WEBVTT - Millennials at 40 Are Falling Behind Their Parents 0:00:01.800 --> 0:00:04.440 This is Bloomberg Business Week. I'm Carol Masser and I'm 0:00:04.480 --> 0:00:07.280 Bloomberg Quick Takes Tim Stanovk. We're here every day bringing 0:00:07.320 --> 0:00:09.840 you the latest news from the world to business and finance, 0:00:09.840 --> 0:00:13.680 plus technology, politics, economics, all parnessing the power of Business 0:00:13.680 --> 0:00:17.160 Week reporters and editors, not to mention our journalists and 0:00:17.160 --> 0:00:20.000 analysts in more than one twenty countries. You can download 0:00:20.000 --> 0:00:23.239 Bloomberg Business Week and iTunes, SoundCloud, or Bloomberg dot Com. 0:00:23.400 --> 0:00:25.200 You can also listen to our radio show at two 0:00:25.200 --> 0:00:27.880 pm Eastern Time on Bloomberg Radio, or watch us on 0:00:27.920 --> 0:00:32.360 YouTube search Bloomberg Global News. Well US infectious disease expert 0:00:32.360 --> 0:00:34.960 Anthony Fauci saying it was possible the world would never 0:00:35.000 --> 0:00:38.440 find out the precise origin of the coronavirus pandemic. We 0:00:38.520 --> 0:00:41.200 know President Biden just last month ordering a new ninety 0:00:41.240 --> 0:00:44.839 day review from the intelligence community about the possible origins 0:00:44.880 --> 0:00:46.360 of the virus. To him, we've got that going on. 0:00:46.400 --> 0:00:48.680 Then we've got the Bloomberg Big Take about how the 0:00:48.720 --> 0:00:51.040 world's best hope to end the pandemic really just needs 0:00:51.159 --> 0:00:53.440 more doses. Yeah, and here to help us dive into 0:00:53.479 --> 0:00:56.080 all that and more is Darryl Gaskin, Professor of Health 0:00:56.120 --> 0:00:58.680 Policy and Management at the Johns Hopkins at Bloomberg School 0:00:58.720 --> 0:01:01.400 of Public Health, joins us on the phone from Maryland. 0:01:01.600 --> 0:01:04.840 The Johns Hopkins Bloomberg School of Public Health is supported 0:01:04.840 --> 0:01:09.080 by Michael R. Bloomberg, founder of Bloomberg LP and Bloomberg Philanthropies. 0:01:09.160 --> 0:01:11.320 Professor Gaskin, thanks so much for joining us. How are you? 0:01:12.480 --> 0:01:15.199 I'm doing well and how are you doing doing well? Thanks? 0:01:15.280 --> 0:01:18.520 How important is it that that we actually find the 0:01:18.520 --> 0:01:23.399 origins of the coronavirus? Well, I think with regard to 0:01:24.120 --> 0:01:29.039 UM finding the origins of the coronavirus, it's it's I 0:01:29.080 --> 0:01:33.000 think it's more important that we know what the virus 0:01:33.200 --> 0:01:36.440 is and how to treat it as opposed to just 0:01:37.000 --> 0:01:41.360 UM finding its origin UM. And I think we've done 0:01:41.360 --> 0:01:44.920 a pretty good job in terms of gore mapping the 0:01:45.000 --> 0:01:48.360 DNA of the of the of the virus itself and 0:01:48.400 --> 0:01:51.800 then developing vaccines to try to combat the virus. So 0:01:51.880 --> 0:01:56.480 I think that's that's really the major thing that we 0:01:56.480 --> 0:01:59.600 ought to be doing, and then subsequently learning how to 0:01:59.640 --> 0:02:03.400 treat virus right exactly, and we know the toolkit has 0:02:03.440 --> 0:02:05.360 certainly it's a lot more full than it was about 0:02:05.360 --> 0:02:09.000 twelve fourteen months ago. Having said that, at the same time, 0:02:09.160 --> 0:02:13.640 the past year, as you know, Professor Gaskin, that the 0:02:13.639 --> 0:02:17.400 pandemic really revealed once again all the inequities that are 0:02:17.440 --> 0:02:20.000 out there in terms of how healthy the U. S 0:02:20.040 --> 0:02:24.080 population is. Some really healthy, some not. Some have great 0:02:24.120 --> 0:02:28.280 access to amazing healthcare, some do not. This is something 0:02:28.320 --> 0:02:33.680 that you look at really closely. Have we learned enough 0:02:33.760 --> 0:02:36.000 this past year that we're going to get smarter about 0:02:36.040 --> 0:02:39.960 making sure that people are healthier going forward, uh, and 0:02:40.000 --> 0:02:42.959 that people have more people have great access to good 0:02:42.960 --> 0:02:47.760 health care. Well, I think what the pandemic has done 0:02:47.840 --> 0:02:51.799 is it's revealed that there are some real problems with 0:02:52.040 --> 0:02:56.560 health equity in this country, and those problems have persisted 0:02:56.919 --> 0:03:02.280 UM for decades. There's a has has historical report by 0:03:02.440 --> 0:03:06.480 the Heckler, the HECLA Report, which was UM published in 0:03:06.480 --> 0:03:12.679 the nineties eighties, which which UM documented the UM disparities. 0:03:12.720 --> 0:03:15.720 And then there's a report that was called Unequal Treatment 0:03:15.760 --> 0:03:20.520 that was published in early two thousands that documented these disparities. 0:03:20.520 --> 0:03:23.840 So from a research or standpoint, we've known about it 0:03:23.919 --> 0:03:27.760 for a while, but I think from the general public standpoints, 0:03:27.919 --> 0:03:31.519 they haven't realized how severe the problem is. And then 0:03:31.560 --> 0:03:34.280 also the impact of this problem that it's just not 0:03:34.400 --> 0:03:38.600 something in which affects your neighbor, but it really affects 0:03:38.600 --> 0:03:40.880 our entire society. Well, how do we get to a 0:03:40.880 --> 0:03:43.920 place where we we learn from the mistakes of our 0:03:44.000 --> 0:03:46.880 past and actually fixed this on the other side of 0:03:46.920 --> 0:03:48.880 the pandemic, Because it seems like this could be another 0:03:48.920 --> 0:03:53.480 instance of us recognizing something, but then the policymakers not 0:03:53.560 --> 0:03:57.960 having the political will to actually accomplish something. Yeah, it's 0:03:58.080 --> 0:04:02.680 it's it's um, really quite a thorny problem. I mean, UM, 0:04:02.800 --> 0:04:06.720 we should all be sort of just moved by the 0:04:06.760 --> 0:04:11.760 fact that there are people who are unhealthy through no 0:04:11.920 --> 0:04:16.520 fault of their own often um, and morally that should 0:04:16.520 --> 0:04:19.359 be something in which we should be willing to take on. 0:04:20.040 --> 0:04:24.880 But not only is it just morally unacceptable, it's also 0:04:25.200 --> 0:04:30.279 economically it's just just causing our society just a lot 0:04:30.360 --> 0:04:34.200 of money in terms of taking care of people who 0:04:34.480 --> 0:04:41.080 are are sicker um who um, And then those individuals 0:04:41.120 --> 0:04:47.159 their ability to contribute to our society um is curtailed 0:04:47.240 --> 0:04:50.520 and compromised. And then also the fact that people are 0:04:50.560 --> 0:04:54.039 not living as long as they should and and so 0:04:54.240 --> 0:04:58.560 all of these things impose significant costs on our society. 0:04:58.640 --> 0:05:01.680 So even if if you're not willing to address these 0:05:01.680 --> 0:05:04.840 problems because it's morally the right thing to do, we 0:05:04.839 --> 0:05:07.560 should want to address these problems because it's really sort 0:05:07.560 --> 0:05:11.159 of a real track on our economy. Exactly. Hey, we 0:05:11.240 --> 0:05:13.680 just got about a minute or fifty seconds left here, 0:05:13.880 --> 0:05:16.320 how do you though unwind what's become such a business 0:05:16.400 --> 0:05:21.320 machine that is our health care program and our health 0:05:21.440 --> 0:05:24.240 health care industry, to be fair, because there's a lot 0:05:24.279 --> 0:05:26.839 of money that's to be made when people are sick 0:05:27.360 --> 0:05:30.960 versus maybe keeping people from being sick. So how do 0:05:30.960 --> 0:05:35.000 we unwind that? And just kind of I think it's 0:05:35.120 --> 0:05:37.160 we have to be willing to say yes and no 0:05:37.320 --> 0:05:41.200 at the same time. Um, we've spend a lot on healthcare, 0:05:41.240 --> 0:05:43.839 but we just spend it on the wrong things. I mean, 0:05:43.920 --> 0:05:46.599 we we really want to spend a lot on tertiary care, 0:05:46.640 --> 0:05:49.680 but not a lot on primary and preventive care. I mean, 0:05:49.680 --> 0:05:52.320 there are providers that are providing these services, but if 0:05:52.320 --> 0:05:54.960 you look at what we pay them relative to what 0:05:55.040 --> 0:05:58.760 we pay specialists. And then an addition, we've spent a 0:05:58.760 --> 0:06:01.039 lot on healthcare, but not a lot on public health 0:06:01.279 --> 0:06:05.720 and this crisis. If we were much better prepared public 0:06:05.720 --> 0:06:09.720 health wise, we could have maybe a burden UM hundreds 0:06:09.760 --> 0:06:11.960 of thousands of deaths if we just were to have 0:06:11.960 --> 0:06:15.400 had the systems in place to monitor, track and then 0:06:15.680 --> 0:06:19.080 um and then isolate. This spiral. Sounds like we can 0:06:19.120 --> 0:06:21.480 just start working on it for the next one, because 0:06:21.600 --> 0:06:23.360 most people say that what are concerned about is we 0:06:23.400 --> 0:06:25.120 won't even have those things in place for the next 0:06:25.160 --> 0:06:29.400 one exactly, and we'll go through something very similar. Professor 0:06:29.480 --> 0:06:32.080 Daryl Gaskin, thank you so much, Professor of Health Policy 0:06:32.120 --> 0:06:34.560 and Management at Johns Hopkins Bloomberg School of Public Health, 0:06:34.600 --> 0:06:36.719 with with us of course on the phone from Maryland, 0:06:37.360 --> 0:06:40.359 the Johns Hopkins Bloomberg School of Public Health, supported by 0:06:40.400 --> 0:06:42.960 Michael R. Bloomberg, Founder, Bloomberg LP, and Bloomberg Philanthropies. But 0:06:43.000 --> 0:06:45.200 you do wonder do we learn anything? It is we 0:06:45.240 --> 0:06:49.760 have short memories, We really do. You're listening to Bloomberg 0:06:49.800 --> 0:06:53.480 Business Week with Carol Messer and Bloomberg Quick Takes Tim 0:06:53.520 --> 0:06:56.440 Stinovic on Bloomberg Radio. We want to get to the 0:06:56.480 --> 0:06:59.480 Bloomberg Big Take. It's an exclusive story that you definitely 0:06:59.520 --> 0:07:02.119 need to know about this one from our Bloomberg Business 0:07:02.120 --> 0:07:04.680 Week team about the world's best hope to end the pandemic. 0:07:05.160 --> 0:07:07.600 Tip it comes down to needing more doses. It certainly does. 0:07:07.680 --> 0:07:10.560 Joe Weber is editor of Bloomberg business Week. Stephanie Baker 0:07:10.640 --> 0:07:14.240 is Financial Investigations Senior writer at Bloomberg News. Joel is 0:07:14.280 --> 0:07:17.760 in the Bloomberg Interactive Broker studios with us. Stephanie is 0:07:17.920 --> 0:07:24.800 on the phone from London, Joel Kovacs. Maybe, which is 0:07:24.840 --> 0:07:29.880 maybe a term that not everyone's familiar with, um, But 0:07:29.960 --> 0:07:33.160 it is a global organization that is in charge of 0:07:33.160 --> 0:07:38.160 basically getting vaccines to the place that places that would 0:07:38.160 --> 0:07:41.480 need them. And that's not always rich countries. In fact, 0:07:41.560 --> 0:07:45.760 it's usually every other country that doesn't maybe have the 0:07:45.800 --> 0:07:49.120 resources of the United States of the America's well, it's arguably, 0:07:49.200 --> 0:07:51.600 as a Stephanie and our colleagues right, the most complex 0:07:51.640 --> 0:07:55.520 international peacetime operation ever attempted. How is it doing as 0:07:55.560 --> 0:07:58.960 of now with securing enough doses to distribute to the world. 0:07:59.280 --> 0:08:03.760 Not well, Um, it's been short on money and doses. 0:08:03.840 --> 0:08:06.760 And and that's um where we can bring bring Stephanie 0:08:06.840 --> 0:08:09.320 in because this is not the they've been saying. This 0:08:09.360 --> 0:08:11.640 actually for for going on a year now that they're 0:08:11.640 --> 0:08:14.920 going to need doses and money to to actually get 0:08:15.120 --> 0:08:19.920 people vaccinated outside of the developed world, and and that 0:08:20.200 --> 0:08:24.200 messages maybe finally breaking through and and and to what 0:08:24.520 --> 0:08:28.520 can we attribute that, Stephanie, Well, you know, I think 0:08:28.560 --> 0:08:32.600 that now that developed economies like the US and Europe 0:08:32.840 --> 0:08:37.480 um have advanced their vaccination programs, UM, and they are 0:08:37.520 --> 0:08:40.320 looking at you know, the end, you know, or the 0:08:40.360 --> 0:08:45.439 pandemic coming to a close or you know, coming under control. Um, 0:08:45.600 --> 0:08:48.240 you know, looking around and realizing, you know, the world 0:08:48.320 --> 0:08:50.680 is not going to return to normal unless we get 0:08:50.679 --> 0:08:53.960 this pandemic under control in other parts of the world 0:08:54.000 --> 0:08:56.840 because um, you know, we're not gonna be able to travel. 0:08:57.000 --> 0:09:02.760 And there's this risk of variant UM being created in 0:09:03.280 --> 0:09:06.320 countries where the virus is circulating. The more infections you have, 0:09:06.440 --> 0:09:08.880 the more likely you're going to have these variants. And 0:09:08.920 --> 0:09:12.320 it's concerned that, um, you know, they vaccines may not 0:09:12.440 --> 0:09:16.720 work as well against all these variants. And if that happens, 0:09:17.000 --> 0:09:19.200 you know that could you know, those variants could boomerang 0:09:19.320 --> 0:09:21.800 back and we could be back to square one. In 0:09:21.840 --> 0:09:24.360 places like the US and the UK that even have 0:09:24.520 --> 0:09:28.800 high vaccination rates, so you know, COVACS has really been 0:09:28.840 --> 0:09:31.439 set up to try to at least provide a baseline 0:09:31.480 --> 0:09:35.080 of coverage for poor countries that can't afford to buy 0:09:35.280 --> 0:09:39.079 vaccines on their own, to provide protection and immunizations to 0:09:39.320 --> 0:09:44.240 healthcare workers and the most vulnerable um But obviously it's 0:09:44.240 --> 0:09:46.679 been underfunded, and I think the main reason why it 0:09:46.800 --> 0:09:49.360 didn't have enough money early on in the pandemic to 0:09:49.480 --> 0:09:52.440 be competing with rich countries that were placing big orders 0:09:52.480 --> 0:09:55.560 with the promising Vaccine Developers Deputy where they were behind 0:09:55.600 --> 0:09:57.960 the queue. We were we were talking about your story 0:09:57.960 --> 0:10:00.200 earlier with Darryl Gaskin over at Johns Hopkins. You know, 0:10:00.360 --> 0:10:04.000 why wasn't there more planning and consideration upfront to making 0:10:04.000 --> 0:10:08.320 sure enough vaccines were there for less developed countries, for 0:10:08.320 --> 0:10:10.640 those emerging markets. We knew this was going to be 0:10:10.640 --> 0:10:14.520 a problem, right, And you know the people who set 0:10:14.559 --> 0:10:17.760 up COVAC, Steth Berkeley, the head of this nonprofit called Gabby, 0:10:17.920 --> 0:10:21.280 and Richard Hatchett, who won a research and development outfit 0:10:21.320 --> 0:10:25.040 called Steppy. They realized that this was coming down the pike, 0:10:25.120 --> 0:10:26.960 and so they set out to raise money to do 0:10:27.040 --> 0:10:29.800 those back in May, and the money came in very 0:10:29.840 --> 0:10:33.640 slowly because countries were continued with their own problems trying 0:10:33.640 --> 0:10:37.520 to find vaccine for their own populations and really didn't 0:10:37.559 --> 0:10:41.360 step up early enough. On top of that, we have 0:10:41.600 --> 0:10:44.800 a global shortage of vaccine manufacturing capacity going into the 0:10:44.840 --> 0:10:48.640 pandemic um. You know, before COVID hit, we had about 0:10:48.679 --> 0:10:53.120 five a capacity to make about five billion jos's vaccines globally, 0:10:53.280 --> 0:10:56.920 including one and a half billion for flu. So we're 0:10:56.920 --> 0:10:59.400 now trying to more than double that. So that is 0:10:59.520 --> 0:11:02.199 part of the problem. And you know, we didn't know 0:11:02.240 --> 0:11:04.280 which of these vaccines were going to work, and you know, 0:11:04.640 --> 0:11:08.040 trying to do tech transfers and get manufacturers up to 0:11:08.040 --> 0:11:12.040 speed is incredibly difficult and complex, especially with new vaccines 0:11:12.040 --> 0:11:14.520 could have been developed. How much of an issue in hindsight, 0:11:14.559 --> 0:11:16.040 and I think we can say hindsight right now in 0:11:16.080 --> 0:11:21.320 the developed world is hoarding of vaccines. So I interviewed 0:11:21.320 --> 0:11:23.160 the Prime Minister of Jamaica back in January and he 0:11:23.200 --> 0:11:26.120 accused Rich nations of hoarding vaccine doses and not making 0:11:26.120 --> 0:11:29.640 them available to other parts of the world. Well, yeah, 0:11:29.640 --> 0:11:31.880 and that that is basically what has happened. I mean, 0:11:31.920 --> 0:11:35.320 the US has ordered I think about three times what 0:11:35.800 --> 0:11:38.760 they need to cover their population. Um. The UK has 0:11:38.840 --> 0:11:44.280 done you know, similar orders. UM. So it's it's they 0:11:44.640 --> 0:11:50.240 occupying places in the manufacturing q UM and that creates 0:11:50.280 --> 0:11:53.480 problems for other countries trying to strike deal. So um, 0:11:53.520 --> 0:11:57.120 you know obviously that is happening now. The hope is that, 0:11:57.800 --> 0:12:01.920 you know, once we get surplus, the surpluses start to 0:12:01.920 --> 0:12:05.719 come through, those dose sharing arrangements will increase. I mean 0:12:05.760 --> 0:12:09.360 in the US you have a gap of about seventy 0:12:09.440 --> 0:12:13.120 million now between doses delivered and doses administered. There's a 0:12:13.160 --> 0:12:16.520 lot of vaccines in the US. Biden has just announced 0:12:16.520 --> 0:12:20.920 that helps share twenty five million doses of vaccines globally, 0:12:21.000 --> 0:12:23.760 most of that through kovacs, but in the Queen scheme 0:12:23.800 --> 0:12:26.600 of things, that's like a drop of the ocean. They 0:12:26.600 --> 0:12:30.080 need a lot more. Kovacs is a hundred million doses 0:12:30.080 --> 0:12:33.000 short where they hoped to be by June, and that 0:12:33.080 --> 0:12:36.839 is mostly because they were hoping and relying on the 0:12:36.880 --> 0:12:41.840 world's largest vaccine manufacturer in India to make uh, you know, 0:12:42.240 --> 0:12:44.800 hundreds of millions of doses. And now India, because of 0:12:44.800 --> 0:12:49.800 its second Waves, has put export controls on the vaccines 0:12:49.840 --> 0:12:53.040 produced there, and that is left the world with a 0:12:53.120 --> 0:12:57.680 huge supply gas. I think that Biden news is actually 0:12:57.800 --> 0:13:00.760 significant because it underscores sort of the whole point of 0:13:00.800 --> 0:13:05.080 Stephanie's story, which is Kovac has been under resourced, underfunded 0:13:05.800 --> 0:13:08.840 from day one, and then you know, a meager gesture 0:13:08.880 --> 0:13:12.320 of you know, better than zero, which was what was 0:13:12.360 --> 0:13:16.120 there before, but it's still you know, just millions and 0:13:16.160 --> 0:13:19.640 millions off of what Kovax is going to need. Yeah, 0:13:19.640 --> 0:13:22.200 and I guess I just assumed, well, you know, it's interesting. 0:13:22.240 --> 0:13:25.160 You do wonder about the pharmaceuticals, the major pharmaceuticals role 0:13:25.160 --> 0:13:27.000 in all of this. And again I know that there 0:13:27.000 --> 0:13:30.839 were production uh, you know, limitations, but you know, I 0:13:30.880 --> 0:13:34.120 guess I would have expected Stephanie that the big farmer 0:13:34.160 --> 0:13:36.559 companies would have been maybe a little bit more helpful. 0:13:38.160 --> 0:13:40.960 You know. The thing that has always struck me is 0:13:41.280 --> 0:13:46.640 um that the tow leading developers Fire and Maderna deals 0:13:46.679 --> 0:13:50.640 with Kovacs very late. Um deal was very small, forty 0:13:50.679 --> 0:13:54.079 million in January. Maderian has only came in May um 0:13:54.120 --> 0:13:56.599 and most of those doses will only be delivered to 0:13:56.679 --> 0:13:58.959 Kovacs towards the end of this year and next year. 0:13:59.360 --> 0:14:01.800 And I can't leave neither of them have just given 0:14:02.280 --> 0:14:05.560 doses pro bono to this effort, right, given how much 0:14:05.559 --> 0:14:08.760 they are making off of these vaccines, and I'm surprised 0:14:08.760 --> 0:14:11.200 people haven't called and out for that. Well as someone 0:14:11.240 --> 0:14:14.319 in your story. Uh, there's a quote, it's a global pandemic. 0:14:14.360 --> 0:14:16.000 We need a global solution. That's the only way we 0:14:16.040 --> 0:14:19.000 get beyond it. Great stuff, Stephanie Baker, it's our Bloomberg 0:14:19.040 --> 0:14:22.400 Big Take. It's a Business Week story. She's Financial Investigation 0:14:22.480 --> 0:14:25.240 senior writer on the phone from London. Jill Weber, editor 0:14:25.280 --> 0:14:28.200 of Bloomberg Business Week in her Interactive Broker studio. You're 0:14:28.240 --> 0:14:32.239 listening to Bloomberg Business Week with Carol Messer and Bloomberg 0:14:32.280 --> 0:14:36.080 Quick Takes. Tim Stinovic on Bloomberg Radio. All right, this 0:14:36.160 --> 0:14:38.360 is a little depressing. It is our second most read 0:14:38.400 --> 0:14:41.480 story on the Bloomberg in the past eight hours. Millennials 0:14:41.600 --> 0:14:43.880 at the age of forty, Tim, they are falling behind 0:14:43.960 --> 0:14:46.560 their parents in every way. Is this your group? This 0:14:46.640 --> 0:14:48.720 is not only is this my group? But I felt 0:14:48.840 --> 0:14:51.800 personally attacked when I saw the term geriatric millennial in 0:14:51.840 --> 0:14:54.680 this piece. It's been telling my story because that is me. 0:14:54.760 --> 0:14:57.480 I am a geriatric millennials that is like a mean term. 0:14:57.720 --> 0:15:01.280 It's an official term, all right, But listen, this talks 0:15:01.320 --> 0:15:05.560 about though, um, how millennials at the age or the 0:15:05.600 --> 0:15:07.880 older the geriatric millennials really running out of time to 0:15:07.880 --> 0:15:10.440 build up wealth. Let's get to it with Katarina Survive 0:15:10.520 --> 0:15:13.040 as she's Bloomberg News Federal Reserve and Economics reporter on 0:15:13.080 --> 0:15:14.800 the phone in Dallas. As I said, one of the 0:15:14.840 --> 0:15:18.280 most read stories on the Bloomberg. Katarina, tell us what 0:15:18.400 --> 0:15:22.080 you guys uh sought out to do in this story 0:15:22.120 --> 0:15:26.600 and what you found out? Hi? Yeah, So, um, you know, 0:15:26.640 --> 0:15:29.600 we thought it was really interesting that this this the 0:15:29.640 --> 0:15:33.680 older UM millennials are turning forty this year. Of course, 0:15:33.720 --> 0:15:37.600 these are folks born in UM ninety one, and this 0:15:37.680 --> 0:15:41.040 generation has been you know, talked about a lot in 0:15:41.080 --> 0:15:44.560 the past ten years or so. Um. You know, there's 0:15:44.560 --> 0:15:48.000 been a lot of kind of thankst about whether all 0:15:48.040 --> 0:15:51.200 millennials are still living with their parents and so forth. 0:15:51.360 --> 0:15:53.360 So we thought it would be kind of interesting to 0:15:53.400 --> 0:15:56.320 take a look, and um, we looked at a variety 0:15:56.640 --> 0:16:00.520 of kind of wealth statistics and and just number around 0:16:00.520 --> 0:16:04.000 this and and really found that this generation is very 0:16:04.040 --> 0:16:08.400 far behind UM where their parents and grandparents were in 0:16:08.520 --> 0:16:13.280 terms of things like home ownership, UM, debt levels, UM, 0:16:13.400 --> 0:16:17.640 kind of these key elements to wealth. Why is that specifically? 0:16:17.720 --> 0:16:20.840 Is it because of when we graduated from college into 0:16:20.960 --> 0:16:24.760 the a few years later, the great recessions because college 0:16:24.840 --> 0:16:27.640 was so expensive for us? Is it because wages haven't 0:16:27.680 --> 0:16:29.680 grown as much as they were growing when our parents 0:16:29.720 --> 0:16:32.240 were our age? Is it all of the above? Yeah, 0:16:32.320 --> 0:16:34.400 I mean it really is all of the above. It's 0:16:34.400 --> 0:16:37.880 a lot of different factors coming into play. And yeah, 0:16:37.960 --> 0:16:40.360 like what you're saying, I mean, college was a good 0:16:40.400 --> 0:16:45.200 bit more expensive for millennials. Um, They therefore incurred a 0:16:45.200 --> 0:16:49.760 lot more student debt, and that debt has really stayed 0:16:49.800 --> 0:16:53.400 with them and prevented them in many cases from doing 0:16:53.440 --> 0:16:55.920 things like buying a home, which is such a key 0:16:56.000 --> 0:16:59.280 way to build wealth. And then, like you're saying, um, 0:16:59.440 --> 0:17:06.399 wages really haven't risen that much during millennials adult years, UM, 0:17:06.480 --> 0:17:09.639 not nearly as much as for their parents. And then conversely, 0:17:09.720 --> 0:17:13.160 things like home prices have really shot up. So it's 0:17:13.240 --> 0:17:17.000 really created kind of this um, much more uneven environment 0:17:17.119 --> 0:17:20.679 for millennials. Yeah, it's pretty staggering some of the stats 0:17:20.720 --> 0:17:22.400 that you have come out there, but you also talk 0:17:22.440 --> 0:17:24.280 about I love there's like a cover page to all 0:17:24.320 --> 0:17:28.400 of this. A year of college for millennials was I guess, 0:17:28.400 --> 0:17:31.080 on average twenty four thousand, six hundred. For boomers it 0:17:31.119 --> 0:17:33.600 was less than half that UM cost of a home 0:17:33.680 --> 0:17:38.440 three thousand versus two hundred sixteen thousand for boomers UM 0:17:38.560 --> 0:17:41.879 middle aged net worth ninety one thousand for millennials hundred 0:17:41.960 --> 0:17:46.959 thirteen thousand for boomers. It doesn't feel like in some instances, though, Katerina, 0:17:47.200 --> 0:17:49.640 that much. But we have to remember that wealth creation, 0:17:49.760 --> 0:17:52.320 even a few thousand dollars over time, adds up to 0:17:52.359 --> 0:17:57.959 a lot. Yeah, exactly. It's kind of like this multiplier effect, right, UM, 0:17:58.000 --> 0:18:00.439 and especially with the way with what home prices have 0:18:00.480 --> 0:18:03.600 done in the past few decades. UM, the earlier or 0:18:03.640 --> 0:18:05.600 that the sooner you're able to get in, the better 0:18:05.680 --> 0:18:08.840 because it's just going to multiply and multiply. UM. Also, 0:18:08.920 --> 0:18:12.840 things like you know, stock ownership savings rates in general, 0:18:13.000 --> 0:18:15.440 these things are it's all lower. So when you add 0:18:15.480 --> 0:18:19.159 it all up together, it creates UM you know, a 0:18:19.200 --> 0:18:21.840 bit more of a dismal picture. So based on on 0:18:21.920 --> 0:18:25.040 your reporting who you spoke to UM and you know 0:18:25.080 --> 0:18:28.240 you've done so much reporting on this, Katerina, what is 0:18:28.760 --> 0:18:31.320 what is the message for policymakers here? What is the 0:18:31.320 --> 0:18:37.160 way to prevent this generation my generation from um from 0:18:37.160 --> 0:18:40.040 a faith that's not so good? Yeah, I think it's 0:18:40.080 --> 0:18:42.480 going to be really interesting. I think you know that 0:18:42.680 --> 0:18:45.679 this is why we're seeing some politicians talk about like 0:18:45.760 --> 0:18:49.720 student loan forgiveness, UM, things like that, because I think 0:18:49.800 --> 0:18:52.119 you know, they're seeing the effect that this is having 0:18:52.560 --> 0:18:55.119 on kind of holding back some folks in in the 0:18:55.160 --> 0:18:58.679 millennial generation. Um. So it's it's things like that, you know, 0:18:58.800 --> 0:19:03.480 perhaps thinking about solutions for this death burden. Um, it's 0:19:03.520 --> 0:19:08.080 also thinking about retirement and what's going on with social security. 0:19:08.160 --> 0:19:11.080 I mean, if you have fewer savings, um, you know 0:19:11.560 --> 0:19:14.160 when you get into retirement age, I mean you're probably 0:19:14.160 --> 0:19:16.720 going to be more dependent on things like social security. 0:19:16.880 --> 0:19:19.760 So what is that going to look like when millennials 0:19:19.760 --> 0:19:21.919 start to retire? Well, and Karine, if we break it 0:19:21.960 --> 0:19:24.880 down even you know, go deeper into this in terms 0:19:24.920 --> 0:19:28.600 of racial variances, right, it gets even tougher if you're 0:19:28.720 --> 0:19:32.920 what a black millennial or a brown millennial. Yeah. Absolutely, 0:19:33.000 --> 0:19:36.560 And the millennial cohort is much more diverse than the 0:19:36.560 --> 0:19:42.200 ones that came before, Right, the country, population growth is happening. Um. 0:19:42.240 --> 0:19:45.639 You know, there's more population growth among minority groups in 0:19:45.680 --> 0:19:49.000 this country. So every generation, every new generation is going 0:19:49.040 --> 0:19:51.560 to be more and more diverse. And we know that 0:19:52.040 --> 0:19:55.720 black and brown people, especially in the US have much 0:19:55.800 --> 0:19:59.560 less wealth than their white counterparts. So you know, it's 0:19:59.800 --> 0:20:03.480 it's really has implications for the US economy and growth 0:20:03.560 --> 0:20:06.199 going forward. You go ahead here. You know, you know 0:20:06.200 --> 0:20:08.280 what I think was interesting what you said about policy implications, 0:20:08.280 --> 0:20:10.159 because this is going to be a voting block, right, 0:20:10.160 --> 0:20:12.800 a pretty pig size voting block, and you do wonder 0:20:13.040 --> 0:20:15.040 what that might mean, what kind of policies that they 0:20:15.040 --> 0:20:17.480 would to ultimately vote in favor of. Ye Katerina just 0:20:17.520 --> 0:20:19.080 want to end in our last minute. But you talking 0:20:19.080 --> 0:20:24.239 about the wider economic consequences or implications of generation like 0:20:24.280 --> 0:20:27.440 this not having the wealth that previous generations had. I 0:20:27.480 --> 0:20:31.200 mean that has serious implications for growth. Yeah, exactly. And 0:20:31.200 --> 0:20:34.280 and we obviously, you know, we want to grow the 0:20:34.320 --> 0:20:39.080 economy so um and and certainly to deal with our debt, 0:20:39.200 --> 0:20:41.840 you know, our national debt burden, which has of course 0:20:41.880 --> 0:20:44.280 only grown in the past year. You know, we need that, 0:20:44.480 --> 0:20:47.119 we need an engine of growth, and if you have 0:20:47.280 --> 0:20:51.200 people with fewer means to spend and and and less 0:20:51.240 --> 0:20:54.520 ability to kind of um to do things like that 0:20:54.760 --> 0:20:58.119 and buy homes for example. Um, it just really puts 0:20:58.160 --> 0:21:01.119 the economy in a more precarious date. Yeah, that is 0:21:01.160 --> 0:21:03.399 really something important to think about, you know, because you 0:21:03.440 --> 0:21:05.439 do think as people retire, maybe they don't spend as much, 0:21:05.440 --> 0:21:06.720 but a lot of them do have a fair amount 0:21:06.760 --> 0:21:09.000 of money to spend. But if this group does not, 0:21:09.640 --> 0:21:12.080 what does that mean in terms of economics? Not good? 0:21:12.160 --> 0:21:13.520 All of sten we talked about the aging of the 0:21:13.720 --> 0:21:16.520 of the economies, whether it's Japan, whether it's here China 0:21:16.600 --> 0:21:19.439 seeing it, they just um boosted how many kids you 0:21:19.480 --> 0:21:22.000 can have in terms of a family. So people are 0:21:22.000 --> 0:21:24.159 looking at this seriously. Yeah they are. Katerinus rav A, 0:21:24.200 --> 0:21:26.560 Federal Reserve and Economics Report, Bloomberg News. Thank you for 0:21:26.680 --> 0:21:30.160 joining us. You're listening to Bloomberg Business Week with Carol 0:21:30.240 --> 0:21:34.680 Messer and Bloomberg Quick Takes. Tim Stinovic on Bloomberg Radio. 0:21:34.880 --> 0:21:36.879 I want to get right to it because Ross Gerber 0:21:37.040 --> 0:21:39.480 is with us because we love to talk Tesla with him. 0:21:39.560 --> 0:21:42.159 Keep in mind that after Tesla had an off the 0:21:42.240 --> 0:21:45.840 chart run in very different year. This year, it's fallen 0:21:45.840 --> 0:21:49.119 more than from its peak in late January obviously had 0:21:49.119 --> 0:21:52.000 an analysts coming out saying Tesla's globally v market ish 0:21:52.080 --> 0:21:55.760 shares falling, and then there's Ellen getting into restaurants. So 0:21:55.960 --> 0:21:59.840 Ross Gerber, presidency of Gerber Kawasaki Wealth and Investment Managements, 0:21:59.840 --> 0:22:02.320 on a phone back with us from Santa Monica, California. 0:22:02.480 --> 0:22:04.679 He is a fan of Tesla Cars, owns cars and 0:22:04.760 --> 0:22:07.399 the company's stock. So good to have you here. How 0:22:07.440 --> 0:22:10.960 are you, I'm good, I'm good. How are you doing well? 0:22:11.000 --> 0:22:14.760 Doing well? Be looking forward to talking to you? Um lower, 0:22:14.920 --> 0:22:17.320 what's going on? Are you running for the exits when 0:22:17.359 --> 0:22:21.919 it comes to Tesla? No, no, definitely not. In fact, 0:22:22.160 --> 0:22:25.080 you know, at these prices, I'm a buyer anytime the 0:22:25.080 --> 0:22:28.119 stocks below six hundred, I typically will add it to portfolios, 0:22:28.280 --> 0:22:31.439 especially once they don't have much exposure to Tesla like 0:22:31.480 --> 0:22:35.239 newer accounts. But but I think you know, Tesla ran 0:22:35.359 --> 0:22:39.120 up obviously to a very very high valuation, so part 0:22:39.119 --> 0:22:43.080 of this is just coming back to some reasonable valuation 0:22:43.160 --> 0:22:46.639