1 00:00:02,920 --> 00:00:15,280 Speaker 1: Bloomberg Audio Studios, podcasts, radio news for our Bloomberg audiences worldwide. 2 00:00:15,280 --> 00:00:15,960 Speaker 1: I'm David Western. 3 00:00:16,000 --> 00:00:18,320 Speaker 2: We're delighted to be joined right now by Black Chairman 4 00:00:18,360 --> 00:00:20,000 Speaker 2: and CEO Larry Fink. 5 00:00:20,320 --> 00:00:21,160 Speaker 1: So, Larry, welcome. 6 00:00:21,200 --> 00:00:22,840 Speaker 2: It's good to have you here on the day of 7 00:00:22,920 --> 00:00:25,919 Speaker 2: your annual Chairman's Letter to the investors. And it's a 8 00:00:25,920 --> 00:00:28,120 Speaker 2: bit of a different, I think letter from what you've 9 00:00:28,120 --> 00:00:31,720 Speaker 2: done before. Personal starts with your parents, right and they're earning, 10 00:00:31,960 --> 00:00:35,040 Speaker 2: saving for retirement, and include your grandkids as well. Yes, 11 00:00:35,159 --> 00:00:38,720 Speaker 2: the retirement crisis. Give us your diagnosis of that problem 12 00:00:38,760 --> 00:00:39,160 Speaker 2: right now. 13 00:00:39,360 --> 00:00:42,400 Speaker 3: What's something I've been writing about for years, but I 14 00:00:42,440 --> 00:00:45,400 Speaker 3: emphasize it in this letter. And you know, all my 15 00:00:45,479 --> 00:00:48,720 Speaker 3: letters have been based on some long term issues. And 16 00:00:48,800 --> 00:00:51,760 Speaker 3: let me be really truthful about my letters. My letters 17 00:00:51,800 --> 00:00:53,920 Speaker 3: are a reflection of my conversation with clients. 18 00:00:53,920 --> 00:00:54,680 Speaker 1: So it is. 19 00:00:55,200 --> 00:00:58,040 Speaker 3: And so over the past year I heard more and 20 00:00:58,080 --> 00:01:01,640 Speaker 3: more conversation about retirement. That we're hirement crisis from many 21 00:01:01,680 --> 00:01:04,760 Speaker 3: parts of the world, from middle class developing countries to 22 00:01:05,080 --> 00:01:10,040 Speaker 3: developed countries. The acute problem here in the United States 23 00:01:10,160 --> 00:01:13,240 Speaker 3: is that we have still fifty seven million Americans who 24 00:01:13,319 --> 00:01:18,520 Speaker 3: don't have any savings or any retirement plan. So security 25 00:01:18,560 --> 00:01:22,160 Speaker 3: is a fantastic foundation for retirement. But if that's how 26 00:01:22,200 --> 00:01:22,919 Speaker 3: you have when. 27 00:01:22,760 --> 00:01:25,080 Speaker 1: You retire, you're going to be living in. 28 00:01:26,720 --> 00:01:30,520 Speaker 3: Poverty below the poverty line because it just is it's supplemental, 29 00:01:30,560 --> 00:01:33,000 Speaker 3: but it's not meant to be the totality of what 30 00:01:33,040 --> 00:01:36,679 Speaker 3: you have in retirement. And the whole concept that we're aging, 31 00:01:36,880 --> 00:01:39,920 Speaker 3: we're you know, we're all living longer. And I think 32 00:01:39,959 --> 00:01:42,000 Speaker 3: one of the big narratives I had to reflect in 33 00:01:42,160 --> 00:01:45,880 Speaker 3: twenty twenty three was the miracles of medicine. When we 34 00:01:45,920 --> 00:01:48,000 Speaker 3: talk about the drugs like a zumpec and all the 35 00:01:48,040 --> 00:01:53,080 Speaker 3: different weight loss drugs, how that is extending life. It's 36 00:01:53,120 --> 00:01:56,560 Speaker 3: conquering kidney disease and liver disease and heart disease and 37 00:01:56,640 --> 00:02:01,320 Speaker 3: joint disease. And then there are new two medicine is 38 00:02:01,360 --> 00:02:06,080 Speaker 3: now for dementia that extends life. So if you think 39 00:02:06,120 --> 00:02:11,400 Speaker 3: about the miracles of technology and how it transforms our 40 00:02:11,480 --> 00:02:14,320 Speaker 3: lives and extends their life, there is not a dialogue 41 00:02:14,320 --> 00:02:18,280 Speaker 3: in America or most places about can't we afford that longevity? 42 00:02:18,440 --> 00:02:21,080 Speaker 1: And our entire retirement. 43 00:02:20,760 --> 00:02:25,600 Speaker 3: System was based on statistics that were created fifty years ago. 44 00:02:26,000 --> 00:02:29,680 Speaker 3: Whereby most Americans retired between sixty and sixty two then, 45 00:02:30,040 --> 00:02:31,919 Speaker 3: but most Americans then passed. 46 00:02:31,600 --> 00:02:33,280 Speaker 1: Away at sixty seven. 47 00:02:33,880 --> 00:02:39,960 Speaker 3: And today, statistically, a couple sixty years old in good health, 48 00:02:40,680 --> 00:02:43,640 Speaker 3: one of them is going to live over ninety. And 49 00:02:43,720 --> 00:02:47,560 Speaker 3: so the other question is should we reevaluate how we 50 00:02:47,639 --> 00:02:52,519 Speaker 3: work and how long we work because we all need 51 00:02:52,560 --> 00:02:56,239 Speaker 3: purpose in life, and in most plays, most people get 52 00:02:56,240 --> 00:02:59,880 Speaker 3: fined purpose. Obviously maybe with their grandchildren, their children, their 53 00:03:00,120 --> 00:03:05,240 Speaker 3: their community. Many people find purpose in their jobs. And 54 00:03:05,360 --> 00:03:08,720 Speaker 3: the thought of retiring at sixty with thirty more years 55 00:03:08,800 --> 00:03:11,520 Speaker 3: or a thirty year year life in front of you, 56 00:03:12,840 --> 00:03:14,359 Speaker 3: we need to have a dialogue. We need to have 57 00:03:14,440 --> 00:03:17,320 Speaker 3: a conversation. And you know, I'm an optimist. I am 58 00:03:17,360 --> 00:03:20,960 Speaker 3: a very optimistic about the long term vitality of our markets. 59 00:03:21,000 --> 00:03:25,520 Speaker 3: I'm bullish on capitalism. The reason why I'm bullish is 60 00:03:25,639 --> 00:03:28,120 Speaker 3: when I read the newspapers every morning and listen to 61 00:03:28,520 --> 00:03:34,440 Speaker 3: Bloomberg and other news organizations, it's full of scary things. 62 00:03:34,480 --> 00:03:37,040 Speaker 3: We talk about the problems. We talk about all the 63 00:03:37,080 --> 00:03:41,840 Speaker 3: problems life, but we solve problems through conversation. And the 64 00:03:41,880 --> 00:03:45,280 Speaker 3: one area where we have no conversation is is the 65 00:03:45,360 --> 00:03:50,480 Speaker 3: affordability of retirement and the whole concept of retirement, and 66 00:03:50,520 --> 00:03:53,680 Speaker 3: we need to start a global and most importantly and 67 00:03:53,840 --> 00:03:54,680 Speaker 3: national dialogue. 68 00:03:54,720 --> 00:03:56,840 Speaker 2: So in your letter you have a very powerful, i think, 69 00:03:56,880 --> 00:03:59,880 Speaker 2: diagnosis of the problem, not just the United States but global. Yes, 70 00:04:00,200 --> 00:04:03,080 Speaker 2: we are living longer, we need more money therefore to live. 71 00:04:03,120 --> 00:04:04,880 Speaker 2: At the same time, there's also a bit of a 72 00:04:04,920 --> 00:04:08,240 Speaker 2: pan there to capitalism and particularly capital markets and the 73 00:04:08,280 --> 00:04:10,000 Speaker 2: extraordinary things they've done, what they can do. 74 00:04:10,440 --> 00:04:11,720 Speaker 1: Connect the two of those up. 75 00:04:11,960 --> 00:04:14,280 Speaker 2: Could we use the capital markets to address at least 76 00:04:14,280 --> 00:04:15,560 Speaker 2: some of the problem we're talking about? And let me 77 00:04:15,560 --> 00:04:18,320 Speaker 2: be very specific. Social security you mentioned is really in trouble. 78 00:04:18,600 --> 00:04:20,800 Speaker 2: Should we be taking the Social Security Trust Fund what's 79 00:04:20,880 --> 00:04:23,120 Speaker 2: left of it and put it into capital markets? 80 00:04:23,200 --> 00:04:24,839 Speaker 3: We need to put it in a long term investment. 81 00:04:24,880 --> 00:04:27,400 Speaker 3: I mean, we have a system of pay as you go. Okay, 82 00:04:27,800 --> 00:04:30,719 Speaker 3: there are other countries like Australia that have a whole 83 00:04:30,800 --> 00:04:33,680 Speaker 3: unique system whereby you're contributing. 84 00:04:34,040 --> 00:04:35,760 Speaker 1: But there are right now in. 85 00:04:35,680 --> 00:04:38,640 Speaker 3: Congress there are a number of senators and congressmen that 86 00:04:38,680 --> 00:04:45,080 Speaker 3: are talking about rehabilitating our security pool and maybe contributing 87 00:04:45,080 --> 00:04:48,880 Speaker 3: a big block of money into it so it has sufficiency. 88 00:04:49,240 --> 00:04:51,440 Speaker 3: But to me, as I said, social security is just 89 00:04:51,480 --> 00:04:56,479 Speaker 3: a foundation of retirement. We need to really educate our 90 00:04:56,560 --> 00:05:03,520 Speaker 3: citizens about the need for savings. We see worldwide most 91 00:05:03,520 --> 00:05:07,200 Speaker 3: people who are really thrifty, they keep most of their 92 00:05:07,200 --> 00:05:10,720 Speaker 3: money in a bank account. Like in Japan, almost there's 93 00:05:10,720 --> 00:05:13,440 Speaker 3: a high savings rate of eighteen percent. Most of that 94 00:05:13,640 --> 00:05:16,680 Speaker 3: isn't a bank account. In Europe there's a high savings 95 00:05:16,760 --> 00:05:18,040 Speaker 3: rate of fifteen ish percent. 96 00:05:18,440 --> 00:05:19,920 Speaker 1: Most of that's in a bank account. 97 00:05:20,240 --> 00:05:22,880 Speaker 3: That is not going to provide you the adequacy of 98 00:05:22,920 --> 00:05:26,119 Speaker 3: the compounding of what capital markets can do. But probably 99 00:05:26,160 --> 00:05:28,400 Speaker 3: one of the big conversations I've had with so many 100 00:05:28,480 --> 00:05:32,279 Speaker 3: political leaders is the connection of retirement. 101 00:05:31,720 --> 00:05:32,760 Speaker 1: And the capital markets. 102 00:05:34,040 --> 00:05:36,360 Speaker 3: When you think about the vitality of the US capital 103 00:05:36,400 --> 00:05:39,680 Speaker 3: markets so much it's based on the long term money 104 00:05:39,720 --> 00:05:43,560 Speaker 3: of pension funds of our whether it's a defined benefit 105 00:05:43,600 --> 00:05:48,320 Speaker 3: plan or defined contribution plan. And Americans are more optimistic, 106 00:05:48,320 --> 00:05:52,679 Speaker 3: and so we have a higher investment in equities beyond 107 00:05:52,800 --> 00:05:57,200 Speaker 3: any other society. And so in my conversation with many 108 00:05:57,240 --> 00:06:01,120 Speaker 3: political leaders as they think about retire and Japan is 109 00:06:01,120 --> 00:06:02,000 Speaker 3: a great example. 110 00:06:02,839 --> 00:06:04,160 Speaker 1: The Kashida government just. 111 00:06:04,120 --> 00:06:09,160 Speaker 3: This past October raised the amount of tax deductibility to 112 00:06:09,200 --> 00:06:10,120 Speaker 3: put in your four to one. 113 00:06:10,040 --> 00:06:11,320 Speaker 1: K, they double the size. 114 00:06:11,640 --> 00:06:14,479 Speaker 3: And it's not a coincidence that the Japanese equity market 115 00:06:14,560 --> 00:06:18,400 Speaker 3: since October is up thirty percent, and it's because we're 116 00:06:18,400 --> 00:06:20,480 Speaker 3: seeing more and more money that it is going into 117 00:06:20,520 --> 00:06:23,360 Speaker 3: the long term capital markets. So not only does it 118 00:06:23,520 --> 00:06:27,800 Speaker 3: give financial returns for those who are retiring and saving 119 00:06:27,839 --> 00:06:31,039 Speaker 3: for retirement, but it's a big foundation. 120 00:06:31,240 --> 00:06:33,159 Speaker 1: For domestic. 121 00:06:34,760 --> 00:06:39,839 Speaker 3: Companies to have local investing in your own companies. 122 00:06:40,200 --> 00:06:41,880 Speaker 1: If you look at the United States. 123 00:06:41,600 --> 00:06:45,960 Speaker 3: Our equity markets generally traded a two to three pe 124 00:06:46,080 --> 00:06:49,200 Speaker 3: racial higher than any place in the world. Now you 125 00:06:49,200 --> 00:06:51,320 Speaker 3: could argue we have better companies than ana place in 126 00:06:51,360 --> 00:06:54,680 Speaker 3: the world, but you also have to attribute this to 127 00:06:54,920 --> 00:06:58,880 Speaker 3: that we have a larger retirement system in terms of 128 00:06:58,920 --> 00:06:59,720 Speaker 3: what we invested. 129 00:07:00,120 --> 00:07:02,240 Speaker 1: Now, that doesn't mean we need and we need more. 130 00:07:02,320 --> 00:07:04,839 Speaker 1: We need more money for more people to be putting 131 00:07:04,920 --> 00:07:05,800 Speaker 1: it into their system. 132 00:07:06,120 --> 00:07:08,440 Speaker 2: Take it a step further, because something you're very involved 133 00:07:08,480 --> 00:07:11,920 Speaker 2: in Blackrock is is alternative investments. Yes, the private markets, 134 00:07:12,240 --> 00:07:15,200 Speaker 2: credit debt, things like that. Should we be changing the 135 00:07:15,280 --> 00:07:16,840 Speaker 2: rules so we can put our four to one case, 136 00:07:16,880 --> 00:07:18,800 Speaker 2: our iris into private markets. 137 00:07:19,960 --> 00:07:23,800 Speaker 3: I believe there are some great areas of private markets 138 00:07:23,800 --> 00:07:27,440 Speaker 3: that are going to be great investments for retirement, and 139 00:07:27,800 --> 00:07:33,800 Speaker 3: I would channel that more towards infrastructure because infrastructure has 140 00:07:33,840 --> 00:07:39,280 Speaker 3: a long maturity. It has a higher coupon, but it 141 00:07:39,320 --> 00:07:42,760 Speaker 3: has a lower profile of returns and what I would 142 00:07:42,760 --> 00:07:45,920 Speaker 3: say other areas of the private markets, So it has 143 00:07:46,080 --> 00:07:50,440 Speaker 3: more a good corridor of returns, but higher probabilities of 144 00:07:50,800 --> 00:07:53,640 Speaker 3: meeting those returns. And so yes, we need to be 145 00:07:53,760 --> 00:07:56,960 Speaker 3: relooking at how we think about investing, whether that is 146 00:07:57,000 --> 00:08:01,200 Speaker 3: going to be in private equity or infrastructure. I do believe, 147 00:08:01,720 --> 00:08:03,720 Speaker 3: you know, we need to be putting more long dated 148 00:08:03,760 --> 00:08:07,880 Speaker 3: assets into retirement and so that you could so that 149 00:08:07,920 --> 00:08:11,120 Speaker 3: you could meet the returns that you need to have 150 00:08:11,240 --> 00:08:15,760 Speaker 3: the pool of money that we require during retirement. 151 00:08:15,840 --> 00:08:19,320 Speaker 2: Something else you mentioned was our longevity, which has increased substantially. 152 00:08:19,440 --> 00:08:21,760 Speaker 2: We all benefit from that. That's a good thing, exactly 153 00:08:22,200 --> 00:08:25,560 Speaker 2: planning at the same time, Should we be encouraging, as 154 00:08:25,560 --> 00:08:28,640 Speaker 2: you suggested a letter, people working longer. Should we making 155 00:08:28,680 --> 00:08:32,080 Speaker 2: a possible facility thing, Should we frankly increase the age 156 00:08:32,280 --> 00:08:34,320 Speaker 2: for social security? 157 00:08:35,000 --> 00:08:37,280 Speaker 3: That is not for me to make a decision, but 158 00:08:37,480 --> 00:08:39,240 Speaker 3: I think we need to have a conversation. Look at 159 00:08:39,480 --> 00:08:41,920 Speaker 3: you and I are the same age. Okay, we are 160 00:08:42,040 --> 00:08:46,040 Speaker 3: working longer. We have find purpose in what we do. 161 00:08:47,480 --> 00:08:49,880 Speaker 3: The founder of Bloomberg, Mike, is still working. 162 00:08:51,520 --> 00:08:52,120 Speaker 1: I believe. 163 00:08:54,000 --> 00:08:57,720 Speaker 3: I believe for those who can and they find purpose 164 00:08:57,720 --> 00:09:00,640 Speaker 3: and work, my gosh, work as long as you can. 165 00:09:00,040 --> 00:09:03,439 Speaker 3: And if you find blessings, if you find purpose and 166 00:09:03,520 --> 00:09:07,280 Speaker 3: other things, do that. But I do believe we need 167 00:09:07,320 --> 00:09:09,720 Speaker 3: to discuss these opportunities. 168 00:09:09,880 --> 00:09:13,120 Speaker 1: I don't think the average citizen knows that you know 169 00:09:13,200 --> 00:09:14,959 Speaker 1: the extent of how much longer we're going to be 170 00:09:15,000 --> 00:09:16,600 Speaker 1: able to live. You know. 171 00:09:16,679 --> 00:09:22,080 Speaker 3: So the beauty and the miracles of medicine has allowed 172 00:09:22,160 --> 00:09:25,439 Speaker 3: us to live you know, ten, fifteen, twenty years longer 173 00:09:25,480 --> 00:09:30,760 Speaker 3: than two generations ago. And so, but we haven't changed 174 00:09:30,840 --> 00:09:34,240 Speaker 3: our system of retirement or our system of social security. 175 00:09:34,679 --> 00:09:37,000 Speaker 3: So the most important thing we need to do, David, 176 00:09:37,080 --> 00:09:41,000 Speaker 3: is have a conversation. And through that conversation, I think 177 00:09:41,040 --> 00:09:43,200 Speaker 3: most people are going to elect to do things maybe 178 00:09:43,240 --> 00:09:49,040 Speaker 3: working longer, we're electing to be more, to be more 179 00:09:49,120 --> 00:09:52,439 Speaker 3: involved in how they put their money to work for retirement. 180 00:09:53,240 --> 00:09:54,920 Speaker 2: As I say in your letter, you talk a lot 181 00:09:54,920 --> 00:09:57,320 Speaker 2: about the success of the capital markets, all that they've accomplished. 182 00:09:57,360 --> 00:09:59,840 Speaker 2: At the same time you do mention the problem with 183 00:10:00,000 --> 00:10:02,400 Speaker 2: which to a US debt, and you think it's more 184 00:10:02,520 --> 00:10:04,520 Speaker 2: urgent than anytime. I think you said you can remember 185 00:10:04,559 --> 00:10:08,120 Speaker 2: in your lifetime. Put those two things together. To what 186 00:10:08,280 --> 00:10:11,600 Speaker 2: extent has the success of the capital markets comes specifically 187 00:10:11,600 --> 00:10:14,400 Speaker 2: because we've taken more debt on the public ballance sheet. 188 00:10:14,440 --> 00:10:18,160 Speaker 2: We've shifted debt from private balance sheets to public balance sheets. 189 00:10:17,840 --> 00:10:18,360 Speaker 1: No question. 190 00:10:19,440 --> 00:10:23,000 Speaker 3: Let's just use a statistic. And I think when I 191 00:10:23,080 --> 00:10:27,400 Speaker 3: talk about this statistic, I get frightened. In the year 192 00:10:27,440 --> 00:10:32,120 Speaker 3: two thousand, the US deficit was eight trillion dollars. Today 193 00:10:32,160 --> 00:10:36,360 Speaker 3: it's thirty four trillion dollars. So twenty three years later 194 00:10:37,640 --> 00:10:42,679 Speaker 3: we increased our deficit by twenty six trillion dollars. So 195 00:10:43,000 --> 00:10:46,480 Speaker 3: for the first two hundred and thirty odd forty years, 196 00:10:49,640 --> 00:10:52,520 Speaker 3: we increased our deficit to eight trillion, and in the 197 00:10:52,600 --> 00:10:57,000 Speaker 3: last twenty three years went we increased it by twenty 198 00:10:57,000 --> 00:10:58,160 Speaker 3: six trillion dollars. 199 00:10:58,679 --> 00:11:01,720 Speaker 1: I think that speaks volume of what's happening in our 200 00:11:01,760 --> 00:11:03,360 Speaker 1: in our in our country today. 201 00:11:03,960 --> 00:11:07,840 Speaker 3: The problem with these type of deficits is and now 202 00:11:07,840 --> 00:11:12,760 Speaker 3: with and I believe higher interest rates for longer, the 203 00:11:12,800 --> 00:11:14,960 Speaker 3: cost of financing our deficits are going. 204 00:11:14,880 --> 00:11:16,640 Speaker 1: To erode more and more of. 205 00:11:16,559 --> 00:11:21,360 Speaker 3: Our of our disposable income as a country. And I 206 00:11:21,400 --> 00:11:24,959 Speaker 3: do believe there we're getting to a point where our 207 00:11:25,000 --> 00:11:28,679 Speaker 3: public debt is going to start up, crowding out private capital, 208 00:11:28,920 --> 00:11:31,160 Speaker 3: and we're going to have structurally higher interest rates. 209 00:11:31,360 --> 00:11:34,400 Speaker 2: What can the private sector do to trigger some action 210 00:11:34,480 --> 00:11:35,839 Speaker 2: in that regard. I mean, you're the head of the 211 00:11:35,920 --> 00:11:38,439 Speaker 2: largest asset manager in the world. Ry think it's not 212 00:11:38,520 --> 00:11:40,720 Speaker 2: just you, but you have some influence. At this point, 213 00:11:40,800 --> 00:11:43,040 Speaker 2: we have Candide running for president who aren't even talking 214 00:11:43,040 --> 00:11:43,760 Speaker 2: about this, that's. 215 00:11:43,600 --> 00:11:44,480 Speaker 1: Not even a conversation. 216 00:11:47,640 --> 00:11:51,320 Speaker 3: So in my letter I talk about the need for 217 00:11:51,440 --> 00:11:55,240 Speaker 3: more public private investments. Well, the United States is one 218 00:11:55,280 --> 00:11:58,559 Speaker 3: of the last countries where we've had private capital investing 219 00:11:58,600 --> 00:12:03,800 Speaker 3: in in our infrastruction ructure. And I believe if we 220 00:12:03,920 --> 00:12:07,880 Speaker 3: changed our policies, privatized our airports and privatized maybe our 221 00:12:08,040 --> 00:12:12,240 Speaker 3: ports and having private capital investing that then our public 222 00:12:12,440 --> 00:12:16,440 Speaker 3: spending could be rededicated to more urgent social needs, more 223 00:12:16,559 --> 00:12:23,079 Speaker 3: urgent needs elevating our education, elevating issues around social security 224 00:12:23,120 --> 00:12:28,200 Speaker 3: and healthcare. And so I believe the need is to 225 00:12:28,280 --> 00:12:31,680 Speaker 3: rethink what is a role and responsibility of the public 226 00:12:31,760 --> 00:12:38,120 Speaker 3: sector for the development of better twenty first century infrastructure. 227 00:12:38,440 --> 00:12:41,120 Speaker 3: We know that we are going to have to digitize 228 00:12:41,160 --> 00:12:43,880 Speaker 3: our entire economy. We know we're going to have to 229 00:12:43,920 --> 00:12:48,840 Speaker 3: move forward on decarbonization. These require huge pools of money. 230 00:12:49,200 --> 00:12:51,360 Speaker 3: Allow the private sector to be part of that. We 231 00:12:51,440 --> 00:12:55,840 Speaker 3: have this enormous functional capital markets that can provide the 232 00:12:55,920 --> 00:12:59,360 Speaker 3: capital we as a country must use it more often 233 00:13:00,040 --> 00:13:03,840 Speaker 3: access the role of private sector, and so I think 234 00:13:03,920 --> 00:13:08,920 Speaker 3: we still you know, that does not change the course 235 00:13:08,960 --> 00:13:12,480 Speaker 3: of our deficits, but we could certainly reallocate some of 236 00:13:12,520 --> 00:13:16,959 Speaker 3: our moneies into more urgent issues. And I would say, 237 00:13:17,320 --> 00:13:20,960 Speaker 3: and my letter speaks about it, to we need to 238 00:13:21,000 --> 00:13:25,000 Speaker 3: grow our economy so our deficits are a smaller component. 239 00:13:24,880 --> 00:13:27,959 Speaker 1: Of our GDP. That is the bigger issue. 240 00:13:28,000 --> 00:13:31,160 Speaker 3: If we continue to just grow at two percent and 241 00:13:31,200 --> 00:13:33,520 Speaker 3: we have these type of deficits, that's when the deficits 242 00:13:33,640 --> 00:13:34,959 Speaker 3: really are going to be a. 243 00:13:34,920 --> 00:13:36,720 Speaker 1: Problem out five and ten years. 244 00:13:36,760 --> 00:13:38,680 Speaker 2: But you suggest three percent, is that realistic? 245 00:13:39,600 --> 00:13:41,280 Speaker 3: We need that has to be our target. We need 246 00:13:41,320 --> 00:13:43,760 Speaker 3: to find ways of growing at three percent instead of 247 00:13:43,800 --> 00:13:47,040 Speaker 3: just cutting taxes, or we need to find ways of 248 00:13:47,080 --> 00:13:51,520 Speaker 3: incenting private capital to be investing more. 249 00:13:51,640 --> 00:13:54,280 Speaker 1: We need to encourage growth and we need to be. 250 00:13:54,400 --> 00:13:56,360 Speaker 3: And this is a debate now and there's a lot 251 00:13:56,360 --> 00:13:59,480 Speaker 3: of people talking against this. We need to embrace our 252 00:13:59,520 --> 00:14:02,840 Speaker 3: capital because our capitalism has shown to be the best 253 00:14:02,880 --> 00:14:04,440 Speaker 3: economic force in the world. 254 00:14:04,920 --> 00:14:06,720 Speaker 2: And finally, Larry, let's come back to the personal here 255 00:14:06,720 --> 00:14:08,520 Speaker 2: for a moment. As you mentioned, you and I happened 256 00:14:08,520 --> 00:14:11,000 Speaker 2: to be exactly the same age, right, we're boomers. Yes, 257 00:14:11,440 --> 00:14:14,520 Speaker 2: we have some responsibility to the succeeding generation that I'm 258 00:14:14,520 --> 00:14:16,160 Speaker 2: not sure we're delivering on. How much of your letter 259 00:14:16,280 --> 00:14:19,040 Speaker 2: was really saying to us boomers. We owe it to 260 00:14:19,080 --> 00:14:21,280 Speaker 2: our children and our grandchildren to get our arms around 261 00:14:21,280 --> 00:14:21,880 Speaker 2: these problems. 262 00:14:22,840 --> 00:14:26,680 Speaker 3: We were born at a great economic moments. We all 263 00:14:26,720 --> 00:14:29,760 Speaker 3: have a responsibility to try to recreate that environment for 264 00:14:29,800 --> 00:14:33,440 Speaker 3: our grandchildren and hopefully make a better outcome for our children. 265 00:14:33,480 --> 00:14:35,480 Speaker 1: But now at our age, we've got to be focused 266 00:14:35,520 --> 00:14:37,520 Speaker 1: on the future for our grandchildren. 267 00:14:37,720 --> 00:14:39,560 Speaker 2: Okay, Larry, thank you so much, really great to have 268 00:14:39,640 --> 00:14:42,440 Speaker 2: you here. That's Larry Fink. He's Black chairman and CEO.