1 00:00:00,160 --> 00:00:03,360 Speaker 1: This is Bloomberg Wall Street Week. What's the state of 2 00:00:03,400 --> 00:00:06,360 Speaker 1: corporate governance? The deficit is a real issue. The US 3 00:00:06,400 --> 00:00:09,880 Speaker 1: economy continues to send mixed signals. The financial stories that 4 00:00:10,039 --> 00:00:13,000 Speaker 1: cheap our world fed action to con concerns over dollar 5 00:00:13,039 --> 00:00:16,520 Speaker 1: liquidity and encouraging China data. The five hundred wealthiest people 6 00:00:16,520 --> 00:00:19,160 Speaker 1: in the world. Through the eyes of the most influential 7 00:00:19,239 --> 00:00:22,880 Speaker 1: voices Larry Summers, the former Treasury Secretary, START CEO, Kevin 8 00:00:22,960 --> 00:00:26,640 Speaker 1: Johnson sec Chairman j Clayton. Bloomberg wool Street Week with 9 00:00:26,760 --> 00:00:30,840 Speaker 1: David Weston from Bloomberg Radio. The new year stumbles out 10 00:00:30,880 --> 00:00:33,400 Speaker 1: of the gate, but the markets take it in stride. 11 00:00:33,960 --> 00:00:37,519 Speaker 1: This is Bloomberg Wall Street Week. I'm David Weston. Riots 12 00:00:37,560 --> 00:00:40,040 Speaker 1: broke out on Capitol Hill this week as a mob 13 00:00:40,200 --> 00:00:43,199 Speaker 1: stormed the Capitol to disrupt the counting of the Electoral 14 00:00:43,200 --> 00:00:46,240 Speaker 1: College votes, driving the House and the Senate from their 15 00:00:46,240 --> 00:00:50,400 Speaker 1: respective chambers and delaying the proceedings. It was history being made, 16 00:00:50,440 --> 00:00:54,040 Speaker 1: and not in a good way. As political scientists Barbara 17 00:00:54,040 --> 00:00:57,320 Speaker 1: Anne Perry of the University of Virginia's Miller Center explained, 18 00:00:57,720 --> 00:01:01,800 Speaker 1: If you take exactly what happened, and that is a mobocracy, 19 00:01:01,840 --> 00:01:07,000 Speaker 1: attempting to foment a coup and break into the precincts 20 00:01:07,040 --> 00:01:11,440 Speaker 1: of power, into the very Houses of Congress, into their chambers, 21 00:01:11,480 --> 00:01:15,400 Speaker 1: their inner sanctum. Uh, nothing like that has happened in 22 00:01:15,400 --> 00:01:17,920 Speaker 1: this kind of context when the Senate and the House 23 00:01:17,959 --> 00:01:23,039 Speaker 1: were attempting to engage in their constitutional, statutory ministerial duties 24 00:01:23,280 --> 00:01:27,520 Speaker 1: to certify the electoral college winner of the election. Now, 25 00:01:27,800 --> 00:01:29,880 Speaker 1: people will go all the way back to eighteen fourteen, 26 00:01:30,000 --> 00:01:31,920 Speaker 1: and you know, during the War of eighteen twelve, a 27 00:01:32,040 --> 00:01:36,080 Speaker 1: foreign power, the British, came and invaded Washington, and they 28 00:01:36,200 --> 00:01:38,440 Speaker 1: burned the Capitol, and they burned the White House as 29 00:01:38,560 --> 00:01:41,200 Speaker 1: James Madison and Dolly Madison had to run for their 30 00:01:41,240 --> 00:01:45,399 Speaker 1: lives from the Executive Mansion. But in this context, in 31 00:01:45,440 --> 00:01:47,560 Speaker 1: a word, no, nothing like that has ever happened in 32 00:01:47,560 --> 00:01:50,960 Speaker 1: our history. It's all confess. I was not around in 33 00:01:51,000 --> 00:01:55,160 Speaker 1: eighteen fourteen, but I was around as a fairly young man. Uh, 34 00:01:55,200 --> 00:01:58,320 Speaker 1: in the nineteen sixties when we did have marches, very 35 00:01:58,400 --> 00:02:01,120 Speaker 1: large marches across the country, particularly in Washington. I remember 36 00:02:01,200 --> 00:02:03,560 Speaker 1: Richard Nixon hold up in the White House. Is there 37 00:02:03,600 --> 00:02:06,920 Speaker 1: some parallel with that? Oh? Absolutely, Uh, And we haven't 38 00:02:06,920 --> 00:02:10,320 Speaker 1: even mentioned eighteen sixty eighteen sixty one when in response 39 00:02:10,400 --> 00:02:13,560 Speaker 1: to a presidential election that is of Lincoln. Uh, you 40 00:02:13,680 --> 00:02:16,600 Speaker 1: had to begin with seven states secede from the Union 41 00:02:16,600 --> 00:02:19,320 Speaker 1: in a total of eleven to form a whole holy 42 00:02:19,360 --> 00:02:22,760 Speaker 1: new nation within the United States, the Confederacy. So yes, 43 00:02:22,840 --> 00:02:25,600 Speaker 1: we've had that in nine eight I do as well 44 00:02:25,680 --> 00:02:30,520 Speaker 1: remembered as a young person. Uh awful, awful think of Chicago. Uh, 45 00:02:30,680 --> 00:02:33,040 Speaker 1: think of the Democratic Convention that year's think of the 46 00:02:33,080 --> 00:02:36,280 Speaker 1: assassinations of Robert Kennedy and Martin Luther King. So are 47 00:02:36,360 --> 00:02:39,680 Speaker 1: our leaders being gunned down? Uh? And yes, the the 48 00:02:39,800 --> 00:02:43,639 Speaker 1: uprisings of the race riots, the student uprisings. Uh. So 49 00:02:43,760 --> 00:02:45,960 Speaker 1: it's not as though we've never been through this. But 50 00:02:46,120 --> 00:02:49,680 Speaker 1: when I'm asked about context again, the Senate and the 51 00:02:49,680 --> 00:02:53,880 Speaker 1: House attempting to do their constitutional statutory duties in the 52 00:02:54,000 --> 00:02:57,680 Speaker 1: role of presidential election. No, we've never had that. And 53 00:02:57,720 --> 00:03:00,800 Speaker 1: we've never had a mob um again, short of the 54 00:03:00,800 --> 00:03:05,240 Speaker 1: British of Horn Invader break into the Congress and attempt 55 00:03:05,280 --> 00:03:08,880 Speaker 1: to take in effect take power. Before the riots, we 56 00:03:08,960 --> 00:03:11,800 Speaker 1: had Donald Trump Jr. The son of the President, basically 57 00:03:11,800 --> 00:03:15,040 Speaker 1: speaking to that crowd on the ellipse and saying, this 58 00:03:15,080 --> 00:03:16,679 Speaker 1: isn't the Republican Party at all. This is what he 59 00:03:16,760 --> 00:03:22,600 Speaker 1: said in part. The people who did nothing to stop 60 00:03:22,680 --> 00:03:29,600 Speaker 1: this deal, this gathering should send a message to them. 61 00:03:30,120 --> 00:03:38,560 Speaker 1: This isn't their Republican party anymore. This is Donald Trump's 62 00:03:38,600 --> 00:03:42,920 Speaker 1: Republican Party. So, Barbara, amongst so many extraordinary things, I 63 00:03:42,960 --> 00:03:45,560 Speaker 1: found that extraordinary with the son of the president saying 64 00:03:45,560 --> 00:03:48,160 Speaker 1: this is not the Republican Party, this is Donald Trump's party. 65 00:03:48,280 --> 00:03:50,400 Speaker 1: Do we have parallels to that, I mean, maybe Bull 66 00:03:50,440 --> 00:03:53,240 Speaker 1: Moose under Teddy Roosevelt or something. Sure, we've had these 67 00:03:53,280 --> 00:03:57,400 Speaker 1: splinter groups, but particularly nineteen twelve, where you have the 68 00:03:57,440 --> 00:04:00,720 Speaker 1: former president Teddy Roosevelt, who decided he wants to run 69 00:04:00,720 --> 00:04:03,960 Speaker 1: again and and can constitutionally at that point, wants to 70 00:04:04,040 --> 00:04:07,760 Speaker 1: run again. Uh. He is his protege, William Howard Tapped 71 00:04:07,840 --> 00:04:10,880 Speaker 1: is the incumbent president. But Teddy doesn't like the way 72 00:04:10,920 --> 00:04:14,200 Speaker 1: he's going because he's not progressive enough, so he splits 73 00:04:14,240 --> 00:04:17,560 Speaker 1: his own party into forms the Bull Moose Party, the 74 00:04:17,640 --> 00:04:21,440 Speaker 1: third Party, the Progressive Party. Uh, and therefore causes Democrat 75 00:04:21,520 --> 00:04:25,479 Speaker 1: Woodrow Wilson to win the nineteen election. So careful when 76 00:04:25,520 --> 00:04:29,400 Speaker 1: you split off from your party. Third parties or splinter parties, 77 00:04:29,720 --> 00:04:32,440 Speaker 1: uh tend not to work very well. They haven't since 78 00:04:32,480 --> 00:04:35,800 Speaker 1: the GOP was formed back in the late eighteen sixties 79 00:04:35,839 --> 00:04:38,839 Speaker 1: because of slavery. Um. So it's not as though we 80 00:04:38,880 --> 00:04:41,240 Speaker 1: haven't had split parties. We're just used to our parties 81 00:04:41,320 --> 00:04:44,440 Speaker 1: becoming as they have in this time of polarization so monolithic. 82 00:04:44,720 --> 00:04:48,120 Speaker 1: But think of the New Deal period up through the 83 00:04:48,200 --> 00:04:52,440 Speaker 1: nineteen seventies when all the Democratic Southerners became Republicans. So 84 00:04:52,520 --> 00:04:57,480 Speaker 1: you had Fdr Truman, Kennedy Johnson having to deal with 85 00:04:57,520 --> 00:05:02,599 Speaker 1: a split party of segregate shist white Southern uh, white 86 00:05:02,600 --> 00:05:05,640 Speaker 1: supremacists in the South who had all the power in Congress. 87 00:05:05,800 --> 00:05:09,400 Speaker 1: And then people like Hubert Humphrey in a Midwestern Northeastern 88 00:05:09,480 --> 00:05:13,880 Speaker 1: Liberals or even the Republicans as recently as before. You know, 89 00:05:13,960 --> 00:05:17,400 Speaker 1: we're split between the Nelson Rockefeller Liberals and the Ronald 90 00:05:17,400 --> 00:05:21,280 Speaker 1: Reagan on the scene coming out along very gold Water Conservatives. 91 00:05:21,400 --> 00:05:24,080 Speaker 1: And even George H. W. Bush faced this, you know, 92 00:05:24,120 --> 00:05:26,160 Speaker 1: he he sort of lost the Reagan wing of the 93 00:05:26,160 --> 00:05:29,559 Speaker 1: party and then it became really the Reagan Republican Party 94 00:05:29,640 --> 00:05:32,240 Speaker 1: until it became now the Trump Party. So it remains 95 00:05:32,240 --> 00:05:35,039 Speaker 1: to be seen do they splinter off. Do they try 96 00:05:35,080 --> 00:05:37,839 Speaker 1: to find any kind of common ground. Let's talk about 97 00:05:37,880 --> 00:05:40,800 Speaker 1: the twenty FI Amendment, that provision in the Constitution that 98 00:05:40,880 --> 00:05:43,400 Speaker 1: allows in one section for the vice president with his 99 00:05:43,520 --> 00:05:46,279 Speaker 1: ironsmand at the majority of the cabinet basically certified the 100 00:05:46,279 --> 00:05:49,400 Speaker 1: President pro tempore up in the House that the president 101 00:05:49,440 --> 00:05:51,640 Speaker 1: is not confident. Is there any realistic prospect of this? 102 00:05:51,680 --> 00:05:54,599 Speaker 1: Is has ever been considered, much less used before? Well, 103 00:05:54,640 --> 00:05:59,839 Speaker 1: certainly not considered for a president who's been being viewed 104 00:06:00,000 --> 00:06:02,560 Speaker 1: as having as if I can put it in a 105 00:06:02,600 --> 00:06:05,760 Speaker 1: pedestrian way, lost as marbles close, if we could get 106 00:06:05,800 --> 00:06:08,040 Speaker 1: to that, of course, would be Richard Nixon, who was 107 00:06:08,400 --> 00:06:12,039 Speaker 1: seemingly becoming mentally unhinged towards the end and prior to 108 00:06:12,120 --> 00:06:16,160 Speaker 1: his resignation. But the process of impeachment was so underway 109 00:06:16,200 --> 00:06:18,560 Speaker 1: that you had members of his own party, leaders of 110 00:06:18,600 --> 00:06:21,560 Speaker 1: his own party, led by very Goldwater, going down to 111 00:06:21,600 --> 00:06:24,440 Speaker 1: the White House to say, after the Supreme Court's decision 112 00:06:24,480 --> 00:06:27,279 Speaker 1: in the Watergate tapes case, Mr President, if you do 113 00:06:27,360 --> 00:06:30,840 Speaker 1: not resign, you will be impeached and you will be convicted, 114 00:06:30,880 --> 00:06:33,080 Speaker 1: and you don't even have our votes, members of your 115 00:06:33,080 --> 00:06:35,719 Speaker 1: own party. So no, we haven't had to consider it 116 00:06:35,800 --> 00:06:39,080 Speaker 1: really for physical or mental and capacity on the part 117 00:06:39,080 --> 00:06:41,560 Speaker 1: of the president since that became part of the constitution 118 00:06:41,560 --> 00:06:44,320 Speaker 1: in the mid nineteen That was Barbara and Perry of 119 00:06:44,440 --> 00:06:48,920 Speaker 1: Uvier's Miller Center coming up the historic Senate runoff elections 120 00:06:48,920 --> 00:06:52,000 Speaker 1: in Georgia and what John Hope Bryant says they could 121 00:06:52,040 --> 00:06:55,760 Speaker 1: mean for small business as the driver for economic justice. 122 00:06:56,120 --> 00:07:03,360 Speaker 1: That's next on Wall Street Week on Bloomberg. Yeah, this 123 00:07:03,680 --> 00:07:08,200 Speaker 1: is Bloomberg Wall Street Week with David Weston from Bloomberg Radio. 124 00:07:08,839 --> 00:07:11,280 Speaker 1: Control of the Senate hung in the balance this week, 125 00:07:11,360 --> 00:07:14,520 Speaker 1: and to the surprise of many, the two Democratic challengers 126 00:07:14,600 --> 00:07:18,360 Speaker 1: won both of the runoff elections, giving President Like Biden 127 00:07:18,400 --> 00:07:21,280 Speaker 1: a razor thin margin in the Senate and sending the 128 00:07:21,360 --> 00:07:25,680 Speaker 1: first black Senator to Washington from Georgia. But John Hope Bryant, 129 00:07:25,760 --> 00:07:28,600 Speaker 1: founder of Operation Hope, says that when it comes to 130 00:07:28,760 --> 00:07:33,720 Speaker 1: civil rights, the key is economic opportunity. I think that 131 00:07:33,800 --> 00:07:39,040 Speaker 1: we felt massively disrespected by our some of our national 132 00:07:39,160 --> 00:07:46,120 Speaker 1: leadership in the last four years. Um really felt dehumanized, 133 00:07:46,360 --> 00:07:49,800 Speaker 1: and given the history of this country, where one could 134 00:07:49,880 --> 00:07:53,480 Speaker 1: argue the largest reverse transfer of wealth happened with African 135 00:07:53,520 --> 00:07:57,000 Speaker 1: Americans building the core of this country's wealth in the 136 00:07:57,480 --> 00:08:01,720 Speaker 1: sixteen seventeen hundreds with slavery and free labor. Uh. And 137 00:08:01,840 --> 00:08:05,040 Speaker 1: we couldn't create capital because we were capital. Uh. We 138 00:08:05,160 --> 00:08:10,000 Speaker 1: thought that was a particular disrespect um, the lack of empathy, 139 00:08:10,000 --> 00:08:14,520 Speaker 1: of understanding the role that we played and uh and 140 00:08:14,760 --> 00:08:16,920 Speaker 1: the role of public officials to care after the lease 141 00:08:16,920 --> 00:08:19,559 Speaker 1: of these God's children, which, by the way, often become 142 00:08:19,640 --> 00:08:23,000 Speaker 1: the primary assets. You know. Sam Walton had a high 143 00:08:23,040 --> 00:08:26,520 Speaker 1: school education, as you know, David, but is now the 144 00:08:26,520 --> 00:08:29,120 Speaker 1: respective responsible to the largest retailer in the world. That's 145 00:08:29,160 --> 00:08:31,880 Speaker 1: what happens when you invest at the bottom of the pyramids. 146 00:08:31,920 --> 00:08:34,240 Speaker 1: So I think that you had people turn out in 147 00:08:34,400 --> 00:08:38,720 Speaker 1: mass because they felt, uh they were given uh. You know, 148 00:08:40,400 --> 00:08:42,440 Speaker 1: I can't say on your program, they were given a 149 00:08:42,520 --> 00:08:49,079 Speaker 1: massive disrespect uh by our by some of our elective officials. 150 00:08:49,080 --> 00:08:51,040 Speaker 1: And we wanted to send a message. And I think 151 00:08:51,120 --> 00:08:56,520 Speaker 1: we've done that brilliantly. Something else is very interesting, David. Um. 152 00:08:56,640 --> 00:08:59,520 Speaker 1: The place where in the sixties you had Dr King led, 153 00:08:59,760 --> 00:09:03,160 Speaker 1: you know, lead a movement of social justice, uh, which 154 00:09:03,200 --> 00:09:07,559 Speaker 1: was backed by primarily African Americans and Jewish brothers and sisters, 155 00:09:08,400 --> 00:09:11,080 Speaker 1: now has a U. S. Senator from that same place. 156 00:09:11,800 --> 00:09:16,120 Speaker 1: That's an African American and one of our Jewish brothers. Um. 157 00:09:16,400 --> 00:09:19,319 Speaker 1: And it was a coalition of the willing. Yes, Blacks 158 00:09:19,640 --> 00:09:22,800 Speaker 1: were decisive in the presidential election and this one, but 159 00:09:22,840 --> 00:09:25,640 Speaker 1: we couldn't have done it alone. You have really all 160 00:09:25,760 --> 00:09:29,800 Speaker 1: races who said, knock it off, America, it is time 161 00:09:29,840 --> 00:09:33,079 Speaker 1: to get back to business, and uh, let's make American 162 00:09:33,120 --> 00:09:37,280 Speaker 1: normal again. But let's rebuild her with the best of 163 00:09:37,280 --> 00:09:40,680 Speaker 1: her bones, which all which includes all of her economic levels. 164 00:09:40,920 --> 00:09:43,280 Speaker 1: You make a very important point for the distinction. They're 165 00:09:43,440 --> 00:09:46,800 Speaker 1: making America normal again in some respects will not do it. 166 00:09:46,840 --> 00:09:49,400 Speaker 1: As you point out, there's four hundred years now of 167 00:09:49,480 --> 00:09:52,720 Speaker 1: basically building America on the backs of people who were 168 00:09:52,880 --> 00:09:55,760 Speaker 1: not equally treated, who did not have the ability to 169 00:09:55,800 --> 00:09:59,760 Speaker 1: earn the money and amass the capital. What realistically can 170 00:09:59,800 --> 00:10:03,280 Speaker 1: the black community expect from a President Biden when he 171 00:10:03,320 --> 00:10:07,400 Speaker 1: takes over to start to change that phenomenon. Well, uh, 172 00:10:07,520 --> 00:10:10,960 Speaker 1: and by the way, it's interesting, uh that Reverend Warnock, 173 00:10:10,960 --> 00:10:13,839 Speaker 1: who had Operations Award in the background when you did 174 00:10:13,880 --> 00:10:16,520 Speaker 1: his acceptance speech, we we knowed that we we we 175 00:10:16,600 --> 00:10:18,920 Speaker 1: actually asked me to put a hope inside location at 176 00:10:18,960 --> 00:10:24,200 Speaker 1: Ebenezer Church, Dr. King's Church about eight years ago. Uh. 177 00:10:24,240 --> 00:10:27,280 Speaker 1: And so this concept of civil rights and civil rights, 178 00:10:27,400 --> 00:10:29,400 Speaker 1: that the real color is green, and that we need 179 00:10:29,440 --> 00:10:33,080 Speaker 1: to provide social justice through economic empowerment through homeownership and 180 00:10:33,080 --> 00:10:35,640 Speaker 1: small business creation and wealth creation is something not foreign 181 00:10:35,960 --> 00:10:37,640 Speaker 1: to Reverend Warknock. And you'll see, I think you'll start 182 00:10:37,679 --> 00:10:41,080 Speaker 1: to see a moderation of him, a moderating leadership from 183 00:10:41,120 --> 00:10:43,800 Speaker 1: him that I think most people will appreciate. I think likewise, 184 00:10:44,200 --> 00:10:46,839 Speaker 1: and I've been contracted by the bid the administration transition team. 185 00:10:46,840 --> 00:10:49,720 Speaker 1: You're gonna see, I think a focus on small business, 186 00:10:50,120 --> 00:10:53,160 Speaker 1: which is the right place to start. That's where most 187 00:10:53,200 --> 00:10:56,320 Speaker 1: wealth creation from my white counterparts came from. And and 188 00:10:56,360 --> 00:10:59,760 Speaker 1: it's almost it's almost, uh was it ninety eight trillion 189 00:10:59,800 --> 00:11:02,240 Speaker 1: dollar layers? I believe is a number of my white 190 00:11:02,280 --> 00:11:05,080 Speaker 1: counterparts that they are not even sent of all equities 191 00:11:05,080 --> 00:11:07,079 Speaker 1: and all wealth in this country. That comes a lot 192 00:11:07,120 --> 00:11:10,400 Speaker 1: from small business. That's where jobs coming from. The three 193 00:11:10,400 --> 00:11:13,000 Speaker 1: percent of all jobs in this country, your employers with 194 00:11:13,280 --> 00:11:17,840 Speaker 1: the employees are less. Uh. Conversely, half of black businesses 195 00:11:17,920 --> 00:11:23,120 Speaker 1: or sidelined in in the coronavirus and of all black businesses, 196 00:11:23,160 --> 00:11:25,720 Speaker 1: as you know, David, don't have an employee. I'm gonna 197 00:11:25,720 --> 00:11:29,839 Speaker 1: repeat that, of all the businesses in this country are 198 00:11:29,920 --> 00:11:32,679 Speaker 1: sober prietorships with no employees. So how do you create wealth? 199 00:11:33,040 --> 00:11:35,800 Speaker 1: How do you create jobs when you don't have, uh, 200 00:11:35,920 --> 00:11:39,640 Speaker 1: the mechanism to do so. So so so I think 201 00:11:39,640 --> 00:11:43,439 Speaker 1: you can see a massive focus on not just some 202 00:11:43,679 --> 00:11:46,480 Speaker 1: raw stimulus that's not enough, that that that is actually 203 00:11:46,720 --> 00:11:49,080 Speaker 1: can be negative. If that's all you do. You have 204 00:11:49,080 --> 00:11:51,280 Speaker 1: to turn the stimulus into an investment. You're gonna see 205 00:11:51,280 --> 00:11:53,319 Speaker 1: that in I think small business, and I think you 206 00:11:53,360 --> 00:11:56,160 Speaker 1: have to see it in massive internship programs map to 207 00:11:56,200 --> 00:11:59,280 Speaker 1: my millions of internships, not hundreds of thousands. So there 208 00:11:59,280 --> 00:12:01,640 Speaker 1: there you're talking to private sector as well as public sector. 209 00:12:01,640 --> 00:12:04,000 Speaker 1: And we have seen some big private companies start to 210 00:12:04,000 --> 00:12:06,560 Speaker 1: do some of that investment, particularly in the financial services area, 211 00:12:06,559 --> 00:12:09,040 Speaker 1: which you know so terribly well. Yeah, when you know, 212 00:12:09,240 --> 00:12:11,680 Speaker 1: once again it was the private sector, David, in the 213 00:12:11,760 --> 00:12:15,320 Speaker 1: nineteen sixties that led the effort to desegregate the South 214 00:12:15,360 --> 00:12:17,880 Speaker 1: because it was bad for business. Very few people know this, 215 00:12:18,440 --> 00:12:20,960 Speaker 1: but it was not the government that integrated the South. 216 00:12:21,000 --> 00:12:23,320 Speaker 1: The government, the governor was set staying in the door, 217 00:12:23,440 --> 00:12:26,920 Speaker 1: saying over my dead body, oftentimes sounding like what some 218 00:12:27,040 --> 00:12:30,000 Speaker 1: of our federal leaderships are signing like today. It was 219 00:12:30,040 --> 00:12:32,600 Speaker 1: the private sector who said, and knock it off. This 220 00:12:32,679 --> 00:12:34,480 Speaker 1: is bad for business. Whether your black or white, we 221 00:12:34,520 --> 00:12:37,160 Speaker 1: need some more green. That's takedown. The whites only signs 222 00:12:37,160 --> 00:12:40,199 Speaker 1: from the soda shops, the department stores, et cetera. Let's 223 00:12:40,240 --> 00:12:43,800 Speaker 1: integrate these places where blacks are coming in to buy. That. 224 00:12:43,920 --> 00:12:46,640 Speaker 1: It was the private sector once again, David. You have 225 00:12:46,679 --> 00:12:49,559 Speaker 1: the private sector that's made a three billion dollar investment 226 00:12:49,600 --> 00:12:55,000 Speaker 1: in alone on social uh justice to economic empowerment. Companies 227 00:12:55,040 --> 00:12:58,520 Speaker 1: like uh Shopify, where I partnered with the creative melion 228 00:12:58,559 --> 00:13:04,080 Speaker 1: black businesses. UH. Companies like JP Morgan, Well it's Fargo, Uh, 229 00:13:04,080 --> 00:13:08,960 Speaker 1: oh my god, met is it? PayPal? All these companies, Twitter, etcetera. 230 00:13:09,160 --> 00:13:12,360 Speaker 1: Who stepped up, uh into this gap. I think the 231 00:13:12,400 --> 00:13:14,760 Speaker 1: private sector, you know not you said, of all jobs, David, 232 00:13:14,800 --> 00:13:17,760 Speaker 1: as you know, come from the private sector. Most legitimate 233 00:13:17,800 --> 00:13:21,000 Speaker 1: wealth comes from the private sector. We have the fortune 234 00:13:21,040 --> 00:13:23,480 Speaker 1: here is at the bottom of this pyramid, and the 235 00:13:23,520 --> 00:13:26,880 Speaker 1: private sector understands they can't get there without black and 236 00:13:26,920 --> 00:13:32,240 Speaker 1: brown customers. UH. Diverse companies and diverse geographies win. That 237 00:13:32,400 --> 00:13:35,200 Speaker 1: is a fat I like math because it's not having 238 00:13:35,160 --> 00:13:38,160 Speaker 1: an opinion. Uh, that is that that is a winning 239 00:13:38,160 --> 00:13:40,080 Speaker 1: formula and the government needs to follow that lead. So 240 00:13:40,080 --> 00:13:43,120 Speaker 1: the government should be the stimulus for the private sector. 241 00:13:43,400 --> 00:13:46,760 Speaker 1: I talk about massive internships state massive. I'm talking about 242 00:13:46,760 --> 00:13:49,920 Speaker 1: millions of young people who know that they can the 243 00:13:50,000 --> 00:13:54,000 Speaker 1: latter is repaired, including my white brothers, and by the way, 244 00:13:54,080 --> 00:13:56,439 Speaker 1: to get that opportunity for the future. Does this make 245 00:13:56,480 --> 00:14:00,320 Speaker 1: the Small Business Administration administrator a critical position and the 246 00:14:00,360 --> 00:14:04,640 Speaker 1: Biden administration, I do believe it does. It's been a 247 00:14:04,679 --> 00:14:06,960 Speaker 1: tetular member of the cabinet in the past, but I 248 00:14:07,000 --> 00:14:10,000 Speaker 1: believe now, Uh, small business has proven in the pandemic 249 00:14:10,040 --> 00:14:12,600 Speaker 1: to be uh, well we what you And I've always 250 00:14:12,600 --> 00:14:16,920 Speaker 1: known the basebone, the backbone of this economy and of jobs. 251 00:14:16,960 --> 00:14:20,360 Speaker 1: And I think that's gonna get special recognition, uh in 252 00:14:20,360 --> 00:14:22,320 Speaker 1: the next couple of years. I think that people are 253 00:14:22,320 --> 00:14:24,360 Speaker 1: gonna be pleasantly surprised. Think you're seeing it in the 254 00:14:24,440 --> 00:14:27,640 Speaker 1: in the way the markets are responding. Seeing I had 255 00:14:27,640 --> 00:14:29,560 Speaker 1: a billionaire friend of mine texting me and say, well, 256 00:14:30,080 --> 00:14:32,200 Speaker 1: I guess my taxes are going up for good reason. 257 00:14:32,600 --> 00:14:36,080 Speaker 1: I mean, so he was he was like, look, I 258 00:14:36,120 --> 00:14:38,320 Speaker 1: don't mind it if they go they go up, and 259 00:14:38,360 --> 00:14:41,680 Speaker 1: we're talking about social justice through economic empowerment and uplift 260 00:14:41,720 --> 00:14:45,360 Speaker 1: and smart smart taxation, where all both rise, you're gonna 261 00:14:45,360 --> 00:14:50,320 Speaker 1: have more GDP. This economic That was John Hope Bryant, founder, 262 00:14:50,480 --> 00:14:54,440 Speaker 1: chairman and CEO of Operation Hope coming up. The Federal 263 00:14:54,480 --> 00:14:58,360 Speaker 1: Reserve stays on course, but Megan Green at Harvard explains 264 00:14:58,400 --> 00:15:02,360 Speaker 1: why that doesn't mean they're optimistic about the economy. That's 265 00:15:02,400 --> 00:15:10,920 Speaker 1: next on Wall Street Week on Bloombero. This is Bloomberg 266 00:15:10,960 --> 00:15:15,040 Speaker 1: Wall Street Week with David Weston from Bloomberg Radio. This 267 00:15:15,080 --> 00:15:17,240 Speaker 1: week we got to see the minutes of the Federal 268 00:15:17,320 --> 00:15:20,120 Speaker 1: Reserves meetings at the end of last year, and f 269 00:15:20,200 --> 00:15:23,040 Speaker 1: o MC members for the most part, seemed pretty happy 270 00:15:23,080 --> 00:15:25,920 Speaker 1: with where they are, though Megan Green of Harvard's Kennedy 271 00:15:25,960 --> 00:15:28,800 Speaker 1: School did go through the risk the FED maybe facing 272 00:15:30,440 --> 00:15:32,840 Speaker 1: This wasn't the most earth shattering FED minutes, but there 273 00:15:32,840 --> 00:15:35,560 Speaker 1: were a few things in there for starters. They changed 274 00:15:35,600 --> 00:15:39,800 Speaker 1: their language around continuing bond purchases, so instead of saying 275 00:15:39,840 --> 00:15:42,960 Speaker 1: they'll continue for coming months, they said they'd continue until 276 00:15:43,000 --> 00:15:47,040 Speaker 1: they'd reached sufficient progress on hitting their targets, but they 277 00:15:47,040 --> 00:15:49,520 Speaker 1: were also pretty careful to say that those targets wouldn't 278 00:15:49,520 --> 00:15:52,440 Speaker 1: be quantitative, they'd be qualitative. So if that feels kind 279 00:15:52,480 --> 00:15:56,640 Speaker 1: of frustrating in vague, it is, and it's intentionally so. UM. 280 00:15:56,680 --> 00:16:01,560 Speaker 1: There was widespread expectations in early December UM market participants 281 00:16:01,600 --> 00:16:04,280 Speaker 1: that the FED might actually try to extend the duration 282 00:16:04,440 --> 00:16:06,920 Speaker 1: on their bond purchases to keep the long end of 283 00:16:06,960 --> 00:16:09,320 Speaker 1: the yield curve down, and there was very little appetite 284 00:16:09,360 --> 00:16:12,000 Speaker 1: for that in the FED minutes. That, of course was 285 00:16:12,040 --> 00:16:15,560 Speaker 1: before the ten year yield started creeping up in recent days, 286 00:16:15,640 --> 00:16:18,800 Speaker 1: so that that might have changed already since mid December 287 00:16:18,840 --> 00:16:22,360 Speaker 1: when these FED minutes UM were recorded. And then finally 288 00:16:22,360 --> 00:16:24,600 Speaker 1: the FED talked a little bit about their outlook, and 289 00:16:24,800 --> 00:16:28,800 Speaker 1: you know, in mind with expectations, they're pretty pessimistic about 290 00:16:28,840 --> 00:16:30,720 Speaker 1: the upcoming months. It's going to be a hard winter, 291 00:16:30,880 --> 00:16:34,480 Speaker 1: but they're hoping that a vaccine will result in a 292 00:16:34,560 --> 00:16:36,680 Speaker 1: release the pent up demand and a recovery in the 293 00:16:36,720 --> 00:16:39,040 Speaker 1: second half of this year. So they were much more optimistic, 294 00:16:39,080 --> 00:16:41,800 Speaker 1: but there's so many risks around that view. I think 295 00:16:41,800 --> 00:16:44,360 Speaker 1: that's worth keeping in mind. Well, it's interesting, as I 296 00:16:44,440 --> 00:16:46,120 Speaker 1: understand it, what they said is on the question of 297 00:16:46,160 --> 00:16:48,920 Speaker 1: inflation specifically, the risk was the downside, that is to say, 298 00:16:48,920 --> 00:16:51,400 Speaker 1: we undershoot rather than overshoot. But this, of course was 299 00:16:51,480 --> 00:16:55,560 Speaker 1: before we had those two seats go to Democrats in Georgia. 300 00:16:55,560 --> 00:16:57,240 Speaker 1: Do you think it's a different world for the Fed 301 00:16:57,320 --> 00:17:00,240 Speaker 1: today than it was just two days ago? Well, so 302 00:17:00,320 --> 00:17:02,760 Speaker 1: a lot has happened since the Sped minutes, even just 303 00:17:02,800 --> 00:17:05,440 Speaker 1: a couple of weeks ago. Um, And I actually don't 304 00:17:05,440 --> 00:17:07,119 Speaker 1: think that we're in a different world, but I do 305 00:17:07,200 --> 00:17:09,760 Speaker 1: think that the market seemed to be expecting that we are, 306 00:17:09,800 --> 00:17:11,840 Speaker 1: and that that might be a risk. So I mentioned 307 00:17:11,840 --> 00:17:15,040 Speaker 1: the tenure yield was up, particularly off the back of 308 00:17:15,119 --> 00:17:18,800 Speaker 1: yesterday's Georgia's Senate results, and that's on the basis that 309 00:17:18,840 --> 00:17:21,399 Speaker 1: will probably get some kind of stimulus out of this 310 00:17:21,520 --> 00:17:24,200 Speaker 1: government with the Democrats in control of the Senate, and 311 00:17:24,200 --> 00:17:27,439 Speaker 1: and that's probably right, but it is worth considering that 312 00:17:27,520 --> 00:17:30,200 Speaker 1: might not be a linear process. It will require absolute 313 00:17:30,280 --> 00:17:32,639 Speaker 1: unity amongst the Democrats in the House and the Senate 314 00:17:32,680 --> 00:17:36,320 Speaker 1: to get significant fiscal measures passed, and so I think 315 00:17:36,359 --> 00:17:39,600 Speaker 1: we might see wallboles along in the process. Um. These 316 00:17:39,640 --> 00:17:42,320 Speaker 1: minutes also happened before there was a new variant, a 317 00:17:42,320 --> 00:17:46,359 Speaker 1: new contagious variant of COVID nineteen which we've seen ripping 318 00:17:46,359 --> 00:17:49,240 Speaker 1: through southeast England, and so I do think that, you know, 319 00:17:49,240 --> 00:17:51,919 Speaker 1: the FED said that they were optimistic that a widely 320 00:17:51,960 --> 00:17:55,719 Speaker 1: distributed vaccine would really lead to a rebound and that 321 00:17:55,760 --> 00:17:58,719 Speaker 1: could feed into inflation, but actually with this new variant, 322 00:17:58,800 --> 00:18:01,480 Speaker 1: I think there's a risk there. Of course, our vaccine 323 00:18:01,560 --> 00:18:04,520 Speaker 1: rollout has been pretty slerotic. Hopefully we'll get better at 324 00:18:04,560 --> 00:18:07,639 Speaker 1: that um, but right now it's not looking great for 325 00:18:07,680 --> 00:18:10,280 Speaker 1: a massive rebound because it's not looking like we're getting 326 00:18:10,359 --> 00:18:13,800 Speaker 1: vaccines and arms quickly enough. And then finally, it's worth 327 00:18:13,800 --> 00:18:16,400 Speaker 1: pointing out that we've we've run an experiment where we've 328 00:18:16,400 --> 00:18:20,159 Speaker 1: had massive amounts of stimulus before recently in ten and 329 00:18:20,200 --> 00:18:23,280 Speaker 1: if we learned one thing from the Trump administration, it's 330 00:18:23,320 --> 00:18:26,480 Speaker 1: that you can go ahead and provide significant stimulus when 331 00:18:26,520 --> 00:18:29,320 Speaker 1: the economy is running pretty hot, it's really taking along, 332 00:18:29,680 --> 00:18:33,280 Speaker 1: and not generate significant inflation. So I really question, even 333 00:18:33,320 --> 00:18:35,440 Speaker 1: if we got the stimulus the markets are hoping for, 334 00:18:35,800 --> 00:18:37,720 Speaker 1: I question whether we're going to generate a lot of 335 00:18:37,720 --> 00:18:40,560 Speaker 1: inflation without a lot of sustained inflation with that, when 336 00:18:40,560 --> 00:18:43,520 Speaker 1: the economy is still in a hole. The FETE has 337 00:18:43,600 --> 00:18:45,560 Speaker 1: made no serious fact that they really conserve out jobs 338 00:18:45,560 --> 00:18:47,840 Speaker 1: as part of their mandate. They also talked about maybe 339 00:18:47,880 --> 00:18:50,879 Speaker 1: income inequality, wealth inequality. Is there anything they can do 340 00:18:50,920 --> 00:18:55,280 Speaker 1: at this point beyond what they've done to improve that situation. Yeah, So, 341 00:18:55,600 --> 00:18:57,920 Speaker 1: as someone who's looking a lot at income and wealth 342 00:18:57,960 --> 00:19:00,359 Speaker 1: in equality, I wish I could say that the could 343 00:19:00,359 --> 00:19:03,280 Speaker 1: do anything about it. They're clearly aware that that they've 344 00:19:03,280 --> 00:19:07,080 Speaker 1: contributed to it um by you know, resulting in a 345 00:19:07,160 --> 00:19:11,440 Speaker 1: in a bowl market and most asset holders are are wealthy. Um. 346 00:19:11,520 --> 00:19:15,520 Speaker 1: But unfortunately, other than kind of running the economy hots, 347 00:19:15,760 --> 00:19:19,520 Speaker 1: letting inflation come down, trying to pull in workers marginal 348 00:19:19,560 --> 00:19:21,880 Speaker 1: workers from the sidelines, there's really not a whole lot 349 00:19:21,960 --> 00:19:24,320 Speaker 1: that the FIG can do about it. That's much more 350 00:19:24,480 --> 00:19:27,719 Speaker 1: up to fistical authorities. And that's partly why J. Powell 351 00:19:27,760 --> 00:19:30,520 Speaker 1: has been pretty outspoken, and he's not the only Central 352 00:19:30,880 --> 00:19:34,840 Speaker 1: Bank chair to to be outspoken about how fistical authorities 353 00:19:34,880 --> 00:19:36,760 Speaker 1: really need to step in and do their job. Mag 354 00:19:36,840 --> 00:19:39,320 Speaker 1: when you talk about helping individuals, as you know, Larry 355 00:19:39,359 --> 00:19:42,840 Speaker 1: Summer's got a lot of attention by saying two thousand 356 00:19:42,880 --> 00:19:44,399 Speaker 1: dollars a person is not the way to go. The 357 00:19:44,520 --> 00:19:46,400 Speaker 1: fact a lot of people will just save that money. 358 00:19:46,400 --> 00:19:48,639 Speaker 1: They can't spend it effectively. We need to target it 359 00:19:48,680 --> 00:19:52,240 Speaker 1: other ways, such as state and local assistance. Is he right? Yeah? So, 360 00:19:52,400 --> 00:19:54,679 Speaker 1: and Larry is not the only one saying that, you know, 361 00:19:54,720 --> 00:19:57,280 Speaker 1: there's a better allocation of that money. Will they be able? 362 00:19:57,280 --> 00:19:59,159 Speaker 1: And Shark came out and said the same and also 363 00:19:59,240 --> 00:20:01,159 Speaker 1: got a lot of for it. I think that is 364 00:20:01,280 --> 00:20:03,959 Speaker 1: right though. That dispersing checks, you know, they say when 365 00:20:03,960 --> 00:20:06,240 Speaker 1: you're coming up with the ideal fiscal policy, it needs 366 00:20:06,240 --> 00:20:10,480 Speaker 1: to be targeted timely and temporary. UM Dispersing two thousand 367 00:20:10,520 --> 00:20:13,640 Speaker 1: dollar checks isn't particularly targeted, And so I do think 368 00:20:13,720 --> 00:20:19,480 Speaker 1: things like allocating money to local UM officials who are 369 00:20:19,520 --> 00:20:21,560 Speaker 1: on the front lines and can go ahead and figure 370 00:20:21,560 --> 00:20:25,119 Speaker 1: out how to plow that into education versus vaccine distribution, 371 00:20:25,560 --> 00:20:29,000 Speaker 1: UM and local services is probably a more effective way 372 00:20:29,240 --> 00:20:32,879 Speaker 1: of supporting community. That was Megan Green of Harvard's Kennedy School. 373 00:20:33,520 --> 00:20:35,520 Speaker 1: Coming up, we wrap up the week with our special 374 00:20:35,520 --> 00:20:39,440 Speaker 1: contributor Larry Summers of Harvard. That's next on Wall Street 375 00:20:39,440 --> 00:20:48,239 Speaker 1: Week on Bloomberg. This is Bloomberg Wall Street Week with 376 00:20:48,320 --> 00:20:51,760 Speaker 1: David Weston from Bloomberg Radio. We're gonna end the week 377 00:20:51,800 --> 00:20:54,320 Speaker 1: as we do every week, with our special contributor Larry 378 00:20:54,400 --> 00:20:58,359 Speaker 1: Summers of Harvard. He is, of course, former Treasury secretary Larry. 379 00:20:58,400 --> 00:21:00,560 Speaker 1: Welcome back. Let's start with the end of the week, 380 00:21:00,600 --> 00:21:03,320 Speaker 1: if we can. With the jobs numbers. We lost a 381 00:21:03,400 --> 00:21:07,120 Speaker 1: hundred forty jobs. Although last month's numbers were revised up somewhat, 382 00:21:07,400 --> 00:21:09,959 Speaker 1: people thought that it might be bad. The markets actually 383 00:21:10,000 --> 00:21:12,520 Speaker 1: seem to think maybe this makes them that's more likely. 384 00:21:12,800 --> 00:21:15,239 Speaker 1: Were you surprised by the numbers and what do they 385 00:21:15,280 --> 00:21:18,720 Speaker 1: tell us, if anything about the economy. I wasn't amazed 386 00:21:18,800 --> 00:21:21,600 Speaker 1: by the numbers. I think they tell us that we 387 00:21:21,640 --> 00:21:24,480 Speaker 1: need to get COVID in the rear view mirror. I 388 00:21:24,480 --> 00:21:26,679 Speaker 1: think they tell us that there's a limit to what 389 00:21:26,800 --> 00:21:31,480 Speaker 1: kind of recovery we can have when UH people are 390 00:21:31,600 --> 00:21:37,239 Speaker 1: fearful of going outside and getting more fearful. And so 391 00:21:37,280 --> 00:21:41,000 Speaker 1: I think the number one message from this statistic is 392 00:21:41,080 --> 00:21:45,840 Speaker 1: the importance of doing vaccinating better than we did testing, 393 00:21:46,320 --> 00:21:48,560 Speaker 1: and it doesn't look like so far we're doing a 394 00:21:48,680 --> 00:21:52,480 Speaker 1: very good job of that. That's got to be priority one, 395 00:21:53,240 --> 00:21:57,639 Speaker 1: um priority two, and priority three for the new administration 396 00:21:58,600 --> 00:22:00,920 Speaker 1: and how much of that, Larry will require some very 397 00:22:00,960 --> 00:22:03,199 Speaker 1: targeted stimulus, because one of the things that we hear 398 00:22:03,240 --> 00:22:05,359 Speaker 1: from a lot of people is small business is is 399 00:22:05,400 --> 00:22:07,840 Speaker 1: what it's all about, particularly when it comes to job creation, 400 00:22:07,960 --> 00:22:09,760 Speaker 1: and obviously a lot of those small businesses are and 401 00:22:09,880 --> 00:22:16,080 Speaker 1: things like retail and particularly leisure and restaurants things like that. Look, David, 402 00:22:16,160 --> 00:22:19,520 Speaker 1: it doesn't really matter unless people can go to the 403 00:22:19,640 --> 00:22:24,920 Speaker 1: store and unless they can go uh to the restaurant. 404 00:22:25,040 --> 00:22:27,320 Speaker 1: I think we've done okay with the p p P. 405 00:22:28,080 --> 00:22:31,040 Speaker 1: I'm more worried about the mass layoffs to have taken 406 00:22:31,080 --> 00:22:34,640 Speaker 1: place in state and local governments, And I'm more worried 407 00:22:34,680 --> 00:22:40,919 Speaker 1: about fear. That's keeping people UH indoors, that's keeping people 408 00:22:41,200 --> 00:22:43,960 Speaker 1: unable to go out and engage in the kind of 409 00:22:44,000 --> 00:22:46,680 Speaker 1: spending they want to. And I think the longer we 410 00:22:47,160 --> 00:22:51,520 Speaker 1: have this and the longer we respond just by throwing money, 411 00:22:52,080 --> 00:22:56,119 Speaker 1: the more complicated problem we're gonna have of a huge 412 00:22:56,240 --> 00:23:02,200 Speaker 1: pent up demand whenever we start to UH make some progress. 413 00:23:02,280 --> 00:23:05,919 Speaker 1: So I'm very focused right now less on the macro 414 00:23:06,119 --> 00:23:12,560 Speaker 1: economics than on the having effective public health UH strategies. 415 00:23:12,640 --> 00:23:16,200 Speaker 1: And in all honesty, I don't think the only culprit 416 00:23:17,359 --> 00:23:21,600 Speaker 1: has been the politics of the Trump administration is terrible 417 00:23:22,200 --> 00:23:27,560 Speaker 1: as it has been. I think our medical establishment has 418 00:23:28,040 --> 00:23:31,879 Speaker 1: not planned in the way it should have for a 419 00:23:32,000 --> 00:23:39,240 Speaker 1: satisfactory UH vaccine UH rollout, and I sure hope that 420 00:23:39,400 --> 00:23:43,200 Speaker 1: is going to change in a way. David, I link 421 00:23:43,840 --> 00:23:48,520 Speaker 1: two events. I link the failure to protect the capital 422 00:23:49,119 --> 00:23:53,840 Speaker 1: and the failure to be able to organize the use 423 00:23:53,920 --> 00:23:58,120 Speaker 1: of all the vaccines that are being delivered. There's a 424 00:23:58,240 --> 00:24:03,760 Speaker 1: basic question of public sector competence that I think is 425 00:24:03,840 --> 00:24:09,440 Speaker 1: a profound challenge for the new administration. And I think 426 00:24:09,480 --> 00:24:17,679 Speaker 1: that decades of running against government, of venerating what the 427 00:24:17,760 --> 00:24:23,000 Speaker 1: private sector can do and suggesting that government's just incompetent, 428 00:24:23,800 --> 00:24:28,879 Speaker 1: that whole ethos has I think proven to be a 429 00:24:28,880 --> 00:24:34,840 Speaker 1: bit of a self fulfilling prophecy, to terrible consequence for everybody. 430 00:24:34,840 --> 00:24:39,600 Speaker 1: And so I hope that the new administration is going 431 00:24:39,640 --> 00:24:46,679 Speaker 1: to put enormous emphasis on effective public management, because I 432 00:24:46,720 --> 00:24:51,240 Speaker 1: think it's implementation of what we all agree on more 433 00:24:51,280 --> 00:24:57,840 Speaker 1: than its grand new schemes that is UH necessary. There's 434 00:24:57,840 --> 00:25:01,160 Speaker 1: a history of this. It goes back to the fact 435 00:25:01,160 --> 00:25:07,240 Speaker 1: that they didn't get the computers working right for Obamacare. 436 00:25:07,400 --> 00:25:10,720 Speaker 1: It goes to the fact that we're having people with 437 00:25:10,840 --> 00:25:14,320 Speaker 1: incomes over ten million dollars who don't pay taxes, who 438 00:25:14,359 --> 00:25:18,840 Speaker 1: the I R. S doesn't even try to find. It 439 00:25:19,000 --> 00:25:25,520 Speaker 1: goes to UH the leading the water in UH in Flint. 440 00:25:26,160 --> 00:25:31,600 Speaker 1: And I hope that the business community is gonna start 441 00:25:31,920 --> 00:25:41,840 Speaker 1: recognizing the need for effective, competent government rather than just 442 00:25:42,320 --> 00:25:47,920 Speaker 1: excoriating government in every term. I think everyone can get 443 00:25:48,080 --> 00:25:52,520 Speaker 1: behind a real urge for more competent government. But at 444 00:25:52,520 --> 00:25:55,040 Speaker 1: what level? I mean, we'd like a competent at all levels, 445 00:25:55,080 --> 00:25:57,920 Speaker 1: but particularly take the vaccine for example. We have something 446 00:25:57,960 --> 00:26:00,359 Speaker 1: of a raging debate right now between government WOMO on 447 00:26:00,400 --> 00:26:02,640 Speaker 1: the one hand, and the Mayor of New York Citio Mr. 448 00:26:02,720 --> 00:26:05,520 Speaker 1: De Blasio, about exactly who's setting out the rules, because 449 00:26:05,560 --> 00:26:07,240 Speaker 1: de Blasio is saying, what a second, you've got your 450 00:26:07,320 --> 00:26:09,840 Speaker 1: rules so strict that means we can't get every vaccinated. 451 00:26:09,880 --> 00:26:12,040 Speaker 1: You should loosen them up. Some who should be calling 452 00:26:12,040 --> 00:26:14,720 Speaker 1: the shots. As a matter of competence, where should the 453 00:26:14,720 --> 00:26:18,440 Speaker 1: decision making be. That's a hard thing to judge. In general, 454 00:26:18,760 --> 00:26:23,040 Speaker 1: I think we need to be putting more responsibility on 455 00:26:24,160 --> 00:26:29,119 Speaker 1: the federal government in UH some of these areas, And 456 00:26:29,200 --> 00:26:33,800 Speaker 1: I think that having things be invented and reinvented fifty 457 00:26:33,880 --> 00:26:39,400 Speaker 1: times is often problematic. I think with respect to vaccines, 458 00:26:40,119 --> 00:26:44,240 Speaker 1: we need to focus on getting as many people vaccinated 459 00:26:44,320 --> 00:26:49,520 Speaker 1: as possible, and I think by designing optimal algorithms according 460 00:26:49,560 --> 00:26:55,320 Speaker 1: to philosophers and epidemiologists, we have probably made a sacrifice 461 00:26:55,920 --> 00:26:59,600 Speaker 1: in terms of effectiveness, and I put more emphasis on 462 00:26:59,680 --> 00:27:05,359 Speaker 1: getting as many jabs into arms as possible. I also 463 00:27:05,440 --> 00:27:08,359 Speaker 1: don't think we've done the research in the right way, 464 00:27:08,920 --> 00:27:12,080 Speaker 1: done the planning in the right way with respect to 465 00:27:12,119 --> 00:27:16,000 Speaker 1: the issue of one versus two vaccines, and I hope 466 00:27:16,280 --> 00:27:21,200 Speaker 1: when this is over there'll be a investigation not just 467 00:27:21,440 --> 00:27:25,280 Speaker 1: of all the political terrible stuff Trump has done, but 468 00:27:25,600 --> 00:27:30,199 Speaker 1: also of some of the thinking and decision making in 469 00:27:30,400 --> 00:27:34,919 Speaker 1: the medical community. I cannot understand why we did not 470 00:27:35,200 --> 00:27:40,080 Speaker 1: do more testing and studying that would have enabled us 471 00:27:40,160 --> 00:27:44,800 Speaker 1: to be making more intelligent judgments right now about first 472 00:27:44,840 --> 00:27:50,480 Speaker 1: time versus second time vaccinations as the optimal use for 473 00:27:50,560 --> 00:27:55,320 Speaker 1: controlling the public health problem. I can't understand why we're 474 00:27:55,480 --> 00:28:00,680 Speaker 1: holding large inventories to give people second doses, whether people 475 00:28:00,680 --> 00:28:05,680 Speaker 1: whose lives could be saved UH today, even if we 476 00:28:06,080 --> 00:28:11,640 Speaker 1: can't postpone the second doses. We surely can rely on 477 00:28:12,080 --> 00:28:15,439 Speaker 1: production several weeks from now as the basis for the 478 00:28:15,480 --> 00:28:21,640 Speaker 1: second dose and use all the doses that we have today. 479 00:28:22,119 --> 00:28:26,560 Speaker 1: I don't think this is a pretty picture um at all. 480 00:28:26,600 --> 00:28:28,879 Speaker 1: And I think among those who are going to have 481 00:28:28,920 --> 00:28:32,080 Speaker 1: to do a lot of rethinking are the health and 482 00:28:32,119 --> 00:28:36,880 Speaker 1: the public health profession. And I would suggest that we've 483 00:28:36,920 --> 00:28:41,440 Speaker 1: had private health norms in a problem that requires public 484 00:28:41,480 --> 00:28:45,200 Speaker 1: health solutions. As you refer to. We had just a stunning, 485 00:28:45,320 --> 00:28:49,080 Speaker 1: harrowing event this week with that attack, assault on the Capitol, 486 00:28:49,080 --> 00:28:52,440 Speaker 1: really attempt at armed insurrection. It is no less than that. 487 00:28:53,120 --> 00:28:57,600 Speaker 1: How might that affect what President Biden when he is president, 488 00:28:57,640 --> 00:28:59,960 Speaker 1: can get accomplished in the Congress, particularly when you add 489 00:29:00,000 --> 00:29:01,880 Speaker 1: ef fact we also had, by the way, this week, 490 00:29:02,280 --> 00:29:05,360 Speaker 1: two seats from this in the Senate go to Democrats 491 00:29:05,400 --> 00:29:07,640 Speaker 1: from Georgia, So it means that he has an effective, 492 00:29:07,680 --> 00:29:13,440 Speaker 1: if narrow majority. You know, the transition from inconceivable to 493 00:29:13,520 --> 00:29:19,920 Speaker 1: inavitable can be very rapid in Washington. The combination of 494 00:29:20,040 --> 00:29:25,440 Speaker 1: three things, the Georgia Senate victories to give the Democrats 495 00:29:26,080 --> 00:29:31,480 Speaker 1: effective if narrow control of the Senate, the actions that 496 00:29:31,560 --> 00:29:38,400 Speaker 1: have discredited total opposition to Joe Biden, and let's give 497 00:29:38,440 --> 00:29:43,040 Speaker 1: credit where credit is due. The President elect has been 498 00:29:43,160 --> 00:29:48,120 Speaker 1: pitched perfect over the last week in everything he said 499 00:29:48,360 --> 00:29:53,600 Speaker 1: and has done. All of that means that it is 500 00:29:53,680 --> 00:29:57,880 Speaker 1: going to be much much more difficult to go into 501 00:29:58,040 --> 00:30:02,440 Speaker 1: reflex opposition to a set of policies that come from 502 00:30:02,440 --> 00:30:06,880 Speaker 1: the moderate center. And there's a big set of policies, 503 00:30:06,960 --> 00:30:13,240 Speaker 1: whether it's infrastructure investment, whether it's strengthening education, whether it's 504 00:30:13,280 --> 00:30:18,640 Speaker 1: making investments in technology that enable us to compete with China. 505 00:30:19,200 --> 00:30:24,000 Speaker 1: The chances that we can really build back better, those 506 00:30:24,120 --> 00:30:29,520 Speaker 1: chances have gone way up. I still think there's a 507 00:30:29,640 --> 00:30:33,440 Speaker 1: prospect that we're gonna fix things and get things together, 508 00:30:34,000 --> 00:30:37,680 Speaker 1: and a couple of months from now, the vaccination process 509 00:30:37,840 --> 00:30:40,640 Speaker 1: is going to be back on track, and with it, 510 00:30:40,720 --> 00:30:44,000 Speaker 1: the economy is really going to be taking off. And 511 00:30:44,080 --> 00:30:48,880 Speaker 1: if Joe Biden has that momentum, the Republicans have a 512 00:30:48,880 --> 00:30:52,880 Speaker 1: desire to show that frankly, they're not crazy, and the 513 00:30:52,920 --> 00:30:55,640 Speaker 1: best way to demonstrate that is going to be for 514 00:30:55,680 --> 00:31:00,000 Speaker 1: their moderates to cooperate. I think we can see more 515 00:31:00,000 --> 00:31:04,360 Speaker 1: more progress, and there's a larger window than I would 516 00:31:04,400 --> 00:31:09,360 Speaker 1: have fought plausible A month ago. Now that's no certainty, 517 00:31:09,480 --> 00:31:14,719 Speaker 1: and it could easily not happen, but the prospect of 518 00:31:15,160 --> 00:31:20,400 Speaker 1: more um has to be much more there than anybody 519 00:31:20,480 --> 00:31:22,880 Speaker 1: thought likely a month ago. Okay, let's wrap up with 520 00:31:22,920 --> 00:31:24,960 Speaker 1: a quick round of the summer says, and let's start 521 00:31:25,000 --> 00:31:27,120 Speaker 1: really where you just laid off. The first question is 522 00:31:27,400 --> 00:31:29,520 Speaker 1: it looks like there's likely to be more stimulus. What's 523 00:31:29,520 --> 00:31:31,000 Speaker 1: the right way to do that? In the wrong way 524 00:31:31,000 --> 00:31:34,880 Speaker 1: to do that? More health, more state and local government 525 00:31:35,320 --> 00:31:41,160 Speaker 1: getting started on infrastructure, not just sending people uh checks 526 00:31:41,560 --> 00:31:46,600 Speaker 1: when disposable income is running already very high. Number two, infrastructure. 527 00:31:46,640 --> 00:31:49,360 Speaker 1: You've mentioned it more than once. What are the chances 528 00:31:49,360 --> 00:31:52,520 Speaker 1: that will get a really substantial infrastructure package within the 529 00:31:52,520 --> 00:31:56,320 Speaker 1: next six months? Are a little better than that or 530 00:31:56,360 --> 00:31:58,480 Speaker 1: a little better than that, And that's a much higher 531 00:31:58,560 --> 00:32:01,719 Speaker 1: number that I would have you've been a few months ago. Okay, 532 00:32:01,720 --> 00:32:04,000 Speaker 1: thank you so much for Larry Summers, our special contributor 533 00:32:04,280 --> 00:32:06,720 Speaker 1: of Harvard University. Always great to wrap up the week, 534 00:32:07,000 --> 00:32:09,680 Speaker 1: d Larry. Thanks David. That does it for this episode 535 00:32:09,680 --> 00:32:12,520 Speaker 1: of Wall Street Week. I'm David Weston. This is Bloomberg. 536 00:32:12,800 --> 00:32:14,520 Speaker 1: See you next week.