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Speaker 1: This is Bloomberg Wall Street Week. What's the state of

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Speaker 1: corporate governments? The deficit is a real issue. The US

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Speaker 1: economy continues to send mixed signals. The financial stories that

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Speaker 1: cheap our world fed action to con concerns over dollar

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Speaker 1: liquidity and encouraging China data. The five hundred wealthiest people

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Speaker 1: in the world. Through the eyes of the most influential

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Speaker 1: voices Larry Summers, the former Treasury Secretary, Star CEO, Kevin

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Speaker 1: Johnson sec Chairman j Clayton. Bloomberg Wall Street Week with

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Speaker 1: David Weston from Bloomberg Radio. Which way do we go?

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Speaker 1: Markets fight against the surging virus as states delayed their

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Speaker 1: return to normal. This is Bloomberg Wall Street Week. I'm

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Speaker 1: David Weston. This week we said goodbye to an historic

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Speaker 1: one that saw a pandemic sweep the world, that brought

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Speaker 1: on a global recession, putting over twenty million Americans out

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Speaker 1: of work. But for all that, we also had an

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Speaker 1: SMP having its best quarter in twenty two years and

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Speaker 1: surgeon consumer confidence. And then at the end of the

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Speaker 1: week we found out that we created four point eight

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Speaker 1: million new jobs last month, another pleasant surprise. So what

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Speaker 1: might the second half of an already harrowing year hold

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Speaker 1: for investors, And can we really know where we're headed

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Speaker 1: until we put that virus behind us by developing a vaccine.

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Speaker 1: We begin with the jobs numbers and whether we can

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Speaker 1: really read much into them given the uncertainty about the virus.

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Speaker 1: That's a question. We asked a former Labor secretary, Robert Reich. Well,

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Speaker 1: the trend is certainly encouraging, at least relative to May

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Speaker 1: and also April. But we are still fifteen million jobs.

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Speaker 1: And when let me repeat that, David, because sometimes you

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Speaker 1: know that the numbers just are overwhelming. Fifteen million jobs

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Speaker 1: below what we were in February. So this little increase

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Speaker 1: in jobs, that's good. Uh, it's better than not having it.

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Speaker 1: But I also want to bring to your attention and

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Speaker 1: to viewers attention and listeners attention that the Bureau of

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Speaker 1: Labor Statistics survey was done before the current spike, the

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Speaker 1: new spike in viruses in California and Texas and Arizona

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Speaker 1: and many other places. Uh. And the real problem here

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Speaker 1: is that the coronavirus is calling the shots, and it

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Speaker 1: has to call the shots. People are not going to

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Speaker 1: go into malls and take airplanes and do a lot

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Speaker 1: of other things until they feel safe. And unfortunately, with

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Speaker 1: this new spike, we are heading in exactly the wrong direction.

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Speaker 1: We had fifty two thousand new cases. We have not

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Speaker 1: had that many new cases in the United States. The

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Speaker 1: record before have been fifty thou new cases. So if

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Speaker 1: you have got fifty two thousand new cases in one day,

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Speaker 1: which is more, let me just add than Europe put together, well,

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Speaker 1: you know you're you're you're heading in the wrong direction. Um,

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Speaker 1: not only in terms of the economy, but in terms

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Speaker 1: of public health, public confidence, UH and all of the

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Speaker 1: basic ingredients and what a good life should be. And

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Speaker 1: if you look at these jobs numbers, which, as you say,

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Speaker 1: the trend is a nice trend two months now, exceeding expectations.

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Speaker 1: A lot of the gains come in some of those

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Speaker 1: areas that really are most susceptible to the reopening or

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Speaker 1: the reversal of the reopening. So what is the smartest

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Speaker 1: thing to do in terms of job creation in dealing

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Speaker 1: with this pandemic. Well, if you are a uh AN

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Speaker 1: employee and you are furloughed UH and you are getting

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Speaker 1: paid and you are furloughed, you're in a pretty good position.

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Speaker 1: If you are an employee and you can work remotely,

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Speaker 1: and you're getting paid to work remotely. You're You're fine.

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Speaker 1: My concern is that you've got these two other, very

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Speaker 1: very big groups of Americans. One who are essential workers,

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Speaker 1: so called essential workers. They are working in warehouses and

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Speaker 1: factories and in meat packing UH and in hospitals. A

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Speaker 1: lot of these people are susceptible and are getting the

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Speaker 1: virus in very large numbers in hotspots, and they are

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Speaker 1: infecting other people. We are not doing what we need

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Speaker 1: to do as a nation, not only in terms of

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Speaker 1: contact testing and tracing, but also in terms of providing

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Speaker 1: these people with adequate protection UH. And OSHA, the Occupational

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Speaker 1: Safety and Health Administration of which I used to supervise

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Speaker 1: when I was Secretary of Labor, they are not doing

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Speaker 1: their job. They ought to be establishing national standards right

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Speaker 1: now for maintain distance at work, for masks, for sanitizers,

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Speaker 1: for all sorts of other ways of preventing these essential

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Speaker 1: workers from getting sick. You've got the second group of

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Speaker 1: workers we've been talking about, and that as people who

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Speaker 1: are unemployed but also under employed. UH. We have across

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Speaker 1: the country millions of people, about four million people who

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Speaker 1: are getting paid less than they were paid before because

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Speaker 1: employers know that unemployment is very high and they can

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Speaker 1: squeeze their workers. We've got about six million people who

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Speaker 1: are working fewer hours than they were working before, even

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Speaker 1: though they are still employed. We've got many, many millions

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Speaker 1: of Americans who are working part time who would rather

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Speaker 1: be working full time. They can't find jobs. This virus

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Speaker 1: looks like it's gonna be with us for some time

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Speaker 1: to come. Do we need to start thinking about how

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Speaker 1: to protect those people over the longer term? I mean,

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Speaker 1: ppe is fine, giving them masks is fine, but ultimately

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Speaker 1: do we need to think about retooling them so that

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Speaker 1: they're not as exposed? Well, we need the first and

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Speaker 1: most important thing, David, is to make sure that they

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Speaker 1: survive and their families survived. They have a roof over

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Speaker 1: their heads, and they're not going hungry. UH. And the

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Speaker 1: direction we're going in right now, with the virus increasing

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Speaker 1: again and all of these benefits running out, my first

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Speaker 1: worry and our first worry should be that these people

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Speaker 1: and their families are going to be imperiled. Uh. In

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Speaker 1: UH the end of July, in August and September. The

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Speaker 1: next big question is what are they going to do if,

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Speaker 1: as we expect, the virus continues through the fall. Uh

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Speaker 1: And I think that we do have to enable people

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Speaker 1: to work remotely. More people are going to have to

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Speaker 1: work remotely. Employers are going to have to figure out

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Speaker 1: how to enable people to work remotely. And if they

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Speaker 1: cannot work remotely, we've got to get national standards with

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Speaker 1: regard to safety and health in the workplace. And as

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Speaker 1: I said before, we've got to have those being national standards.

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Speaker 1: We can't have one city or one state with different

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Speaker 1: safety standards than another state or city. That was Robert

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Speaker 1: Reich of the University of California at Berkeley. Next on

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Speaker 1: Wall Street Week, Retired to General Stanley McCrystal on leadership

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Speaker 1: in a time of crisis such as we face now.

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Speaker 1: That's next on Wall Street Week. On gloom Wood. This

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Speaker 1: is Bloomberg Wall Street Week with David Weston from Bloomberg Radio.

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Speaker 1: Afghanistan is back in the news on reports that perhaps

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Speaker 1: Russia offered some bounties for the killing of US soldiers

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Speaker 1: over there in Afghanistan, raising questions about what the United

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Speaker 1: States is doing in Afghanistan, our relations with Russia, and

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Speaker 1: more broadly about leadership in this country, all subjects of

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Speaker 1: which General Stanley mc crystal knows a very great deal,

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Speaker 1: having served as the Commander of NASSA Security Forces Afghanistan,

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Speaker 1: now as a founder and CEO of the Crystal Group,

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Speaker 1: and he also is the author of a book on

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Speaker 1: leadership which is called leaders Myth and Reality. What does

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Speaker 1: it tell us about where we are in Afghanistan? We're

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Speaker 1: still over there. It seems like we can't quite get out.

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Speaker 1: Why is Afghanistan strategically important for the United States. Well,

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Speaker 1: that's a great question because you could argue that it's

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Speaker 1: over in the middle of nowhere. It's a landlocked country

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Speaker 1: that doesn't have a tremendous number of resources that we

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Speaker 1: are required to have. Tradition, it was part of a

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Speaker 1: great game, and so Britain and Russia fought over it

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Speaker 1: as a buffer zone to protect British India. For US,

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Speaker 1: I think it's more of a global idea. It's the

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Speaker 1: idea that we went there in two thousand one on

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Speaker 1: our decision after the Not eleven attacks, we basically overthrew

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Speaker 1: the government, the Taliban government, and then we felt we

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Speaker 1: had a moral requirement to stay there to help them

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Speaker 1: put together a new government and also a practical requirement

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Speaker 1: to help get some stability in the world. Now we

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Speaker 1: can argue that it's far enough way that it just

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Speaker 1: doesn't matter. I am not uh in that camp, but

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Speaker 1: but it's hard to stand and say that it is

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Speaker 1: right at a key place in the world that we

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Speaker 1: have to have. So I won't I won't try to

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Speaker 1: make that argument. Is it strategically vital to Russia on

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Speaker 1: the other hand, I mean, they went back in the

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Speaker 1: in there over in the eighties and they got their

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Speaker 1: nose blooded. I think it's fair to say at the

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Speaker 1: same time they can't quite let it go either. Or

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Speaker 1: is this more a matter of trying to really get

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Speaker 1: at the United States through a surrogate. I really think

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Speaker 1: it's more the latter. I think Russia would like to

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Speaker 1: week our nose is a little bit where they can.

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Speaker 1: They've done that in the past, remember in the nineteen eighties.

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Speaker 1: Of course that was during the Cold War, but we

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Speaker 1: funded Mujadin, We gave them stingers in fact, which was

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Speaker 1: one of the reasons the Soviet attempt to remain in

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Speaker 1: Afghanistan failed. So there's a history there, and I'm sure

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Speaker 1: that there's a tremendous number of people in Russia that

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Speaker 1: would like to do the same to us in general. Christa,

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Speaker 1: what about the notion of putting bounties on foreign soldiers heads?

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Speaker 1: Is that outside the rules of war? Is that different

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Speaker 1: from simply arming people who will use the weapons to

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Speaker 1: kill our soldiers? Well, I think it's a difference without

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Speaker 1: a distinction. I think that it's not a good thing,

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Speaker 1: particularly if we are going to have good relations with

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Speaker 1: Russia theoretically. But at the same time, it's the kind

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Speaker 1: of thing that has been done historically for a long time.

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Speaker 1: So I don't think we should be outraged by the act.

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Speaker 1: What we should do is put that into our calculation

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Speaker 1: of our calculations of our relationship with Russia, and an

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Speaker 1: ally or someone you do business with doesn't do that

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Speaker 1: to you, and so I think that should color how

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Speaker 1: we react to the entire Russian Federation. And if this

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Speaker 1: proves out to be plausible intelligence supportable intelligence, is there

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Speaker 1: an impetus to have to do something to react, because

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Speaker 1: otherwise you're sending a message to Russia, which as you say,

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Speaker 1: is not an ally at this point, that we are weak.

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Speaker 1: I think we've got to show that that's not the

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Speaker 1: kind of thing that we will tolerate particularly quietly. I mean,

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Speaker 1: you can start by just making public pronouncements, if you

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Speaker 1: have good enough intelligence to do that, you can do

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Speaker 1: some things on the ground that push back in other

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Speaker 1: places in the world as well. This is a chess

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Speaker 1: game for years between great nations. So I think there

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Speaker 1: are things we can do. We've got to signal that

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Speaker 1: we are firm. We don't have to signal that we

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Speaker 1: are vingeful, but we have to serve. We have to

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Speaker 1: signal that we cannot be trifled with. CHRISTA. To broaden

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Speaker 1: this out to talk about leadership more broadly, I mean,

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Speaker 1: you have done it, you have led, you have written

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Speaker 1: about it, you've studied it. Tell us about the leadership

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Speaker 1: we need right now. We have a rather unusual circumstance

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Speaker 1: with perhaps three different crises facing the country at the

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Speaker 1: same time, a pandemic and economic crisis that followed on

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Speaker 1: the pandemic, and also civil strife really over the continued

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Speaker 1: systemic racism. What sort of leadership do we need right now?

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Speaker 1: And maybe more important, what kind of followers do we need?

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Speaker 1: Because often we learn as much about us in crisis

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Speaker 1: as we do about our leaders after nine eleven. I

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Speaker 1: think we learned some things about the United States of

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Speaker 1: America that we're encouraging. I think that's right, Uh, David.

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Speaker 1: I think what we need I'll start with followers, is

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Speaker 1: we need to be the citizens that we believe citizens

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Speaker 1: should be. How we treat fellow Americans, how we treat

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Speaker 1: pello people in the world. We need to be the

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Speaker 1: followers we would like to have if we were in

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Speaker 1: a leadership position. We need to understand that sometimes things

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Speaker 1: are hard, and they're hard for everybody, and we've got

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Speaker 1: to pull ourselves up by our bootstraps and move forward.

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Speaker 1: I think we have a tendency to be selfish sometimes.

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Speaker 1: I think we have a sentidency to be myopic, and

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Speaker 1: that is beneath the American character. I think we are

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Speaker 1: better than that. I know we are better than that,

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Speaker 1: and we can do it. What kind of leadership do

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Speaker 1: we need to do that? We don't need a particularly

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Speaker 1: anointed person as leader. The woman or man that leads

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Speaker 1: the United States doesn't have to be brilliant, doesn't have

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Speaker 1: to have all the answers. They have to have two things.

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Speaker 1: They have to have character, and I call that the

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Speaker 1: amalgamation of values, integrity, steadiness, and they have to have judgment.

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Speaker 1: They have to be able to surround themselves with people

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Speaker 1: better informed and smarter than they are that can influence

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Speaker 1: them towards the right outcome. No one person is going

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Speaker 1: to walk in with all the answers or solutions. That's

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Speaker 1: just not realistic, and when you study history, it's never

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Speaker 1: been the case, although we sometimes want to cast it

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Speaker 1: in that light. So I think we need to be

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Speaker 1: thinking about a leader who pulls a team together, team

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Speaker 1: United States, you know, we as bad as COVID nineteen.

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Speaker 1: It's an extraordinary opportunity. It's an external threat facing every

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Speaker 1: country in the world essentially the same way. It ought

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Speaker 1: to be the most unifying pressure we've ever gotten, because

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Speaker 1: it's of them that we don't have to hate. We

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Speaker 1: can use it to unify ourselves. We can use it

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Speaker 1: to galvanize people into action. The things like the economic

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Speaker 1: challenges that it creates are also things that we should

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Speaker 1: roll up our sleeves and say, these are hard, but

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Speaker 1: we will work our way through them. So I actually

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Speaker 1: think it ought to be an opportunity for us to

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Speaker 1: show us who we are to our shows so ourselves

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Speaker 1: who we are, and for leaders to stand up and

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Speaker 1: ask us to do that. So general, because you refer

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Speaker 1: to history, and I think there's a tendency to look

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Speaker 1: back over American history and say, we've had some pretty

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Speaker 1: bad crisis before, but there has been some outstanding leader

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Speaker 1: that stepped up. FDR during World War Two, Abraham Lincoln

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Speaker 1: during the Civil War, the Founding Fathers, you can name them,

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Speaker 1: back during the Revolution. As we approach our nation's birthday here,

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Speaker 1: is that putting too much pressure on individuals at this point?

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Speaker 1: Do we need and Abraham Lincoln and f DR George

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Speaker 1: Washington right now to pull us through this? Well, if

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Speaker 1: you looked at Abraham Lincoln's career before his election in

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Speaker 1: eighteen sixty, it was not that impressive one term congressman.

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Speaker 1: If you look at Franklin Roosevelt, although governor of New

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Speaker 1: York in many ways, he wasn't taken seriously by many

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Speaker 1: people in the Democratic Party or the world. And the

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Speaker 1: point I'm making is often the circumstances in which they

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Speaker 1: are put make the person we would never remember Abraham

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Speaker 1: Lincoln had not been for the Civil War. But the

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Speaker 1: reality is they rose to the occasion. Look at Abraham

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Speaker 1: Lincoln surrounded himself with the famous team of rivals. He

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Speaker 1: he had to work his way through a tremendous number

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Speaker 1: of mistakes in the first three years of the Civil

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Speaker 1: War before he finally gets comfortable in the job and

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Speaker 1: can actually carry it forward. But all the time he

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Speaker 1: has values, he has character. That was General Stanley McCrystal

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Speaker 1: of them Crystal Group. Coming up. The epicenter of the

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Speaker 1: pandemic has shifted to Houston, and we talked with the

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Speaker 1: man running the hospital center on the front lines, Dr

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Speaker 1: Mark Boom of Texas Methodist. That's next on Wall Street

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Speaker 1: Week on Bloomberg. This is Bloomberg Wall Street Week with

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Speaker 1: David Weston from Bloomberg Radio. Well, Harris County, Texas, that's

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Speaker 1: the home of Houston announced that it it was going to

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Speaker 1: go to the highest level of alert as COVID nineteen

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Speaker 1: cases continued to rise, and I see you beds came

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Speaker 1: into short supply. Welcome now, Dr Mark Boom, he's president

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Speaker 1: CEO of Houston Methodist. It's a hospital system with more

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Speaker 1: than beds and twenty four thousand employees. So Dr Boom,

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Speaker 1: thank you so much for being with us. Give us

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Speaker 1: an update on where things are because we heard reports

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Speaker 1: maybe you were you were out of I SU beds,

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Speaker 1: you were full up, But now I hear maybe that's

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Speaker 1: not right. Yeah, that's right, thinks. Let me let me

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Speaker 1: start by saying in in Houston, the virus is really

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Speaker 1: spreading very rapidly, and we're highly concerned with that. So

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Speaker 1: I want everything I say coming next to to be

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Speaker 1: clear with that. And unless we do something as the

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Speaker 1: citizens of Houston, our leadership and others to stem this spread,

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Speaker 1: we are very concerned about the trends we are seeing. Um,

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Speaker 1: I see you beds are are you know, really one

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Speaker 1: of the core things that we measure when we look

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Speaker 1: at how are we able to respond to this? And

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Speaker 1: last week, uh, there were reports that we were out

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Speaker 1: of ice you beds, but they really came a little

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Speaker 1: more from some I think misunderstanding of complex data data

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Speaker 1: that hospital executives, physicians and others struggle with ourselves sometimes. Um,

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Speaker 1: normally we run about occupancy, and we've been running about

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Speaker 1: occupancy in our I c U s. But the difference

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Speaker 1: now is, of course about one and four of those

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Speaker 1: patients have COVID versus you know a year ago, where

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Speaker 1: none of them would have had COVID, So we've already

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Speaker 1: been making many adjustments to handle that. We have a

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Speaker 1: lot of ability to to up to regulate and have

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Speaker 1: additional ice you beds, but of course that's not an

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Speaker 1: unlimited supply, and so we are working very hard with that,

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Speaker 1: working very hard to manage that. But unless we bend

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Speaker 1: this curve, and unless we have people across Houston really

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Speaker 1: every single one of them locking arms and saying I

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Speaker 1: got you and we got you covered and wearing their

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Speaker 1: masks and social distancing and all the other things they

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Speaker 1: need to do, frankly staying home at this point unless

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Speaker 1: you need to be out of the home. Um, we're

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Speaker 1: worried that we're seeing very rapid acceleration of the spread

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Speaker 1: right now based on the testing data that we see.

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Speaker 1: Give us a sense of the demographics, as it were,

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Speaker 1: of the sorts of patients you're seeing coming in. If

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Speaker 1: it took an i CU having COVID nineteen, is it

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Speaker 1: similar to what we saw in New York, That is

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Speaker 1: to say, it tends to be the elderly and people

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Speaker 1: with underlying conditions or is it changing? Yeah, that's correct,

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Speaker 1: it is changing, and that's you know that that's certainly

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Speaker 1: UM is a cushion a little bit to some of

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Speaker 1: the dynamics, but but it's not going to solve them. Uh.

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Speaker 1: You know. So in that first wave, we would see

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Speaker 1: about sixty percent of people getting admitted, they're getting tested

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Speaker 1: positive rather had we're we're over fifty. Now we're seeing

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Speaker 1: that completely flipped, so it's under fifty. Back in that

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Speaker 1: first wave, maybe one in five of our patients who

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Speaker 1: were in I see you were younger than fifty. Now

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Speaker 1: that's rapidly approaching one in three. So we're seeing a

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Speaker 1: lot of very young people who do need ice you care.

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Speaker 1: There's this misperception that, you know, young people don't get sick.

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Speaker 1: The average young person doesn't get sick. But if you

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Speaker 1: have enough young people who are getting the virus, some

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Speaker 1: of them get extraordinarily sick. We've had patients on ECMO.

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Speaker 1: We've had young mother who was on ECMO for over

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Speaker 1: two weeks to save her life. We did, thankfully able

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Speaker 1: to go home to her baby after more than a

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Speaker 1: month after she delivered UM. These are tough, tough situations

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Speaker 1: and so we have to have everybody and right now, frankly,

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Speaker 1: with the data we're seeing, especially the younger population, recognizing

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Speaker 1: that there is no way to get this under control

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Speaker 1: unless everybody does their part. Is the treatment also evolving.

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Speaker 1: We don't have a vaccine yet, we don't know when

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Speaker 1: we'll get one. There's a lot of talk about treatments.

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Speaker 1: For example, round here we heard from Gillia it's gonna

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Speaker 1: be pretty expensive to administer the study. How are you

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Speaker 1: treating these people who really have That's a great question.

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Speaker 1: And you know, also, I think a cause for some

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Speaker 1: cautious optimism at least once somebody gets hospitalized, is that

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Speaker 1: the outcomes have really improved a great deal. Um So,

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Speaker 1: mortality has gone down significantly, and it doesn't completely compute

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Speaker 1: just with the age shift. That's a major factor. But

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Speaker 1: we have learned so much when we've been caring for

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Speaker 1: patients with COVID for you know, over a hundred days now.

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Speaker 1: Our clinicians are smart, they've learned a lot. We were

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Speaker 1: the first hospital of the country to use convalescent convalescents

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Speaker 1: heerum uh, and we've been very active in the roomdesc

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Speaker 1: of your trials and in both cases we think those

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Speaker 1: that have been quite helpful. But there's a lot of

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Speaker 1: other things that are more nuts and bolts. Honestly, proning,

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Speaker 1: which means putting somebody on their stomach. It was a

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Speaker 1: technique that had been used in the past for really

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Speaker 1: sick people on a ventilator in an ic you. Now

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Speaker 1: it's recognized really for patients who are in an acute

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Speaker 1: care bed, so they're not so sick to be an

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Speaker 1: icu UM, and it's actually preventing people from to tier ratings.

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Speaker 1: So what we're seeing is even though our volumes compared

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Speaker 1: to the last peak are well more than double m

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Speaker 1: are I see you, utilization is up from that time,

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Speaker 1: but not nearly as much, and I think we're keeping

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Speaker 1: people out of I SU The length of stay weard

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Speaker 1: scenes about a day and a half shorter for people

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Speaker 1: who do stay here. So those are some good news,

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Speaker 1: but the challenges that in the community, this virus is

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Speaker 1: spreading rapidly, and unless our community works together to get

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Speaker 1: that spread under control, we are very concerned that many

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Speaker 1: thousands of people could get infected, people will die, and

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Speaker 1: the economy really will take a real beating again as

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Speaker 1: either through you know, incremental government orders or frankly just

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Speaker 1: simply because the virus is you know, effectively disrupting organizations

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Speaker 1: and companies and businesses ability to to function, that we

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Speaker 1: will see significant negative economic impact. In addition, Dr Mark

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Speaker 1: Boom of Houston Methodist. Coming up, Special contributor Larry Summers

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Speaker 1: takes us through the history we've made in the first

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Speaker 1: six months of twenty twenty. That's next on Wall Street

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Speaker 1: Week on Bloomberg. This is Bloomberg Wall Street Week with

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Speaker 1: David Weston from Bloomberg Radio. Historic is a word that's

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Speaker 1: used too freely, but the first half of will most

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Speaker 1: certainly go down in the history books. To give us

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Speaker 1: some perspective, we asked special contributor Larry Summers of Harvard

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Speaker 1: for his take on what that history will look like. Look, David,

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Speaker 1: the first thing to say is that the first six

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Speaker 1: months of are likely to be in the history books.

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Speaker 1: Most six month periods don't get in the history books.

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Speaker 1: Who knows what some history book will say about the

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Speaker 1: first half of or the second half of two thousand

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Speaker 1: and seven. They will talk about the second half of

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Speaker 1: ninety one, They will talk about the second half of

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Speaker 1: two thousand and uh one, They will talk about the

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Speaker 1: second half of nineteen sixty three when Kennedy was assassinated.

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Speaker 1: And I think they'll talk about this period. They'll talk

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Speaker 1: about this period because COVID will be a very big story.

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Speaker 1: They may talk about it because of transformational events in

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Speaker 1: UH American politics. They may talk about it because of

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Speaker 1: what's happening in China. But I think there's a good

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Speaker 1: chance that this last six months will be UH in

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Speaker 1: the history books. Not to mention the financial history books,

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Speaker 1: given that you saw central banks do things that central

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Speaker 1: banks had never before done in history. You saw them

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Speaker 1: do it in almost every major country. The thing that

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Speaker 1: puts us in history books off and is extreme adversity.

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Speaker 1: You have an assassination of president, you have the beginning

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Speaker 1: of a war, if you have a terrorist attack. Certainly

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Speaker 1: we have that here with the pandemic followed by the

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Speaker 1: economic crisis. But the real question then becomes, how do

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Speaker 1: we respond to that extreme adversity? What do I think

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Speaker 1: the history books will say about how we've responded. There's

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Speaker 1: what I fear, and there's what I hope. Let me

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Speaker 1: tell you first about what I fear. Um what I

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Speaker 1: fear is that this will be the moment when the

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Speaker 1: Baby boom generation lost the American century. That, above all

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Speaker 1: the spectacle of spectacular incompetence in the basics of national security,

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Speaker 1: protecting the American people from a threat not just to

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Speaker 1: their livelihoods, but to their lives that that will be

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Speaker 1: uh lost because the United States, the once can do nation,

433
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Speaker 1: will have one of the worst records in dealing with

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Speaker 1: a threat that faced everybody a round uh the world.

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Speaker 1: That's what you he heard when you heard Anthony Fauci

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00:24:06,800 --> 00:24:10,640
Speaker 1: this week talk about our case count potentially going from

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00:24:10,680 --> 00:24:16,840
Speaker 1: forty thousand uh to a hundred thousand uh cases a day.

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Speaker 1: And by the way, since people think we're understating uh

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00:24:21,280 --> 00:24:27,440
Speaker 1: the number of cases by a factor of ten um,

440
00:24:27,760 --> 00:24:31,960
Speaker 1: that hundred thousand cases a day is potentially close to

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Speaker 1: a million uh actual and real cases a day. That's

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00:24:37,680 --> 00:24:44,200
Speaker 1: a very, very uh big deal. It affects the American

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00:24:44,280 --> 00:24:48,320
Speaker 1: people's confidence in themselves and their ability to do anything else.

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00:24:48,960 --> 00:24:52,520
Speaker 1: It affects the economy. If people are fear fearful of

445
00:24:52,640 --> 00:24:57,280
Speaker 1: being near other people, it doesn't matter about shutdown orders.

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00:24:57,600 --> 00:25:02,280
Speaker 1: You're not going to have a decent economy. It affects

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00:25:02,320 --> 00:25:06,760
Speaker 1: the standing of the United States in the world and

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00:25:06,880 --> 00:25:13,000
Speaker 1: emboldens our potential adversaries. It affects the credibility of our democratic,

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00:25:13,080 --> 00:25:18,920
Speaker 1: market oriented UH model. If we're not able to manage

450
00:25:19,440 --> 00:25:25,840
Speaker 1: our own affairs in a competent way within our democratic

451
00:25:26,240 --> 00:25:33,080
Speaker 1: UH system, it is something whose full consequences I think

452
00:25:33,119 --> 00:25:36,840
Speaker 1: are very hard to predict, but we know they will

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00:25:37,560 --> 00:25:41,440
Speaker 1: mean much less good lives for our children through their

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00:25:41,480 --> 00:25:47,399
Speaker 1: adulthood and ultimately, UH for our grandchildren. And that's on

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00:25:47,440 --> 00:25:50,760
Speaker 1: the table. I'm not predicting it, but that is on

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00:25:50,880 --> 00:25:55,320
Speaker 1: the table right now, Larry. If that's the downside case,

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00:25:55,400 --> 00:26:02,159
Speaker 1: what's the upside case? I think what I for is

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00:26:03,119 --> 00:26:07,680
Speaker 1: UH that this will be a period of renewal. You know,

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00:26:07,800 --> 00:26:11,480
Speaker 1: if you look at the long arc of American history,

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00:26:12,400 --> 00:26:17,239
Speaker 1: our great strength is the concept cop is is our

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00:26:17,320 --> 00:26:25,160
Speaker 1: ability to be resilient, for there to be prophecies of doom,

462
00:26:25,680 --> 00:26:29,520
Speaker 1: and for those prophecies to prove to be self denying

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00:26:30,560 --> 00:26:36,159
Speaker 1: because they mobilize energy that prompts renewal. That was the

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00:26:36,240 --> 00:26:41,240
Speaker 1: story around the Civil War. That was the story around

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00:26:41,320 --> 00:26:45,280
Speaker 1: the fears that we would lose the Cold War. That

466
00:26:45,359 --> 00:26:48,879
Speaker 1: was the that was what happened when people thought we

467
00:26:48,960 --> 00:26:51,960
Speaker 1: had a malaise and declared a crisis of the national

468
00:26:52,080 --> 00:26:58,320
Speaker 1: spirit in UH the late nineteen seventies. That's what prompted.

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00:26:58,680 --> 00:27:02,280
Speaker 1: It's at least said at Winston Churchill to have remarked

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00:27:02,320 --> 00:27:04,960
Speaker 1: that the United States always does the right thing, but

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00:27:05,040 --> 00:27:09,200
Speaker 1: only after exhausting the old alternatives. And I think it's

472
00:27:09,280 --> 00:27:12,960
Speaker 1: possible you look at what's happening in the United States,

473
00:27:13,040 --> 00:27:17,000
Speaker 1: if you look at what's happening in other countries that

474
00:27:18,000 --> 00:27:23,280
Speaker 1: not overnight. But these events may lance, as Francis to

475
00:27:23,440 --> 00:27:29,359
Speaker 1: Kayama put it, the populist boil, and populism may be

476
00:27:29,800 --> 00:27:35,520
Speaker 1: shown for the rhetorical but not substantive approach to governing

477
00:27:36,040 --> 00:27:41,040
Speaker 1: that it is, and electorates may learn that when it's

478
00:27:41,080 --> 00:27:46,600
Speaker 1: their children's livelihoods, when it's their own health that's at stake,

479
00:27:47,280 --> 00:27:53,200
Speaker 1: they need to put their faith UH someplace else. And

480
00:27:53,280 --> 00:27:57,960
Speaker 1: certainly in the United States, whether it is repairing the

481
00:27:58,000 --> 00:28:05,080
Speaker 1: potholes in the roads, whether it is improving education, whether

482
00:28:05,160 --> 00:28:11,560
Speaker 1: it is providing health care UH for everyone so that

483
00:28:11,600 --> 00:28:17,280
Speaker 1: they can feel secure, there is low hanging fruit. There

484
00:28:17,320 --> 00:28:21,680
Speaker 1: are problems that are not intractable very much the opposite

485
00:28:21,840 --> 00:28:27,640
Speaker 1: subject to effective resolution. And if we can return to

486
00:28:27,720 --> 00:28:36,680
Speaker 1: a culture of rational argument, of considered UH leadershipship, I

487
00:28:36,720 --> 00:28:41,880
Speaker 1: think that with all of our problems, with every problem

488
00:28:41,880 --> 00:28:45,000
Speaker 1: in the United States has playing the hand of the

489
00:28:45,080 --> 00:28:49,400
Speaker 1: United States. It's probably the best hand to play of

490
00:28:49,600 --> 00:28:54,880
Speaker 1: major countries in the world. So I am fearful, yes,

491
00:28:55,600 --> 00:29:00,720
Speaker 1: but I also see great potential in this moment. Larry,

492
00:29:00,760 --> 00:29:04,000
Speaker 1: you said something I think critically important. Just they're depending

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00:29:04,040 --> 00:29:08,000
Speaker 1: on rational judgment and considered leadership. In the past, when

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00:29:08,000 --> 00:29:10,840
Speaker 1: the United States has faced some historic crisis, we've prided

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00:29:10,840 --> 00:29:13,880
Speaker 1: ourselves the ability to bring the best minds into the room,

496
00:29:13,880 --> 00:29:16,960
Speaker 1: really dealing with the facts, not wishing ourselves to success,

497
00:29:17,080 --> 00:29:20,320
Speaker 1: having a media that can screen through some of the

498
00:29:20,360 --> 00:29:22,720
Speaker 1: subterfuge and really get to the truth. Do we have

499
00:29:22,800 --> 00:29:25,760
Speaker 1: those tools available to us today the way we have

500
00:29:25,800 --> 00:29:30,360
Speaker 1: in the past. They're not working well right now, and

501
00:29:31,040 --> 00:29:34,000
Speaker 1: we're gonna have to think very hard. And some of

502
00:29:34,000 --> 00:29:38,080
Speaker 1: it's a matter of law and regulation, but some of

503
00:29:38,120 --> 00:29:42,680
Speaker 1: it is a matter of culture about what UH might

504
00:29:42,720 --> 00:29:49,440
Speaker 1: be called Aggressiams law of communication, Aggressiams laws, the economic

505
00:29:49,560 --> 00:29:53,280
Speaker 1: proposition that bad money drives out good because people hoard

506
00:29:53,400 --> 00:29:56,920
Speaker 1: good money and they spend try to get rid of

507
00:29:57,800 --> 00:30:01,640
Speaker 1: bad money. There's some tendenc you like that in the

508
00:30:01,680 --> 00:30:06,400
Speaker 1: way we allocate our attention UH to the most exciting

509
00:30:07,080 --> 00:30:10,920
Speaker 1: thing to click bait rather than to substance. And there's

510
00:30:10,960 --> 00:30:15,400
Speaker 1: a lot of cultural, very large questions there. There's questions

511
00:30:15,520 --> 00:30:21,440
Speaker 1: of regulation, who's a publisher and who's a platform that

512
00:30:21,520 --> 00:30:26,200
Speaker 1: we're going to face. But ultimately, I think it's a

513
00:30:26,240 --> 00:30:33,440
Speaker 1: great deal about providing the right kind of vision, uh

514
00:30:33,560 --> 00:30:36,360
Speaker 1: two people. And a great deal of this, I think

515
00:30:36,480 --> 00:30:43,239
Speaker 1: is the responsibility of our schools and our universities. And

516
00:30:43,320 --> 00:30:50,280
Speaker 1: I think that Daniel Patrick moynihan said something very profound

517
00:30:50,960 --> 00:30:54,280
Speaker 1: when he said, you're entitled to your own opinions, You're

518
00:30:54,320 --> 00:30:58,440
Speaker 1: not entitled to your own facts. And what I, as

519
00:30:58,440 --> 00:31:03,479
Speaker 1: an educator, were worry about is that in our rush

520
00:31:03,640 --> 00:31:10,160
Speaker 1: to tolerance, we're stopping teaching that, and we're increasingly teaching

521
00:31:10,200 --> 00:31:15,280
Speaker 1: you actually are entitled to your feelings, and since your

522
00:31:15,360 --> 00:31:20,560
Speaker 1: feelings are paramount, whatever you whatever your view of the

523
00:31:20,640 --> 00:31:25,680
Speaker 1: facts is, is equally good. I think that's there in

524
00:31:26,240 --> 00:31:29,840
Speaker 1: the crazy things that our president says about the biology

525
00:31:30,120 --> 00:31:35,840
Speaker 1: of coronavirus, and that's there in some things that people

526
00:31:35,920 --> 00:31:40,640
Speaker 1: on the left UH say about the questions UH they

527
00:31:40,720 --> 00:31:49,280
Speaker 1: care about most. So Ultimately, politics rests on a social foundation,

528
00:31:50,120 --> 00:31:54,440
Speaker 1: and that I think is enormously important, and ours is

529
00:31:54,480 --> 00:31:57,000
Speaker 1: in need of some repair. Thank you so much. The

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00:31:57,120 --> 00:31:59,120
Speaker 1: Larry Summers always great to have him with us. He,

531
00:31:59,200 --> 00:32:01,280
Speaker 1: of course is the poor. Were Secret of Treasury now

532
00:32:01,320 --> 00:32:05,120
Speaker 1: at Harvard. Also was the Director of the Economic Council

533
00:32:05,160 --> 00:32:08,360
Speaker 1: at the White House under President Barack Obama. That's it

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00:32:08,440 --> 00:32:10,959
Speaker 1: for this edition of Wall Street Week. I'm David Western.

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00:32:11,400 --> 00:32:13,800
Speaker 1: See you next week. This is Bloomberg