker 2: the more wealthy members of the business greegue will actually 250 00:14:58,760 --> 00:15:00,960 Speaker 2: leave for other places like Florida? What do you think? 251 00:15:01,240 --> 00:15:04,560 Speaker 6: I don't think it's likely. I mean the real question 252 00:15:04,800 --> 00:15:08,480 Speaker 6: is will we be able to continue to attract top 253 00:15:08,600 --> 00:15:12,040 Speaker 6: talent to the city. I mean, New York is a 254 00:15:12,040 --> 00:15:15,960 Speaker 6: place that people want to be. There's a lot of 255 00:15:16,000 --> 00:15:18,920 Speaker 6: benefits to being in New York, and as long as 256 00:15:19,000 --> 00:15:26,120 Speaker 6: people don't feel they're being abused and taken advantage of demonized. 257 00:15:26,360 --> 00:15:30,560 Speaker 6: The biggest challenge right now for us is really that 258 00:15:30,720 --> 00:15:35,640 Speaker 6: other states and countries are competing for our jobs, for 259 00:15:35,800 --> 00:15:39,400 Speaker 6: our tax dollars, and we have to show that New 260 00:15:39,480 --> 00:15:43,720 Speaker 6: York is again a reasonable cost place to do business 261 00:15:44,080 --> 00:15:47,480 Speaker 6: and to live. The premium in the financial industry, the 262 00:15:47,560 --> 00:15:50,360 Speaker 6: premium for somebody doing the same job here in New 263 00:15:50,440 --> 00:15:53,440 Speaker 6: York or doing it in Tennessee or Florida or Texas 264 00:15:53,760 --> 00:15:56,920 Speaker 6: is more than twenty percent, that more than employers have 265 00:15:57,000 --> 00:16:00,280 Speaker 6: to pay for talent to have a comparable lifestyle in 266 00:16:00,320 --> 00:16:03,440 Speaker 6: New York. That's pretty big delta. 267 00:16:03,680 --> 00:16:07,000 Speaker 2: Mister Mimdani was elected in no small part on his 268 00:16:07,120 --> 00:16:10,960 Speaker 2: pledge to make New York City more affordable, particularly when 269 00:16:10,960 --> 00:16:14,160 Speaker 2: it comes to housing and other real estate, including a 270 00:16:14,200 --> 00:16:17,480 Speaker 2: promise to freeze the rent for the two million New 271 00:16:17,560 --> 00:16:20,080 Speaker 2: Yorkers living in rent stabilized apartments. 272 00:16:20,480 --> 00:16:21,960 Speaker 6: There are a number of things we can do to 273 00:16:22,000 --> 00:16:25,760 Speaker 6: get the cost of rent down, the cost of building 274 00:16:25,800 --> 00:16:30,760 Speaker 6: operations down, I should say, and he has said, and 275 00:16:30,960 --> 00:16:36,920 Speaker 6: has amended his original oversimplified one liner, freeze the rent. 276 00:16:37,640 --> 00:16:40,480 Speaker 6: I said to him months ago. How do you freeze 277 00:16:40,520 --> 00:16:43,000 Speaker 6: the rent if you can't freeze the costs and we 278 00:16:43,080 --> 00:16:46,160 Speaker 6: had a discussion about how thirty percent of the rent 279 00:16:46,320 --> 00:16:53,200 Speaker 6: is real estate taxes, and he subsequently amended his comments 280 00:16:53,640 --> 00:16:58,440 Speaker 6: to say, I understand that real estate taxes on rental 281 00:16:58,480 --> 00:17:02,200 Speaker 6: housing have to come down, and said I will be 282 00:17:02,360 --> 00:17:07,520 Speaker 6: the mayor who reforms property taxes. Now, that is good news. 283 00:17:07,920 --> 00:17:10,840 Speaker 6: That will help the rent stabilized units, of which there 284 00:17:10,880 --> 00:17:13,359 Speaker 6: are over a million in New York City, and so 285 00:17:13,440 --> 00:17:15,280 Speaker 6: that's a lot of tenants that will benefit. 286 00:17:15,680 --> 00:17:18,640 Speaker 7: A mandate for a city we can afford. 287 00:17:20,480 --> 00:17:24,159 Speaker 8: And a mandate for a government that delivers exactly that. 288 00:17:25,080 --> 00:17:28,600 Speaker 9: I think Mam Donnie's brilliance is he has tapped into 289 00:17:28,640 --> 00:17:32,280 Speaker 9: something that New Yorkers are frustrated by and really care about, 290 00:17:32,280 --> 00:17:35,919 Speaker 9: which is costs. It's expensive to live here, particularly housing 291 00:17:36,000 --> 00:17:38,120 Speaker 9: is expensive. I have young adult children in New York 292 00:17:38,160 --> 00:17:38,879 Speaker 9: that are dealing with this. 293 00:17:39,680 --> 00:17:43,119 Speaker 2: Owen Thomas is the CEO of b XP Properties, the 294 00:17:43,200 --> 00:17:47,840 Speaker 2: largest publicly traded developer, owner and manager of premium offices 295 00:17:48,160 --> 00:17:49,280 Speaker 2: in the United States. 296 00:17:49,680 --> 00:17:51,639 Speaker 9: In terms of what he's trying to do, which is 297 00:17:51,680 --> 00:17:55,480 Speaker 9: bring down costs, you know BXP myself, we'd be fully 298 00:17:55,520 --> 00:17:58,280 Speaker 9: aligned with that goal. We would welcome it and would 299 00:17:58,320 --> 00:18:00,399 Speaker 9: like him to do it. I think the issue is 300 00:18:00,440 --> 00:18:02,639 Speaker 9: some of the policies that he describes on how he 301 00:18:02,680 --> 00:18:04,640 Speaker 9: wants to do that, I don't think are the right 302 00:18:04,720 --> 00:18:08,760 Speaker 9: ones to accomplish the objective. So, for example, putting in 303 00:18:08,800 --> 00:18:12,119 Speaker 9: rent controls. If you put in rent controls, that is 304 00:18:12,160 --> 00:18:15,840 Speaker 9: going to prevent private capital from coming into the market 305 00:18:15,840 --> 00:18:19,560 Speaker 9: and building the housing that's going to be required. New 306 00:18:19,640 --> 00:18:23,760 Speaker 9: York needs hundreds of thousands of housing units. That capital 307 00:18:23,840 --> 00:18:25,840 Speaker 9: is not going to come from the public sector. It 308 00:18:25,920 --> 00:18:29,440 Speaker 9: has to come from the private sector. So the government 309 00:18:29,480 --> 00:18:33,000 Speaker 9: needs to put in place some incentives and rules to 310 00:18:33,119 --> 00:18:36,640 Speaker 9: allow that private capital to come in and fund these projects. 311 00:18:36,680 --> 00:18:39,560 Speaker 9: And if that's done, I think it can be very successful. 312 00:18:40,240 --> 00:18:42,760 Speaker 2: Building new apartment buildings is one way to get the 313 00:18:42,760 --> 00:18:45,840 Speaker 2: price of housing down. Another is to take some of 314 00:18:45,880 --> 00:18:49,320 Speaker 2: the under used office buildings and convert them to residential. 315 00:18:49,800 --> 00:18:53,199 Speaker 2: After the pandemic, offices inside some of the most iconic 316 00:18:53,240 --> 00:18:56,680 Speaker 2: buildings in the New York City Skyline have remained vacant. 317 00:18:57,240 --> 00:19:00,480 Speaker 2: Some developers say that's where they see an oppertunity. 318 00:19:00,960 --> 00:19:04,760 Speaker 10: There's a very broad spectrum of buildings that are out there. 319 00:19:04,760 --> 00:19:07,400 Speaker 10: There are brand new Douba buildings, and like you said, 320 00:19:07,400 --> 00:19:12,080 Speaker 10: they are doing extraordinarily well. But there are also buildings 321 00:19:12,119 --> 00:19:14,840 Speaker 10: that are older but are loft like that are in 322 00:19:14,960 --> 00:19:18,119 Speaker 10: places like Soo or Tribeca or Union Square. It's a 323 00:19:18,160 --> 00:19:20,640 Speaker 10: lot about location, it's a lot about the physical qualities 324 00:19:20,640 --> 00:19:22,720 Speaker 10: of the building. It's a lot about the owner of 325 00:19:22,720 --> 00:19:25,800 Speaker 10: the building and if they've upgraded them or added amenities. 326 00:19:25,800 --> 00:19:28,560 Speaker 10: So the office market is a spectrum. One of two 327 00:19:28,600 --> 00:19:31,800 Speaker 10: light walls that we created, which go twenty five stories 328 00:19:31,840 --> 00:19:32,800 Speaker 10: down in the building. 329 00:19:33,040 --> 00:19:37,240 Speaker 2: Brian Steinwurtzel is the co CEO of GFP. His firm 330 00:19:37,320 --> 00:19:40,680 Speaker 2: is behind the conversion into rental apartments of JP Morgan's 331 00:19:40,720 --> 00:19:43,640 Speaker 2: former headquarters just off Wall Street, so. 332 00:19:43,680 --> 00:19:46,119 Speaker 10: We are at twenty five Water Street. It was a 333 00:19:46,240 --> 00:19:49,480 Speaker 10: one point one million square foot office building that was 334 00:19:49,520 --> 00:19:52,520 Speaker 10: designed to look like an IBM punch card, so it 335 00:19:52,600 --> 00:19:57,439 Speaker 10: had very few windows around the building. And what we 336 00:19:57,520 --> 00:20:00,879 Speaker 10: bought this building at the end of December twenty twenty 337 00:20:00,880 --> 00:20:04,280 Speaker 10: two and we turned it into one three hundred and 338 00:20:04,280 --> 00:20:08,600 Speaker 10: twenty apartments. We did this by removing most of the 339 00:20:08,640 --> 00:20:11,160 Speaker 10: brick on the outside of the building and carving two 340 00:20:11,280 --> 00:20:14,760 Speaker 10: lightwells into the building, and that allowed us to create 341 00:20:14,800 --> 00:20:17,240 Speaker 10: all of these apartments, and it also allowed us to 342 00:20:17,280 --> 00:20:19,800 Speaker 10: take that extra floor area and build ten stories on 343 00:20:19,840 --> 00:20:22,960 Speaker 10: top of the building. We had a very ambitious plan 344 00:20:23,400 --> 00:20:25,880 Speaker 10: when we bought the building and where we feel very 345 00:20:25,880 --> 00:20:27,680 Speaker 10: fortunate that it's come to fruition. 346 00:20:28,640 --> 00:20:32,480 Speaker 2: Steinwerzel was early to the conversion business. Now the pipeline 347 00:20:32,480 --> 00:20:35,960 Speaker 2: of conversions totals eighty one million square feet as of May, 348 00:20:36,560 --> 00:20:39,480 Speaker 2: up from seventy one million square feet just months ago. 349 00:20:39,760 --> 00:20:43,399 Speaker 2: An incentive called four to six seven M gives developers 350 00:20:43,400 --> 00:20:46,639 Speaker 2: like GFP a tax brick for taking on the capital 351 00:20:46,680 --> 00:20:49,960 Speaker 2: intensive challenge of converting offices into apartments. 352 00:20:50,280 --> 00:20:54,280 Speaker 9: What that says is is, if you start a conversion 353 00:20:54,320 --> 00:20:56,640 Speaker 9: of an office building to residential, I think the project 354 00:20:56,680 --> 00:20:58,840 Speaker 9: has to break ground by the middle of twenty six. 355 00:20:59,119 --> 00:21:02,119 Speaker 9: If you do that, you can have a tax abatement 356 00:21:02,240 --> 00:21:04,960 Speaker 9: for thirty years. And as a result of that rule 357 00:21:05,680 --> 00:21:09,240 Speaker 9: and the over supply of office there are about thirteen 358 00:21:09,359 --> 00:21:12,040 Speaker 9: million square feet of office buildings today in New York 359 00:21:12,040 --> 00:21:14,560 Speaker 9: that are being converted to residential. So I think that's 360 00:21:14,600 --> 00:21:18,800 Speaker 9: a terrific example of the private sector and the public 361 00:21:18,840 --> 00:21:21,719 Speaker 9: sector working together on a plan. And these conversions are 362 00:21:21,720 --> 00:21:26,200 Speaker 9: perfect right. We certainly need less office, we need more housing. 363 00:21:26,720 --> 00:21:30,720 Speaker 9: The city ultimately will get more tax revenue, there's more vibrancry, 364 00:21:30,760 --> 00:21:34,479 Speaker 9: there's more affordability, and there's less of an environmental impact 365 00:21:34,600 --> 00:21:37,479 Speaker 9: by basically reusing a building as opposed to tearing one 366 00:21:37,520 --> 00:21:39,520 Speaker 9: down and building one from scratch. And I hope this 367 00:21:39,560 --> 00:21:40,320 Speaker 9: program will grow. 368 00:21:40,359 --> 00:21:40,520 Speaker 11: Now. 369 00:21:40,560 --> 00:21:42,639 Speaker 9: One thing that really helps with these conversions in New 370 00:21:42,720 --> 00:21:46,280 Speaker 9: York is rents are so high, so you can put 371 00:21:46,320 --> 00:21:49,200 Speaker 9: in the base building at a higher per square foot 372 00:21:49,280 --> 00:21:51,639 Speaker 9: value and still have all the numbers work for a 373 00:21:51,680 --> 00:21:55,160 Speaker 9: private investment, and that also helps. But the local regulation 374 00:21:55,280 --> 00:21:56,480 Speaker 9: definitely helps as well. 375 00:21:56,600 --> 00:21:59,520 Speaker 2: Although office to residential conversions could be a step in 376 00:21:59,560 --> 00:22:02,800 Speaker 2: the right to that alone is not enough to take 377 00:22:02,840 --> 00:22:04,040 Speaker 2: care of the problem. 378 00:22:04,280 --> 00:22:08,359 Speaker 10: Over the last decade plus, we recognize that we are 379 00:22:08,400 --> 00:22:11,080 Speaker 10: not building enough housing in New York City. And let's 380 00:22:11,119 --> 00:22:13,280 Speaker 10: face it, we're very fortunate that people want to live 381 00:22:13,320 --> 00:22:15,720 Speaker 10: in New York City. This is a city that continues 382 00:22:15,760 --> 00:22:18,280 Speaker 10: to grow. There are more jobs in New York City 383 00:22:18,320 --> 00:22:20,359 Speaker 10: now than there ever have been in the history of 384 00:22:20,359 --> 00:22:22,679 Speaker 10: the city. And so with all of these people that 385 00:22:22,720 --> 00:22:24,840 Speaker 10: want to live here, we need to create more housing. 386 00:22:25,320 --> 00:22:27,040 Speaker 10: And the challenge is still in New York City, so 387 00:22:27,080 --> 00:22:30,600 Speaker 10: it's very expensive to acquire land or buildings. It's very 388 00:22:30,600 --> 00:22:34,199 Speaker 10: expensive to build here and it's very complicated. We have 389 00:22:34,240 --> 00:22:36,000 Speaker 10: a lot of people that live in a very close 390 00:22:36,040 --> 00:22:38,919 Speaker 10: proximity to each other, and so we need to be 391 00:22:38,960 --> 00:22:41,880 Speaker 10: careful about how we build so that we're becoming part 392 00:22:41,920 --> 00:22:45,280 Speaker 10: of the community and not upsetting it. But with that 393 00:22:45,359 --> 00:22:47,840 Speaker 10: recognition that we need to build more housing, there is 394 00:22:47,920 --> 00:22:50,320 Speaker 10: much more focus on it and we're happy to be 395 00:22:50,400 --> 00:22:53,680 Speaker 10: part of the solution to these New York City's problems 396 00:22:53,680 --> 00:22:56,200 Speaker 10: of creating housing. But we need a lot more than 397 00:22:56,320 --> 00:22:59,520 Speaker 10: just converting office buildings to residential in order to solve 398 00:22:59,520 --> 00:23:00,679 Speaker 10: this problem for our city. 399 00:23:02,000 --> 00:23:05,679 Speaker 2: Mayor Electmumdannie pledges to add thousands of apartments to New 400 00:23:05,760 --> 00:23:08,840 Speaker 2: York City. To have a hope of succeeding, he's going 401 00:23:08,880 --> 00:23:11,240 Speaker 2: to need a good deal of help from those working 402 00:23:11,320 --> 00:23:13,480 Speaker 2: under him in his new administration. 403 00:23:13,760 --> 00:23:16,280 Speaker 10: We're always waiting and seeing what a new administration does. 404 00:23:16,640 --> 00:23:19,080 Speaker 10: There are a lot of people that work in a 405 00:23:19,080 --> 00:23:22,600 Speaker 10: city administration that make it happen. Cutting the amount of 406 00:23:22,640 --> 00:23:25,920 Speaker 10: time it takes to build housing is probably the one 407 00:23:25,920 --> 00:23:28,720 Speaker 10: of the top things that they can do. So putting 408 00:23:28,720 --> 00:23:31,640 Speaker 10: people in office that are willing to empower their departments 409 00:23:31,680 --> 00:23:35,760 Speaker 10: and their divisions to actually make decisions, to review plans 410 00:23:35,760 --> 00:23:38,359 Speaker 10: to issue permits quicker. Are going to be things that 411 00:23:38,400 --> 00:23:41,359 Speaker 10: we'll be looking to see, or are they putting people 412 00:23:41,359 --> 00:23:44,639 Speaker 10: in place that are looking to add regulation, to add 413 00:23:44,640 --> 00:23:47,960 Speaker 10: obstacles or hurdles that will make creating housing more difficult. 414 00:23:49,680 --> 00:23:52,160 Speaker 2: Up next, If all of us care so much about 415 00:23:52,160 --> 00:23:54,320 Speaker 2: the health of our children, why do we have a 416 00:23:54,359 --> 00:23:58,439 Speaker 2: business model that's driving doctors away from pediatrics. It turns 417 00:23:58,440 --> 00:24:01,200 Speaker 2: out that the answer is not one that RFK Junior 418 00:24:01,400 --> 00:24:15,399 Speaker 2: wants to hear. This is a story about keeping the 419 00:24:15,480 --> 00:24:19,760 Speaker 2: doctors away sometimes when we need them the most. Health 420 00:24:19,760 --> 00:24:23,600 Speaker 2: and Human Services Secretary RFK Junior claims that one of 421 00:24:23,600 --> 00:24:27,760 Speaker 2: the reasons to be suspicious about vaccinations is that pediatricians 422 00:24:27,800 --> 00:24:30,919 Speaker 2: are making a lot of money off of them. 423 00:24:31,560 --> 00:24:34,960 Speaker 1: There's a published article out there now that says that 424 00:24:35,520 --> 00:24:41,640 Speaker 1: fifty percent of revenues the most pediatricians come from vaccines. 425 00:24:42,200 --> 00:24:45,040 Speaker 2: The claim is headline grabbing, but it's not backed up 426 00:24:45,080 --> 00:24:48,040 Speaker 2: by the facts. It turns out that far from being 427 00:24:48,080 --> 00:24:52,240 Speaker 2: a profit center for pediatricians, vaccinating children is a loss leader, 428 00:24:52,640 --> 00:24:54,840 Speaker 2: or maybe simply a loss. 429 00:24:55,000 --> 00:24:59,199 Speaker 12: I think it's really hurtful that the narrative around pediatricians 430 00:24:59,280 --> 00:25:03,399 Speaker 12: profiting from vaccines continues to be put front and center. 431 00:25:03,600 --> 00:25:08,720 Speaker 13: Pediatricians actually have to work extra hard to make sure 432 00:25:09,040 --> 00:25:12,520 Speaker 13: that they can have all the vaccines on hand in 433 00:25:12,560 --> 00:25:16,400 Speaker 13: their clinic settings and to be able to afford that the. 434 00:25:16,400 --> 00:25:20,560 Speaker 2: Business of vaccination is particularly expensive, not only because doctors 435 00:25:20,600 --> 00:25:22,840 Speaker 2: need to buy the vaccines to have them on hand, 436 00:25:23,320 --> 00:25:26,439 Speaker 2: but also because of the equipment to keep them. Doctor 437 00:25:26,440 --> 00:25:29,800 Speaker 2: Ben Hoffman is a professor of pediatrics at Oregon Health 438 00:25:29,840 --> 00:25:33,600 Speaker 2: and Science University in Portland and the past president of 439 00:25:33,640 --> 00:25:35,640 Speaker 2: the American Academy of Pediatrics. 440 00:25:36,240 --> 00:25:40,800 Speaker 12: Being able to procure, store, and deliver vaccines in a 441 00:25:40,800 --> 00:25:47,880 Speaker 12: clinical setting is really complicated endeavor, and it requires resources 442 00:25:47,880 --> 00:25:52,400 Speaker 12: within the clinical setting to order vaccines, whether it's from 443 00:25:52,560 --> 00:25:57,640 Speaker 12: the manufacturer or a broker, or from the state that 444 00:25:57,680 --> 00:26:00,440 Speaker 12: the practice has to lay out the money to purchase 445 00:26:00,680 --> 00:26:04,680 Speaker 12: X number of doses of a vaccine, put it in storage, 446 00:26:04,720 --> 00:26:08,080 Speaker 12: and over time hope that they will give enough of 447 00:26:08,119 --> 00:26:12,760 Speaker 12: the vaccine so that they make back the money they spent. 448 00:26:13,240 --> 00:26:17,440 Speaker 13: So pediatricians stretch their finances to be able to have 449 00:26:17,480 --> 00:26:20,520 Speaker 13: all those vaccines on hand for their patients, for the convenience, 450 00:26:21,359 --> 00:26:24,920 Speaker 13: and because they know how important it is the cost. 451 00:26:24,640 --> 00:26:27,879 Speaker 2: Of buying and administering vaccines has been a pain point 452 00:26:28,000 --> 00:26:32,000 Speaker 2: for years. In a twenty seventeen study, twelve percent of 453 00:26:32,040 --> 00:26:36,119 Speaker 2: pediatric practices and twenty three percent of family medicine practices 454 00:26:36,400 --> 00:26:39,960 Speaker 2: reported that they stopped buying at least one vaccine because 455 00:26:40,000 --> 00:26:44,120 Speaker 2: of the cost. Doctor Sally Permar is pediatrician in chief 456 00:26:44,200 --> 00:26:47,119 Speaker 2: at New York Presbyterian and chair of the Department of 457 00:26:47,160 --> 00:26:49,879 Speaker 2: Pediatrics at wild Cornell Medicine. 458 00:26:50,240 --> 00:26:53,520 Speaker 13: So the field of pediatrics has really changed to the 459 00:26:53,520 --> 00:26:57,120 Speaker 13: better of healthier children, fewer coming into the hospital, fewer 460 00:26:57,160 --> 00:27:02,040 Speaker 13: with diseases that left them with just abilities and other illnesses, 461 00:27:02,800 --> 00:27:07,000 Speaker 13: so that we know the value of vaccines, but we're 462 00:27:07,080 --> 00:27:10,800 Speaker 13: left with cleaning up all of the misinformation that is 463 00:27:10,840 --> 00:27:15,080 Speaker 13: really dominating the fields these days. Even here in New York, 464 00:27:15,440 --> 00:27:19,600 Speaker 13: we had over ninety percent of our families getting all 465 00:27:19,640 --> 00:27:22,439 Speaker 13: of their shots by age five at this point, and 466 00:27:22,480 --> 00:27:24,840 Speaker 13: even just in the last year, it's gone into the eighties, 467 00:27:25,680 --> 00:27:28,959 Speaker 13: and it's putting not only our children at risk, but 468 00:27:29,000 --> 00:27:30,520 Speaker 13: really all of us at risk. 469 00:27:31,200 --> 00:27:33,920 Speaker 2: The challenge of providing children with the health care they 470 00:27:34,040 --> 00:27:37,800 Speaker 2: need goes well beyond vaccinations. It's one piece of a 471 00:27:37,880 --> 00:27:42,120 Speaker 2: larger picture in which pediatricians systematically are paid less on 472 00:27:42,200 --> 00:27:43,960 Speaker 2: average than other specialists. 473 00:27:44,760 --> 00:27:49,080 Speaker 13: It actually is a tough job to keep a pediatric 474 00:27:49,160 --> 00:27:53,040 Speaker 13: practice afloat. Pediatricians are some of the lowest paid of 475 00:27:53,080 --> 00:27:57,679 Speaker 13: all physicians. In fact, they're paid thirty percent lower on 476 00:27:57,760 --> 00:28:00,880 Speaker 13: average than that of adult specialists who had the same 477 00:28:00,960 --> 00:28:03,560 Speaker 13: number of years of training the same amount of debt. 478 00:28:04,160 --> 00:28:07,160 Speaker 12: We know that the bigger system really does not value 479 00:28:07,200 --> 00:28:09,760 Speaker 12: the health of kids in the way that it needs to. 480 00:28:10,359 --> 00:28:15,119 Speaker 12: Yet we're working to address child health in the field 481 00:28:15,119 --> 00:28:20,359 Speaker 12: of pediatrics on a playing field that is completely rigged 482 00:28:21,280 --> 00:28:27,920 Speaker 12: and set and exists to support the fiscal incentives around 483 00:28:27,920 --> 00:28:28,639 Speaker 12: adult health. 484 00:28:29,119 --> 00:28:33,040 Speaker 2: What are those financial incentives that favor healthcare for adults 485 00:28:33,160 --> 00:28:35,800 Speaker 2: over children? First and foremost is the way that the 486 00:28:35,800 --> 00:28:38,840 Speaker 2: federal government reimburses physicians for what they do. 487 00:28:39,520 --> 00:28:45,120 Speaker 7: Medicare pays providers like doctors and hospitals, typically less than 488 00:28:45,200 --> 00:28:48,880 Speaker 7: private insurance, but typically substantially more than Medicaid. 489 00:28:49,080 --> 00:28:52,720 Speaker 2: Catherine Baker is provost at the University of Chicago, former 490 00:28:52,760 --> 00:28:55,280 Speaker 2: dean of the Harris School of Public Health, and an 491 00:28:55,280 --> 00:28:57,360 Speaker 2: expert in the economics of healthcare. 492 00:28:57,880 --> 00:29:01,400 Speaker 7: Medicaid is a partnership between the states in the federal government, 493 00:29:01,760 --> 00:29:05,920 Speaker 7: and Medicaid reimbursement rates for physicians and hospitals vary a 494 00:29:05,960 --> 00:29:09,600 Speaker 7: lot state to state, and that really affects whether patients 495 00:29:09,680 --> 00:29:12,680 Speaker 7: who are covered by that insurance program have access to 496 00:29:12,760 --> 00:29:14,040 Speaker 7: providers in that state. 497 00:29:14,440 --> 00:29:18,720 Speaker 2: That difference between Medicare and Medicaid translates into a difference 498 00:29:18,720 --> 00:29:20,680 Speaker 2: between how much we pay for the healthcare of the 499 00:29:20,720 --> 00:29:24,120 Speaker 2: elderly and the healthcare of children. As of June, children 500 00:29:24,160 --> 00:29:27,680 Speaker 2: comprise nearly forty eight percent of enrollment in Medicaid and 501 00:29:27,760 --> 00:29:30,520 Speaker 2: the Children's Health Insurance Program or CHIP. 502 00:29:31,120 --> 00:29:35,120 Speaker 13: Medicaid pays at about thirty percent lower for the reimbursement 503 00:29:35,400 --> 00:29:39,040 Speaker 13: compared to Medicare, which is available to all adults over 504 00:29:39,080 --> 00:29:44,520 Speaker 13: sixty five. And in addition to that discrepancy, there is 505 00:29:45,040 --> 00:29:50,200 Speaker 13: how we value healthcare, and in particular, preventative health care 506 00:29:50,480 --> 00:29:53,240 Speaker 13: and even children's health care is often valued at a 507 00:29:53,240 --> 00:29:57,680 Speaker 13: lower level, which translates into the reimbursement. So, for example, 508 00:29:58,000 --> 00:30:02,920 Speaker 13: a pediatric visit thirty minutes with your primary care provider 509 00:30:03,120 --> 00:30:09,239 Speaker 13: to do things like injury prevention obesity prevention vaccines is 510 00:30:09,320 --> 00:30:14,600 Speaker 13: valued about a tenth of a orthopedic procedure that may 511 00:30:14,640 --> 00:30:15,760 Speaker 13: take the same amount of time. 512 00:30:16,120 --> 00:30:19,200 Speaker 12: The fact that Medicaid pays so much more poorly than 513 00:30:19,240 --> 00:30:25,360 Speaker 12: Medicare translates both to payment that pediatricians receive from Medicaid 514 00:30:25,400 --> 00:30:29,160 Speaker 12: but also from commercial insurance. In most circumstances, commercial or 515 00:30:29,160 --> 00:30:33,400 Speaker 12: private insurance will pay more for the same service than 516 00:30:33,480 --> 00:30:38,120 Speaker 12: Medicaid will, and as a result, it can be challenging 517 00:30:38,160 --> 00:30:41,520 Speaker 12: for a lot of pediatricians, especially if they're in private practices, 518 00:30:42,920 --> 00:30:47,400 Speaker 12: to be able to balance their books if they're seeing 519 00:30:48,240 --> 00:30:51,440 Speaker 12: a significant portion of patients who have Medicaid, just because 520 00:30:51,440 --> 00:30:52,920 Speaker 12: the payment is so much less. 521 00:30:53,320 --> 00:30:55,800 Speaker 2: The disparity in healthcare between the young and the old, 522 00:30:56,120 --> 00:31:00,400 Speaker 2: in reimbursement and in income can discourage doctors from suing 523 00:31:00,400 --> 00:31:02,200 Speaker 2: the specialty of pediatrics. 524 00:31:03,240 --> 00:31:06,840 Speaker 13: If you're a medical student looking at the range of 525 00:31:06,920 --> 00:31:11,160 Speaker 13: careers that you could have after medical school, you're going 526 00:31:11,240 --> 00:31:17,080 Speaker 13: to put potential, salary, earning potential in that consideration. And 527 00:31:17,320 --> 00:31:21,120 Speaker 13: what has grown over time is of course our debt, 528 00:31:21,640 --> 00:31:25,480 Speaker 13: not only starting at the undergrad level, but also at 529 00:31:25,480 --> 00:31:28,480 Speaker 13: the medical school level. So education debt can be in 530 00:31:28,520 --> 00:31:32,640 Speaker 13: the hundreds of thousands for new physicians that are just finishing, 531 00:31:32,960 --> 00:31:34,920 Speaker 13: and that would be the same no matter what specialty 532 00:31:34,960 --> 00:31:38,920 Speaker 13: you're choosing. So we are facing a pediatric workforce crisis 533 00:31:39,320 --> 00:31:43,000 Speaker 13: that has been growing more severe over the last decade. 534 00:31:43,080 --> 00:31:45,920 Speaker 13: In fact, we've lost twenty percent of the number of 535 00:31:46,040 --> 00:31:49,520 Speaker 13: US medical grads that used to go into pediatrics don't 536 00:31:49,600 --> 00:31:50,840 Speaker 13: choose pediatrics anymore. 537 00:31:51,400 --> 00:31:55,160 Speaker 2: Beyond discouraging the next generation of pediatricians, the economics are 538 00:31:55,200 --> 00:31:57,360 Speaker 2: also driving some out of the practice. 539 00:31:57,760 --> 00:32:02,360 Speaker 11: The jobs for the families are you here, so the 540 00:32:02,400 --> 00:32:06,040 Speaker 11: income base is low and a lot of the families 541 00:32:06,120 --> 00:32:10,600 Speaker 11: are on Medicaid services here. 542 00:32:11,240 --> 00:32:14,720 Speaker 2: Doctor Jill Neff had her own practice in southeastern Ohio 543 00:32:14,760 --> 00:32:16,840 Speaker 2: for some thirty years. 544 00:32:17,160 --> 00:32:20,200 Speaker 11: I did close my practice and it took me two 545 00:32:20,320 --> 00:32:23,360 Speaker 11: years to come to terms with the thought that I 546 00:32:23,440 --> 00:32:27,840 Speaker 11: had to do it. It's an extremely hard decision. I 547 00:32:27,840 --> 00:32:30,800 Speaker 11: feel like I am leaving them that they have nowhere 548 00:32:30,880 --> 00:32:35,080 Speaker 11: to go, that they've depended on me. And yes, many tears, 549 00:32:36,040 --> 00:32:39,680 Speaker 11: many discussions. It's extremely hard. 550 00:32:40,560 --> 00:32:42,920 Speaker 2: If the math of running a practice and getting paid 551 00:32:42,960 --> 00:32:45,720 Speaker 2: for it isn't working well in cities, the problem is 552 00:32:45,760 --> 00:32:47,680 Speaker 2: even worse in rural areas. 553 00:32:48,480 --> 00:32:50,920 Speaker 11: I did talk to one of my representatives a couple 554 00:32:50,960 --> 00:32:54,360 Speaker 11: of years ago on this topic and asked him, you know, 555 00:32:54,520 --> 00:32:57,320 Speaker 11: is there some way, some way at all of the 556 00:32:57,360 --> 00:33:00,760 Speaker 11: government can help do this. In his respect, was well 557 00:33:00,800 --> 00:33:03,160 Speaker 11: that the communities need to come together and come up 558 00:33:03,200 --> 00:33:06,000 Speaker 11: with the money themselves to pay these physicians to come there. 559 00:33:08,080 --> 00:33:12,959 Speaker 11: This town cannot come up with money to pay physicians 560 00:33:13,000 --> 00:33:15,280 Speaker 11: to come here and pay off their hundreds of thousands 561 00:33:15,320 --> 00:33:16,400 Speaker 11: of dollars a debt. 562 00:33:16,640 --> 00:33:19,560 Speaker 2: If we are committed to ensuring our children receive all 563 00:33:19,600 --> 00:33:22,800 Speaker 2: the health care they need and deserve, what has to change. 564 00:33:23,320 --> 00:33:26,920 Speaker 2: Those who know best, the pediatricians, see a pressing need 565 00:33:26,960 --> 00:33:29,720 Speaker 2: to reform the system. They say there's a long way 566 00:33:29,760 --> 00:33:31,800 Speaker 2: to go to live up to all that we say 567 00:33:31,960 --> 00:33:35,160 Speaker 2: about caring about the future of the youngest among us. 568 00:33:35,840 --> 00:33:42,080 Speaker 13: So the first thing is advocacy. We need parents, grandparents, 569 00:33:42,920 --> 00:33:45,200 Speaker 13: people that were once children, and that is all of 570 00:33:45,280 --> 00:33:49,520 Speaker 13: us to know about this and to talk about how 571 00:33:50,360 --> 00:33:54,360 Speaker 13: this isn't the way that we think as a society. 572 00:33:54,440 --> 00:33:57,240 Speaker 13: We all value children. We have children in our family 573 00:33:57,280 --> 00:34:00,160 Speaker 13: that we are families and outside our families that we 574 00:34:00,200 --> 00:34:03,520 Speaker 13: know and love, but they're not being prioritized in our 575 00:34:03,520 --> 00:34:07,080 Speaker 13: health care. And so one is just the knowing about 576 00:34:07,120 --> 00:34:10,279 Speaker 13: the problem and advocating. Then how can we at a 577 00:34:10,320 --> 00:34:12,319 Speaker 13: time that we're seeing a lot of change in health 578 00:34:12,360 --> 00:34:15,759 Speaker 13: care and how our government funds healthcare, and when we 579 00:34:15,840 --> 00:34:18,960 Speaker 13: come out of this crisis that we're in as a 580 00:34:19,000 --> 00:34:24,040 Speaker 13: government about health care, can we emerge with new priorities 581 00:34:24,160 --> 00:34:27,520 Speaker 13: that includes investing in health at the earliest stages of life, 582 00:34:28,400 --> 00:34:32,680 Speaker 13: for improving the trajectory of health across the whole lifespan. 583 00:34:33,440 --> 00:34:35,799 Speaker 13: So that's a big one to me, is the advocacy 584 00:34:36,160 --> 00:34:40,200 Speaker 13: and what can we do with our policies. But the 585 00:34:40,239 --> 00:34:43,200 Speaker 13: next is shifting some of the priorities of how health 586 00:34:43,280 --> 00:34:49,280 Speaker 13: care has always been funded. Can we think differently about 587 00:34:49,320 --> 00:34:54,319 Speaker 13: how compensation is determined so that we can have some 588 00:34:54,719 --> 00:34:59,319 Speaker 13: high revenue earning areas spread to other areas that are 589 00:34:59,320 --> 00:35:02,960 Speaker 13: more underfund So that's a harder one, but one that 590 00:35:03,000 --> 00:35:04,840 Speaker 13: we should think of as hospitals and health. 591 00:35:04,680 --> 00:35:09,680 Speaker 2: Systems advocacy, changing the metrics, engaging not just the government 592 00:35:09,719 --> 00:35:13,640 Speaker 2: but also philanthropy. Reforming the system will be a tall order, 593 00:35:14,120 --> 00:35:16,080 Speaker 2: but the stakes could not be higher. 594 00:35:16,600 --> 00:35:18,200 Speaker 12: One of the things I think is really important for 595 00:35:18,239 --> 00:35:21,120 Speaker 12: people to realize is that while kids make up thirty 596 00:35:21,120 --> 00:35:24,800 Speaker 12: percent of the overall population, they are one hundred percent 597 00:35:25,040 --> 00:35:28,160 Speaker 12: of our future. And I mean that in terms of 598 00:35:28,239 --> 00:35:35,040 Speaker 12: our economic future and our security future. Hobbling together something 599 00:35:36,080 --> 00:35:38,200 Speaker 12: with the crumbs or what's left over from the adult 600 00:35:38,640 --> 00:35:41,439 Speaker 12: healthcare system is not. 601 00:35:41,360 --> 00:35:42,160 Speaker 4: Going to work. 602 00:35:44,200 --> 00:35:46,840 Speaker 2: Up next. There is no such thing as a free lunch, 603 00:35:47,000 --> 00:35:49,480 Speaker 2: and when it comes to weight loss, drugs that lunch 604 00:35:49,560 --> 00:36:02,439 Speaker 2: better come with extra protein. This is a story about 605 00:36:02,440 --> 00:36:05,279 Speaker 2: whether we can ever have too much of a good thing. 606 00:36:06,040 --> 00:36:09,120 Speaker 2: Everywhere we turn these days, it seems there's another way 607 00:36:09,239 --> 00:36:12,200 Speaker 2: for us to get more protein into our bodies. But 608 00:36:12,280 --> 00:36:15,000 Speaker 2: how much do we need and why do we seem 609 00:36:15,000 --> 00:36:20,480 Speaker 2: to need it? Particularly right now? Pop Tart's protein Yo, 610 00:36:20,600 --> 00:36:24,600 Speaker 2: Why why do we need this high protein content protein drinks? 611 00:36:24,760 --> 00:36:25,840 Speaker 4: Everybody wants protein. 612 00:36:26,200 --> 00:36:30,399 Speaker 5: Protein is an essential macro nutrient, and macronutrient just means 613 00:36:30,440 --> 00:36:32,880 Speaker 5: that we need it in large amounts from our diet 614 00:36:33,080 --> 00:36:35,080 Speaker 5: to help us be healthy. 615 00:36:35,680 --> 00:36:39,560 Speaker 2: Jueva Barrow is a professor of molecular nutrition at Cornell. 616 00:36:40,080 --> 00:36:42,560 Speaker 5: We can get them from vegetables, we can get them 617 00:36:42,600 --> 00:36:46,839 Speaker 5: from soy products, and then we consume that protein. Our 618 00:36:46,840 --> 00:36:51,200 Speaker 5: body digests them, and then we take the essential units 619 00:36:51,200 --> 00:36:53,680 Speaker 5: of the protein, we call them amino acids, and then 620 00:36:53,719 --> 00:36:57,000 Speaker 5: we use them for a host of biochemical reactions to 621 00:36:57,040 --> 00:36:59,000 Speaker 5: keep our body healthy and to keep our body well. 622 00:37:00,000 --> 00:37:04,400 Speaker 2: Teen eighteen, Lulu Hunt Peter's book Diet and Health first 623 00:37:04,480 --> 00:37:07,719 Speaker 2: popularized the idea of calories in the American diet and 624 00:37:07,760 --> 00:37:10,239 Speaker 2: the practice of counting those calories as a way to 625 00:37:10,360 --> 00:37:14,000 Speaker 2: keep healthy and fit. Ever since, Americans have been trying 626 00:37:14,040 --> 00:37:16,560 Speaker 2: to fill their plates with foods we think are good 627 00:37:16,600 --> 00:37:20,640 Speaker 2: for us. But that's constantly changing, and today Americans are 628 00:37:20,680 --> 00:37:24,279 Speaker 2: eating more meat per capita than ever before. According to 629 00:37:24,360 --> 00:37:27,960 Speaker 2: the US Department of Agriculture, US meat consumption has increased 630 00:37:28,000 --> 00:37:31,560 Speaker 2: by more than one hundred pounds per person since nineteen 631 00:37:31,560 --> 00:37:36,640 Speaker 2: oh nine. Brian Ernest is lead economist for animal protein 632 00:37:36,800 --> 00:37:37,520 Speaker 2: at Kobank. 633 00:37:38,080 --> 00:37:41,040 Speaker 14: The fastest growing segments in the grocery store when we 634 00:37:41,080 --> 00:37:46,840 Speaker 14: look at fresh is yogurt, cottage, cheese, and eggs. These 635 00:37:46,960 --> 00:37:49,319 Speaker 14: three things really have kind of a halo effect when 636 00:37:49,360 --> 00:37:52,000 Speaker 14: it comes to health for the consumer. Each one, I 637 00:37:52,040 --> 00:37:55,240 Speaker 14: believe is seeing double digit sales at the grocery store 638 00:37:55,400 --> 00:37:58,800 Speaker 14: here in twenty twenty five. Specifically, things that have stronger 639 00:37:58,840 --> 00:38:03,680 Speaker 14: protein composed to them, but also lend themselves very well 640 00:38:03,719 --> 00:38:07,440 Speaker 14: to changes in flavor and fit a profile that accepts 641 00:38:07,480 --> 00:38:11,520 Speaker 14: and adopts flavor profiles very well. Animal protein in general 642 00:38:11,640 --> 00:38:14,160 Speaker 14: has seen strong growth over the last couple of years. 643 00:38:14,480 --> 00:38:16,360 Speaker 14: If we look over the last ten years with the 644 00:38:16,520 --> 00:38:20,880 Speaker 14: US consumer, chicken consumption has grown by nearly nineteen pounds, 645 00:38:21,000 --> 00:38:23,920 Speaker 14: whereas beef and pork have been relatively studied. 646 00:38:24,160 --> 00:38:27,240 Speaker 15: We're saying very strong demand overall are affect our value 647 00:38:27,239 --> 00:38:30,520 Speaker 15: added sales this year have been up versus last year, 648 00:38:30,560 --> 00:38:33,319 Speaker 15: which is great opportunity for US, and that goes well 649 00:38:33,320 --> 00:38:35,360 Speaker 15: beyond just Thanksgiving turkeys. 650 00:38:35,760 --> 00:38:39,319 Speaker 2: One of those sources of animal protein is turkey, and 651 00:38:39,440 --> 00:38:43,440 Speaker 2: Jayjanrain is the CEO of Butterball, the largest producer of 652 00:38:43,480 --> 00:38:46,839 Speaker 2: turkey in the US. The iconic American brand has been 653 00:38:46,880 --> 00:38:51,319 Speaker 2: in business since nineteen fifty four. Butterball when only the 654 00:38:51,400 --> 00:38:52,120 Speaker 2: best we'll do. 655 00:38:52,640 --> 00:38:54,879 Speaker 15: We know consumers are health conscious right now and there's 656 00:38:54,880 --> 00:38:58,239 Speaker 15: a lot of focus on protein and turkey is naturally 657 00:38:58,600 --> 00:39:01,800 Speaker 15: a good fit for that and fat, high end protein, 658 00:39:02,239 --> 00:39:05,360 Speaker 15: and it's very economical source of protein as well, particularly 659 00:39:05,440 --> 00:39:08,080 Speaker 15: during the holiday when you see product at about a 660 00:39:08,120 --> 00:39:11,080 Speaker 15: dollar per pound, it's an incredible value for the consumer. 661 00:39:11,280 --> 00:39:13,239 Speaker 15: One of the things that we're seeing particular right now 662 00:39:13,320 --> 00:39:15,279 Speaker 15: is a category that's real growth for US is our 663 00:39:15,320 --> 00:39:19,080 Speaker 15: ground turkey business. And some of that is just because 664 00:39:19,200 --> 00:39:21,960 Speaker 15: more and more consumers are realizing the opportunity is to 665 00:39:22,080 --> 00:39:25,320 Speaker 15: use ground turkey in their everyday meals. But then also 666 00:39:25,440 --> 00:39:28,200 Speaker 15: given the incredibly high prices in beef right now, it's 667 00:39:28,239 --> 00:39:31,319 Speaker 15: a very good advantage for consumers who are looking for 668 00:39:31,360 --> 00:39:34,359 Speaker 15: a ground meat product to use turkey instead of ground beef. 669 00:39:35,560 --> 00:39:39,120 Speaker 2: American consumption of protein from animals and other food sources 670 00:39:39,239 --> 00:39:42,520 Speaker 2: is up, but so is the use of protein supplements 671 00:39:42,880 --> 00:39:47,120 Speaker 2: from new companies like David Protein, maker of protein supplement bars. 672 00:39:47,600 --> 00:39:52,239 Speaker 2: It's co founder and CEO is Peter Rayha and our first. 673 00:39:52,080 --> 00:39:54,440 Speaker 8: Year we'll do one hundred and fifty million in sales, 674 00:39:55,440 --> 00:39:58,080 Speaker 8: which I believe is the fastest growing food company, and 675 00:39:58,400 --> 00:40:01,360 Speaker 8: next year we forecaster to three hundred million plus. 676 00:40:01,680 --> 00:40:05,600 Speaker 2: Before David Protein rehel founded our x bar, which he 677 00:40:05,680 --> 00:40:09,280 Speaker 2: sold a Kellogg for six hundred million dollars in twenty seventeen. 678 00:40:09,719 --> 00:40:13,359 Speaker 8: Americans we keep jumping from different diet trends. So first 679 00:40:13,400 --> 00:40:16,520 Speaker 8: there was Atkins, then there was the paleo diet, then 680 00:40:16,560 --> 00:40:20,880 Speaker 8: there was Whole thirty, and then there was a keto fasting. 681 00:40:21,719 --> 00:40:24,760 Speaker 8: Plant based had a moment, and if you look at 682 00:40:24,840 --> 00:40:28,919 Speaker 8: the fundamental reason for those trends, and we drove them 683 00:40:29,400 --> 00:40:32,480 Speaker 8: they are really around body composition changes or weight loss. 684 00:40:32,880 --> 00:40:35,560 Speaker 8: Every January, everyone feels like they need to get back 685 00:40:35,600 --> 00:40:37,920 Speaker 8: in shape, and so you're looking for diet as a 686 00:40:37,920 --> 00:40:41,279 Speaker 8: solution to that. We don't want to be susceptible to 687 00:40:41,480 --> 00:40:45,799 Speaker 8: those diet trends, and we wanted a position that was 688 00:40:46,840 --> 00:40:50,000 Speaker 8: factual and around something that is true. 689 00:40:50,320 --> 00:40:53,680 Speaker 2: But do we really need all this protein? Barro says 690 00:40:53,719 --> 00:40:57,879 Speaker 2: that for most Americans, the quantity of protein itself isn't the. 691 00:40:57,760 --> 00:41:01,799 Speaker 5: Problem for the average American, and we recommend ten to 692 00:41:01,840 --> 00:41:05,359 Speaker 5: thirty five percent of your total calories should really come 693 00:41:05,360 --> 00:41:08,839 Speaker 5: from protein. And so narrowing and that down to let's 694 00:41:08,880 --> 00:41:12,600 Speaker 5: say a two thousand calorie diet, If ten percent of 695 00:41:12,640 --> 00:41:14,879 Speaker 5: that needs to come from protein, that would be two 696 00:41:15,000 --> 00:41:19,800 Speaker 5: hundred calories of my total protein needs should come from protein. 697 00:41:19,920 --> 00:41:23,480 Speaker 5: And then equating that to grams of protein, that would 698 00:41:23,520 --> 00:41:26,799 Speaker 5: be about fifty grams of protein for the average American. 699 00:41:27,280 --> 00:41:29,399 Speaker 5: And so if you want to translate that to what 700 00:41:29,440 --> 00:41:31,440 Speaker 5: that means in terms of food, if you eat a 701 00:41:31,520 --> 00:41:34,279 Speaker 5: six pounds piece of steak, that's going to give you 702 00:41:34,320 --> 00:41:37,680 Speaker 5: about fifty grams of protein, which is plenty for your 703 00:41:37,719 --> 00:41:39,799 Speaker 5: protein needs for the entire day. 704 00:41:40,640 --> 00:41:43,840 Speaker 2: What explains the recent interest in protein and why is 705 00:41:43,920 --> 00:41:47,120 Speaker 2: consumption on the rise. Rayhau says, part of the answer 706 00:41:47,400 --> 00:41:48,640 Speaker 2: is GLP ones. 707 00:41:50,920 --> 00:41:53,239 Speaker 8: For the first time, we actually don't have Americans going 708 00:41:53,280 --> 00:41:55,600 Speaker 8: to a diet to those weight We have Americans going 709 00:41:55,640 --> 00:41:58,200 Speaker 8: to a drug to this way, and so that's changed 710 00:41:58,239 --> 00:42:02,080 Speaker 8: this whole entire pattern and how Americans are thinking about attrition. 711 00:42:02,920 --> 00:42:06,000 Speaker 2: Roughly eight percent of the US population is currently on 712 00:42:06,080 --> 00:42:10,239 Speaker 2: a GLP one weight loss drug like ozempic Ormanjaro, a 713 00:42:10,280 --> 00:42:13,120 Speaker 2: share that may grow after President Trump reached a deal 714 00:42:13,160 --> 00:42:15,600 Speaker 2: with drug makers this week to make their weight loss 715 00:42:15,640 --> 00:42:19,880 Speaker 2: drugs more affordable. You mentioned drugs. Glp ones are very 716 00:42:19,920 --> 00:42:23,040 Speaker 2: much in the news right now. Does that change protein needs? 717 00:42:23,320 --> 00:42:26,160 Speaker 5: So there's still a lot of ongoing research about that. 718 00:42:26,920 --> 00:42:29,279 Speaker 5: The emerging evidence that we're seeing is that there are 719 00:42:29,320 --> 00:42:33,160 Speaker 5: some patients that take GLP one organists that experience lean 720 00:42:33,239 --> 00:42:36,920 Speaker 5: muscle laws right, lean mass going down along with the 721 00:42:37,440 --> 00:42:40,120 Speaker 5: you know, the fat loss and so the need so 722 00:42:40,200 --> 00:42:43,239 Speaker 5: let's say, can we compensate that with protein levels? And 723 00:42:43,480 --> 00:42:46,919 Speaker 5: the rationale for why that happens is still under investigation, 724 00:42:47,760 --> 00:42:50,279 Speaker 5: but in general, if you are losing lean mouse, we 725 00:42:50,320 --> 00:42:52,880 Speaker 5: do want to replenish that make sure you're meeting your 726 00:42:52,920 --> 00:42:53,720 Speaker 5: protein needs. 727 00:42:54,080 --> 00:42:57,600 Speaker 14: While they're looking to reduce the caloric intake, they may 728 00:42:57,640 --> 00:43:00,880 Speaker 14: be looking to increase the protein as a portion of 729 00:43:00,960 --> 00:43:05,000 Speaker 14: overall chloric intake. So protein has lent itself very well 730 00:43:05,040 --> 00:43:07,400 Speaker 14: to this, and we're starting to see products on shelf 731 00:43:07,840 --> 00:43:10,799 Speaker 14: that are marketed towards users of GLP one and these 732 00:43:10,880 --> 00:43:13,600 Speaker 14: are more inclusive of protein. 733 00:43:13,640 --> 00:43:17,960 Speaker 2: In general, GLP ones are changing our nutritional needs as 734 00:43:18,000 --> 00:43:21,040 Speaker 2: a country, and Reyhau says that's welcome news for products 735 00:43:21,080 --> 00:43:24,320 Speaker 2: like David Bar, which is a high protein, low calorie 736 00:43:24,360 --> 00:43:27,279 Speaker 2: option that retails for around three dollars a bar. 737 00:43:27,840 --> 00:43:31,680 Speaker 8: So the big need we're addressing with our product is 738 00:43:31,719 --> 00:43:34,600 Speaker 8: to deliver as much protein with the least amount of 739 00:43:34,800 --> 00:43:37,800 Speaker 8: chloric impact. How do you basically be a vehicle for 740 00:43:38,000 --> 00:43:40,960 Speaker 8: protein without having a lot of consequences on both sugar 741 00:43:41,000 --> 00:43:41,800 Speaker 8: and calories. 742 00:43:41,960 --> 00:43:45,160 Speaker 2: What is the sugar guntan zero zerograms of sugar and 743 00:43:45,200 --> 00:43:46,480 Speaker 2: how much protein. 744 00:43:46,320 --> 00:43:49,080 Speaker 8: Twenty eight grams. I think one of the biggest problems 745 00:43:49,360 --> 00:43:53,000 Speaker 8: with protein is affordability. If you're having a high protein diet, 746 00:43:53,000 --> 00:43:57,040 Speaker 8: it's very expensive. Turns out carbohydrates and fats are much 747 00:43:57,120 --> 00:44:00,439 Speaker 8: less expensive as other protein options get more expense, if 748 00:44:01,040 --> 00:44:04,160 Speaker 8: I think it makes our product's position more valuable. 749 00:44:04,800 --> 00:44:07,200 Speaker 2: You mentioned the steak can be expensive. It's particularly expensive 750 00:44:07,280 --> 00:44:09,359 Speaker 2: right now. The price of beef is really going up. 751 00:44:09,760 --> 00:44:13,280 Speaker 2: Do you see that as affecting your marketplace position? 752 00:44:13,760 --> 00:44:15,880 Speaker 8: Yeah, I think it helps us because one of the 753 00:44:15,920 --> 00:44:18,200 Speaker 8: ways we drive consumer surplus is if you just look 754 00:44:18,239 --> 00:44:21,040 Speaker 8: at what it costs to get twenty a grams of protein, 755 00:44:23,080 --> 00:44:25,880 Speaker 8: you know, in a steak or a salad, it's twenty 756 00:44:26,080 --> 00:44:28,759 Speaker 8: thirty dollars. In our product, it's three dollars and twenty 757 00:44:28,760 --> 00:44:32,359 Speaker 8: five cents, so it's a tremendous value, and then there's 758 00:44:32,400 --> 00:44:33,880 Speaker 8: no preparation. You can just eat it. 759 00:44:34,200 --> 00:44:38,440 Speaker 2: As Americans consume more protein, they look increasingly for ease 760 00:44:38,760 --> 00:44:39,680 Speaker 2: and convenience. 761 00:44:40,160 --> 00:44:43,040 Speaker 15: We're seeing the consumers reaching out for certainly our product 762 00:44:43,040 --> 00:44:45,600 Speaker 15: and turkey in general, but they're also expanding beyond the 763 00:44:45,600 --> 00:44:48,560 Speaker 15: whole bird. We're seeing the frozen products that we have 764 00:44:48,680 --> 00:44:52,120 Speaker 15: to offer. We're seeing bone and breasts. So oftentimes we'll 765 00:44:52,160 --> 00:44:55,200 Speaker 15: find consumers who are buying a whole turkey and they're 766 00:44:55,200 --> 00:44:59,040 Speaker 15: supplementing with more and other turkey products for their meal. 767 00:44:59,280 --> 00:45:03,520 Speaker 2: The David Bar uses EPG, a proprietary plant based fat 768 00:45:03,520 --> 00:45:07,440 Speaker 2: component that has ninety two percent fewer calories than traditional bars, 769 00:45:07,719 --> 00:45:11,440 Speaker 2: while still delivering a similar texture and flavor. The people 770 00:45:11,480 --> 00:45:15,400 Speaker 2: who buy and eat David bars, what are they eating 771 00:45:15,520 --> 00:45:17,040 Speaker 2: instead of I. 772 00:45:17,040 --> 00:45:20,920 Speaker 8: Think they're using it as an addition. So say you 773 00:45:20,920 --> 00:45:24,600 Speaker 8: have an oatmeal breakfast, it's pretty absent of protein, so 774 00:45:25,000 --> 00:45:27,080 Speaker 8: you can add it David on top of that and 775 00:45:27,560 --> 00:45:31,240 Speaker 8: get your close to thirty grams of protein in a sitting. 776 00:45:31,480 --> 00:45:34,799 Speaker 8: So I think we're bridging the gap because it's very 777 00:45:34,800 --> 00:45:37,400 Speaker 8: difficult to eat, say one hundred grams one hundred and 778 00:45:37,400 --> 00:45:41,160 Speaker 8: fifty grams of protein a day, and so that's the 779 00:45:41,160 --> 00:45:42,680 Speaker 8: problem where I think we're directly. 780 00:45:42,360 --> 00:45:45,600 Speaker 2: Solving supplements like a David bar will get more protein 781 00:45:45,640 --> 00:45:47,960 Speaker 2: into your body, but is it the best way. 782 00:45:48,320 --> 00:45:51,200 Speaker 5: So there's a new exciting emerging concept that's known as 783 00:45:51,400 --> 00:45:55,239 Speaker 5: nutrient sequencing. So what it is is taking our existing 784 00:45:55,440 --> 00:45:58,439 Speaker 5: well balanced diet right. So I'm eating my right around 785 00:45:58,520 --> 00:46:01,040 Speaker 5: amount of carbs, I'm eating my right amount of proteins, 786 00:46:01,360 --> 00:46:05,560 Speaker 5: meeting my correct amount of fats. But nutrient sequencing simply 787 00:46:05,640 --> 00:46:09,279 Speaker 5: takes those food items and we change the order in 788 00:46:09,320 --> 00:46:12,400 Speaker 5: which you consume those foods. We now give you the 789 00:46:12,440 --> 00:46:17,600 Speaker 5: protein source first alone, tell you to wait about ten minutes, 790 00:46:18,080 --> 00:46:20,920 Speaker 5: and then we give you the carbohydrate source after that. 791 00:46:21,320 --> 00:46:24,040 Speaker 5: And what we're fining is just by simply changing the 792 00:46:24,160 --> 00:46:27,680 Speaker 5: order of the food, we're seeing improvements in blood glucose. 793 00:46:27,800 --> 00:46:31,480 Speaker 5: We're seeing just a naturally more secretion of GLP one 794 00:46:31,680 --> 00:46:35,799 Speaker 5: in the body. We're seeing better insulin profiles just by 795 00:46:35,880 --> 00:46:39,040 Speaker 5: changing the sequence or the order of the food. We 796 00:46:39,280 --> 00:46:42,640 Speaker 5: prefer natural foods because it's not just only the protein 797 00:46:42,680 --> 00:46:45,280 Speaker 5: that you're getting, or getting all of the other healthy 798 00:46:45,320 --> 00:46:48,239 Speaker 5: elements in the food that you don't get when it's 799 00:46:48,320 --> 00:46:51,000 Speaker 5: ultra process and you don't yet if it's just like 800 00:46:51,040 --> 00:46:52,520 Speaker 5: the supplements source. 801 00:46:52,600 --> 00:46:57,080 Speaker 2: And Rejal does not disagree. If you talk to nutritionis, 802 00:46:57,280 --> 00:46:59,840 Speaker 2: they'll say the best thing is eat a truly balanced 803 00:46:59,800 --> 00:47:03,600 Speaker 2: die and thats all the components that you need, recognizing 804 00:47:03,600 --> 00:47:05,120 Speaker 2: a lot of people just can't do that for some 805 00:47:05,160 --> 00:47:08,440 Speaker 2: of the reasons you described, Are you a second best alternative? 806 00:47:08,480 --> 00:47:10,800 Speaker 2: I mean, if people could really eat a balanced diet, 807 00:47:11,120 --> 00:47:12,520 Speaker 2: would they be better off? 808 00:47:12,880 --> 00:47:17,040 Speaker 8: I would say yes. Reason being is sod all the 809 00:47:17,040 --> 00:47:20,399 Speaker 8: time in the world should eat three balanced meals. And 810 00:47:20,440 --> 00:47:23,880 Speaker 8: the reason is you get all your macronutrients and your micronutrients. 811 00:47:23,920 --> 00:47:25,560 Speaker 8: That's just not the reality most people live in. 812 00:47:25,880 --> 00:47:28,560 Speaker 2: But as in so much of life, there's the issue 813 00:47:28,560 --> 00:47:31,320 Speaker 2: of not letting the best become the enemy of the good. 814 00:47:31,800 --> 00:47:35,360 Speaker 2: Protein is great, especially in a world of GLP ones, 815 00:47:35,680 --> 00:47:39,200 Speaker 2: but for some the good of convenience and affordability may 816 00:47:39,280 --> 00:47:43,719 Speaker 2: outweigh the best of simply eating three well balanced meals 817 00:47:43,800 --> 00:47:48,160 Speaker 2: a day. That does it for us. Here at Wall 818 00:47:48,160 --> 00:47:51,040 Speaker 2: Street Week, I'm David Weston. See you next week for 819 00:47:51,160 --> 00:48:02,680 Speaker 2: more stories of capitalism.