1 00:00:01,920 --> 00:00:06,200 Speaker 1: Live from our nation's capital. This is Bloomberg's Sound on 2 00:00:07,480 --> 00:00:11,119 Speaker 1: Little income families need help. We're coming out of COVID nineteen. 3 00:00:11,280 --> 00:00:13,280 Speaker 1: You want to keep our economy strong. When you have 4 00:00:13,280 --> 00:00:15,760 Speaker 1: an infrastructure build, there's spin off on back. There's spin 5 00:00:15,760 --> 00:00:20,200 Speaker 1: option cities from towns all across America. Bloomberg Sound on Politics, 6 00:00:20,280 --> 00:00:23,920 Speaker 1: Policy and Perspective from DC's top Name. So we need 7 00:00:23,960 --> 00:00:28,200 Speaker 1: to incentivize the manufacturing of chips in America. I do 8 00:00:28,240 --> 00:00:30,440 Speaker 1: believe the acting of state and effective, but I think 9 00:00:30,440 --> 00:00:34,000 Speaker 1: what government's role is to share the science, share the fact, 10 00:00:34,400 --> 00:00:38,680 Speaker 1: share the benefits. Sploomberg Sound On with Joe Matthew on 11 00:00:38,880 --> 00:00:43,519 Speaker 1: Bloomberg Radio. Middle income families need help. We're coming out 12 00:00:43,520 --> 00:00:46,160 Speaker 1: of COVID nineteen. You want to keep our economy strong. 13 00:00:46,240 --> 00:00:48,639 Speaker 1: When you have an infrastructure build, there's spin off on back. 14 00:00:48,680 --> 00:00:51,320 Speaker 1: There's spin option cities from towns all across in America. 15 00:00:51,400 --> 00:00:56,440 Speaker 1: Bloomberg Sound on Politics, Policy and Perspective from DC's top Name. 16 00:00:56,800 --> 00:01:00,680 Speaker 1: So we need to incentivize the manufact train of chips 17 00:01:00,680 --> 00:01:02,680 Speaker 1: in America. I do believe that a king of state 18 00:01:02,760 --> 00:01:05,120 Speaker 1: and effective, but I think what government's role is to 19 00:01:05,280 --> 00:01:08,800 Speaker 1: to share the clients, share the fact, share the benefits. 20 00:01:08,800 --> 00:01:14,959 Speaker 1: Schomberg Sound on with Joe Mathew on Bloomberg Radio, who 21 00:01:15,000 --> 00:01:18,520 Speaker 1: says the workers are not coming back. The July jobs 22 00:01:18,560 --> 00:01:21,800 Speaker 1: report blows the doors off May and June revised higher 23 00:01:21,800 --> 00:01:25,039 Speaker 1: to the unemployment rate fell, but there are a lot 24 00:01:25,080 --> 00:01:28,319 Speaker 1: of questions about the future as COVID surges in parts 25 00:01:28,319 --> 00:01:30,240 Speaker 1: of the country. Again, we'll talk about it coming up 26 00:01:30,280 --> 00:01:33,280 Speaker 1: with Labor Secretary Marty Walsh, who I sat down with 27 00:01:33,360 --> 00:01:35,880 Speaker 1: today at the Labor Department. We'll also get a read 28 00:01:35,920 --> 00:01:39,120 Speaker 1: on the report from economist Joe Lavornia at a Texas 29 00:01:39,760 --> 00:01:42,039 Speaker 1: and later we'll talk about the infrastructure bill with the 30 00:01:42,080 --> 00:01:44,880 Speaker 1: Blockchain Association. Who would have thought crypto would be the 31 00:01:44,920 --> 00:01:47,680 Speaker 1: final hurdle for this bill, But then who would have 32 00:01:47,680 --> 00:01:50,320 Speaker 1: thought another president would appear in a tan suit. That 33 00:01:50,440 --> 00:01:53,400 Speaker 1: happened today too, better than expected as the headline as 34 00:01:53,440 --> 00:01:57,440 Speaker 1: the economy creates ninety three thousand jobs in July. That 35 00:01:58,080 --> 00:02:01,640 Speaker 1: is more than economists predictive, and President Biden took a 36 00:02:01,640 --> 00:02:03,840 Speaker 1: bit of a victory lap after the news hit. Now, 37 00:02:03,840 --> 00:02:07,480 Speaker 1: while our economy is far from complete, and while we 38 00:02:07,520 --> 00:02:09,680 Speaker 1: are doubtless he will have ups and downs along the 39 00:02:09,680 --> 00:02:13,560 Speaker 1: way as we continue to battle the delta surge of COVID. 40 00:02:14,960 --> 00:02:19,760 Speaker 1: What is indisputable now is this, the Biden Plan is working. 41 00:02:20,360 --> 00:02:22,679 Speaker 1: The Biden Plan produced the results, and the Biden Plan 42 00:02:22,760 --> 00:02:25,520 Speaker 1: is moving the country forward. Joe Biden speaking at the 43 00:02:25,560 --> 00:02:30,960 Speaker 1: White House earlier today, indeed in a tan suit, where 44 00:02:31,000 --> 00:02:34,280 Speaker 1: he detailed economic data over the past few months to 45 00:02:34,480 --> 00:02:38,919 Speaker 1: make a case for his economic policies, including of course infrastructure. 46 00:02:39,120 --> 00:02:44,440 Speaker 1: Economic growth is the fastest in forty years. Jobs are up, 47 00:02:45,120 --> 00:02:47,720 Speaker 1: the unemployment rate is the lowest. Sense of the pandemic 48 00:02:47,800 --> 00:02:52,600 Speaker 1: hit Black unemployment is down as well. Why because we 49 00:02:52,720 --> 00:02:56,559 Speaker 1: put in place the necessary tools early in my presidency 50 00:03:00,200 --> 00:03:03,560 Speaker 1: made the case for spending trillions more on infrastructure, which 51 00:03:03,560 --> 00:03:06,320 Speaker 1: he says will make even more jobs. And so I 52 00:03:06,360 --> 00:03:08,840 Speaker 1: sat down earlier today at the Labor Department with Secretary 53 00:03:08,880 --> 00:03:12,880 Speaker 1: Marty Walsh, started by asking about what was behind the 54 00:03:12,960 --> 00:03:18,200 Speaker 1: upside surprise, remembering that economists holed by Bloomberg the Bloomberg 55 00:03:18,240 --> 00:03:21,600 Speaker 1: Survey called for an eight hundred seventy thousand advance. We've 56 00:03:21,600 --> 00:03:24,200 Speaker 1: got nine hundred and forty three thousand, the unemployment rate 57 00:03:24,480 --> 00:03:28,320 Speaker 1: falling by a half percentage point to five point four percent, 58 00:03:29,320 --> 00:03:32,120 Speaker 1: And started by asking Secretary Walsh about what was behind 59 00:03:32,200 --> 00:03:35,600 Speaker 1: the upside surprise and so many employers have complained about 60 00:03:35,640 --> 00:03:40,560 Speaker 1: not being able to fill open positions. Yeah, I think 61 00:03:40,560 --> 00:03:43,120 Speaker 1: that you know, President Biden's he led out an economic 62 00:03:43,120 --> 00:03:46,240 Speaker 1: plan in the beginning of his administration. Uh, it's clearly working. 63 00:03:46,600 --> 00:03:50,080 Speaker 1: We've since the President has been inaugurated, four million jobs 64 00:03:50,080 --> 00:03:52,119 Speaker 1: have been added to our economy the last three months. 65 00:03:52,120 --> 00:03:56,120 Speaker 1: We've added eight hundred thousand average per month. Was seeing 66 00:03:56,800 --> 00:04:00,560 Speaker 1: great gains this month in education, government, education, and we've 67 00:04:00,600 --> 00:04:03,240 Speaker 1: seen good gains and manufacturing we've seen good gains. And leisure, 68 00:04:03,280 --> 00:04:05,840 Speaker 1: hospitality and restaurants. Those are the three areas that have 69 00:04:05,880 --> 00:04:08,560 Speaker 1: heard the most about not having employees, but those the 70 00:04:08,640 --> 00:04:10,400 Speaker 1: last three months have led the way as far as 71 00:04:10,480 --> 00:04:13,200 Speaker 1: new job growth. So I think that the policies are working. 72 00:04:13,240 --> 00:04:16,200 Speaker 1: And I think that you know, the vaccine program that 73 00:04:16,240 --> 00:04:19,920 Speaker 1: the President laid out in the coronavirus kind of combating 74 00:04:19,960 --> 00:04:22,440 Speaker 1: coronavirus has worked up to this point as well. Um, 75 00:04:22,640 --> 00:04:24,400 Speaker 1: you know, the kind of things in the future them 76 00:04:24,440 --> 00:04:27,560 Speaker 1: concerned about a little bit is the delta variant. How 77 00:04:27,600 --> 00:04:29,960 Speaker 1: do we get that under control? Uh? And and how 78 00:04:30,040 --> 00:04:32,080 Speaker 1: do we make sure that that doesn't cause us to 79 00:04:32,120 --> 00:04:34,960 Speaker 1: have to shut down our economy again or shutdown possib 80 00:04:34,960 --> 00:04:38,240 Speaker 1: our country. And then one area that that that today 81 00:04:38,279 --> 00:04:40,960 Speaker 1: that kind of concerned me was the care's economy. There 82 00:04:41,040 --> 00:04:44,000 Speaker 1: was nursing home numbers weren't weren't too great. We actually 83 00:04:44,040 --> 00:04:47,360 Speaker 1: lost jobs, and in long term that could have impacts 84 00:04:47,360 --> 00:04:50,039 Speaker 1: because population is getting older in some sectors and we 85 00:04:50,080 --> 00:04:52,600 Speaker 1: need to make sure we have facilities for people, whether 86 00:04:52,640 --> 00:04:56,400 Speaker 1: it's day programs or long term programs that people go into. Well, indeed, 87 00:04:56,560 --> 00:04:58,039 Speaker 1: you just pointed it out. It's it looks like a 88 00:04:58,080 --> 00:05:03,120 Speaker 1: story of reopening transportation and health services, leisure, in hospitality. 89 00:05:03,640 --> 00:05:06,359 Speaker 1: Your former city of Boston had the hardest hit, I 90 00:05:06,400 --> 00:05:09,480 Speaker 1: believe in the hospitality industry in the entire country from COVID. 91 00:05:10,200 --> 00:05:13,599 Speaker 1: But these are by definition backward looking right. We saw 92 00:05:13,640 --> 00:05:16,560 Speaker 1: a delta take hold in the time that these numbers 93 00:05:16,720 --> 00:05:20,320 Speaker 1: were being tabulated. Do you worry about an interruption in 94 00:05:20,360 --> 00:05:22,520 Speaker 1: that trend as we go into August and September. Of 95 00:05:22,520 --> 00:05:23,839 Speaker 1: course you have to worry about it. I mean, there's 96 00:05:23,839 --> 00:05:25,800 Speaker 1: no question about it. You can't sugarcoade it, and you 97 00:05:25,839 --> 00:05:27,040 Speaker 1: have to make sure you keep an eye on it. 98 00:05:27,120 --> 00:05:29,320 Speaker 1: And I think that the difference here is this is 99 00:05:29,360 --> 00:05:32,440 Speaker 1: like I mean, depending on what you define as a spike, 100 00:05:32,520 --> 00:05:34,880 Speaker 1: this would be the third or fourth and fifth spike 101 00:05:35,240 --> 00:05:37,800 Speaker 1: in the virus in different parts of the country. Um, 102 00:05:37,920 --> 00:05:39,800 Speaker 1: we know the science tells us we can get it 103 00:05:39,839 --> 00:05:42,560 Speaker 1: under control. We can get under control by getting people vaccinated. 104 00:05:42,839 --> 00:05:45,440 Speaker 1: We can get under control by by wearing masks. Uh. 105 00:05:46,040 --> 00:05:47,960 Speaker 1: And And for some reason it seems to have turned 106 00:05:47,960 --> 00:05:50,920 Speaker 1: into a political issue wearing a mask and being vaccinated. 107 00:05:50,920 --> 00:05:53,760 Speaker 1: And that's very shortsighted and very dangerous for a lot 108 00:05:53,800 --> 00:05:56,279 Speaker 1: of people. Uh. That that that if you refused to 109 00:05:56,320 --> 00:05:58,840 Speaker 1: get put a mask on because because you don't think 110 00:05:58,839 --> 00:06:02,640 Speaker 1: you should, if get the virus and something happens to you, uh, 111 00:06:02,680 --> 00:06:04,640 Speaker 1: then then your problem is gonna be foul worse. Are 112 00:06:04,680 --> 00:06:07,239 Speaker 1: you happy then when you see companies step up and 113 00:06:07,400 --> 00:06:10,599 Speaker 1: offer their own vaccine or mask mandates. And I'd ask 114 00:06:10,600 --> 00:06:12,080 Speaker 1: you again, when I did a couple of weeks ago, 115 00:06:12,080 --> 00:06:15,120 Speaker 1: shoot unions be in that business of of issuing mandates 116 00:06:15,120 --> 00:06:17,280 Speaker 1: for workers to control job sites and so forth. Well, 117 00:06:17,320 --> 00:06:19,680 Speaker 1: I think there's a lot of First and foremost, I 118 00:06:19,680 --> 00:06:22,920 Speaker 1: think that it's great to see companies focusing on this 119 00:06:22,960 --> 00:06:25,480 Speaker 1: because companies want to reopen and I think that we 120 00:06:25,520 --> 00:06:28,280 Speaker 1: want to reopen our economy, and having companies open means 121 00:06:28,279 --> 00:06:30,479 Speaker 1: our economies reopening. So I want to I'm glad they're 122 00:06:30,480 --> 00:06:33,080 Speaker 1: stepping up and not stepping uputions to that. I'm glad 123 00:06:33,080 --> 00:06:35,080 Speaker 1: they coming to the table more and more. Um. You know, 124 00:06:35,120 --> 00:06:36,919 Speaker 1: I was listening to some of the union leadership on 125 00:06:37,000 --> 00:06:39,159 Speaker 1: the on the on some TV shows in the last 126 00:06:39,160 --> 00:06:41,120 Speaker 1: couple of days. Uh. You know, the leadership of the 127 00:06:41,160 --> 00:06:45,159 Speaker 1: union represents unions. They represent members, uh, and what they want. 128 00:06:45,160 --> 00:06:46,440 Speaker 1: What they do is they kind of follow with the 129 00:06:46,520 --> 00:06:49,320 Speaker 1: members say. I do think though, that the unions should 130 00:06:49,320 --> 00:06:51,960 Speaker 1: be advocating to their members that it's important to get vaccinated, 131 00:06:52,440 --> 00:06:54,760 Speaker 1: whether whether or not they can insist and demand they 132 00:06:54,760 --> 00:06:57,120 Speaker 1: get vaccinated. That I would say that as a union 133 00:06:57,120 --> 00:06:59,720 Speaker 1: member union leader, you can't do that, but I would 134 00:06:59,760 --> 00:07:02,920 Speaker 1: say I would suggest the union leaders strongly encourage your 135 00:07:02,920 --> 00:07:05,640 Speaker 1: membership to get vaccinated and don't fight this. This is 136 00:07:05,839 --> 00:07:08,320 Speaker 1: this is about keeping people safe. Whether you remember or 137 00:07:08,320 --> 00:07:11,480 Speaker 1: not union member, it's about keeping people safe. You've said 138 00:07:11,520 --> 00:07:15,720 Speaker 1: pretty consistently that there's no evidence that expiring enhanced unemployment 139 00:07:15,800 --> 00:07:19,400 Speaker 1: benefits we'll send people back to work, or are sending 140 00:07:19,440 --> 00:07:21,320 Speaker 1: people back to work in the states that we've seen. 141 00:07:21,480 --> 00:07:23,360 Speaker 1: Is that still the case? Now? Where does that have 142 00:07:23,440 --> 00:07:25,320 Speaker 1: something to do with the uptick in these numbers. No, 143 00:07:25,520 --> 00:07:27,080 Speaker 1: I think it's still the case. I mean, the last 144 00:07:27,120 --> 00:07:31,320 Speaker 1: month numbers was ninety four thousand new jobs to the economy. 145 00:07:31,760 --> 00:07:34,720 Speaker 1: This month's numbers ninety three thousand new jobs the economy. 146 00:07:35,440 --> 00:07:38,880 Speaker 1: I don't see the unemployment benefit being being what's keeping 147 00:07:38,880 --> 00:07:40,640 Speaker 1: out of people out. I think what it is is 148 00:07:40,800 --> 00:07:43,840 Speaker 1: more sectors opening up, more sectors, hiring more sectors, uh, 149 00:07:43,880 --> 00:07:46,120 Speaker 1: you know, aggressively finding employees. I think that that's what's 150 00:07:46,200 --> 00:07:48,800 Speaker 1: what we're seeing here today. And I just don't feel 151 00:07:48,800 --> 00:07:50,880 Speaker 1: that three d dollars is the reason we saw an 152 00:07:50,920 --> 00:07:55,040 Speaker 1: uptick in in some education workers this past month. Well 153 00:07:55,080 --> 00:07:57,480 Speaker 1: that increases kids go back to school, schools reopen, and 154 00:07:58,000 --> 00:08:00,120 Speaker 1: we get back to some kind of a pattern or 155 00:08:00,120 --> 00:08:02,680 Speaker 1: in September, Well it should. I mean, ultimately, what happened 156 00:08:02,720 --> 00:08:05,360 Speaker 1: during the beginning days of the pandemic. Boston wasn't one 157 00:08:05,360 --> 00:08:07,640 Speaker 1: of these cities, but many cities laid people off and 158 00:08:07,640 --> 00:08:10,440 Speaker 1: for a little people. When the American Rescue Plan was passed, 159 00:08:10,480 --> 00:08:12,320 Speaker 1: a lot of money went down to cities and towns 160 00:08:12,320 --> 00:08:14,760 Speaker 1: and states. They need to start spending that money. They 161 00:08:14,760 --> 00:08:16,560 Speaker 1: need to start thinking about the people they let go 162 00:08:16,600 --> 00:08:18,640 Speaker 1: and bring them back. And we're seeing a lot of 163 00:08:18,760 --> 00:08:21,280 Speaker 1: education hiring this month because we're getting ready for school 164 00:08:21,280 --> 00:08:23,600 Speaker 1: in September. Uh And I think that's also another reason 165 00:08:23,680 --> 00:08:26,160 Speaker 1: why we're seeing people coming into the economy. The President 166 00:08:26,200 --> 00:08:28,720 Speaker 1: made a thirty nine billion dollar investment in childcare in 167 00:08:28,760 --> 00:08:31,880 Speaker 1: the American Rescue Plan. That money now has been out 168 00:08:31,880 --> 00:08:34,160 Speaker 1: in the street for six months. So now with six weeks, 169 00:08:34,200 --> 00:08:35,840 Speaker 1: I should say, so now you're starting to see child 170 00:08:35,840 --> 00:08:38,599 Speaker 1: care facilities open up and more opportunities for parents to 171 00:08:39,040 --> 00:08:41,040 Speaker 1: have their kids, you know, keep busy during the day 172 00:08:41,080 --> 00:08:43,720 Speaker 1: so they go to work. We had an eviction moratorium 173 00:08:43,760 --> 00:08:47,720 Speaker 1: extended just in the past week. That has a correlation 174 00:08:47,760 --> 00:08:49,400 Speaker 1: to jobs. Right, If you lose your home, it's hard 175 00:08:49,440 --> 00:08:51,400 Speaker 1: to report to work, it's hard to maintain any kind 176 00:08:51,440 --> 00:08:54,480 Speaker 1: of a routine in your life. I wonder how concerned 177 00:08:54,520 --> 00:08:58,520 Speaker 1: you are about that potentially being rescinded or going into 178 00:08:58,559 --> 00:09:01,200 Speaker 1: the fall at some point that's not going to that protection, 179 00:09:01,240 --> 00:09:03,080 Speaker 1: that safety net might not be there. Yeah. Well, the 180 00:09:03,080 --> 00:09:05,319 Speaker 1: President extended it the other day because we had to 181 00:09:05,480 --> 00:09:07,880 Speaker 1: because of the delta variant. And I think that you 182 00:09:07,920 --> 00:09:10,160 Speaker 1: know we have We're gonna watch that variant very closely, 183 00:09:10,480 --> 00:09:12,440 Speaker 1: UH to see how we can move forward. I know 184 00:09:12,559 --> 00:09:15,320 Speaker 1: that the eviction Mary return kept lots of people in 185 00:09:15,360 --> 00:09:17,600 Speaker 1: this country in their home and not on the street 186 00:09:17,960 --> 00:09:20,200 Speaker 1: to a system that wouldn't be able to handle the 187 00:09:20,240 --> 00:09:23,080 Speaker 1: capacity of homeless families. So I think that we just 188 00:09:23,080 --> 00:09:24,920 Speaker 1: have to can continue to keep an eye in this variant. 189 00:09:25,440 --> 00:09:27,160 Speaker 1: A lot of what's being driven down in the future 190 00:09:27,200 --> 00:09:28,560 Speaker 1: is going to be in the next few weeks. Is 191 00:09:28,679 --> 00:09:30,640 Speaker 1: what's gonna happen with the variant. And if we can 192 00:09:30,880 --> 00:09:32,760 Speaker 1: get the variant under control, if we can make sure 193 00:09:32,800 --> 00:09:35,640 Speaker 1: that people aren't getting the variant, also keeping our hospitals 194 00:09:35,960 --> 00:09:39,400 Speaker 1: UH from being over capacity. I saw in Florida yesterday. 195 00:09:39,400 --> 00:09:42,680 Speaker 1: I think today maybe the hospitals are a capacity again. 196 00:09:42,920 --> 00:09:45,840 Speaker 1: I mean, a hospital system can't can't keep taking that hit. 197 00:09:46,120 --> 00:09:47,760 Speaker 1: So we have to do everything we can to to 198 00:09:47,760 --> 00:09:50,480 Speaker 1: to ease the burden on a hospital system, on our 199 00:09:50,520 --> 00:09:53,000 Speaker 1: care system, UH and and in other systems we have 200 00:09:53,040 --> 00:09:55,760 Speaker 1: in place. You, of course, we're a union leader before 201 00:09:55,760 --> 00:09:58,040 Speaker 1: you became mayor, before you became secretary, and I know 202 00:09:58,080 --> 00:10:00,240 Speaker 1: that you had a long relationship with Richard tru Good 203 00:10:00,240 --> 00:10:03,200 Speaker 1: and I want to say condolence is uh for his loss? 204 00:10:03,960 --> 00:10:06,760 Speaker 1: How do you frame that impact on organized labor and 205 00:10:06,800 --> 00:10:08,320 Speaker 1: what's the future of the a f l c I. 206 00:10:08,360 --> 00:10:11,200 Speaker 1: Oh Yeah, Richard trumka Um he was He was a 207 00:10:11,200 --> 00:10:14,400 Speaker 1: great labor leader. He sat it out as a mine worker, 208 00:10:14,440 --> 00:10:17,200 Speaker 1: he was worked in the mines, got his hands dirty. Uh, 209 00:10:17,600 --> 00:10:19,600 Speaker 1: rose to be the head of the mine Workers Union 210 00:10:19,640 --> 00:10:22,600 Speaker 1: at a very young age, led them and fought in 211 00:10:22,600 --> 00:10:25,480 Speaker 1: a hard industry, fought hard for for his workers, became 212 00:10:25,520 --> 00:10:27,240 Speaker 1: the president of the fl c I O in two 213 00:10:27,240 --> 00:10:30,040 Speaker 1: thousand nine. Really has made a tremendous impact for workers 214 00:10:30,080 --> 00:10:34,920 Speaker 1: all across America in two years a guess of leadership. Uh, 215 00:10:35,080 --> 00:10:37,040 Speaker 1: when he while he was there, he's gonna be severely 216 00:10:37,160 --> 00:10:39,640 Speaker 1: extremely missed. You know, he was he was a giant 217 00:10:39,640 --> 00:10:41,800 Speaker 1: in the lab movement. Um and he was somebody who 218 00:10:41,880 --> 00:10:44,840 Speaker 1: just fought for workers every single day morning in the night, 219 00:10:44,880 --> 00:10:46,839 Speaker 1: he fought, and he fought, and not just union workers, 220 00:10:46,880 --> 00:10:49,920 Speaker 1: evolved all workers in America. So, Uh, it'll be a 221 00:10:49,920 --> 00:10:53,560 Speaker 1: big loss. And I think that you know, we're gonna 222 00:10:53,640 --> 00:10:55,880 Speaker 1: let you know, he'll be late to rest and and 223 00:10:55,920 --> 00:10:57,880 Speaker 1: then there'll be a conversation about who's next and what 224 00:10:57,920 --> 00:10:59,880 Speaker 1: the next direction of the Glabe movement is. But I 225 00:11:00,120 --> 00:11:02,199 Speaker 1: think that a lot of what Richard Trumpka has done 226 00:11:02,440 --> 00:11:04,880 Speaker 1: will continue in with the next leader of the FOS. 227 00:11:05,400 --> 00:11:07,880 Speaker 1: Is that a job that you would consider taking? No, no, no, 228 00:11:08,200 --> 00:11:10,040 Speaker 1: I'm I have the job right now that it's an 229 00:11:10,040 --> 00:11:13,200 Speaker 1: important job of working with the President Night States America. 230 00:11:13,200 --> 00:11:14,120 Speaker 1: And we have a lot of work to do with 231 00:11:14,160 --> 00:11:16,800 Speaker 1: the Department Labor. Mr Secretary, is great to see you. 232 00:11:16,800 --> 00:11:19,600 Speaker 1: Thanks for having Bloomberg at the Labor Department today. Thank you. Thanks, 233 00:11:20,320 --> 00:11:22,760 Speaker 1: And before we move on a little bit of background here, 234 00:11:23,120 --> 00:11:26,560 Speaker 1: we're talking about leisure and hospitality jobs up by three 235 00:11:26,720 --> 00:11:31,440 Speaker 1: hundred eighty thousand and the participation rate, the labor force 236 00:11:31,520 --> 00:11:35,440 Speaker 1: participation rate up to sixty one point seven percent in July. 237 00:11:35,480 --> 00:11:38,520 Speaker 1: There's been a lot of questions about that. Is people 238 00:11:38,520 --> 00:11:41,240 Speaker 1: start looking for work and employers say they're not finding 239 00:11:41,720 --> 00:11:46,839 Speaker 1: enough of them. As far as unemployment insurance benefits go, 240 00:11:46,960 --> 00:11:48,800 Speaker 1: we talked about this. A lot of people say this 241 00:11:48,880 --> 00:11:51,000 Speaker 1: is why workers aren't coming back. Well, they're making more 242 00:11:51,000 --> 00:11:55,960 Speaker 1: at home than they were at work. Questions about that today, 243 00:11:56,240 --> 00:11:59,920 Speaker 1: about whether the President plans to extend enhanced unemployment benefits 244 00:12:00,000 --> 00:12:03,800 Speaker 1: beyond September. Press Secretary Jena There has not been any 245 00:12:03,840 --> 00:12:06,480 Speaker 1: decision about this at this point. He's still deciding whether 246 00:12:06,559 --> 00:12:08,199 Speaker 1: to ask to renew them. What are the deceit to 247 00:12:08,240 --> 00:12:10,880 Speaker 1: renew them or correct At this point they're expiring at 248 00:12:10,920 --> 00:12:13,480 Speaker 1: the beginning of September. Nothing has changed on that front, 249 00:12:13,640 --> 00:12:15,839 Speaker 1: but a final decision has not been made. You have it, 250 00:12:16,040 --> 00:12:19,120 Speaker 1: so we'll let you know when there is a final decision. 251 00:12:19,360 --> 00:12:21,400 Speaker 1: And coming up, we'll get the view on the job's report, 252 00:12:21,440 --> 00:12:24,840 Speaker 1: the recovery and the benefits for that matter, from Joe Lavornia, 253 00:12:24,920 --> 00:12:29,640 Speaker 1: chief economist at natixis former Trump economic advisor. He's next 254 00:12:29,840 --> 00:12:33,599 Speaker 1: on sound On to stay with us. Check traffic of 255 00:12:33,640 --> 00:12:36,360 Speaker 1: the markets. Coming up. I'm Joe Matthew. This is Bloomberg. 256 00:12:38,200 --> 00:12:44,440 Speaker 1: This is Bloomberg Sound On with Joe Matthew on Bloomberg Radio. 257 00:12:45,400 --> 00:12:48,160 Speaker 1: A lot of questions about an economic rebound against the 258 00:12:48,160 --> 00:12:52,720 Speaker 1: backdrop of COVID. Today's jobs report was encouraging too many, 259 00:12:53,120 --> 00:12:56,240 Speaker 1: even prompting some to expect the Fed to start tapering 260 00:12:56,320 --> 00:12:58,720 Speaker 1: sooner than later. We'll see about that. We're joined now 261 00:12:58,760 --> 00:13:02,320 Speaker 1: by Joel Lavorgnia, former Trump White House economic advisor, now 262 00:13:02,400 --> 00:13:06,000 Speaker 1: chief economist at natixis Welcome back to Bloomberg. Joe, were 263 00:13:06,000 --> 00:13:09,080 Speaker 1: you impressed by today's jobs numbers, and maybe more importantly, 264 00:13:09,080 --> 00:13:12,400 Speaker 1: are they sustainable? I was? I was. I was impressed. 265 00:13:12,400 --> 00:13:14,679 Speaker 1: As a very good report. Um, you have to call 266 00:13:14,720 --> 00:13:17,920 Speaker 1: it the way you see it. You had over nine 267 00:13:18,000 --> 00:13:20,760 Speaker 1: hundred thousand jobs. But what was interesting, Joe was the 268 00:13:20,800 --> 00:13:24,880 Speaker 1: household survey, which was even better. It showed a nearly 269 00:13:24,960 --> 00:13:30,000 Speaker 1: eight hundred thousand drop in unemployed and over a one 270 00:13:30,120 --> 00:13:34,439 Speaker 1: million increase in household employed. It's another companion series to 271 00:13:34,520 --> 00:13:37,280 Speaker 1: the payroll data, as as you may know. And yeah, 272 00:13:37,320 --> 00:13:41,000 Speaker 1: it was a great report. Strong strong wages, um hours 273 00:13:41,000 --> 00:13:43,640 Speaker 1: were high. The diffusion index, which measures draw breath was 274 00:13:43,679 --> 00:13:47,320 Speaker 1: about It was a great report. And uh, you know, 275 00:13:47,360 --> 00:13:50,720 Speaker 1: I would say this, Look, the current administration has a 276 00:13:50,720 --> 00:13:53,480 Speaker 1: good economy. Economy is very healthy. I would just leave 277 00:13:53,520 --> 00:13:55,880 Speaker 1: it there. And I do get worried about what might 278 00:13:55,920 --> 00:13:57,960 Speaker 1: be coming down on the spending side. But but but 279 00:13:58,040 --> 00:13:59,720 Speaker 1: these data were great. I do think there will be 280 00:13:59,760 --> 00:14:03,040 Speaker 1: some lowing at some point, but but the numbers are great. 281 00:14:03,080 --> 00:14:05,640 Speaker 1: We should celebrate it. Well, that's that's nice to hear. 282 00:14:05,679 --> 00:14:07,880 Speaker 1: I'll ask you about that spending in a second. What 283 00:14:07,920 --> 00:14:10,520 Speaker 1: do you make of the participation rate sixty one point 284 00:14:10,640 --> 00:14:13,880 Speaker 1: seven percent. Are people coming back at the rate we 285 00:14:13,960 --> 00:14:16,880 Speaker 1: need them to, we still have got you take away 286 00:14:16,920 --> 00:14:19,880 Speaker 1: the nine hundred and forty three thousand jobs we got today, 287 00:14:19,920 --> 00:14:23,120 Speaker 1: we still have almost six million more to recover. That's right, 288 00:14:23,160 --> 00:14:26,880 Speaker 1: five point eight to be exact. And labor force participation 289 00:14:27,360 --> 00:14:31,280 Speaker 1: it was up to ten to uh to seven, I believe, 290 00:14:31,360 --> 00:14:33,280 Speaker 1: but it's it's very much an arrange. It hasn't really 291 00:14:33,360 --> 00:14:36,120 Speaker 1: changed much in the last six to eight months. UM. 292 00:14:36,320 --> 00:14:38,400 Speaker 1: That's something we're watching. It would like to see higher. 293 00:14:38,400 --> 00:14:41,640 Speaker 1: It's certainly possible that again depending on what happens with 294 00:14:41,680 --> 00:14:44,480 Speaker 1: COVID in the variants, et cetera, that that as the 295 00:14:44,520 --> 00:14:48,600 Speaker 1: unemployment benefits expire and people have childcare because I think 296 00:14:48,600 --> 00:14:50,640 Speaker 1: a lot of people unfortunately may have wanted to go 297 00:14:50,680 --> 00:14:53,160 Speaker 1: back to work but couldn't because their kids weren't in school. 298 00:14:53,840 --> 00:14:56,400 Speaker 1: UM And I'm not sure if they feel more comfortable 299 00:14:56,440 --> 00:14:59,000 Speaker 1: going back because of what's happening medically with the virus, 300 00:14:59,160 --> 00:15:02,320 Speaker 1: but there and is why they have been back to work. UM. 301 00:15:02,440 --> 00:15:04,800 Speaker 1: Some hopeful that maybe things break the right way, you'll 302 00:15:04,840 --> 00:15:06,880 Speaker 1: see participation rise. But I want to say that if 303 00:15:06,880 --> 00:15:10,120 Speaker 1: you look at the employment to population ratio, which is 304 00:15:10,200 --> 00:15:13,600 Speaker 1: similar to participation but not exactly the same series. That 305 00:15:13,800 --> 00:15:17,520 Speaker 1: rose um four tents of a percent, and that was 306 00:15:17,560 --> 00:15:19,880 Speaker 1: a nice increase. Was the biggest increase we've had at 307 00:15:19,920 --> 00:15:23,440 Speaker 1: the highest level since March. You know, there are some 308 00:15:23,440 --> 00:15:25,640 Speaker 1: pockets of weakness, but again, as I said at the outset, 309 00:15:25,680 --> 00:15:28,480 Speaker 1: it's a very good report. We should celebrate it. And um, 310 00:15:28,520 --> 00:15:31,200 Speaker 1: you know, always there's always something even gripe about that 311 00:15:31,240 --> 00:15:33,280 Speaker 1: needs to be better. But the point is the directions 312 00:15:33,640 --> 00:15:36,800 Speaker 1: is moving in the right place. Most of the headlines 313 00:15:36,800 --> 00:15:39,200 Speaker 1: here sure seem good. A lot of people are wondering 314 00:15:39,200 --> 00:15:43,200 Speaker 1: though about unemployment benefits and whether the expiration of the 315 00:15:43,320 --> 00:15:46,640 Speaker 1: enhanced benefits is part of the reason why people are 316 00:15:46,680 --> 00:15:49,320 Speaker 1: coming back, realizing there may not be a single reason. 317 00:15:49,360 --> 00:15:51,880 Speaker 1: But if they're going away in September, Joe, does that 318 00:15:51,920 --> 00:15:53,960 Speaker 1: mean we're going to have a flood of workers coming back. 319 00:15:54,760 --> 00:15:57,440 Speaker 1: It's possible, and I would say most firms would like 320 00:15:57,520 --> 00:16:00,680 Speaker 1: it because right now there's about roughly a million more 321 00:16:00,800 --> 00:16:05,560 Speaker 1: jobs open. Then there are people who are unemployed, so uh, people, 322 00:16:05,560 --> 00:16:07,280 Speaker 1: there might be a flood of people coming back, but 323 00:16:07,320 --> 00:16:09,720 Speaker 1: they'll be coming back to works. That's the positive side 324 00:16:09,720 --> 00:16:12,520 Speaker 1: of things. Again, what happens on the virus. If there's 325 00:16:12,560 --> 00:16:16,080 Speaker 1: further economic restrictions, that's a different matter. But but certainly 326 00:16:16,080 --> 00:16:17,880 Speaker 1: there are jobs to be had. I imagine a lot 327 00:16:17,920 --> 00:16:21,680 Speaker 1: of good jobs because, as I cited earlier, the fusion 328 00:16:21,680 --> 00:16:25,680 Speaker 1: indext measures job breath, you have nearly seventy of industries 329 00:16:25,720 --> 00:16:27,560 Speaker 1: employing people. There's a lot of good jobs that are 330 00:16:27,600 --> 00:16:30,560 Speaker 1: to be had. So I'm optimistic that people will be 331 00:16:30,600 --> 00:16:33,840 Speaker 1: coming back in September in the economy will gear up 332 00:16:33,880 --> 00:16:36,720 Speaker 1: even even faster, and that we're going to recover, hopefully 333 00:16:37,160 --> 00:16:40,040 Speaker 1: all of the pandemic related job losses by early next year. 334 00:16:40,400 --> 00:16:45,479 Speaker 1: We wonder if if the UI makes the difference, if childcare, 335 00:16:45,600 --> 00:16:47,720 Speaker 1: or maybe it's a combination of the two. Mayor of 336 00:16:48,080 --> 00:16:52,640 Speaker 1: I always call a mayor. The Secretary Walsh echoing remarks 337 00:16:52,640 --> 00:16:54,800 Speaker 1: we heard from Jen Psaki and the President himself and said, 338 00:16:54,840 --> 00:16:58,400 Speaker 1: there's no evidence that three bucks makes the difference between 339 00:16:58,400 --> 00:17:00,760 Speaker 1: somebody going back to work or not. I think the 340 00:17:00,800 --> 00:17:04,680 Speaker 1: problem is that's that's a little bit the way it's defined. 341 00:17:04,680 --> 00:17:07,200 Speaker 1: That may seem like that's logical, but when you include 342 00:17:07,240 --> 00:17:10,919 Speaker 1: the extended benefits, the emergency benefits on top of that 343 00:17:11,480 --> 00:17:15,760 Speaker 1: and the other credits that have been given, uh two households, 344 00:17:15,800 --> 00:17:17,360 Speaker 1: it adds up to a lot more than just three 345 00:17:17,440 --> 00:17:20,879 Speaker 1: hundred and um. I think that's I think that's the issue. 346 00:17:20,880 --> 00:17:23,720 Speaker 1: But look, the thing is even Larry Somers had said, 347 00:17:23,760 --> 00:17:27,080 Speaker 1: and he mentioned this back inn when he was ahead 348 00:17:27,119 --> 00:17:31,000 Speaker 1: of the NBC under President Obama, that you know, when 349 00:17:31,240 --> 00:17:33,960 Speaker 1: when people are the workforce for a longer, longer period 350 00:17:34,000 --> 00:17:36,640 Speaker 1: of time, their skills tend to actually and they don't 351 00:17:36,640 --> 00:17:38,760 Speaker 1: come back. So what we want to do is we 352 00:17:38,800 --> 00:17:41,000 Speaker 1: want to try to get people back into the workforce 353 00:17:41,040 --> 00:17:43,960 Speaker 1: as soon as possible. And if there's any distancent that 354 00:17:44,119 --> 00:17:46,399 Speaker 1: even at the marginal side of things, that they're not 355 00:17:46,480 --> 00:17:49,200 Speaker 1: coming back, that ultimately hurt them. So I think, you know, 356 00:17:49,240 --> 00:17:52,879 Speaker 1: we want to provide assistance when necessary, but also realize 357 00:17:52,920 --> 00:17:55,080 Speaker 1: that there's some distancentives we could put in place that 358 00:17:55,160 --> 00:17:57,080 Speaker 1: don't bring people back that ultimately it is to the 359 00:17:57,119 --> 00:17:59,680 Speaker 1: detriment of the broader economy. Another thing that I keep 360 00:17:59,720 --> 00:18:03,320 Speaker 1: hearing from economists, Joe is maybe yourself included is that 361 00:18:03,359 --> 00:18:06,960 Speaker 1: once people get a raise, employers don't take those back either. 362 00:18:07,240 --> 00:18:09,680 Speaker 1: And you mentioned the spending that's coming the wage inflation, 363 00:18:09,720 --> 00:18:12,439 Speaker 1: we're seeing inflation across the board. For that matter, do 364 00:18:12,480 --> 00:18:15,600 Speaker 1: you believe that infrastructure itself, if it's pasted in its 365 00:18:15,640 --> 00:18:19,080 Speaker 1: current form, will make it worse. I well, I don't 366 00:18:19,080 --> 00:18:21,320 Speaker 1: know if the infrastructure by itself will be worse. It's 367 00:18:21,320 --> 00:18:24,119 Speaker 1: the infrastructure combined with other spending that is likely to 368 00:18:24,160 --> 00:18:28,399 Speaker 1: come in addition reconciliation that might follow, correct, because I 369 00:18:28,400 --> 00:18:30,440 Speaker 1: mean the CBS. So just to give you a couple 370 00:18:30,440 --> 00:18:33,800 Speaker 1: of examples that if you look at the CBO data 371 00:18:34,000 --> 00:18:36,119 Speaker 1: and how they score things on current law, not including 372 00:18:36,119 --> 00:18:38,199 Speaker 1: this infrastructure bill should talk about in a moment, But 373 00:18:38,320 --> 00:18:41,800 Speaker 1: the CBOs numbers versus the Office of Management and Budget numbers, 374 00:18:41,840 --> 00:18:46,520 Speaker 1: which include the administration's budget over a five year period, 375 00:18:47,160 --> 00:18:51,520 Speaker 1: the accumulative difference in debt to GDP over versus the 376 00:18:51,560 --> 00:18:55,280 Speaker 1: two planes is about thirteen percentage GDP. It's a massive number. 377 00:18:55,960 --> 00:18:58,680 Speaker 1: So I get worried that in an economy according to 378 00:18:58,720 --> 00:19:01,400 Speaker 1: the CBO, that already is going to run next year 379 00:19:02,000 --> 00:19:05,840 Speaker 1: at its hottest rate relative to potential. Since we're going 380 00:19:05,880 --> 00:19:08,800 Speaker 1: to talk more about infrastructure ahead with the Blockchain Association, 381 00:19:08,840 --> 00:19:13,800 Speaker 1: I'm Joe Matthew. This is Bloomberg Broadcasting live from our 382 00:19:13,880 --> 00:19:19,280 Speaker 1: Nation's capital, Bloomberg to New York, Bloomberg eleven, Frio to 383 00:19:19,359 --> 00:19:23,879 Speaker 1: San Francisco, Bloomberg nine six to the country, Sirius XM 384 00:19:24,000 --> 00:19:27,680 Speaker 1: Channel one and around the globe, the Bloomberg Business app 385 00:19:27,760 --> 00:19:32,080 Speaker 1: and Bloomberg Radio dot Com. This is Bloomberg Sound On 386 00:19:32,640 --> 00:19:36,919 Speaker 1: with Joe Matthew. It looks like lawmakers are getting a 387 00:19:36,920 --> 00:19:41,600 Speaker 1: big lesson in crypto today after the bipartisan Infrastructure deal 388 00:19:41,680 --> 00:19:44,399 Speaker 1: came to a screeching halt class night in the Senate 389 00:19:45,400 --> 00:19:49,680 Speaker 1: over an argument on the way crypto transactions are reported. 390 00:19:51,359 --> 00:19:54,679 Speaker 1: We'll talk about it ahead. So will cryptocurrency be the 391 00:19:54,760 --> 00:19:59,640 Speaker 1: final hurdle in the endless saga of the bipartisan infrastructure 392 00:19:59,640 --> 00:20:02,720 Speaker 1: Planets only stopped a vote from happening last night after 393 00:20:02,760 --> 00:20:05,720 Speaker 1: a group of senators led by Ron Wyden offered an 394 00:20:05,720 --> 00:20:10,280 Speaker 1: amendment to more narrowly focus tax reporting requirements to those 395 00:20:10,320 --> 00:20:13,679 Speaker 1: making crypto transactions on exchanges. That was answered by an 396 00:20:13,720 --> 00:20:18,280 Speaker 1: amendment another amendment by several of the bills negotiators I 397 00:20:18,359 --> 00:20:23,119 Speaker 1: think Portman's Cinema warner to include miners, crypto miners, and 398 00:20:23,160 --> 00:20:27,199 Speaker 1: even some software companies, and the White House endorsed it. 399 00:20:27,520 --> 00:20:30,840 Speaker 1: Press Secretary Jensaki today, and we are very grateful to 400 00:20:31,160 --> 00:20:33,919 Speaker 1: Chairman Widen for his leadership and pushing the Senate to 401 00:20:34,119 --> 00:20:37,560 Speaker 1: address this issue. As I noted a little earlier, we're 402 00:20:37,560 --> 00:20:40,960 Speaker 1: pleased with the progress that has yielded a compromise sponsored 403 00:20:40,960 --> 00:20:44,440 Speaker 1: by Senators Warner, Apartment and Cinema to advance the bipartisan 404 00:20:44,440 --> 00:20:48,400 Speaker 1: infrastructure package and clarify the measure to reduce tax evasion. 405 00:20:48,760 --> 00:20:53,320 Speaker 1: The Blockchain Association, representing the industry, says that amendment would 406 00:20:53,320 --> 00:20:57,720 Speaker 1: be disastrous for the US crypto ecosystem tweeted as much 407 00:20:57,800 --> 00:21:00,960 Speaker 1: last night and certainly got our attention. As they have 408 00:21:01,040 --> 00:21:04,480 Speaker 1: now entered the conversation, we're joined by the association's executive director, 409 00:21:04,560 --> 00:21:07,679 Speaker 1: Kristin Smith. Kristen, welcome back. Are you concerned about the 410 00:21:07,720 --> 00:21:11,240 Speaker 1: last minute nature of this process or the actual contents 411 00:21:11,320 --> 00:21:15,040 Speaker 1: of the amendment both? I mean, this is not a 412 00:21:15,160 --> 00:21:19,480 Speaker 1: way to provide new um, you know, laws and regulations 413 00:21:19,560 --> 00:21:22,879 Speaker 1: for a space that is incredibly complicated to understand and 414 00:21:22,880 --> 00:21:25,320 Speaker 1: there's a lot of nuance. So we were very disappointed 415 00:21:25,960 --> 00:21:28,959 Speaker 1: to see this amendment come in last minute, though I 416 00:21:29,000 --> 00:21:33,080 Speaker 1: do think it is a compliment that that the negotiators 417 00:21:33,080 --> 00:21:34,760 Speaker 1: and Bill felt that they had to take such a 418 00:21:34,840 --> 00:21:38,159 Speaker 1: drastic measure because we have had such an outpouring of 419 00:21:38,320 --> 00:21:43,560 Speaker 1: support from the cryptocurrency industry and cryptocurrency community for the 420 00:21:43,600 --> 00:21:46,680 Speaker 1: Widen Amendment, which is the one that we have been pushing. Um. 421 00:21:46,720 --> 00:21:48,920 Speaker 1: But you know when in the lead end up here, 422 00:21:49,400 --> 00:21:51,520 Speaker 1: and what the White House is saying today is that 423 00:21:51,560 --> 00:21:55,359 Speaker 1: the Warner Amendment is a compromise. From the industry perspective 424 00:21:55,400 --> 00:21:58,159 Speaker 1: and the broader community as well, the Warner Amendment is 425 00:21:58,160 --> 00:22:01,479 Speaker 1: actually worse than the un are lyne text as written, 426 00:22:01,480 --> 00:22:04,600 Speaker 1: which is already bad. And so the reason it's worse 427 00:22:04,760 --> 00:22:08,120 Speaker 1: is because it picks winners and losers among the different 428 00:22:08,280 --> 00:22:12,680 Speaker 1: types of technology that different blockchains are built upon. And 429 00:22:12,720 --> 00:22:15,720 Speaker 1: we think it would be an incredible step backwards. Um. 430 00:22:16,080 --> 00:22:18,800 Speaker 1: It would be I think unprecedented for something like this 431 00:22:19,240 --> 00:22:23,400 Speaker 1: that would regulate UM and permit certain types of technologies 432 00:22:23,720 --> 00:22:26,720 Speaker 1: over others into into a bill of this nature in 433 00:22:26,800 --> 00:22:30,240 Speaker 1: such a last minute way. And so we are you know, 434 00:22:30,359 --> 00:22:33,719 Speaker 1: have been working around the clock here in Washington urging 435 00:22:33,840 --> 00:22:37,760 Speaker 1: Senators to continue to support the Widen Amendment and oppose 436 00:22:37,840 --> 00:22:40,879 Speaker 1: the Warner Amendment. And we're hopeful, uh, you know, that 437 00:22:40,920 --> 00:22:43,159 Speaker 1: we'll still be able to get a vote on on 438 00:22:43,200 --> 00:22:46,200 Speaker 1: the Widened Amendment tomorrow in the U. S. Senate. Alright, 439 00:22:46,200 --> 00:22:49,399 Speaker 1: So for the purposes of this conversation, we're going with 440 00:22:49,440 --> 00:22:52,680 Speaker 1: the widen Amendments, which you like, and the Warner Amendment, 441 00:22:52,800 --> 00:22:54,639 Speaker 1: which the White House likes. I just want to make 442 00:22:54,680 --> 00:22:57,600 Speaker 1: sure people understand what we're talking about. Is they actually 443 00:22:57,640 --> 00:23:00,920 Speaker 1: sound similar? Here now, Kristen, what would have been if 444 00:23:00,960 --> 00:23:05,800 Speaker 1: the Warner Amendment became law? Why would it be disastrous? Well, 445 00:23:05,840 --> 00:23:09,520 Speaker 1: it would be disastrous because you know, there are multiple blockchains. 446 00:23:09,600 --> 00:23:13,239 Speaker 1: Blockchain technology UM was something that started with bitcoin UM 447 00:23:13,280 --> 00:23:16,800 Speaker 1: a little over ten years ago and has since. There 448 00:23:16,800 --> 00:23:19,040 Speaker 1: have been many success or blockchains, and they all have 449 00:23:19,119 --> 00:23:22,080 Speaker 1: different purposes and different functions, and there are a lot 450 00:23:22,080 --> 00:23:24,600 Speaker 1: of really smart computer scientists that are working on them 451 00:23:24,640 --> 00:23:27,280 Speaker 1: and building them, and it's it's really it's just a 452 00:23:27,359 --> 00:23:31,640 Speaker 1: remarkable UM technology. It's still in the nascent stages. But 453 00:23:32,080 --> 00:23:36,000 Speaker 1: this would basically say that one type of blockchain technology, 454 00:23:36,080 --> 00:23:39,960 Speaker 1: called proof of work is the only one that wouldn't 455 00:23:39,960 --> 00:23:43,960 Speaker 1: have to be subject to the reporting requirements, which are 456 00:23:44,000 --> 00:23:47,000 Speaker 1: impossible to comply with. You know, I want to emphasize 457 00:23:47,040 --> 00:23:49,639 Speaker 1: nobody's saying that if you're going to coin basin and 458 00:23:49,720 --> 00:23:53,399 Speaker 1: purchasing cryptocurrency that coin based when it provide that information 459 00:23:53,480 --> 00:23:56,639 Speaker 1: to both their customer and to the I R S 460 00:23:56,680 --> 00:23:58,080 Speaker 1: at the end of the year. That that is something 461 00:23:58,080 --> 00:24:02,359 Speaker 1: the industry has long wanted. But you have these these 462 00:24:02,400 --> 00:24:05,920 Speaker 1: different types of participants that are helping contribute to the network, 463 00:24:06,000 --> 00:24:08,640 Speaker 1: but don't have access to any information and don't even 464 00:24:08,680 --> 00:24:12,040 Speaker 1: have customers. How should they be you know, even though 465 00:24:12,080 --> 00:24:15,639 Speaker 1: they're helping the build the network that's facilitating transactions, they 466 00:24:15,680 --> 00:24:19,359 Speaker 1: shouldn't be held responsible for information they don't have. And 467 00:24:19,440 --> 00:24:22,600 Speaker 1: that's what the language would do today. And what happens 468 00:24:22,680 --> 00:24:25,320 Speaker 1: with the Warner Amendment is it actually makes it worse 469 00:24:25,640 --> 00:24:29,040 Speaker 1: and select one type of technology while excluding all of 470 00:24:29,040 --> 00:24:31,040 Speaker 1: the rest of them. And we just don't think that's 471 00:24:31,080 --> 00:24:33,720 Speaker 1: the right approach. And this is why you shouldn't be running, 472 00:24:33,760 --> 00:24:36,240 Speaker 1: you know, the the Senate or the White House pician 473 00:24:36,280 --> 00:24:38,000 Speaker 1: to be trying to push this through last minute. This 474 00:24:38,080 --> 00:24:40,280 Speaker 1: is something that needs a lot of discussions, a lot 475 00:24:40,320 --> 00:24:42,000 Speaker 1: of debate, and I think we could clear this up 476 00:24:42,040 --> 00:24:45,520 Speaker 1: if we have the time to educate more Senate offices 477 00:24:45,920 --> 00:24:48,760 Speaker 1: so as we follow your rational though Christian and in 478 00:24:48,800 --> 00:24:52,639 Speaker 1: the end, does that mean people would be therefore reluctant 479 00:24:52,720 --> 00:24:57,600 Speaker 1: to invest in crypto, and we would see financial losses 480 00:24:57,600 --> 00:25:00,560 Speaker 1: for those holding it. Yes, I mean I think I 481 00:25:00,560 --> 00:25:04,080 Speaker 1: think people would be reluctant to invest um as holders. 482 00:25:04,160 --> 00:25:07,879 Speaker 1: But more importantly, the operations of the network. We wouldn't 483 00:25:07,880 --> 00:25:09,879 Speaker 1: be able to do that here in the US. You know, 484 00:25:09,960 --> 00:25:12,960 Speaker 1: you have to remember these these blockchains are not owned 485 00:25:13,000 --> 00:25:17,200 Speaker 1: and operated by any company. These these are decentralized networks 486 00:25:17,200 --> 00:25:20,560 Speaker 1: where many different participants, whether it be a software developer 487 00:25:21,000 --> 00:25:24,160 Speaker 1: or somebody who wants to do the work of mining 488 00:25:24,400 --> 00:25:27,639 Speaker 1: or shaking by you know, hooking up their equipment and 489 00:25:27,760 --> 00:25:30,360 Speaker 1: using their electricity to help run the network. It's it's 490 00:25:30,359 --> 00:25:33,040 Speaker 1: the beauty of these networks is it is the network 491 00:25:33,119 --> 00:25:36,440 Speaker 1: and so um all of those participants that help run 492 00:25:36,440 --> 00:25:41,199 Speaker 1: the underlying blockchains, the cryptocurrencies um fuel would not be 493 00:25:41,280 --> 00:25:43,480 Speaker 1: able to operate here in the US, and so they'd 494 00:25:43,680 --> 00:25:45,639 Speaker 1: either have to shut down or they would have to 495 00:25:45,640 --> 00:25:48,679 Speaker 1: go overseas because it would be absolutely impossible to supply 496 00:25:49,160 --> 00:25:54,640 Speaker 1: with the requirement that the subislation there are opposing. We're 497 00:25:54,680 --> 00:25:57,960 Speaker 1: talking with Kristin Smith, executive director the Blockchain Association. When 498 00:25:57,960 --> 00:26:00,600 Speaker 1: you talk to your members Kristen you you call the 499 00:26:00,600 --> 00:26:05,440 Speaker 1: Association the unified voice of the blockchain and cryptocurrency industry. 500 00:26:05,520 --> 00:26:08,560 Speaker 1: Is it fair to say that crypto traders, those who 501 00:26:08,560 --> 00:26:12,400 Speaker 1: were kind of the pioneers in this marketplace, we're wary 502 00:26:12,440 --> 00:26:15,840 Speaker 1: of government to begin with, and that's why that's why 503 00:26:16,000 --> 00:26:19,359 Speaker 1: we got here. Well, yeah, I mean, I think in 504 00:26:19,400 --> 00:26:21,760 Speaker 1: the early days of bitcoin and there was sort of 505 00:26:21,760 --> 00:26:25,280 Speaker 1: a libertarian nature, but you know, the crypto industry and 506 00:26:25,600 --> 00:26:28,320 Speaker 1: in the broader ecosystem have come a long way. Um. 507 00:26:28,520 --> 00:26:31,359 Speaker 1: And there are you know, people of all sorts of 508 00:26:31,400 --> 00:26:35,560 Speaker 1: political backgrounds that are involved there. There's a very diverse 509 00:26:35,600 --> 00:26:39,119 Speaker 1: community of participants. And I think that you know, the 510 00:26:39,200 --> 00:26:43,320 Speaker 1: number of users, the number of developers, the number um 511 00:26:43,480 --> 00:26:46,560 Speaker 1: of people running the operations of network have have grown. 512 00:26:46,800 --> 00:26:49,240 Speaker 1: And you know, I've been I'm just so pleased that 513 00:26:49,720 --> 00:26:52,560 Speaker 1: we have finally, um you know, maybe not under the 514 00:26:52,600 --> 00:26:56,000 Speaker 1: most ideal circumstances, but finally been able to come together 515 00:26:56,240 --> 00:26:59,560 Speaker 1: and um with one voice in Washington. And I don't 516 00:26:59,600 --> 00:27:01,520 Speaker 1: think it's the start of this. Anyone thought that the 517 00:27:01,680 --> 00:27:05,919 Speaker 1: last I keep standing with a cryptocurrency amendment. So, Kristen 518 00:27:05,960 --> 00:27:11,320 Speaker 1: Smith at the Blockchain Association, your voice is being heard 519 00:27:11,359 --> 00:27:13,680 Speaker 1: here on sound On, and we appreciate your being with it. 520 00:27:13,760 --> 00:27:16,159 Speaker 1: Sounds like a working weekend for Kristen's who coming up? 521 00:27:16,200 --> 00:27:19,120 Speaker 1: We present all this to our Friday Reporters panel. This 522 00:27:19,160 --> 00:27:25,080 Speaker 1: is Bloomberg. You're listening to Bloomberg you sound on with 523 00:27:25,160 --> 00:27:30,200 Speaker 1: Joe Matthew on Bloomberg Radio. It looks like a working 524 00:27:30,240 --> 00:27:34,160 Speaker 1: weekend ahead. Did I say that last Friday? But yes, 525 00:27:34,200 --> 00:27:36,720 Speaker 1: it appears Senators will be at work or at least tomorrow. 526 00:27:37,119 --> 00:27:39,240 Speaker 1: Back to it on Saturday as they hash out the 527 00:27:39,240 --> 00:27:42,880 Speaker 1: final sticking points by way of amendments in the bipart 528 00:27:42,960 --> 00:27:45,280 Speaker 1: is an infrastructure deal. And we're joined now on sound 529 00:27:45,320 --> 00:27:48,920 Speaker 1: On by Bloomberg Government's Jack Fitzpatrick and Emily Wilkins are 530 00:27:49,040 --> 00:27:53,680 Speaker 1: reporters round Table. We just spoke with the Blockchain Association 531 00:27:53,760 --> 00:27:56,200 Speaker 1: guys about this back and forth on taxing and sports, 532 00:27:56,200 --> 00:28:00,280 Speaker 1: specifically reporting in crypto transactions. Once this is done, Jack, 533 00:28:00,320 --> 00:28:03,680 Speaker 1: I'll start with you. Assuming this gets done, will there 534 00:28:03,680 --> 00:28:06,160 Speaker 1: be a vote or are there other things to resolve? Well, 535 00:28:06,160 --> 00:28:08,399 Speaker 1: they're trying to wrap things up, but there are a 536 00:28:08,520 --> 00:28:11,680 Speaker 1: number of issues that trip them up. As of yesterday, 537 00:28:11,680 --> 00:28:14,439 Speaker 1: you know, talking to senators yesterday, it sounded like it 538 00:28:14,520 --> 00:28:17,480 Speaker 1: wasn't just the crypto measure that held them up. It 539 00:28:17,560 --> 00:28:20,160 Speaker 1: was you know, by the way Chris Coon has described 540 00:28:20,200 --> 00:28:22,680 Speaker 1: it is everybody kind of got into the mindset, Oh, 541 00:28:22,800 --> 00:28:25,280 Speaker 1: this person is offering an amendment, why don't I offer 542 00:28:25,280 --> 00:28:27,520 Speaker 1: an amendment? Why doesn't everybody else offer an amendment? So 543 00:28:27,560 --> 00:28:30,119 Speaker 1: it sounds like there are a number of issues, but 544 00:28:30,200 --> 00:28:32,960 Speaker 1: eventually they wrap it up. The plan appears to be 545 00:28:33,040 --> 00:28:37,240 Speaker 1: probably take that procedural vote to close out debate, maybe tomorrow, 546 00:28:37,640 --> 00:28:40,320 Speaker 1: and then maybe by Monday they could hold the vote 547 00:28:40,360 --> 00:28:42,720 Speaker 1: on passage. But we'll see if they could get unanimous 548 00:28:42,760 --> 00:28:45,000 Speaker 1: consent to even speed it up a little bit. How 549 00:28:45,000 --> 00:28:46,920 Speaker 1: difficult do you think that will be? Emily? And what 550 00:28:47,000 --> 00:28:51,160 Speaker 1: are you hearing about the whole amendment process? Is it 551 00:28:51,240 --> 00:28:54,560 Speaker 1: over once we get through this? So, I mean, this 552 00:28:54,680 --> 00:28:56,960 Speaker 1: is the thing that we have less left to figure out, right, 553 00:28:57,080 --> 00:28:58,840 Speaker 1: it's the amendments. As soon as we get through. The 554 00:28:58,880 --> 00:29:01,239 Speaker 1: amendments were through. And I think Jack pointed out kind 555 00:29:01,280 --> 00:29:03,600 Speaker 1: of a very good point here right now, if you're 556 00:29:03,600 --> 00:29:06,760 Speaker 1: a senator, you have an incentive to come out and say, oh, hey, 557 00:29:06,840 --> 00:29:09,520 Speaker 1: last minute, one quick thing, can we do this? But 558 00:29:09,680 --> 00:29:11,400 Speaker 1: I think we're at the point, We've been in this 559 00:29:11,440 --> 00:29:15,120 Speaker 1: process for such a long time, so many months of negotiating, 560 00:29:15,200 --> 00:29:17,800 Speaker 1: so many weeks of getting close enough that really at 561 00:29:17,800 --> 00:29:20,440 Speaker 1: this point, the votes are there. It's just the little 562 00:29:20,480 --> 00:29:23,440 Speaker 1: details that they are figuring out. And we do see 563 00:29:23,520 --> 00:29:27,160 Speaker 1: a high level of confidence from Majority Leader Chuck Schumer 564 00:29:27,200 --> 00:29:30,320 Speaker 1: that whether this bill gets a final vote on Saturday, 565 00:29:30,440 --> 00:29:32,680 Speaker 1: on Sunday, or on Monday, that it is going to 566 00:29:32,760 --> 00:29:35,080 Speaker 1: have the votes that it needs to pass. Jack, we 567 00:29:35,120 --> 00:29:37,680 Speaker 1: talked just yesterday about the score at the CBO scored 568 00:29:37,840 --> 00:29:41,080 Speaker 1: the bill, and you helped us understand what was going 569 00:29:41,120 --> 00:29:43,840 Speaker 1: on here. But two and fifty six billion, I believe 570 00:29:43,880 --> 00:29:47,880 Speaker 1: it was would would potentially become a part of the deficit. 571 00:29:48,800 --> 00:29:50,920 Speaker 1: Now that's, of course, when we factor in all the 572 00:29:51,000 --> 00:29:54,040 Speaker 1: language that that CBO didn't acknowledge that the White House 573 00:29:54,080 --> 00:29:55,800 Speaker 1: had on there for the bill paying for itself. But 574 00:29:55,840 --> 00:30:00,400 Speaker 1: where I'm getting two here is if if this crypto 575 00:30:00,560 --> 00:30:04,360 Speaker 1: situation changes, if the amendment is rewritten, does that change 576 00:30:04,360 --> 00:30:07,800 Speaker 1: the pay for us and therefore change the score. It 577 00:30:07,840 --> 00:30:11,240 Speaker 1: can have an effect, but you know, I'm not sure 578 00:30:11,280 --> 00:30:13,520 Speaker 1: that's going to be as significant as the things they 579 00:30:13,520 --> 00:30:18,280 Speaker 1: have already worked out. Also, in a practical political sense. 580 00:30:18,520 --> 00:30:21,440 Speaker 1: We've already heard from people like Rob Portman and Kirsten 581 00:30:21,480 --> 00:30:24,160 Speaker 1: Cinema saying, you know, we we know what's in the 582 00:30:24,160 --> 00:30:27,400 Speaker 1: bill and the CBO score doesn't matter as much. They 583 00:30:27,400 --> 00:30:30,040 Speaker 1: didn't feel like it gave enough credit. It didn't do 584 00:30:30,080 --> 00:30:32,800 Speaker 1: the dynamic scoring that they wanted that gives credit for 585 00:30:32,960 --> 00:30:36,240 Speaker 1: economic growth that it could create. They didn't get exactly 586 00:30:36,280 --> 00:30:38,560 Speaker 1: what they want or see eye to eye with the 587 00:30:38,600 --> 00:30:42,680 Speaker 1: CBO in terms of unemployment insurance money that might not 588 00:30:42,760 --> 00:30:46,760 Speaker 1: be spent um. Basically, they know that they know what's 589 00:30:46,760 --> 00:30:49,400 Speaker 1: in it, they know if they think it pays for itself. 590 00:30:49,600 --> 00:30:53,120 Speaker 1: And there might be tweaks to the actual effects of 591 00:30:53,160 --> 00:30:56,640 Speaker 1: what a CBO score would be depending on other amendments. Uh. 592 00:30:56,680 --> 00:30:59,440 Speaker 1: And there is another one on on flexibility of state 593 00:30:59,520 --> 00:31:01,520 Speaker 1: funds that previously given out. They can use it for 594 00:31:01,560 --> 00:31:03,280 Speaker 1: infrastructure and that kind of thing. But I don't think 595 00:31:03,320 --> 00:31:06,720 Speaker 1: it massively changes anything because we've already heard from senators saying, 596 00:31:07,000 --> 00:31:08,920 Speaker 1: I basically know what's in the bill. I know that 597 00:31:08,960 --> 00:31:12,040 Speaker 1: it pays for itself enough to me, So maybe we 598 00:31:12,120 --> 00:31:13,480 Speaker 1: get an up or down here at the beginning of 599 00:31:13,480 --> 00:31:16,000 Speaker 1: next week, Emily, based on what I've heard from both 600 00:31:16,000 --> 00:31:18,400 Speaker 1: of you here. Uh, then it goes to the House. 601 00:31:18,440 --> 00:31:21,280 Speaker 1: Are we're gonna see some major grand standing next door. 602 00:31:21,880 --> 00:31:24,720 Speaker 1: So we're already seeing major grand standing in the House 603 00:31:25,040 --> 00:31:28,680 Speaker 1: of some very loud concerns, particularly from Chairman Pete DeFazio, 604 00:31:28,720 --> 00:31:32,520 Speaker 1: who's chair of the Transportation Infrastructure Committee. He was the 605 00:31:32,640 --> 00:31:34,920 Speaker 1: lead behind a bill that the House passed back in 606 00:31:35,040 --> 00:31:38,760 Speaker 1: July that dealt with a lot of infrastructure, water, highways, 607 00:31:38,840 --> 00:31:41,240 Speaker 1: that sort of thing, and he is not happy with 608 00:31:41,280 --> 00:31:43,280 Speaker 1: the Senate bill and he has made that known, and 609 00:31:43,320 --> 00:31:46,320 Speaker 1: he's concerned that there are some provisions on pollution that 610 00:31:46,400 --> 00:31:49,160 Speaker 1: were left out of the Senate package. The question is, 611 00:31:49,200 --> 00:31:52,080 Speaker 1: of course, what can be done at this point because 612 00:31:52,160 --> 00:31:54,880 Speaker 1: the Senate deal it took so long to come together. 613 00:31:55,240 --> 00:31:57,920 Speaker 1: In a way, it's very tentative. Right if you move 614 00:31:57,920 --> 00:31:59,680 Speaker 1: a little bit, if you make a couple of changes 615 00:31:59,720 --> 00:32:01,920 Speaker 1: here there, things are going to fall apart. I mean, 616 00:32:02,000 --> 00:32:03,880 Speaker 1: Mitt Romney told me this week that, you know, any 617 00:32:03,920 --> 00:32:07,600 Speaker 1: substantial changes would prevent this from becoming law. So the 618 00:32:07,600 --> 00:32:09,600 Speaker 1: House kind of has their hands tied a little bit 619 00:32:09,640 --> 00:32:12,280 Speaker 1: here on exactly what they can do. One thing, I 620 00:32:12,320 --> 00:32:15,600 Speaker 1: spoke with um Senator Carper, who has been leading the 621 00:32:15,640 --> 00:32:18,560 Speaker 1: floor debate a Democrat from Delaware. He said he's been 622 00:32:18,600 --> 00:32:21,360 Speaker 1: in touch with Pete Defasio and that he thinks that 623 00:32:21,560 --> 00:32:24,480 Speaker 1: they can address his concerns and that other bill that 624 00:32:24,520 --> 00:32:26,960 Speaker 1: they're doing with this two track system, that three point 625 00:32:27,000 --> 00:32:30,520 Speaker 1: five trilling reconciliation package. It's just last week Jack Peter 626 00:32:30,600 --> 00:32:33,840 Speaker 1: DeFazio said, I could give a damn about the White 627 00:32:33,840 --> 00:32:36,240 Speaker 1: House when he was asked about supporting the way this 628 00:32:36,480 --> 00:32:40,040 Speaker 1: bill was already crafted here seeking to start cool and 629 00:32:40,120 --> 00:32:41,760 Speaker 1: awful little bit when we get over to the House, 630 00:32:41,840 --> 00:32:43,560 Speaker 1: or is that where we're starting. You know, it's been 631 00:32:43,560 --> 00:32:47,200 Speaker 1: surprising the frustration in the tone from Peter de Fazio. 632 00:32:47,320 --> 00:32:49,760 Speaker 1: One thing I would point out he has mentioned a 633 00:32:49,760 --> 00:32:52,160 Speaker 1: few times. You know, he's the chair of the Transportation 634 00:32:52,160 --> 00:32:56,560 Speaker 1: and Infrastructure Committee. He's sort of got the policy expertise here. 635 00:32:56,840 --> 00:33:00,080 Speaker 1: But keep in mind in the Senate, they ultimately in 636 00:33:00,240 --> 00:33:02,960 Speaker 1: through this political route of getting these small groups of 637 00:33:03,000 --> 00:33:07,760 Speaker 1: sort of centrists together because his Senate Republican counterpart, shelling 638 00:33:07,800 --> 00:33:10,960 Speaker 1: more Capital, couldn't get the deal done. No offense to her, 639 00:33:11,000 --> 00:33:14,080 Speaker 1: but she she's sort of the policy expert, so to speak, 640 00:33:14,160 --> 00:33:16,840 Speaker 1: of Republican senators on this and it just didn't work. 641 00:33:16,880 --> 00:33:19,080 Speaker 1: They couldn't get something to get sixty votes, So it'says 642 00:33:19,080 --> 00:33:22,800 Speaker 1: a political a practice as a policy practice. Can we 643 00:33:23,240 --> 00:33:26,600 Speaker 1: read into today's jobs report at all in framing this 644 00:33:26,680 --> 00:33:30,880 Speaker 1: infrastructure debate that came in hotter than expected. We've had 645 00:33:30,920 --> 00:33:33,760 Speaker 1: several people tell us this hour that if we're looking 646 00:33:33,800 --> 00:33:38,600 Speaker 1: at this kind of economic data forty three thousand jobs, 647 00:33:38,760 --> 00:33:42,200 Speaker 1: far more than economists expected in some cases, why are 648 00:33:42,200 --> 00:33:44,360 Speaker 1: we spending all this money to to pump up the 649 00:33:44,400 --> 00:33:47,000 Speaker 1: economy right now? We're going to simply risk more inflation. 650 00:33:47,160 --> 00:33:49,680 Speaker 1: You know, I would point out they have been talking 651 00:33:49,720 --> 00:33:53,200 Speaker 1: about paying for their major bills for long enough, so 652 00:33:53,240 --> 00:33:57,000 Speaker 1: that clearly, at least in a political rhetorical sense, this 653 00:33:57,080 --> 00:34:00,120 Speaker 1: is not supposed to be a stimulus. It's supposed to 654 00:34:00,440 --> 00:34:06,160 Speaker 1: basically redistribute wealth or spending and take public funds and 655 00:34:06,240 --> 00:34:09,520 Speaker 1: emails to jects. That's I mean, that's the next Democratic bill. 656 00:34:09,880 --> 00:34:12,240 Speaker 1: There are tax measures where they want to increase taxes 657 00:34:12,280 --> 00:34:15,279 Speaker 1: on the rich and extend the child tax credit, that 658 00:34:15,360 --> 00:34:18,440 Speaker 1: kind of thing. The infrastructure measure, Okay, it's not entirely 659 00:34:18,480 --> 00:34:21,360 Speaker 1: paid for according to the CBO, so yes, it may inject. 660 00:34:21,719 --> 00:34:23,920 Speaker 1: It may be sort of a fiscal injection of funds 661 00:34:24,000 --> 00:34:27,000 Speaker 1: into the economy. But the point is to do things 662 00:34:27,040 --> 00:34:31,400 Speaker 1: and reach policy objectives that have not been accomplished, rather 663 00:34:31,440 --> 00:34:34,360 Speaker 1: than just sort of flooding the zone with money the 664 00:34:34,360 --> 00:34:37,040 Speaker 1: way they more or lested with the stimulus at one point. 665 00:34:37,080 --> 00:34:39,600 Speaker 1: Really also jump in real quick and say here that 666 00:34:39,640 --> 00:34:41,719 Speaker 1: you know, when you talk to lawmakers about why this 667 00:34:41,760 --> 00:34:45,120 Speaker 1: needs get done, both the bipartisan Infrastructure Plan as well 668 00:34:45,120 --> 00:34:48,880 Speaker 1: as that more comprehensive reconciliation plan, they don't talk about 669 00:34:48,920 --> 00:34:50,960 Speaker 1: the job's report. You don't hear them talk about the 670 00:34:51,000 --> 00:34:54,719 Speaker 1: economy too much. What they talk about is delivering for voters. 671 00:34:54,760 --> 00:34:57,080 Speaker 1: When they talk about this, they do so in terms 672 00:34:57,480 --> 00:34:59,759 Speaker 1: of that voters gave them the House, the Senate, and 673 00:34:59,800 --> 00:35:03,040 Speaker 1: the House, and they want to make sure voters do 674 00:35:03,120 --> 00:35:06,560 Speaker 1: so again in two and that I think is a 675 00:35:06,560 --> 00:35:09,799 Speaker 1: big motivator and a big driver for a lot of 676 00:35:09,840 --> 00:35:12,120 Speaker 1: Democrats in terms of what they need to get done. 677 00:35:12,120 --> 00:35:14,760 Speaker 1: Here I need to ask you both in our remaining 678 00:35:14,800 --> 00:35:18,760 Speaker 1: moment together, did you see the suit President Biden today 679 00:35:18,880 --> 00:35:22,359 Speaker 1: in a tan summer suit. Did he not learn from 680 00:35:22,360 --> 00:35:26,840 Speaker 1: his predecessor or emily have the rules changed? Honestly, I 681 00:35:26,920 --> 00:35:30,120 Speaker 1: remember seeing people during the Trump presidency who when something 682 00:35:30,160 --> 00:35:32,000 Speaker 1: crazy would happened, they would be like, do you guys 683 00:35:32,000 --> 00:35:35,319 Speaker 1: ever miss that the biggest scandal in Washington was a 684 00:35:35,400 --> 00:35:37,640 Speaker 1: tan suit? So I think there's a bit of a 685 00:35:37,719 --> 00:35:40,120 Speaker 1: leaf that that that we are finally back to that stage. 686 00:35:40,160 --> 00:35:42,120 Speaker 1: You have a tan suit in your closet, Jack, I don't, 687 00:35:42,239 --> 00:35:45,400 Speaker 1: you don't, I don't know. You gotta wear light color. 688 00:35:45,520 --> 00:35:49,280 Speaker 1: Ghosts your sucker man, the tan suit? They don't know. Listen, 689 00:35:49,360 --> 00:35:53,080 Speaker 1: was he trying to start something? We all learned from 690 00:35:53,120 --> 00:35:57,880 Speaker 1: President Obama that a tan suit at the podium is 691 00:35:57,920 --> 00:36:01,239 Speaker 1: a recipe for scandal. You just heard Malie suit Gate. 692 00:36:01,320 --> 00:36:05,880 Speaker 1: Anyone brings us back to That's when it happened. President 693 00:36:05,920 --> 00:36:09,800 Speaker 1: Obama walked into the briefing room wearing a tan suit, 694 00:36:09,920 --> 00:36:17,800 Speaker 1: and all hell broke loose over the audacity of Tope. 695 00:36:18,080 --> 00:36:20,719 Speaker 1: Michelle and I joke about the fact that one of 696 00:36:20,719 --> 00:36:23,239 Speaker 1: the bigger scandals of my presidency was me wearing a 697 00:36:23,239 --> 00:36:28,800 Speaker 1: tan suit during a prescott. You know, the image makers 698 00:36:28,800 --> 00:36:30,320 Speaker 1: in the White House. Here's a president coming out of 699 00:36:30,360 --> 00:36:32,799 Speaker 1: such a serious moment where he should be addressing the 700 00:36:32,840 --> 00:36:35,640 Speaker 1: country on such a serious matter, and he looked like 701 00:36:35,680 --> 00:36:37,440 Speaker 1: he was on his way to a party at the Hampton's. 702 00:36:37,760 --> 00:36:39,600 Speaker 1: I think it was shocking a lot of people. The 703 00:36:39,600 --> 00:36:44,320 Speaker 1: President stands squarely behind the decision, and he made yesterday 704 00:36:44,680 --> 00:36:48,040 Speaker 1: to wear his summer suit Yesterday's in his countence, I 705 00:36:48,200 --> 00:36:52,320 Speaker 1: was sorely tempted to wear a tan suit today for 706 00:36:52,440 --> 00:36:56,520 Speaker 1: my last press conference, but Michelle, whose fashion sense is 707 00:36:56,520 --> 00:36:59,000 Speaker 1: a little better than mine, tells me that's not appropriate 708 00:36:59,080 --> 00:37:07,399 Speaker 1: in January. Maybe Michelle needs to talk to Dr Jill 709 00:37:08,440 --> 00:37:11,799 Speaker 1: or the White House tailor, or maybe the rules have 710 00:37:12,040 --> 00:37:17,160 Speaker 1: changed in this partisan breakdown we call Washington. After all, 711 00:37:17,200 --> 00:37:20,120 Speaker 1: I shaved off my beard this week, a clean start, 712 00:37:20,200 --> 00:37:22,759 Speaker 1: I thought, and now people aren't sure what to say 713 00:37:22,760 --> 00:37:25,719 Speaker 1: when they see me. My own mother told me you 714 00:37:25,760 --> 00:37:29,440 Speaker 1: could always grow it back, and she's right, but I 715 00:37:29,480 --> 00:37:32,520 Speaker 1: think I'll give it a chance, follow my own path, 716 00:37:32,719 --> 00:37:36,480 Speaker 1: do what feels right. Just don't ask me to wear 717 00:37:36,520 --> 00:37:45,000 Speaker 1: a tan suit. Emily Jack, thank you both for being here, 718 00:37:45,080 --> 00:37:48,400 Speaker 1: and I'll meet you back here Monday for the fastest 719 00:37:48,440 --> 00:37:52,560 Speaker 1: hour in politics. It's called Bloomberg Sound On, and I 720 00:37:52,640 --> 00:37:56,040 Speaker 1: appreciate spending time with us here every afternoon as we 721 00:37:56,080 --> 00:38:00,840 Speaker 1: connect the dots between policy and politics and the issues 722 00:38:00,880 --> 00:38:04,720 Speaker 1: that affect you in your family have a great weekend. 723 00:38:05,000 --> 00:38:07,800 Speaker 1: I'm Joe, Matthew and missus Bloomberg