1 00:00:00,040 --> 00:00:05,519 Speaker 1: Investments, Bloomberg Sound On the Insiders, the Influencers, the insides. 2 00:00:06,000 --> 00:00:09,120 Speaker 1: Fidens has Thomas again and again that he will denite 3 00:00:09,160 --> 00:00:12,480 Speaker 1: the country. Who do you think Biden has to watch 4 00:00:12,520 --> 00:00:16,440 Speaker 1: in terms of moderate defectors in the structure. Has always 5 00:00:16,480 --> 00:00:20,840 Speaker 1: been our part of sending Bloomberg Sound On on Bloomberg Radio. 6 00:00:22,840 --> 00:00:25,000 Speaker 1: I'm Rick Davis, and coming up on the show today 7 00:00:25,040 --> 00:00:28,840 Speaker 1: we talked to Congressman John Gara Mundy from California. I'm 8 00:00:28,920 --> 00:00:32,920 Speaker 1: Rick Davis, along with my fellow Bloomberg political contributor Jeanie Schnzano. 9 00:00:33,159 --> 00:00:36,440 Speaker 1: And today joining us on the palette is panel. Not 10 00:00:36,560 --> 00:00:40,559 Speaker 1: on the pallet is Bill McGinley. Bill comes from UH, 11 00:00:40,840 --> 00:00:44,440 Speaker 1: the firm of the Vogel Group and was a former 12 00:00:44,479 --> 00:00:47,480 Speaker 1: Deputy council at the Republican National Committee. So welcome Bill, 13 00:00:47,560 --> 00:00:50,640 Speaker 1: and let's jump right in. A lot of news today 14 00:00:50,880 --> 00:00:56,120 Speaker 1: from UH President Biden's trip to Louisiana and UH, and 15 00:00:56,160 --> 00:00:59,320 Speaker 1: I wanted to get a sense from the panel UH 16 00:00:59,440 --> 00:01:02,280 Speaker 1: he he was trying to garner support for his UH 17 00:01:02,440 --> 00:01:05,800 Speaker 1: two point three trillion dollar infrastructure plan and speaking in 18 00:01:05,840 --> 00:01:11,759 Speaker 1: front of a dilapidated bridge that dramatically represented decaying infrastructure 19 00:01:12,360 --> 00:01:15,839 Speaker 1: both Democrats and Republicans pledged to rebuild that bridge. Biden 20 00:01:15,920 --> 00:01:19,800 Speaker 1: said that Americans Job Plan will be investing in American 21 00:01:19,800 --> 00:01:22,639 Speaker 1: workers and that the US needs to compete with China. 22 00:01:23,200 --> 00:01:25,039 Speaker 1: But China has been making some news today too in 23 00:01:25,040 --> 00:01:29,959 Speaker 1: the Biden administration, and we've got sound on that Chinese 24 00:01:30,040 --> 00:01:33,800 Speaker 1: or eating our lunch. They're eating our lunch. Economically, they're 25 00:01:33,840 --> 00:01:37,360 Speaker 1: investing hundreds of billions of dollars in research and development. 26 00:01:37,680 --> 00:01:39,440 Speaker 1: That's why right now, if it keeps calling away, they're 27 00:01:39,440 --> 00:01:41,240 Speaker 1: going to own the electric car market in the world. 28 00:01:41,520 --> 00:01:43,800 Speaker 1: They're gonna own a whole rate. We got to compete. 29 00:01:44,800 --> 00:01:46,440 Speaker 1: Pell I want to start with you if I can. 30 00:01:46,920 --> 00:01:50,880 Speaker 1: I'm kind of curious if you think latching China and 31 00:01:51,080 --> 00:01:55,800 Speaker 1: sort of the bipartisan interest in competing with China will 32 00:01:55,840 --> 00:02:00,040 Speaker 1: help Joe Biden sell his infrastructure bill in Congress. I 33 00:02:00,080 --> 00:02:02,280 Speaker 1: think what he's trying to do is leverage the bipartisan 34 00:02:02,320 --> 00:02:07,400 Speaker 1: support for extending the China investment ban in bootstrapping that 35 00:02:07,480 --> 00:02:11,320 Speaker 1: onto infrastructure. I think the Republicans common complain about the 36 00:02:11,880 --> 00:02:15,920 Speaker 1: president's uh infrastructure plan. It's that uh, it's everything, but 37 00:02:16,200 --> 00:02:20,800 Speaker 1: a small portion that's actually going to go to roads, bridges, airports, um, 38 00:02:21,200 --> 00:02:23,880 Speaker 1: you know, water infrastructure, rural broadband, and some of the 39 00:02:23,919 --> 00:02:28,200 Speaker 1: other really popular bipartisan projects that the American people want 40 00:02:28,200 --> 00:02:30,560 Speaker 1: to see done where they can actually get a return 41 00:02:30,600 --> 00:02:33,040 Speaker 1: on investment and help this economy move forward once we 42 00:02:33,080 --> 00:02:35,239 Speaker 1: come out of the pandemic. So I think it was 43 00:02:35,280 --> 00:02:37,079 Speaker 1: a smart play by the President, but I think it's 44 00:02:37,080 --> 00:02:40,160 Speaker 1: gonna fall on deaf ears with Republicans up on Capitol 45 00:02:40,200 --> 00:02:43,000 Speaker 1: Hill who have put down a more scaled back by 46 00:02:43,240 --> 00:02:48,560 Speaker 1: UH infrastructure proposal that actually puts the money where it 47 00:02:48,600 --> 00:02:51,799 Speaker 1: needs to go, and that is on the heartscape infrastructure 48 00:02:51,800 --> 00:02:54,120 Speaker 1: we need to take care of. Yeah, Bill, And there 49 00:02:54,120 --> 00:02:57,280 Speaker 1: seems to be some interest in this bipartisan card by 50 00:02:57,280 --> 00:03:01,200 Speaker 1: the Biden administration because reporting has it he's likely to 51 00:03:01,320 --> 00:03:05,200 Speaker 1: keep the Trump China investment ban. And what I was 52 00:03:05,200 --> 00:03:08,480 Speaker 1: curious if you thought that was a surprise or is 53 00:03:08,520 --> 00:03:11,079 Speaker 1: that just good policy getting picked up from one administration 54 00:03:11,080 --> 00:03:13,959 Speaker 1: to another. I think that's good policy of getting picked 55 00:03:14,000 --> 00:03:17,000 Speaker 1: up from one administration to another. Um. It's one thing 56 00:03:17,040 --> 00:03:19,360 Speaker 1: to say things on the campaign trail and try to 57 00:03:19,400 --> 00:03:21,600 Speaker 1: have a reset in the relationship. It's another thing to 58 00:03:21,600 --> 00:03:24,640 Speaker 1: come into power and actually have access to the information 59 00:03:24,680 --> 00:03:28,280 Speaker 1: that decision makers need to rely on the China investment 60 00:03:28,320 --> 00:03:30,720 Speaker 1: ban as we do. In January, there was some confusion 61 00:03:30,760 --> 00:03:34,840 Speaker 1: about it. The New York Stock Exchange originally delisted and 62 00:03:34,960 --> 00:03:38,280 Speaker 1: relisted a couple of companies until Secretary Manution clarified that 63 00:03:38,840 --> 00:03:41,120 Speaker 1: the Biden administration has missed the deadline for them to 64 00:03:41,120 --> 00:03:43,680 Speaker 1: put out their list. But I would expect them to 65 00:03:43,720 --> 00:03:47,480 Speaker 1: do that in short order. The markets crave UH stability 66 00:03:47,960 --> 00:03:49,680 Speaker 1: and UH. I think that they're going to have to 67 00:03:49,680 --> 00:03:52,200 Speaker 1: come forward with that. It's too important, both in terms 68 00:03:52,240 --> 00:03:54,720 Speaker 1: of human rights in national security. Do you need Do 69 00:03:54,760 --> 00:03:57,680 Speaker 1: you have any questions on that? I certainly do. I. 70 00:03:57,760 --> 00:03:59,160 Speaker 1: You know, I just want to follow up on what 71 00:03:59,280 --> 00:04:01,440 Speaker 1: you and Bill were talking about, which is, you know, 72 00:04:01,560 --> 00:04:04,120 Speaker 1: him standing in front of this bridge. I think it 73 00:04:04,200 --> 00:04:08,320 Speaker 1: is incredibly important because you know, he is making a 74 00:04:08,360 --> 00:04:11,680 Speaker 1: case that all Republicans and Democrats and most Americans agree with, 75 00:04:12,040 --> 00:04:15,600 Speaker 1: which is that our hard or core infrastructure is in 76 00:04:15,760 --> 00:04:18,320 Speaker 1: need of you know, is wildly in disrepair and in 77 00:04:18,360 --> 00:04:21,680 Speaker 1: need of fixing. UM. I live, you know, very very 78 00:04:21,720 --> 00:04:25,239 Speaker 1: close to a bridge that just became the Mario Cuomo Bridge, 79 00:04:25,480 --> 00:04:28,159 Speaker 1: but before that was the tappan Z Bridge, which was 80 00:04:28,200 --> 00:04:31,440 Speaker 1: dilapidated for years here in Westchester County in New York. 81 00:04:31,560 --> 00:04:34,359 Speaker 1: So it's something that most people agree with. But Bill, 82 00:04:34,600 --> 00:04:37,400 Speaker 1: what I wanted to ask you was where do you 83 00:04:37,520 --> 00:04:41,080 Speaker 1: think how how high do you think Republicans are willing 84 00:04:41,120 --> 00:04:44,520 Speaker 1: to go. We've seen this proposal, We've seen Shelley Moore 85 00:04:44,600 --> 00:04:48,200 Speaker 1: Capital come out. She says she's having good discussions with 86 00:04:48,640 --> 00:04:51,640 Speaker 1: and good conversations with the White House. How high do 87 00:04:51,720 --> 00:04:54,400 Speaker 1: you think in terms of cost Republicans are prepared to 88 00:04:54,440 --> 00:04:58,800 Speaker 1: go for hardcore infrastructure. Look, I think that their opening 89 00:04:58,800 --> 00:05:01,880 Speaker 1: bid is in the bill ends not the trillions UM. 90 00:05:01,920 --> 00:05:03,640 Speaker 1: I think that it will probably it's not going to 91 00:05:03,800 --> 00:05:05,320 Speaker 1: end up in the middle. I think if they really 92 00:05:05,360 --> 00:05:07,640 Speaker 1: want bipartisan support, it's going to be closer to a 93 00:05:07,640 --> 00:05:11,679 Speaker 1: billion dollars on the shovel ready projects that everybody agrees 94 00:05:11,839 --> 00:05:15,120 Speaker 1: needs to be taken care of. UM. This is gonna 95 00:05:15,160 --> 00:05:16,840 Speaker 1: be a lot of give and take. You know. One 96 00:05:16,839 --> 00:05:18,839 Speaker 1: of the things that that we see out of the 97 00:05:18,839 --> 00:05:24,000 Speaker 1: Biden White House is the definition of bipartisanship means that 98 00:05:24,040 --> 00:05:27,320 Speaker 1: they're able to pull a political poll that shows that 99 00:05:27,400 --> 00:05:31,800 Speaker 1: Republicans and Democrats responded favorably to the question asked it 100 00:05:31,880 --> 00:05:35,839 Speaker 1: doesn't mean necessarily working across the aisle with Republican senators 101 00:05:35,839 --> 00:05:38,400 Speaker 1: and House members. And so I think that this this 102 00:05:38,520 --> 00:05:41,120 Speaker 1: infrastructure test, in the amount that's going to be spent 103 00:05:41,200 --> 00:05:43,240 Speaker 1: and where it's going to be spending, what it's spent on, 104 00:05:43,680 --> 00:05:45,320 Speaker 1: is going to be a true test to see whether 105 00:05:45,360 --> 00:05:46,919 Speaker 1: there actually is going to be able to be some 106 00:05:46,960 --> 00:05:50,680 Speaker 1: bipartisanship in Washington. Yeah, we even heard today built from 107 00:05:52,000 --> 00:05:55,320 Speaker 1: Minority Leader Mitch McConnell still have trouble saying, Minority Leader 108 00:05:55,800 --> 00:06:00,720 Speaker 1: um that that he's open to negotiation, but that it 109 00:06:00,800 --> 00:06:04,080 Speaker 1: sounds like he wants those deals that deal on his terms. 110 00:06:04,080 --> 00:06:06,240 Speaker 1: In other words, you know, this sort of what Jeanie 111 00:06:06,320 --> 00:06:10,000 Speaker 1: was saying starting with the UH capital proposal and then 112 00:06:10,040 --> 00:06:12,960 Speaker 1: maybe going up from there, and Biden kind of echoed 113 00:06:13,040 --> 00:06:15,880 Speaker 1: his willingness to do that by talking about how open 114 00:06:15,920 --> 00:06:21,640 Speaker 1: to negotiation he is on his tax hike on corporations. 115 00:06:22,080 --> 00:06:24,960 Speaker 1: Do you think Biden is sort of negotiating against himself 116 00:06:25,040 --> 00:06:28,520 Speaker 1: right now or are we just seeing the dance before 117 00:06:28,520 --> 00:06:32,839 Speaker 1: the marriage. I think it's the dance before the potential 118 00:06:32,920 --> 00:06:36,360 Speaker 1: marriage on this UM. I think right now, both parties 119 00:06:36,440 --> 00:06:39,680 Speaker 1: are engaged in political posturing as we totally expect them 120 00:06:39,720 --> 00:06:44,440 Speaker 1: to do. UM. I think that uh, Minority Leader, uh 121 00:06:44,760 --> 00:06:47,640 Speaker 1: McConnell is so you have trouble with the same thing 122 00:06:48,040 --> 00:06:51,080 Speaker 1: I have trouble with just a twister that I just 123 00:06:51,279 --> 00:06:54,560 Speaker 1: haven't accepted yet. UM. But I think, you know, I look, 124 00:06:54,640 --> 00:06:57,599 Speaker 1: I think Minority Leader McConnell is doing exactly what he 125 00:06:57,600 --> 00:06:59,760 Speaker 1: should be, which is, you know, he was sent there 126 00:06:59,800 --> 00:07:03,240 Speaker 1: to present those Americans in the flyover U States where 127 00:07:03,320 --> 00:07:08,039 Speaker 1: these these infrastructure projects like world broadband, bridges and in 128 00:07:08,200 --> 00:07:13,080 Speaker 1: roads and everything else really are the engine for economic recovery. 129 00:07:13,160 --> 00:07:16,680 Speaker 1: And I think making sure that those precious dollars we 130 00:07:16,760 --> 00:07:20,080 Speaker 1: don't have unlimited money, but those precious dollars actually going 131 00:07:20,120 --> 00:07:23,120 Speaker 1: to those projects that are going to improve the American 132 00:07:23,160 --> 00:07:26,640 Speaker 1: economy in the lives of Americans exactly what he should 133 00:07:26,640 --> 00:07:28,120 Speaker 1: be doing. And I think he's doing the right thing. 134 00:07:28,640 --> 00:07:30,560 Speaker 1: You know, I don't think that Chuck Schumer is going 135 00:07:30,640 --> 00:07:32,840 Speaker 1: to be happy with either one of you, who can't 136 00:07:32,880 --> 00:07:35,280 Speaker 1: get to the point of saying minority leader in terms 137 00:07:35,280 --> 00:07:39,160 Speaker 1: of McConnell. UM. So in terms of this issue of 138 00:07:39,200 --> 00:07:42,360 Speaker 1: the infrastructure built, one of the things that I keep 139 00:07:42,360 --> 00:07:46,120 Speaker 1: hearing UM is sort of a wavering amongst Democrats in 140 00:07:46,240 --> 00:07:49,400 Speaker 1: terms of whether this has to be paid for upfront, 141 00:07:49,520 --> 00:07:52,440 Speaker 1: because of course, when we talk about businesses, these kind 142 00:07:52,440 --> 00:07:55,280 Speaker 1: of capital expenses don't have to be paid for necessarily 143 00:07:55,640 --> 00:07:58,360 Speaker 1: upfront and all at once. So do you think there 144 00:07:58,440 --> 00:08:02,560 Speaker 1: is some room to maneuver on that score. Uh. If 145 00:08:02,560 --> 00:08:05,280 Speaker 1: you're referring to taxes, I think that most Republicans would 146 00:08:05,280 --> 00:08:07,320 Speaker 1: agree that as we come out of this pandemic, the 147 00:08:07,400 --> 00:08:11,080 Speaker 1: last thing we should be doing is increasing taxes that 148 00:08:11,120 --> 00:08:14,640 Speaker 1: are only going to take away jobs. Uh, in stifled growth. 149 00:08:15,240 --> 00:08:18,120 Speaker 1: The reason to invest in the infrastructure is to help 150 00:08:18,160 --> 00:08:21,240 Speaker 1: the economy, and I think, you know, trying to find 151 00:08:21,280 --> 00:08:24,400 Speaker 1: a way to to pay for it without um, you know, 152 00:08:24,440 --> 00:08:27,920 Speaker 1: really putting burdens on small businesses and the workers who 153 00:08:27,960 --> 00:08:30,120 Speaker 1: staff them. UM. I think it's going to be the 154 00:08:30,120 --> 00:08:32,520 Speaker 1: way to go. Whether it's the you know, they talk 155 00:08:32,559 --> 00:08:35,559 Speaker 1: about the capital gains tax tax being increased, which is 156 00:08:35,559 --> 00:08:39,200 Speaker 1: going to disproportionately hit the small business owners and farmers. UM. 157 00:08:39,240 --> 00:08:42,240 Speaker 1: If you're talking about any of the other taxes that 158 00:08:42,280 --> 00:08:43,720 Speaker 1: are going to be having there that could have a 159 00:08:43,760 --> 00:08:46,840 Speaker 1: material impact on investment. UM, that's not the way to 160 00:08:46,840 --> 00:08:49,840 Speaker 1: pay for the infrastructure package. There's got to be other 161 00:08:49,880 --> 00:08:52,200 Speaker 1: ways to do it. It could be a pay as 162 00:08:52,240 --> 00:08:54,520 Speaker 1: you go, but uh, this is going to be a 163 00:08:54,559 --> 00:08:56,520 Speaker 1: thorny issue. And I think you know what Rick was 164 00:08:56,559 --> 00:08:58,960 Speaker 1: mentioning about the dance before the marriage. I think that's 165 00:08:59,000 --> 00:09:00,560 Speaker 1: really where the rubber is going to beat the road, 166 00:09:00,800 --> 00:09:02,440 Speaker 1: not only in terms of are you going to limit 167 00:09:02,480 --> 00:09:05,280 Speaker 1: the scope of spending to where it should be, but 168 00:09:05,400 --> 00:09:07,440 Speaker 1: also how are you going to pay this tap? Because 169 00:09:07,480 --> 00:09:10,120 Speaker 1: remember we've already spent over five trillion dollars since the 170 00:09:10,120 --> 00:09:13,440 Speaker 1: pandemic began, and eventually those bills can do Yeah, And 171 00:09:13,480 --> 00:09:16,000 Speaker 1: I think it's a really good point bill that uh, 172 00:09:16,080 --> 00:09:18,480 Speaker 1: you know this debate is you love to talk about 173 00:09:18,480 --> 00:09:20,880 Speaker 1: the programs that are going to help people, and especially 174 00:09:20,920 --> 00:09:24,040 Speaker 1: on infrastructure. It just you know, jobs and improving the 175 00:09:24,040 --> 00:09:28,480 Speaker 1: community is just a really good political uh, acts to grind. 176 00:09:28,559 --> 00:09:30,800 Speaker 1: But but when you start talking about how to spend 177 00:09:30,880 --> 00:09:33,720 Speaker 1: money for it, and you know, Biden says, well, we gotta, 178 00:09:33,800 --> 00:09:35,959 Speaker 1: we gotta, you know, we gotta raise taxes to spend 179 00:09:36,000 --> 00:09:39,240 Speaker 1: this money. And nobody wants to go in any more debt. Uh, 180 00:09:39,280 --> 00:09:42,320 Speaker 1: You've got to. You've got a whole contrarian sort of 181 00:09:42,320 --> 00:09:45,920 Speaker 1: philosophy that starts to exist, and and maybe the Democrats. 182 00:09:46,000 --> 00:09:48,120 Speaker 1: You know, we talked about Joe Manchin quite a bit 183 00:09:48,120 --> 00:09:50,160 Speaker 1: on this program because he seems to be the one 184 00:09:50,200 --> 00:09:53,920 Speaker 1: most important person in Washington. Has already said that, uh 185 00:09:54,240 --> 00:09:56,959 Speaker 1: that you know, he's not willing to take that corporate 186 00:09:57,000 --> 00:10:00,679 Speaker 1: tax up to in order to pay for this infrastructure. 187 00:10:00,679 --> 00:10:05,960 Speaker 1: But maybe he could be negotiated around or something around there. 188 00:10:06,000 --> 00:10:08,640 Speaker 1: And and and so you see the meeting of these 189 00:10:08,640 --> 00:10:12,679 Speaker 1: forces around huge amounts of money, where you know, can 190 00:10:12,720 --> 00:10:16,520 Speaker 1: you pay for the deal that Biden has already suggested 191 00:10:16,559 --> 00:10:19,040 Speaker 1: if you don't get this this tax level or or 192 00:10:19,040 --> 00:10:21,440 Speaker 1: you're gonna have to cut a deal with Republicans. And 193 00:10:21,480 --> 00:10:24,839 Speaker 1: does that give you then an option of producing less 194 00:10:25,160 --> 00:10:27,719 Speaker 1: in the way a taxes. Uh, we're gonna uh, we're 195 00:10:27,720 --> 00:10:30,920 Speaker 1: gonna be talking more about this and other programs. Is 196 00:10:31,000 --> 00:10:34,280 Speaker 1: another issues as we get along in the program. But 197 00:10:34,800 --> 00:10:37,600 Speaker 1: I want to mention too that coming up later in 198 00:10:37,600 --> 00:10:42,480 Speaker 1: the program, we're gonna have Congressman John Gary Mundy. Uh. 199 00:10:42,480 --> 00:10:46,840 Speaker 1: He is a longtime congressman from California, Democrat, uh, in 200 00:10:46,920 --> 00:10:50,360 Speaker 1: a district that spans San Francisco to Sacramento. So it's 201 00:10:50,400 --> 00:10:53,120 Speaker 1: a it will be an interesting conversation to have with 202 00:10:53,200 --> 00:10:56,240 Speaker 1: him and uh and and on the topics of the day. 203 00:10:56,400 --> 00:11:00,400 Speaker 1: So um uh, I want to just say that I 204 00:11:00,400 --> 00:11:03,880 Speaker 1: appreciate having Genie and Bill McGuinty here, and I'm Rick Davis, 205 00:11:04,080 --> 00:11:13,400 Speaker 1: and this is Bloomberg. This is Bloomberg Sound On on 206 00:11:13,520 --> 00:11:19,439 Speaker 1: Bloomberg Radio. I'm Rick Davis, along with Bloomberg Politics contributor 207 00:11:19,600 --> 00:11:23,040 Speaker 1: Jennie Shnzano and Bill McGinley, principle at the Vogel Group 208 00:11:23,120 --> 00:11:26,560 Speaker 1: and former Deputy Council at the Republican National Committee. You know, 209 00:11:26,600 --> 00:11:28,560 Speaker 1: we were talking a little bit earlier in the program 210 00:11:28,600 --> 00:11:33,040 Speaker 1: about China and uh it's impact on infrastructure, and we've 211 00:11:33,080 --> 00:11:36,679 Speaker 1: got sound from the President today on just that every 212 00:11:36,679 --> 00:11:40,559 Speaker 1: single thing from the decament, aircraft, character, railing in the 213 00:11:40,679 --> 00:11:44,840 Speaker 1: new building is going to be built by an American company, 214 00:11:45,240 --> 00:11:51,959 Speaker 1: American workers, American supply chain, so that we invest American 215 00:11:52,040 --> 00:11:56,760 Speaker 1: tax dollars in American workers. Now, what he's not saying 216 00:11:57,040 --> 00:12:00,520 Speaker 1: is every time he says America, he's saying not China, 217 00:12:00,720 --> 00:12:03,280 Speaker 1: not China, not China. And so I want to get 218 00:12:03,320 --> 00:12:05,000 Speaker 1: back to that just a little bit more while we 219 00:12:05,080 --> 00:12:08,200 Speaker 1: finish out this conversation about infrastructure and move on to 220 00:12:08,200 --> 00:12:11,840 Speaker 1: other things. But UM, Bill, we talked earlier about whether 221 00:12:11,920 --> 00:12:16,800 Speaker 1: or not Republicans would be UH persuaded by this argument 222 00:12:16,840 --> 00:12:21,000 Speaker 1: that somehow infrastructure is directly related to our China program. UM, 223 00:12:21,240 --> 00:12:23,840 Speaker 1: but we haven't talked much about the China program itself, 224 00:12:23,880 --> 00:12:27,199 Speaker 1: other than the fact that Joe Biden has now said 225 00:12:27,720 --> 00:12:30,960 Speaker 1: he hasn't said it, but we're getting reporting that that 226 00:12:31,040 --> 00:12:35,480 Speaker 1: he may continue this UM, this UH ban on certain 227 00:12:35,480 --> 00:12:40,000 Speaker 1: investment in China. UH. Do you see the China mandate, 228 00:12:40,080 --> 00:12:44,040 Speaker 1: the China issue really dominating the foreign policy of this 229 00:12:44,080 --> 00:12:47,040 Speaker 1: administration or or are there other things that are going 230 00:12:47,080 --> 00:12:49,560 Speaker 1: to come on the plate that ultimately will steal the 231 00:12:49,559 --> 00:12:52,880 Speaker 1: show from China. Look, I think China is going to 232 00:12:52,920 --> 00:12:54,800 Speaker 1: be the dominant issue that they're going to deal with 233 00:12:54,840 --> 00:12:58,120 Speaker 1: in foreign policy. And I think the tone was sent 234 00:12:58,440 --> 00:13:02,080 Speaker 1: in the in the Acreage, Alaska meeting that happened right 235 00:13:02,120 --> 00:13:07,520 Speaker 1: after the inauguration. UM. That was a fairly contentious meeting. UM. 236 00:13:07,559 --> 00:13:10,439 Speaker 1: I think it's important to remember that the Trump administration 237 00:13:10,800 --> 00:13:14,120 Speaker 1: UM imposed their list under the old Black UM. A 238 00:13:14,160 --> 00:13:18,040 Speaker 1: lot of it was tied to companies UM that did 239 00:13:18,080 --> 00:13:21,880 Speaker 1: work with the UH the Chinese military. But remember there 240 00:13:21,960 --> 00:13:24,839 Speaker 1: was the law that was adopted in January of this 241 00:13:24,920 --> 00:13:29,120 Speaker 1: year over President Trump's veto UM that really kind of 242 00:13:29,160 --> 00:13:33,360 Speaker 1: expanded the Investment band to not only do UH cover 243 00:13:33,480 --> 00:13:35,920 Speaker 1: what was done in the Trump administration, but also to 244 00:13:36,000 --> 00:13:39,959 Speaker 1: include the technology sector UM, including anybody who's tied to 245 00:13:40,080 --> 00:13:43,920 Speaker 1: espionage of human rights abuses are manufacturing. So I think 246 00:13:43,920 --> 00:13:47,079 Speaker 1: the Biden's got a pretty wide swath on their desk 247 00:13:47,280 --> 00:13:50,440 Speaker 1: of companies to consider UM, and I think what they're 248 00:13:50,440 --> 00:13:52,400 Speaker 1: gonna have to do is way the pros and cons 249 00:13:52,480 --> 00:13:56,040 Speaker 1: on this, but ultimately there's going to be bipartisan support 250 00:13:56,480 --> 00:14:00,240 Speaker 1: not only to impose the bands on these companies, but 251 00:14:00,360 --> 00:14:03,160 Speaker 1: also to make sure in terms of infrastructure that we're 252 00:14:03,160 --> 00:14:06,480 Speaker 1: domesticating the supply chain. One thing that the pandemic has 253 00:14:06,520 --> 00:14:10,440 Speaker 1: taught us is that relying on foreign materials and products 254 00:14:10,480 --> 00:14:14,360 Speaker 1: in order to make American goods really exposes this country 255 00:14:14,360 --> 00:14:16,920 Speaker 1: to risk. And I think policymakers at all levels of 256 00:14:17,000 --> 00:14:20,280 Speaker 1: government are eager to try and find a solution to 257 00:14:20,400 --> 00:14:24,000 Speaker 1: domesticating supply chain. Yeah, well, said Bill, and and going 258 00:14:24,120 --> 00:14:29,440 Speaker 1: from UM country risk to financial risk, UM Security Exchange 259 00:14:29,440 --> 00:14:34,440 Speaker 1: Commissioner newly installed chairman Gary Gensler told lawmakers today that 260 00:14:34,480 --> 00:14:38,440 Speaker 1: the US investors lack protections when they trade bitcoin and 261 00:14:38,480 --> 00:14:42,400 Speaker 1: cryptocurrency exchanges, and discussed the game stock fallout, saying that 262 00:14:42,440 --> 00:14:45,800 Speaker 1: he had concerns that orderly flow of payments could raise 263 00:14:45,880 --> 00:14:49,480 Speaker 1: conflicts between brokerages and their clients. Uh, this is a 264 00:14:49,600 --> 00:14:51,480 Speaker 1: topic that we've been talking about on this show for 265 00:14:51,560 --> 00:14:54,560 Speaker 1: quite some time, but that he wasn't sure that there 266 00:14:54,640 --> 00:14:57,080 Speaker 1: was a quick or easy way to, uh, to fix 267 00:14:57,160 --> 00:14:59,880 Speaker 1: this problem. We've got sound on that make sure that 268 00:15:00,000 --> 00:15:04,960 Speaker 1: a rule set inspires more competition rather than concentration. And 269 00:15:05,040 --> 00:15:08,160 Speaker 1: we have seen, as you've noted in you're hearing and 270 00:15:08,280 --> 00:15:13,760 Speaker 1: increasing concentration in market making and also separately in brokerage 271 00:15:14,200 --> 00:15:18,240 Speaker 1: and particularly around retail order flow. And so I've asked 272 00:15:18,240 --> 00:15:21,080 Speaker 1: the staff both from the Division of Economic Research and 273 00:15:21,120 --> 00:15:24,600 Speaker 1: Analysis and Trading and Markets to sort of give us 274 00:15:24,640 --> 00:15:27,680 Speaker 1: a view, give give internally the commission of you what 275 00:15:27,680 --> 00:15:30,760 Speaker 1: what should we be thinking about in our market structure 276 00:15:31,280 --> 00:15:36,200 Speaker 1: to address this. So, Jennie, we've been talking about game stock, 277 00:15:36,240 --> 00:15:40,880 Speaker 1: We've been talking about cryptocurrency for some time. Uh. It's 278 00:15:41,200 --> 00:15:43,240 Speaker 1: kind of one of the things we think could have 279 00:15:43,280 --> 00:15:48,040 Speaker 1: some bipartisan residents here. UM, considering that both Republicans and 280 00:15:48,080 --> 00:15:50,720 Speaker 1: Democrats seem concerned about this. Do you do you see 281 00:15:51,000 --> 00:15:57,479 Speaker 1: UH Gary's UH chairman Gensler's comments being at all UH 282 00:15:57,480 --> 00:16:00,480 Speaker 1: controversial today or is he just declaring of the facts 283 00:16:00,480 --> 00:16:02,640 Speaker 1: as he knows them. Well, you know, I thought it 284 00:16:02,680 --> 00:16:04,960 Speaker 1: was a fascinating hearing today. It was the third I 285 00:16:05,000 --> 00:16:07,960 Speaker 1: believe in the final focused on this issue. As you mentioned, 286 00:16:08,000 --> 00:16:10,480 Speaker 1: we've been talking about in terms of game Stop and 287 00:16:10,560 --> 00:16:13,320 Speaker 1: I think just that the portion you just played where 288 00:16:13,320 --> 00:16:15,680 Speaker 1: he said there his staff is working on a report 289 00:16:15,720 --> 00:16:18,480 Speaker 1: that's going to address some of these issues. I'm really 290 00:16:18,480 --> 00:16:20,720 Speaker 1: looking forward to and curious to see what they have 291 00:16:20,880 --> 00:16:23,360 Speaker 1: to say. I believe he said that will be released 292 00:16:23,400 --> 00:16:27,800 Speaker 1: this summer, and he is talking about potentially new rules 293 00:16:27,840 --> 00:16:31,040 Speaker 1: and maybe needed and fascinating. He talked about the fact 294 00:16:31,080 --> 00:16:34,280 Speaker 1: I think the quote was that through gamification, you're using 295 00:16:34,400 --> 00:16:38,120 Speaker 1: psychological props to get people to trade more. And this 296 00:16:38,200 --> 00:16:40,000 Speaker 1: is you know, relevant to all the things we've been 297 00:16:40,000 --> 00:16:43,240 Speaker 1: talking about in this context and also Facebook and others. 298 00:16:43,520 --> 00:16:46,000 Speaker 1: And of course Gensler has had a rocky start, you know, 299 00:16:46,040 --> 00:16:48,720 Speaker 1: it's only his third week on the job about so, 300 00:16:49,120 --> 00:16:51,040 Speaker 1: I thought it was a fascinating hearing all around it. 301 00:16:51,080 --> 00:16:53,840 Speaker 1: To your point, I do think we probably will see 302 00:16:54,240 --> 00:16:56,360 Speaker 1: some new rules of the game, and I do think 303 00:16:56,400 --> 00:17:00,000 Speaker 1: there is bipartisan support on that. Well, thanks Jennie I 304 00:17:00,680 --> 00:17:03,520 Speaker 1: gamification of investment. We're gonna have to learn a whole 305 00:17:03,560 --> 00:17:07,200 Speaker 1: new vocabulary in order to keep in touch with what's 306 00:17:07,240 --> 00:17:10,160 Speaker 1: going on here. UM, we'll be UH will be joined 307 00:17:10,240 --> 00:17:13,920 Speaker 1: later in the program by Congressman John gare Mundy from 308 00:17:13,960 --> 00:17:19,040 Speaker 1: California Democrat UH and UH. Bill McGinley, H principle at 309 00:17:19,119 --> 00:17:22,639 Speaker 1: Vogel Group, will be continuing on with us in the 310 00:17:22,640 --> 00:17:25,560 Speaker 1: next segment, So we look forward to exploring this and 311 00:17:25,640 --> 00:17:32,480 Speaker 1: other topics. I'm Rick Davis, and this is Bloomberg. I'm 312 00:17:32,560 --> 00:17:36,280 Speaker 1: Rick Davis, along with Bloomberg Politics contributor Jeannie shawn Zo 313 00:17:36,480 --> 00:17:39,200 Speaker 1: and Bill McGinley, principal at the Vogel Group and former 314 00:17:39,240 --> 00:17:42,840 Speaker 1: Deputy Council at the Republican National Committee. And since I 315 00:17:42,880 --> 00:17:46,200 Speaker 1: have the UH, former Deputy Council of the Republican National 316 00:17:46,240 --> 00:17:47,879 Speaker 1: Committee with us, I thought it would be good to 317 00:17:47,880 --> 00:17:51,320 Speaker 1: talk about some of the hot news today on Capitol Hill. UH. 318 00:17:51,359 --> 00:17:54,880 Speaker 1: In the sort of inner party fight for leadership positions, 319 00:17:54,960 --> 00:17:59,840 Speaker 1: many prominent Republicans have been calling for Representative Liz Cheney 320 00:17:59,880 --> 00:18:02,280 Speaker 1: to be removed from position as chairman of the House 321 00:18:02,320 --> 00:18:07,040 Speaker 1: Republican Conference. Congresswoman Cheney and outspoken critic of the former 322 00:18:07,080 --> 00:18:11,480 Speaker 1: president Donald Trump, has reported that this pushed by her 323 00:18:12,000 --> 00:18:16,880 Speaker 1: repeated denunciations of Trump's comments related to the election results. 324 00:18:17,200 --> 00:18:20,800 Speaker 1: Other Republican leaders, like Senate Majority Leader Mitch McConnell, had 325 00:18:20,880 --> 00:18:25,200 Speaker 1: refused to discuss this argument for the change in GOP leadership. 326 00:18:26,000 --> 00:18:29,520 Speaker 1: During a press conference on Wednesday, President Biden uh commented 327 00:18:29,560 --> 00:18:31,840 Speaker 1: on this split, noting that the party is going through 328 00:18:31,880 --> 00:18:35,400 Speaker 1: a mini revolution. Not sure what that means, but this 329 00:18:35,480 --> 00:18:38,320 Speaker 1: is something different than what we've seen from him in 330 00:18:38,359 --> 00:18:41,320 Speaker 1: the past. We've got sound on that. I've been a 331 00:18:41,359 --> 00:18:44,160 Speaker 1: Democrat for a long time. We've gone through periods, We've 332 00:18:44,160 --> 00:18:48,320 Speaker 1: had internal fights and disagreements. Don't ever remember any like this. 333 00:18:48,920 --> 00:18:51,480 Speaker 1: We need a two party system. It's not healthy to 334 00:18:51,560 --> 00:18:55,680 Speaker 1: have a one party system, and I think the Republicans 335 00:18:55,840 --> 00:18:59,479 Speaker 1: are further away from trying to figure out who they 336 00:18:59,480 --> 00:19:01,439 Speaker 1: are and with the stand for then I thought they 337 00:19:01,440 --> 00:19:04,679 Speaker 1: would be at this point. So Bill, we got the 338 00:19:04,760 --> 00:19:09,359 Speaker 1: President of the United States, Democrat Joe Biden, given US 339 00:19:09,600 --> 00:19:12,840 Speaker 1: party advice on how to how to manage our own 340 00:19:12,920 --> 00:19:17,040 Speaker 1: internal affairs. Um, what's your sense of the Biden comments 341 00:19:17,119 --> 00:19:21,200 Speaker 1: when even Mitch McConnell, are Leader in Congress, Senior Leader 342 00:19:21,200 --> 00:19:24,280 Speaker 1: in Congress, was wasn't willing to enter into this fray. 343 00:19:24,320 --> 00:19:26,000 Speaker 1: And then if you could follow that up with your 344 00:19:26,000 --> 00:19:30,040 Speaker 1: own thoughts on what's going on in the House leadership fight, Well, 345 00:19:30,080 --> 00:19:33,439 Speaker 1: I'm absolutely shocked that President Biden wants to engage in 346 00:19:33,520 --> 00:19:37,560 Speaker 1: politics when it comes to internal Republican issues. So he's 347 00:19:37,640 --> 00:19:40,320 Speaker 1: just stirring the pot. In terms of where I think 348 00:19:40,400 --> 00:19:43,040 Speaker 1: this is, I mean, I think Leader McConnell uh, and 349 00:19:43,080 --> 00:19:44,800 Speaker 1: I'm just going to shorten that title just so we 350 00:19:44,840 --> 00:19:48,080 Speaker 1: can say it without her issues. Um, I think Leader 351 00:19:48,119 --> 00:19:53,440 Speaker 1: McConnell um recognizes that the House Republican Caucuses has its 352 00:19:53,520 --> 00:19:56,040 Speaker 1: own way of settling these types of issues, and he's 353 00:19:56,080 --> 00:19:58,240 Speaker 1: not going to get involved. Um. I thought that was 354 00:19:58,280 --> 00:20:00,600 Speaker 1: exactly what he should do, is let the House Republicans 355 00:20:00,600 --> 00:20:03,960 Speaker 1: that I think the House Republican Caucus and I think 356 00:20:04,040 --> 00:20:08,000 Speaker 1: Leader McCarthy said that allowed. Uh the other day is 357 00:20:08,080 --> 00:20:11,600 Speaker 1: basically focused not on the impeachment vote, which is what 358 00:20:11,680 --> 00:20:14,399 Speaker 1: a lot of people tend to focus on. It's the 359 00:20:14,440 --> 00:20:17,320 Speaker 1: fact that we just can't move. She can't move past 360 00:20:17,400 --> 00:20:19,760 Speaker 1: and get on board with where the caucus is and 361 00:20:19,880 --> 00:20:23,359 Speaker 1: trying to focus the energy and the attention on what 362 00:20:23,440 --> 00:20:25,920 Speaker 1: needs to happen to take back the House of Representatives 363 00:20:25,920 --> 00:20:30,720 Speaker 1: in two. I think even Democrats would acknowledge that Republicans 364 00:20:30,720 --> 00:20:34,920 Speaker 1: stand a really good shot of recapturing the House, if 365 00:20:34,960 --> 00:20:39,399 Speaker 1: not the House and the Senate in two. And I think, uh, 366 00:20:39,440 --> 00:20:41,760 Speaker 1: you know, Leader McCarthy and Whip Scolice, I think that 367 00:20:41,800 --> 00:20:46,000 Speaker 1: their frustration is instead of rehashing all of these issues, 368 00:20:46,040 --> 00:20:48,320 Speaker 1: what they really want to do is unify the caucus, 369 00:20:48,560 --> 00:20:52,040 Speaker 1: marshal the resources um, and take back that chamber so 370 00:20:52,080 --> 00:20:55,159 Speaker 1: that they can have input and if not stop some 371 00:20:55,200 --> 00:20:57,119 Speaker 1: of the Biden policies that they believe are not going 372 00:20:57,160 --> 00:21:00,439 Speaker 1: to be helpful for the American people. Hey, Jeannie, Um, 373 00:21:00,440 --> 00:21:04,520 Speaker 1: even though you haven't seen Mitch McConnell way in on this, uh, 374 00:21:04,560 --> 00:21:08,320 Speaker 1: and rightly so, I think based on what Bill says, UM, 375 00:21:08,440 --> 00:21:11,240 Speaker 1: you have had other senators like Mitt Romney way in 376 00:21:11,440 --> 00:21:15,320 Speaker 1: on behalf of Louis Cheney. Uh. Does the inner Party feud, 377 00:21:15,920 --> 00:21:19,159 Speaker 1: assuming we can call it, that, have any impact you 378 00:21:19,200 --> 00:21:23,240 Speaker 1: think on our legislative strategy? The Republican legislative strategy on 379 00:21:23,320 --> 00:21:26,640 Speaker 1: Capitol Hill. I mean, divided, we fall, United, we win. 380 00:21:26,760 --> 00:21:28,840 Speaker 1: I mean, is there is there something to do with that? 381 00:21:29,880 --> 00:21:32,560 Speaker 1: It's such a good question, you know, I think that 382 00:21:32,760 --> 00:21:36,160 Speaker 1: based on what Bill just said, I couldn't agree more 383 00:21:36,440 --> 00:21:39,720 Speaker 1: that Republicans are in a very good position if you 384 00:21:39,760 --> 00:21:42,480 Speaker 1: look at the sense, as you look at the upcoming reapportionment, 385 00:21:42,880 --> 00:21:46,000 Speaker 1: you look at their you know, obviously the history, the 386 00:21:46,040 --> 00:21:49,919 Speaker 1: recent history of midterms, Republicans have a really good shot 387 00:21:49,960 --> 00:21:52,760 Speaker 1: of picking up the House and potentially the Senate, given 388 00:21:52,760 --> 00:21:55,679 Speaker 1: how close they are right now. And I think, you know, 389 00:21:55,720 --> 00:21:59,640 Speaker 1: when you ask about does this impact their their legislative agenda, 390 00:22:00,160 --> 00:22:03,720 Speaker 1: they are the opposition and so they are against Joe 391 00:22:03,760 --> 00:22:07,359 Speaker 1: Biden and the Democrats almost at every turn. I don't 392 00:22:07,440 --> 00:22:10,760 Speaker 1: think this changes that too much. And I will tell 393 00:22:10,760 --> 00:22:13,399 Speaker 1: you just going back to what President Biden said in 394 00:22:13,440 --> 00:22:16,480 Speaker 1: the clip that you played. You know, I remember when 395 00:22:16,520 --> 00:22:19,600 Speaker 1: when Barack Obama was elected talking to friends who were 396 00:22:19,600 --> 00:22:22,879 Speaker 1: talking about the demise of the Republican Party. Then I 397 00:22:22,920 --> 00:22:26,679 Speaker 1: think Democrats need to be very cautious about that. I 398 00:22:26,720 --> 00:22:30,280 Speaker 1: would not advise Joe Biden to be engaging in that 399 00:22:30,400 --> 00:22:33,280 Speaker 1: kind of discussion. I agree with him. We need a strong, 400 00:22:33,480 --> 00:22:36,639 Speaker 1: vibrant two party system. But to talk about the Republican 401 00:22:36,640 --> 00:22:39,240 Speaker 1: Party as if it's near its end, I think is 402 00:22:39,280 --> 00:22:42,199 Speaker 1: a bridge too far given what's likely to happen in 403 00:22:42,240 --> 00:22:45,439 Speaker 1: about eighteen months as we move into two Well, we 404 00:22:45,480 --> 00:22:47,480 Speaker 1: can we can only hope that the presidents listening on 405 00:22:47,520 --> 00:22:51,400 Speaker 1: a program today found on a really good advice from 406 00:22:51,400 --> 00:22:54,040 Speaker 1: our panelists. Uh if I could follow up with Eugenie, 407 00:22:54,080 --> 00:22:57,240 Speaker 1: because one of the issues here is, um, it looks 408 00:22:57,400 --> 00:23:00,440 Speaker 1: a little bit bad for Republicans with women were publican 409 00:23:00,720 --> 00:23:05,760 Speaker 1: elected office holders have always had challenges getting women voters. Uh? 410 00:23:05,840 --> 00:23:09,600 Speaker 1: Does this uh set us back from the perspective of 411 00:23:09,800 --> 00:23:12,399 Speaker 1: potentially having a conversation to try and bring more women 412 00:23:12,400 --> 00:23:15,440 Speaker 1: into the party. You know. I think that's why there 413 00:23:15,480 --> 00:23:18,640 Speaker 1: is a lot of focus on at least Stephonic to replace, 414 00:23:18,760 --> 00:23:22,040 Speaker 1: potentially to replace Liz Cheney. And I think there's been 415 00:23:22,080 --> 00:23:25,600 Speaker 1: some grumbling there amongst others in the caucus because she's 416 00:23:25,640 --> 00:23:28,800 Speaker 1: not seen as even as conserved Liz Cheney, let alone 417 00:23:28,880 --> 00:23:31,800 Speaker 1: some others. But I do think Republicans recognize that they've 418 00:23:31,840 --> 00:23:35,040 Speaker 1: had an issue, and she quite frankly, has been a 419 00:23:35,240 --> 00:23:39,120 Speaker 1: pretty good fundraiser. The women who came in this last cycle. 420 00:23:39,560 --> 00:23:42,159 Speaker 1: She had a hand in bringing them in. So I 421 00:23:42,200 --> 00:23:44,359 Speaker 1: do think they are smart to focus on that, but 422 00:23:44,520 --> 00:23:47,800 Speaker 1: obviously Republicans meet to need to do a much better 423 00:23:47,880 --> 00:23:51,439 Speaker 1: job on that score in attracting women and minorities. And 424 00:23:51,480 --> 00:23:54,239 Speaker 1: that gets back to what you said earlier about the 425 00:23:54,280 --> 00:23:58,639 Speaker 1: focus on issues that people care about, women and minorities 426 00:23:58,680 --> 00:24:02,440 Speaker 1: care about, and thin is like, you know, not over 427 00:24:02,520 --> 00:24:05,720 Speaker 1: extending ourselves potentially in terms of the deficit and not 428 00:24:05,880 --> 00:24:09,159 Speaker 1: overspending in those kinds of issues. Those are attractive. If 429 00:24:09,160 --> 00:24:11,199 Speaker 1: they could get back to an argument like that and 430 00:24:11,240 --> 00:24:16,160 Speaker 1: get off of revisiting, they will help themselves there. Okay, Bill, 431 00:24:16,280 --> 00:24:19,680 Speaker 1: real quick? Uh, election is tomorrow. Let's say who wins 432 00:24:19,720 --> 00:24:24,520 Speaker 1: in the leadership fight? Stephonic or Cheney? Uh? Stephonic? And 433 00:24:24,560 --> 00:24:28,119 Speaker 1: I think you know, I thought Jennie's comments were spot on. 434 00:24:28,119 --> 00:24:30,360 Speaker 1: One of the things to remember is that a lot 435 00:24:30,400 --> 00:24:34,919 Speaker 1: of the candidates she at least Bill, We're gonna have 436 00:24:34,960 --> 00:24:38,040 Speaker 1: to let Genie's comments stand on their own. Thank you 437 00:24:38,080 --> 00:24:40,600 Speaker 1: so much for being on the program today, and the 438 00:24:40,640 --> 00:24:44,080 Speaker 1: next segment will be joined by Congressman John Gary Monday 439 00:24:44,160 --> 00:24:47,080 Speaker 1: from California, and we look forward to having him on 440 00:24:47,119 --> 00:24:50,119 Speaker 1: the show. This is I'm Rick Davis, and this is Bloomberg. 441 00:24:53,760 --> 00:24:59,720 Speaker 1: This is Bloomberg sound on on Bloomberg Radio. I'm Rick 442 00:24:59,800 --> 00:25:04,399 Speaker 1: David us along with Bloomberg Politics contributor Jeanie Schanzano and 443 00:25:04,560 --> 00:25:07,960 Speaker 1: joining us on the line now as Congressman John Gara Mundy, 444 00:25:08,119 --> 00:25:12,240 Speaker 1: who is a Democrat representing California's third congressional district, and 445 00:25:12,240 --> 00:25:15,800 Speaker 1: if I recall, that's somewhere between San Francisco and Sacramento. 446 00:25:15,920 --> 00:25:19,639 Speaker 1: So welcome to the program, Congressman. And we've been talking 447 00:25:19,640 --> 00:25:24,760 Speaker 1: about the president's speech in Louisiana today on the shores 448 00:25:24,800 --> 00:25:27,920 Speaker 1: of Lake Charles in front of a dilapidated bridge, making 449 00:25:27,960 --> 00:25:31,040 Speaker 1: the case for why we need to improve America's infrastructure. 450 00:25:31,960 --> 00:25:33,720 Speaker 1: But we also have a lot of noise all around 451 00:25:33,760 --> 00:25:38,520 Speaker 1: that debate, UH, positioning for bipartisanship, how are we gonna 452 00:25:38,520 --> 00:25:40,679 Speaker 1: pay for it? What's your sense of the state of 453 00:25:40,720 --> 00:25:43,480 Speaker 1: the negotiations right now or the state of play in 454 00:25:43,520 --> 00:25:47,120 Speaker 1: the infrastructure bill in the House or even at large 455 00:25:47,119 --> 00:25:51,600 Speaker 1: in Congress. I think there was a very good opportunity 456 00:25:51,640 --> 00:25:56,400 Speaker 1: to do a major bi partisan infrastructure bill until Miss 457 00:25:56,480 --> 00:26:02,919 Speaker 1: McConnell spoke yesterday. Instead, his task is to stop Biden 458 00:26:03,000 --> 00:26:06,199 Speaker 1: from doing anything. So I don't know how we go 459 00:26:06,320 --> 00:26:11,200 Speaker 1: forward with any kind of a bipartisan infrastructure bill if 460 00:26:11,240 --> 00:26:15,679 Speaker 1: if that's where the Senate Republicans are. Congressman, do you 461 00:26:15,720 --> 00:26:21,520 Speaker 1: think that there's appetite or votes for potentially going it 462 00:26:21,560 --> 00:26:25,679 Speaker 1: alone and and doing like the stimulus bill where you 463 00:26:25,720 --> 00:26:27,919 Speaker 1: can take it through reconciliation and do it on a 464 00:26:27,960 --> 00:26:32,199 Speaker 1: party line vote. Well, let's start with there's an appetite 465 00:26:32,320 --> 00:26:35,680 Speaker 1: for among Americans to do an infrastructure bill. I get 466 00:26:35,720 --> 00:26:40,680 Speaker 1: it from heavy duty Republicans, conservative business Republicans. They knew, 467 00:26:40,800 --> 00:26:43,880 Speaker 1: they know, they want, They know that we need, and 468 00:26:43,920 --> 00:26:47,879 Speaker 1: they want a major infrastructure bill, all the pieces of it. 469 00:26:48,000 --> 00:26:52,399 Speaker 1: They understand the need for UH education and understand the 470 00:26:52,400 --> 00:26:55,960 Speaker 1: need for childcare. They want it now the Senate and 471 00:26:56,040 --> 00:27:02,760 Speaker 1: the House Republicans that's another matter. They've become extraordinary it resistance. UH. 472 00:27:02,800 --> 00:27:08,000 Speaker 1: And can we bound up the votes per cent plus 473 00:27:08,040 --> 00:27:11,760 Speaker 1: one vote? I believe we can because Democrats know exactly 474 00:27:11,840 --> 00:27:15,959 Speaker 1: what the Republicans should know that our citizens an our 475 00:27:16,000 --> 00:27:22,320 Speaker 1: constituents what a big infrastructure bill. So, Congressman, tomorrow, we 476 00:27:22,400 --> 00:27:25,280 Speaker 1: are looking forward to getting the jobs report and the 477 00:27:25,320 --> 00:27:28,800 Speaker 1: forecast look like it maybe around nine hundred thousand plus 478 00:27:28,880 --> 00:27:32,640 Speaker 1: or minus new jobs for April, some very strong numbers. 479 00:27:33,080 --> 00:27:35,680 Speaker 1: Do you think this is? These kinds of numbers, if 480 00:27:35,680 --> 00:27:37,719 Speaker 1: that's what we see tomorrow, are going to make it 481 00:27:37,760 --> 00:27:41,200 Speaker 1: difficult for Democrats to argue that we should be spending 482 00:27:41,240 --> 00:27:45,560 Speaker 1: trillion more, trillions of dollars more, because certainly I expect 483 00:27:45,560 --> 00:27:48,760 Speaker 1: the Republicans will be highlighting that the economy recovering in 484 00:27:48,800 --> 00:27:51,800 Speaker 1: this way, we don't need to be spending that much. 485 00:27:51,840 --> 00:27:55,520 Speaker 1: So how do you respond to that? I would say 486 00:27:55,560 --> 00:27:59,080 Speaker 1: that's a rather foulish argument. The question goes the other way. 487 00:27:59,119 --> 00:28:02,320 Speaker 1: What do we need to do to have a modern 488 00:28:02,359 --> 00:28:06,960 Speaker 1: competitive society and economy? Well, let's see bridges. I think 489 00:28:06,960 --> 00:28:10,159 Speaker 1: the President was talking about that roads. I'm on a 490 00:28:10,240 --> 00:28:11,760 Speaker 1: road right now, and I know I can hit a 491 00:28:11,800 --> 00:28:14,760 Speaker 1: pothole anytime, and I can blow a tire or an 492 00:28:14,760 --> 00:28:20,280 Speaker 1: alignment on this car. I know that broadband infrastructure is 493 00:28:20,320 --> 00:28:24,720 Speaker 1: not available in my district. My district cannot be a 494 00:28:24,760 --> 00:28:29,720 Speaker 1: modern competitive district without broad that and it doesn't exist today. 495 00:28:30,240 --> 00:28:32,840 Speaker 1: Now that if we're going to compete with China, we 496 00:28:32,880 --> 00:28:36,520 Speaker 1: have to have research, research facilities and researchers, and then 497 00:28:36,560 --> 00:28:38,880 Speaker 1: we need to make the things that come from that research. 498 00:28:39,360 --> 00:28:41,920 Speaker 1: How do we get that, Well, that's with a well educated, 499 00:28:41,960 --> 00:28:46,240 Speaker 1: well prepared workforce. Uh So, you know you start that way, 500 00:28:46,320 --> 00:28:49,640 Speaker 1: started to start piece by piece and add up to pieces. 501 00:28:49,800 --> 00:28:51,760 Speaker 1: And then how much money do you need to carry 502 00:28:51,760 --> 00:28:54,200 Speaker 1: out each of those tests? Not in one year, but 503 00:28:54,320 --> 00:28:57,720 Speaker 1: over ten years. At one trillion is a ten year deal. 504 00:28:57,800 --> 00:29:00,000 Speaker 1: That's it's just me a little of it's almost nine years. 505 00:29:00,880 --> 00:29:03,560 Speaker 1: Uh So that's how you go about it. To just 506 00:29:03,600 --> 00:29:06,880 Speaker 1: say all that numbers too big. Well, show me that 507 00:29:06,960 --> 00:29:09,640 Speaker 1: it's too big. Show me that we don't need money 508 00:29:09,640 --> 00:29:11,720 Speaker 1: for bridges. Show me we don't need money for roads, 509 00:29:11,800 --> 00:29:13,960 Speaker 1: we don't need money for Amtrak, we don't need money 510 00:29:13,960 --> 00:29:17,960 Speaker 1: for transit. We don't need a new uh gateway tunnel 511 00:29:18,000 --> 00:29:21,760 Speaker 1: into Manhattan from from New Jersey. You show me that 512 00:29:21,800 --> 00:29:23,880 Speaker 1: we don't need those things, and then we can subtract 513 00:29:23,960 --> 00:29:26,320 Speaker 1: from the numbers. Yeah, living in New York City in 514 00:29:26,640 --> 00:29:28,400 Speaker 1: this area, I could tell you we do need that 515 00:29:28,480 --> 00:29:30,840 Speaker 1: new tunnel. But a lot of the examples you just 516 00:29:30,920 --> 00:29:34,200 Speaker 1: gave are these sort of hardcore infrastructure that most most 517 00:29:34,200 --> 00:29:38,239 Speaker 1: Republicans and Democrats agree on. So is there you know 518 00:29:38,360 --> 00:29:42,320 Speaker 1: a number at which you would feel comfortable going down 519 00:29:42,360 --> 00:29:46,120 Speaker 1: to to meet the Democrats, I mean, sorry, the Republicans, 520 00:29:46,200 --> 00:29:48,560 Speaker 1: because I guess the argument is not that we don't 521 00:29:48,600 --> 00:29:50,840 Speaker 1: need the bridges, the tunnels, the broadband, those things you 522 00:29:50,880 --> 00:29:53,760 Speaker 1: laid out, but that with the economy recovering, we may 523 00:29:53,840 --> 00:29:57,440 Speaker 1: not need it. At four trillion dollars. You've got the 524 00:29:57,440 --> 00:30:01,080 Speaker 1: wrong argument. You've got absolutely the wrong argument. It's not 525 00:30:01,240 --> 00:30:04,520 Speaker 1: about the economy recovering. You're still going to have two 526 00:30:04,560 --> 00:30:06,520 Speaker 1: to three million women that are not going to be 527 00:30:06,560 --> 00:30:08,840 Speaker 1: in the workforce because they're going to be that you 528 00:30:08,880 --> 00:30:14,239 Speaker 1: don't have childcare. You've got, but the argument that we're 529 00:30:14,280 --> 00:30:16,400 Speaker 1: going to find a number is just not the way 530 00:30:16,400 --> 00:30:19,000 Speaker 1: to go about this. The argument is set down, how 531 00:30:19,080 --> 00:30:24,480 Speaker 1: much money do you need for that uh gateway tunnel? Okay, 532 00:30:24,520 --> 00:30:26,880 Speaker 1: how much money do you need to rebuild the transit 533 00:30:26,960 --> 00:30:29,680 Speaker 1: system in in New York? How much money do you 534 00:30:29,720 --> 00:30:36,160 Speaker 1: need to uh prepare to uh uh prepare Manhattan for 535 00:30:36,320 --> 00:30:40,040 Speaker 1: a sea level rise caused by a hurricane has happened 536 00:30:40,040 --> 00:30:42,840 Speaker 1: a decade and a half ago. Go through each one 537 00:30:42,880 --> 00:30:45,320 Speaker 1: of those numbers and argue we don't need that, we 538 00:30:45,400 --> 00:30:49,040 Speaker 1: do need that, we don't need it. Okay, subtractive. If 539 00:30:49,080 --> 00:30:51,280 Speaker 1: we do need it all right, now, how are we 540 00:30:51,360 --> 00:30:54,280 Speaker 1: going to pay for it? And that's how this has 541 00:30:54,320 --> 00:30:57,880 Speaker 1: to be done. And so you know, I will I 542 00:30:57,920 --> 00:31:00,280 Speaker 1: won't be put in a position saying one in eight 543 00:31:00,320 --> 00:31:03,600 Speaker 1: trillion is the magic number. The magic number comes from 544 00:31:03,640 --> 00:31:06,840 Speaker 1: adding up each one of the specific infrastructure of things 545 00:31:06,880 --> 00:31:10,360 Speaker 1: we need. I was talking earlier today to a group 546 00:31:10,440 --> 00:31:16,400 Speaker 1: of medical folks who cannot provide medical services, modern medical 547 00:31:16,440 --> 00:31:23,000 Speaker 1: services because they do not have fiber optic broadband communication availability. 548 00:31:23,440 --> 00:31:26,400 Speaker 1: And that's the story. In my district. My farmers cannot 549 00:31:26,840 --> 00:31:32,440 Speaker 1: properly manage the irrigation system unless they have broadband communication available, 550 00:31:32,480 --> 00:31:35,960 Speaker 1: and they do not, so tell my farmers they don't 551 00:31:35,960 --> 00:31:39,520 Speaker 1: need that. Well, okay, how are we going to compete 552 00:31:39,560 --> 00:31:43,760 Speaker 1: with China if we don't have a modern, very robust 553 00:31:44,800 --> 00:31:48,400 Speaker 1: research infrastructure with it not all the laboratories and the facilities, 554 00:31:48,440 --> 00:31:52,200 Speaker 1: but also the professors and the researchers. That's how we 555 00:31:52,240 --> 00:31:55,200 Speaker 1: go about this. Yeah, Congressman, that makes so much sense, 556 00:31:55,200 --> 00:31:57,240 Speaker 1: and we hear it from so many of your colleagues, 557 00:31:57,360 --> 00:32:01,000 Speaker 1: especially in agricultural districts, where they say, look, you know, 558 00:32:01,240 --> 00:32:05,640 Speaker 1: just because the urban areas have great telecommunications and broadband access. 559 00:32:05,640 --> 00:32:07,160 Speaker 1: It doesn't mean the rest of the country does, and 560 00:32:07,200 --> 00:32:10,160 Speaker 1: we need it for our economic development. And that links 561 00:32:10,240 --> 00:32:14,280 Speaker 1: so much to the debate over supply chain and by America. 562 00:32:14,400 --> 00:32:19,880 Speaker 1: So these are all intertwined, very important issues that that 563 00:32:20,000 --> 00:32:23,840 Speaker 1: seemed to be linked to the core of this infrastructure plan. 564 00:32:23,960 --> 00:32:26,320 Speaker 1: So it will be interesting to see how it plays out. 565 00:32:26,560 --> 00:32:28,280 Speaker 1: You know, I want to appeal to one of your 566 00:32:28,760 --> 00:32:34,440 Speaker 1: historical achievements. You were the former Clinton administration UH deputy 567 00:32:34,800 --> 00:32:40,080 Speaker 1: Interior secretaries, and today President Biden launched an initiative called 568 00:32:40,120 --> 00:32:43,440 Speaker 1: America the Beautiful where he's looking to put into land 569 00:32:43,480 --> 00:32:48,200 Speaker 1: conservation of land and water by thirty a very ambitious 570 00:32:48,240 --> 00:32:51,560 Speaker 1: goal coming from an agricultural district like you do. What's 571 00:32:51,560 --> 00:32:56,320 Speaker 1: your impression of that initiative. I think it's a great 572 00:32:56,480 --> 00:32:58,800 Speaker 1: a great concept. I don't know it's actually what it is, 573 00:32:58,840 --> 00:33:03,160 Speaker 1: but we do know we must protect our land UH 574 00:33:03,200 --> 00:33:06,040 Speaker 1: and our water and and our air. Part of this 575 00:33:06,120 --> 00:33:10,040 Speaker 1: ties back to climate change. We we certainly know that 576 00:33:10,360 --> 00:33:14,640 Speaker 1: if we allow prime agricultural land here in California to 577 00:33:14,640 --> 00:33:18,560 Speaker 1: be paved over for subdivisions, we lose a very very 578 00:33:18,560 --> 00:33:21,200 Speaker 1: important part of our economy. And Frank of your ability 579 00:33:21,240 --> 00:33:23,720 Speaker 1: to feed each other. So these are all things that 580 00:33:23,760 --> 00:33:28,920 Speaker 1: are tied together. Uh. Water conservation absolutely essential. We're of 581 00:33:29,000 --> 00:33:32,360 Speaker 1: drought in California, but I'm a rancher. I'm moving my 582 00:33:32,520 --> 00:33:37,320 Speaker 1: cattle every week two pastures that are not that fluid 583 00:33:37,320 --> 00:33:39,680 Speaker 1: where they can get food and water. The springs are 584 00:33:39,720 --> 00:33:42,560 Speaker 1: drying up, and so we know that in the state 585 00:33:42,600 --> 00:33:46,719 Speaker 1: of California we're going to have a very, very tough year. Uh, 586 00:33:46,800 --> 00:33:49,560 Speaker 1: but we do know that if we properly manage our 587 00:33:49,600 --> 00:33:53,160 Speaker 1: water and we plan and we do the kinds of 588 00:33:53,200 --> 00:33:58,440 Speaker 1: things like offstream reservoirs and underground water, we can make 589 00:33:58,480 --> 00:34:03,480 Speaker 1: it through the drives out years. Congressman, I think that 590 00:34:04,280 --> 00:34:07,360 Speaker 1: you make a really compelling point. Most people when they 591 00:34:07,360 --> 00:34:10,440 Speaker 1: think about land and water, they think about their own use. 592 00:34:10,480 --> 00:34:12,640 Speaker 1: They don't realize that so much of it goes into 593 00:34:12,680 --> 00:34:16,480 Speaker 1: the agricultural manufacturing process that we have in America that 594 00:34:16,560 --> 00:34:20,840 Speaker 1: keeps everyone healthy and fed. Um, real quick, Uh, how's 595 00:34:20,880 --> 00:34:23,480 Speaker 1: your district doing? As far as COVID we see today 596 00:34:23,560 --> 00:34:27,000 Speaker 1: the CDC says we're the seven month low on the coronavirus, 597 00:34:27,040 --> 00:34:29,560 Speaker 1: and more and more states are starting to open up. 598 00:34:29,800 --> 00:34:35,759 Speaker 1: How's your district doing? We're doing well, we're opening up, 599 00:34:36,120 --> 00:34:38,960 Speaker 1: but we're not vaccinating. We're going to have to do 600 00:34:39,040 --> 00:34:41,600 Speaker 1: some new techniques out here at vaccinate vaccinating. And I 601 00:34:41,760 --> 00:34:44,160 Speaker 1: was talking to one of the major bood distributors in 602 00:34:44,200 --> 00:34:47,600 Speaker 1: the area and they have every fall they have a 603 00:34:47,640 --> 00:34:51,840 Speaker 1: flu vaccine program at their warehouses where everybody comes in 604 00:34:51,920 --> 00:34:54,239 Speaker 1: and gets vaccinated one day. We're going to have to 605 00:34:54,280 --> 00:34:57,160 Speaker 1: do that they go out to where people are because 606 00:34:57,280 --> 00:34:59,960 Speaker 1: right now our vaccination rate is is just too low, 607 00:35:00,160 --> 00:35:02,840 Speaker 1: and so we're gonna we're gonna have problems in the 608 00:35:02,880 --> 00:35:07,799 Speaker 1: future if we don't deal with that vaccination late. Well, Congressman, 609 00:35:08,239 --> 00:35:11,160 Speaker 1: I want to thank you so much for your participation 610 00:35:11,160 --> 00:35:16,640 Speaker 1: on a program today. Congressman John Garamendi from California represents 611 00:35:16,640 --> 00:35:19,759 Speaker 1: an agricultural district and has a real keen interest in 612 00:35:19,800 --> 00:35:23,080 Speaker 1: seeing that something gets done on infrastructure this year. I 613 00:35:23,120 --> 00:35:26,719 Speaker 1: want to thank Jeannie shan Zano, my partner at Bloomberg 614 00:35:27,120 --> 00:35:31,080 Speaker 1: and UH and I'm Rick Davis and this is Bloomberg