1 00:00:00,160 --> 00:00:03,360 Speaker 1: This is Bloomberg Wall st 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 to use. 3 00:00:06,400 --> 00:00:09,760 Speaker 1: Economy continues to send mixed signals to the financial stories 4 00:00:09,800 --> 00:00:12,719 Speaker 1: that keep our world fed, action to con concerns over 5 00:00:12,760 --> 00:00:16,239 Speaker 1: dollar liquidity, and encouraging China data the five hundred wealthiest 6 00:00:16,239 --> 00:00:18,360 Speaker 1: people in the world. Through the eyes of the most 7 00:00:18,480 --> 00:00:22,520 Speaker 1: influential voices Larry Summers, the former Treasury Secretary, star Ward CEO, 8 00:00:22,640 --> 00:00:26,360 Speaker 1: Kevin Johnson sec Chairman J Clayton, Bloomberg wool Street Week 9 00:00:26,480 --> 00:00:30,720 Speaker 1: with David Weston from Bloomberg Radio, turning the page. As 10 00:00:30,760 --> 00:00:33,879 Speaker 1: the Trump chapter draws to a close, markets and the 11 00:00:33,880 --> 00:00:37,640 Speaker 1: world anticipate how a chapter written by President Biden will read. 12 00:00:38,240 --> 00:00:41,000 Speaker 1: Welcome to a special edition of Bloomberg Wall Street Week. 13 00:00:41,280 --> 00:00:44,800 Speaker 1: I'm David Weston, and so we begin with the coronavirus. 14 00:00:45,080 --> 00:00:47,920 Speaker 1: Where we are now, what the coming months are likely 15 00:00:47,960 --> 00:00:50,400 Speaker 1: to hold, and how we can get to the other side. 16 00:00:50,920 --> 00:00:52,440 Speaker 1: With one of the governors who has been on the 17 00:00:52,479 --> 00:00:56,800 Speaker 1: front lines in that battle, Democrat Ned Lamont of Connecticut. 18 00:00:57,480 --> 00:01:00,000 Speaker 1: We're doing so much more testing, well over two hundred 19 00:01:00,120 --> 00:01:03,480 Speaker 1: thousand tests a week now that um we are detecting 20 00:01:03,720 --> 00:01:06,720 Speaker 1: the virus earlier. We do have a younger demographic. We're 21 00:01:06,720 --> 00:01:10,560 Speaker 1: seeing we're getting those folks quarantined earlier. Uh, folks go 22 00:01:10,640 --> 00:01:13,360 Speaker 1: to the hospital. We're detecting that earlier. They're spending less 23 00:01:13,360 --> 00:01:16,240 Speaker 1: time in the hospital, all of which is good news. 24 00:01:16,440 --> 00:01:19,440 Speaker 1: But um, i'd said the spread the community spread is 25 00:01:19,480 --> 00:01:22,840 Speaker 1: pretty umbroad, and it can be in an urban area 26 00:01:22,959 --> 00:01:26,720 Speaker 1: like Bridgeport, Connecticut, or a more rural area like Norwich, Connecticut. 27 00:01:26,920 --> 00:01:29,920 Speaker 1: Let's talk about where you go from here. Uh, specifically 28 00:01:29,959 --> 00:01:31,479 Speaker 1: with the spect to the vaccine. We've heard a lot 29 00:01:31,480 --> 00:01:33,800 Speaker 1: about vaccine that may be coming where there's hope on 30 00:01:33,840 --> 00:01:35,560 Speaker 1: the way, although it looks like we're gonna have a 31 00:01:35,600 --> 00:01:38,760 Speaker 1: tough time getting there. As a practical matter, I actually 32 00:01:38,800 --> 00:01:42,400 Speaker 1: read that you're acting head of Public Health said that 33 00:01:42,440 --> 00:01:44,080 Speaker 1: you don't have the money for the distribution right now. 34 00:01:44,160 --> 00:01:47,920 Speaker 1: Is that right? Uh? Look, there's no federal money. There's 35 00:01:47,960 --> 00:01:50,320 Speaker 1: not much federal money. So we're working at as best 36 00:01:50,360 --> 00:01:54,800 Speaker 1: we can. Deirdre Gifford is amazing, she's leading our vaccination committee. 37 00:01:55,360 --> 00:01:57,720 Speaker 1: But if the Feds don't step up, we do have 38 00:01:57,760 --> 00:02:00,200 Speaker 1: a three billion dollar Randy Day fund and it's any 39 00:02:00,320 --> 00:02:03,120 Speaker 1: germs and this is the We're not gonna pinch pennies 40 00:02:03,120 --> 00:02:05,320 Speaker 1: when it comes to getting the vaccine out that everybody 41 00:02:05,440 --> 00:02:09,239 Speaker 1: is needed. What are you looking for from the Biden administration. 42 00:02:09,320 --> 00:02:12,240 Speaker 1: Let's jump ahead just a little bit to January twenty. 43 00:02:12,280 --> 00:02:14,560 Speaker 1: What would you like to see from the Biden administration? 44 00:02:14,600 --> 00:02:17,320 Speaker 1: What do you hope for? What do you need? Number one, 45 00:02:17,400 --> 00:02:19,359 Speaker 1: let's all speak with one voice when it comes to 46 00:02:19,400 --> 00:02:22,520 Speaker 1: the mask. When it comes to social distancing, we had 47 00:02:22,520 --> 00:02:24,960 Speaker 1: a dissonance over the last you know, eight months, and 48 00:02:25,000 --> 00:02:28,280 Speaker 1: that was a confusing message to people, you know. Number two, 49 00:02:28,360 --> 00:02:30,600 Speaker 1: in terms of support, what we need is let's put 50 00:02:30,680 --> 00:02:34,639 Speaker 1: in place a really strategic vaccination plan. Let's fund that 51 00:02:34,840 --> 00:02:37,760 Speaker 1: so all of our our fifty states are working, you know, 52 00:02:37,840 --> 00:02:41,040 Speaker 1: in locksteps, and we get this done appropriately. And thirdly, 53 00:02:41,120 --> 00:02:43,600 Speaker 1: some state and local aid in particular for the small 54 00:02:43,639 --> 00:02:46,520 Speaker 1: businesses to help us power through so we can avoid 55 00:02:46,560 --> 00:02:49,520 Speaker 1: what could be a real knee knocking recession. Let's talk 56 00:02:49,520 --> 00:02:52,520 Speaker 1: about what it's how it's changing Connecticut and particularly who 57 00:02:52,560 --> 00:02:54,320 Speaker 1: lives in committing it. What what are you see in 58 00:02:54,400 --> 00:02:57,480 Speaker 1: terms of immigration into Connecticut, for example, from New York 59 00:02:57,720 --> 00:03:00,359 Speaker 1: and for that matter, outgoing from Connecticut to others states. 60 00:03:00,919 --> 00:03:05,320 Speaker 1: I think we've added probably thirty thousand families have moved 61 00:03:05,440 --> 00:03:10,400 Speaker 1: into Connecticut in the last five or six months. Um 62 00:03:10,480 --> 00:03:15,320 Speaker 1: overwhelmingly coming from New York. They want a less congested environment, 63 00:03:15,639 --> 00:03:19,359 Speaker 1: maybe a backyard, maybe it's easier to self quarantine. Our 64 00:03:19,400 --> 00:03:22,519 Speaker 1: schools are open, so but I don't wish yell of 65 00:03:22,600 --> 00:03:25,000 Speaker 1: New York. We're part of the greater New York ecosystem. 66 00:03:25,040 --> 00:03:27,040 Speaker 1: To me, it's still the global capital of the world. 67 00:03:27,040 --> 00:03:30,760 Speaker 1: That we're gonna work through this together. What about that cooperation? 68 00:03:30,760 --> 00:03:33,440 Speaker 1: As I understand that you've been meeting with other regional governors, 69 00:03:33,600 --> 00:03:35,720 Speaker 1: I think maybe you did just last weekend. What comes 70 00:03:35,720 --> 00:03:37,480 Speaker 1: out of that, What do you talk about? What do 71 00:03:37,520 --> 00:03:41,560 Speaker 1: you come up with as an approach? Well, David Um, 72 00:03:41,880 --> 00:03:43,760 Speaker 1: I can do something with bars, I can do something 73 00:03:43,800 --> 00:03:46,640 Speaker 1: with restaurants. But if Andrew Cuomo and the Charlie Baker 74 00:03:46,800 --> 00:03:49,080 Speaker 1: in Massachusetts, so we're not on the same page. It's 75 00:03:49,160 --> 00:03:52,720 Speaker 1: it's really meaningless. We got thousands and thousands of college 76 00:03:52,800 --> 00:03:55,440 Speaker 1: kids coming back to our region. So I'm coming from 77 00:03:55,440 --> 00:03:59,480 Speaker 1: the University of South Dakota, where you have a infection rate. 78 00:04:00,000 --> 00:04:02,160 Speaker 1: So we wanted to be very clear, get the message 79 00:04:02,160 --> 00:04:05,840 Speaker 1: out the universities and airlines in some cases that you 80 00:04:05,920 --> 00:04:08,440 Speaker 1: have to test before you get on that plane, quarantine 81 00:04:08,560 --> 00:04:10,800 Speaker 1: and test when you land. That's how you're gonna keep 82 00:04:10,840 --> 00:04:13,320 Speaker 1: your families safe and your community safe. Well, how is 83 00:04:13,360 --> 00:04:15,160 Speaker 1: that working as a practice, Because in connect you got 84 00:04:15,240 --> 00:04:18,400 Speaker 1: some pretty prominent institutions of higher learning I will call 85 00:04:18,440 --> 00:04:21,080 Speaker 1: them your colleges. Universities are run downed. What are you 86 00:04:21,120 --> 00:04:23,200 Speaker 1: doing with people leaving your state? And what are you 87 00:04:23,200 --> 00:04:25,920 Speaker 1: talking doing with college kids coming back into your state? 88 00:04:26,080 --> 00:04:29,800 Speaker 1: As we approached the holidays, we we've given the same 89 00:04:30,120 --> 00:04:33,840 Speaker 1: council to our existing colleges because we're sending thousands of 90 00:04:33,920 --> 00:04:37,560 Speaker 1: kids back across the country. Test these kids before they leave. 91 00:04:38,160 --> 00:04:41,440 Speaker 1: Do their um you know, their states a favor, just 92 00:04:41,480 --> 00:04:44,839 Speaker 1: like we're asking other universities that test the Connecticut kids 93 00:04:44,880 --> 00:04:48,000 Speaker 1: before they come back here. You mentioned the thirty families 94 00:04:48,000 --> 00:04:50,719 Speaker 1: that have moved into Connecticut. Have you had some outflow, 95 00:04:50,720 --> 00:04:53,280 Speaker 1: particularly because of the tax situations. We've heard reports that 96 00:04:53,360 --> 00:04:55,240 Speaker 1: some people would like to move to, for example, Florida. 97 00:04:55,440 --> 00:05:00,520 Speaker 1: Are you losing prominent people from Connecticut? Well, first, all um, 98 00:05:00,880 --> 00:05:03,320 Speaker 1: the number one state where people leave Connecticut to go 99 00:05:03,400 --> 00:05:06,120 Speaker 1: to is New York. I think we're all part of 100 00:05:06,120 --> 00:05:09,720 Speaker 1: the same regional system there that it's California. But you're right, 101 00:05:09,800 --> 00:05:13,479 Speaker 1: Florida people of a certain age, Uh, they do migrate 102 00:05:13,520 --> 00:05:16,240 Speaker 1: to Florida. They've been doing that before we had an 103 00:05:16,279 --> 00:05:19,039 Speaker 1: income tax and after we had an income tax. But 104 00:05:19,120 --> 00:05:22,000 Speaker 1: I'm just really pleased to Connecticut's getting younger, a lot 105 00:05:22,080 --> 00:05:24,600 Speaker 1: of young families moving to this state. I feel like 106 00:05:24,640 --> 00:05:27,000 Speaker 1: we've got the window are back there, and we've got 107 00:05:27,000 --> 00:05:29,720 Speaker 1: to take advantage of that. You mentioned earlier, Governor, your 108 00:05:29,800 --> 00:05:31,760 Speaker 1: rainy day fund. To talk about that, because there were 109 00:05:31,760 --> 00:05:33,560 Speaker 1: projections that I think we're like two and a half 110 00:05:33,640 --> 00:05:35,680 Speaker 1: billion dollar deficits or something in August, and now you're 111 00:05:35,720 --> 00:05:38,000 Speaker 1: down to one billion. I think your credit rating has 112 00:05:38,000 --> 00:05:41,120 Speaker 1: actually improved as result. How did you do that? Well, 113 00:05:41,360 --> 00:05:44,760 Speaker 1: we put in place a rainy day fund. Uh, so 114 00:05:44,800 --> 00:05:47,279 Speaker 1: the legislature couldn't spend that money, and we had a 115 00:05:47,320 --> 00:05:50,560 Speaker 1: savings in case there was a crisis or if revenues collapse, 116 00:05:50,680 --> 00:05:54,160 Speaker 1: wouldn't have to raise taxes or slash social services. So 117 00:05:54,160 --> 00:05:58,279 Speaker 1: we've got about fifteen percent of our budget um assaulted away. 118 00:05:58,400 --> 00:06:00,840 Speaker 1: But this is the time probably to put it the use, 119 00:06:00,960 --> 00:06:03,120 Speaker 1: especially when it comes to public health, especially when it 120 00:06:03,200 --> 00:06:06,560 Speaker 1: comes to more testing, more track and trace, and more 121 00:06:06,640 --> 00:06:10,560 Speaker 1: vaccination support, you know, until President Biden steps up and 122 00:06:10,760 --> 00:06:12,839 Speaker 1: gives us some federal relief. So you don't have that 123 00:06:12,839 --> 00:06:15,880 Speaker 1: federal relief yet at least. What's happened with the employment 124 00:06:15,960 --> 00:06:20,000 Speaker 1: by the State of Connecticut public employment. We're not filling 125 00:06:20,040 --> 00:06:23,479 Speaker 1: any jobs at this point, so our our overall state 126 00:06:23,600 --> 00:06:27,200 Speaker 1: workforce is um you know, down a little bit. But 127 00:06:27,279 --> 00:06:30,200 Speaker 1: if restaurants had to close, and that's a regional decision, 128 00:06:30,560 --> 00:06:34,560 Speaker 1: that would impact unemployment big time. That was Connecticut Governor 129 00:06:34,680 --> 00:06:38,320 Speaker 1: Ned Lamont up. Next. The need to take on big 130 00:06:38,360 --> 00:06:41,080 Speaker 1: tech is one of the few things that Republicans and 131 00:06:41,120 --> 00:06:45,000 Speaker 1: Democrats appear to agree on. We hear from Harvard's Dantulo 132 00:06:45,200 --> 00:06:48,120 Speaker 1: about how the Biden administration might explore a new way 133 00:06:48,240 --> 00:06:51,120 Speaker 1: to do just that. That's next on Wall Street Week 134 00:06:51,440 --> 00:07:00,599 Speaker 1: on Bloomberg. This is Bloomberg Wall Street Week with David 135 00:07:00,640 --> 00:07:05,120 Speaker 1: Weston from Bloomberg Radio. Lawmakers on both sides of the 136 00:07:05,160 --> 00:07:07,840 Speaker 1: aisle agree that big tech needs to be reined in. 137 00:07:08,440 --> 00:07:11,679 Speaker 1: Just weeks before the presidential election, the Justice Department filed 138 00:07:11,760 --> 00:07:14,880 Speaker 1: and a trust suit against Google, claiming it monopolized the 139 00:07:14,920 --> 00:07:18,080 Speaker 1: market for Internet search, a claim that is unlikely to 140 00:07:18,080 --> 00:07:21,720 Speaker 1: go away whether or not the Biden administration pursues the case. 141 00:07:22,040 --> 00:07:24,880 Speaker 1: And it wasn't just competition that was an issue. The 142 00:07:24,920 --> 00:07:28,240 Speaker 1: CEOs of Facebook and Twitter were grilled by the Senate 143 00:07:28,320 --> 00:07:31,600 Speaker 1: on how they handle political content and misinformation on their 144 00:07:31,640 --> 00:07:35,360 Speaker 1: platforms less than a week before the presidential election. Senators 145 00:07:35,400 --> 00:07:38,360 Speaker 1: pressed them on whether they should amend Section two thirty 146 00:07:38,440 --> 00:07:42,440 Speaker 1: of the Communications Decency Act, a federal law from that 147 00:07:42,560 --> 00:07:47,080 Speaker 1: effectively shields social media companies from liability for content hosted 148 00:07:47,080 --> 00:07:50,840 Speaker 1: by their users. I asked Dan Trulo, former Federal Reserve 149 00:07:50,920 --> 00:07:53,760 Speaker 1: Board governor, about how the Biden administration might take a 150 00:07:53,760 --> 00:07:56,680 Speaker 1: different approach to regulating big tech. I mean in the 151 00:07:56,680 --> 00:08:00,560 Speaker 1: short term is is we've all been saying for nine 152 00:08:00,560 --> 00:08:04,560 Speaker 1: months now, Uh, getting ahold of the virus, getting a 153 00:08:04,920 --> 00:08:08,280 Speaker 1: vaccine out is the single most important thing to continue 154 00:08:08,720 --> 00:08:12,160 Speaker 1: a cyclical recovery, and that in and of itself will 155 00:08:12,200 --> 00:08:17,520 Speaker 1: provide a substantial boost hopefully through all and into two 156 00:08:17,960 --> 00:08:20,840 Speaker 1: So there, I think, as again as we've all been saying, 157 00:08:21,120 --> 00:08:24,600 Speaker 1: the public health issue is the most important economic issue. 158 00:08:24,720 --> 00:08:28,560 Speaker 1: In the short term, there is stimulus. There is a 159 00:08:28,600 --> 00:08:32,400 Speaker 1: crying need for stimulus to carry us into the period 160 00:08:32,480 --> 00:08:35,600 Speaker 1: where the whether the vaccine is going to take effect. 161 00:08:36,120 --> 00:08:39,280 Speaker 1: But after that you are going to get some tailwinds 162 00:08:39,400 --> 00:08:43,720 Speaker 1: basically from from the recovery. Longer term, I think it's 163 00:08:43,920 --> 00:08:48,800 Speaker 1: it's a question of whether the now president elect is 164 00:08:48,840 --> 00:08:52,600 Speaker 1: going to be able to manage to get Congress to 165 00:08:52,640 --> 00:08:56,719 Speaker 1: go along with some of the spending priorities that he has. 166 00:08:56,840 --> 00:08:59,000 Speaker 1: As an enormous amount he can do just by having 167 00:08:59,040 --> 00:09:01,480 Speaker 1: control of the execut your branch, but it is going 168 00:09:01,520 --> 00:09:05,280 Speaker 1: to be important for Congress to at least be somewhat cooperative. Well, 169 00:09:05,320 --> 00:09:07,520 Speaker 1: and when you talk Congress as a practicer, we're probably 170 00:09:07,559 --> 00:09:10,360 Speaker 1: talking the Senate right because as we sit here, we're 171 00:09:10,360 --> 00:09:13,240 Speaker 1: not gonna until late in January, where the Republicans or 172 00:09:13,280 --> 00:09:15,840 Speaker 1: Democrats have the majority. Right now, I think you'd probably 173 00:09:15,840 --> 00:09:18,880 Speaker 1: say it's likely that the Republicans will Is it possible 174 00:09:19,320 --> 00:09:22,720 Speaker 1: for a president Buyden to do business with Mitch McConnell 175 00:09:22,800 --> 00:09:24,840 Speaker 1: and get some things done that certainly knows we hadn't 176 00:09:24,880 --> 00:09:27,800 Speaker 1: gotten done last time? Well, I think I would say, David, 177 00:09:27,840 --> 00:09:30,400 Speaker 1: if it's possible for any Democrat to do it, it's 178 00:09:30,440 --> 00:09:33,319 Speaker 1: probably Joe Biden who can do it. He had He's 179 00:09:33,360 --> 00:09:36,600 Speaker 1: not only a veteran of the Senate, but obviously has 180 00:09:36,640 --> 00:09:41,880 Speaker 1: a longstanding relationship with the Senator McConnell um. But if 181 00:09:41,880 --> 00:09:45,040 Speaker 1: we step back from personalities that bit, I think there 182 00:09:45,080 --> 00:09:50,040 Speaker 1: may also be some motivation that at least some Republican 183 00:09:50,080 --> 00:09:52,400 Speaker 1: a handful of Republican members of the Senate may have. 184 00:09:52,920 --> 00:09:56,679 Speaker 1: So consider, for example, in infrastructure investment, I mean that 185 00:09:56,679 --> 00:10:00,160 Speaker 1: that elicits raised eyebrows now in Washington, New York, just 186 00:10:00,240 --> 00:10:03,400 Speaker 1: about everywhere else. People have been talking about it as 187 00:10:03,400 --> 00:10:08,520 Speaker 1: a potential bipartisan um project and it hasn't happened. But 188 00:10:08,600 --> 00:10:11,800 Speaker 1: I think you've gotten an administration, as we will, that 189 00:10:11,880 --> 00:10:15,520 Speaker 1: has competence, that coordinates its policies, and that has a 190 00:10:15,559 --> 00:10:19,680 Speaker 1: consistent set of policies. There are chances of working something 191 00:10:19,720 --> 00:10:25,080 Speaker 1: out become much greater. And consider, for example, if the 192 00:10:25,120 --> 00:10:28,960 Speaker 1: EPA Administrator and other heads of agencies in the federal 193 00:10:29,000 --> 00:10:34,679 Speaker 1: government begin to implement regulations directed towards climate change, and 194 00:10:34,720 --> 00:10:39,680 Speaker 1: what President Biden is offering is uh an infrastructure package 195 00:10:39,720 --> 00:10:44,880 Speaker 1: that can help both accelerate that transition, creating jobs and 196 00:10:44,960 --> 00:10:49,200 Speaker 1: also help with the adjustment of those insectors that are 197 00:10:49,200 --> 00:10:52,080 Speaker 1: not going to be as vibrant going forward. Is going 198 00:10:52,160 --> 00:10:54,360 Speaker 1: to be I think a temptation on the part of 199 00:10:54,679 --> 00:10:58,599 Speaker 1: some senators from some effected states to buy onto that. 200 00:11:00,440 --> 00:11:03,840 Speaker 1: So you dealt with ecademy policies, certainly when you remember 201 00:11:03,880 --> 00:11:08,000 Speaker 1: the Federal Reserve, but also before that in the baldministration. 202 00:11:08,080 --> 00:11:10,560 Speaker 1: In the Clinton illustration, you really dealt with econdit policy. 203 00:11:10,760 --> 00:11:12,720 Speaker 1: As you look at the economy today, we still have 204 00:11:12,800 --> 00:11:14,560 Speaker 1: ways to come back. We've come back, some were still 205 00:11:14,559 --> 00:11:16,440 Speaker 1: are ways to come back, and particulity it comes to jobs, 206 00:11:16,440 --> 00:11:18,559 Speaker 1: We've still got over ten million people who don't have 207 00:11:18,640 --> 00:11:22,840 Speaker 1: jobs today who did before the pandemic. Is infrastructure the best, quickest, 208 00:11:22,840 --> 00:11:26,080 Speaker 1: more sure way to restore some of that in the economy. 209 00:11:26,840 --> 00:11:30,480 Speaker 1: Coronavirus vaccine is the quickest, insurest way to do it, 210 00:11:30,520 --> 00:11:33,400 Speaker 1: because that's what's going to get the service sectors back up. 211 00:11:33,440 --> 00:11:37,600 Speaker 1: And environment I would say that the infrastructure investment is 212 00:11:37,720 --> 00:11:40,959 Speaker 1: the medium to longer term project. It's one that would 213 00:11:41,000 --> 00:11:45,280 Speaker 1: both improve productivity and create good jobs along the way. 214 00:11:45,559 --> 00:11:48,160 Speaker 1: But as we've seen it again and again, no matter 215 00:11:48,200 --> 00:11:51,840 Speaker 1: how many times people say the projects are shovel ready, yeah, 216 00:11:51,960 --> 00:11:54,080 Speaker 1: they're they're ready enough that you can start walk into 217 00:11:54,080 --> 00:11:56,120 Speaker 1: the truck to get the shovel, but they never seem 218 00:11:56,200 --> 00:11:59,600 Speaker 1: to be ready to have as much impact as quickly 219 00:11:59,640 --> 00:12:02,000 Speaker 1: as you have. I come to so you mentioned earlier, 220 00:12:02,080 --> 00:12:04,360 Speaker 1: Dan that there are some things that the executive branch 221 00:12:04,400 --> 00:12:07,120 Speaker 1: can do on its own, pretty much without support from 222 00:12:07,120 --> 00:12:10,080 Speaker 1: a divided Congress. Give us a sense in the economic sphere. 223 00:12:10,160 --> 00:12:12,920 Speaker 1: One of the things that this president, President Biden could 224 00:12:12,960 --> 00:12:15,920 Speaker 1: get done in a reasonably short period of time, well 225 00:12:16,559 --> 00:12:21,160 Speaker 1: within the labor department, for example, where you've got the 226 00:12:21,280 --> 00:12:26,240 Speaker 1: UH Fair Labor Standards Act, he can his appointees and 227 00:12:26,600 --> 00:12:31,360 Speaker 1: make different determinations as to who's covered by minimum wage 228 00:12:31,440 --> 00:12:33,840 Speaker 1: laws when you have to pay over time, that sort 229 00:12:33,840 --> 00:12:36,160 Speaker 1: of thing which could have a big effect. Within the 230 00:12:36,200 --> 00:12:40,080 Speaker 1: gig economy. Um, he can do things on student debt 231 00:12:40,120 --> 00:12:44,240 Speaker 1: relief as well. Uh. There there are any number of 232 00:12:44,440 --> 00:12:47,240 Speaker 1: regulatory actions that he can take, and of course he 233 00:12:47,280 --> 00:12:51,040 Speaker 1: can also use such spending powers as he has with 234 00:12:51,160 --> 00:12:55,480 Speaker 1: already appropriated or assumed to be appropriated funds to redirect them. 235 00:12:55,640 --> 00:12:59,680 Speaker 1: So in terms of economic priorities, there's quite a bit 236 00:12:59,760 --> 00:13:04,320 Speaker 1: that he can do where he needs the cooperation of 237 00:13:04,400 --> 00:13:09,960 Speaker 1: Congress is obviously in increasing total spending or total tax reforms. 238 00:13:10,480 --> 00:13:13,640 Speaker 1: Shouldn't we be concerned all about the effect of regulation, 239 00:13:13,800 --> 00:13:17,960 Speaker 1: more regulation on economic growth. One of the hallmarks of 240 00:13:18,000 --> 00:13:20,600 Speaker 1: President Trump administration has and deregulating said that was a 241 00:13:20,600 --> 00:13:22,760 Speaker 1: way to grow the economy. How do we strike that 242 00:13:22,800 --> 00:13:27,760 Speaker 1: balance the right way? Well, I think that's always a question, 243 00:13:27,960 --> 00:13:33,120 Speaker 1: right um, in any administration, no matter what its ideological leanings. 244 00:13:33,760 --> 00:13:37,760 Speaker 1: But I think in the areas where the President elect 245 00:13:37,800 --> 00:13:41,920 Speaker 1: has emphasized most the regulatory agenda, which would be on 246 00:13:42,040 --> 00:13:46,200 Speaker 1: climate change, which would be on worker protection, uh, and 247 00:13:46,320 --> 00:13:50,680 Speaker 1: to lesser extent financial regulation UH, in each of those areas, 248 00:13:51,280 --> 00:13:55,200 Speaker 1: I think that it's quite possible to get a set 249 00:13:55,200 --> 00:13:59,360 Speaker 1: of regulations to achieve your regulatory end, but do so 250 00:13:59,440 --> 00:14:03,800 Speaker 1: in a sense sable way that doesn't create unnecessary disruption. 251 00:14:03,880 --> 00:14:05,880 Speaker 1: And you know, i'd say in the labor area, David, 252 00:14:06,200 --> 00:14:09,679 Speaker 1: to the degree that there is going to be increased 253 00:14:09,679 --> 00:14:14,640 Speaker 1: purchasing power among people in the lower echelons of income bractts, 254 00:14:15,080 --> 00:14:17,760 Speaker 1: that's going to increase aggregate demand because, as we know, 255 00:14:17,960 --> 00:14:21,600 Speaker 1: people in the lower levels of income tend to spend 256 00:14:21,680 --> 00:14:23,800 Speaker 1: a much higher proportion of their income than those in 257 00:14:23,880 --> 00:14:27,400 Speaker 1: the upper levels. To so again over a time, is 258 00:14:27,440 --> 00:14:31,680 Speaker 1: actually an aggregate demand reinforcing effect of some of these. 259 00:14:32,400 --> 00:14:36,120 Speaker 1: That was Dan's rulo, former Federal Reserve Board governor. Coming up, 260 00:14:36,120 --> 00:14:38,960 Speaker 1: President like Biden's plan for the nation's schools will start 261 00:14:38,960 --> 00:14:42,800 Speaker 1: with a cautious approach to reopening schools safely. We talk 262 00:14:42,920 --> 00:14:47,200 Speaker 1: with former Education Secretary Margaret's Spellings. That's next on Wall 263 00:14:47,200 --> 00:14:56,760 Speaker 1: Street Week on Bloomberg. This is Bloomberg Wall Street Week 264 00:14:56,960 --> 00:15:01,520 Speaker 1: with David Weston from Bloomberg Radio, Education holds a special 265 00:15:01,520 --> 00:15:05,200 Speaker 1: place and President Elect Biden's list of priorities incoming. First 266 00:15:05,280 --> 00:15:08,480 Speaker 1: Lady Dr Jill Biden is a community college professor and 267 00:15:08,480 --> 00:15:11,720 Speaker 1: a member of the nation's largest teachers union. President Trump's 268 00:15:11,840 --> 00:15:15,840 Speaker 1: Education Secretary, Betsy Divas, scaled back federal government involvement in 269 00:15:15,960 --> 00:15:19,520 Speaker 1: K through twelve policy and advocated for charter schools. In 270 00:15:19,560 --> 00:15:23,400 Speaker 1: addition to reversing divorces policies, the Biden administration plans to 271 00:15:23,480 --> 00:15:27,000 Speaker 1: increase resources for public schools and bridge the funding gap 272 00:15:27,280 --> 00:15:31,560 Speaker 1: for schools and underprivileged communities. The pandemics effects on children 273 00:15:31,600 --> 00:15:34,480 Speaker 1: and families is putting extra emphasis on the importance of 274 00:15:34,600 --> 00:15:38,400 Speaker 1: education policy, with many parents pleading to keep schools open. 275 00:15:38,920 --> 00:15:42,800 Speaker 1: I asked Margaret Spellings, former Education secretary under President George W. 276 00:15:43,000 --> 00:15:45,680 Speaker 1: Bush about the importance of figuring out how to get 277 00:15:45,800 --> 00:15:48,880 Speaker 1: kids back to school. And you know, the functioning of 278 00:15:48,920 --> 00:15:53,160 Speaker 1: our schools is central to the recovery of our economy 279 00:15:53,320 --> 00:15:57,040 Speaker 1: and the functioning of our families and uh not to mention, 280 00:15:57,440 --> 00:16:00,200 Speaker 1: uh the education of this next generation of students. So 281 00:16:00,360 --> 00:16:03,320 Speaker 1: COVID and schools are you know, top of the pyramid. 282 00:16:03,640 --> 00:16:06,240 Speaker 1: So what can the federal government as opposed to state 283 00:16:06,320 --> 00:16:09,080 Speaker 1: or local and do on that score. Is it mainly 284 00:16:09,120 --> 00:16:11,840 Speaker 1: just fight COVID overall or there specific things that it 285 00:16:11,920 --> 00:16:14,080 Speaker 1: can do with respect to our schools. Well, it can 286 00:16:14,120 --> 00:16:17,400 Speaker 1: do a lot. For starters, we can convene experts that 287 00:16:17,440 --> 00:16:23,040 Speaker 1: can help us understand what those proper protocols for health 288 00:16:23,240 --> 00:16:26,760 Speaker 1: and uh public health and for student safety are, what 289 00:16:26,800 --> 00:16:30,760 Speaker 1: our best practices, what are we learning from around the country. Secondly, 290 00:16:30,800 --> 00:16:34,000 Speaker 1: we can help our educators understand how to use space. 291 00:16:34,680 --> 00:16:38,080 Speaker 1: We can understand and help our teachers use technology in 292 00:16:38,080 --> 00:16:42,240 Speaker 1: in more fulsome ways and more effective ways. And we 293 00:16:42,280 --> 00:16:45,560 Speaker 1: can take leadership at the federal level around broadband and 294 00:16:45,640 --> 00:16:48,520 Speaker 1: device ubiquity. So there's really a lot the federal government 295 00:16:48,560 --> 00:16:51,760 Speaker 1: can do to respond immediately. How much of it is money, 296 00:16:51,800 --> 00:16:54,680 Speaker 1: because I saw that the organization representing superintendents across the 297 00:16:54,680 --> 00:16:57,120 Speaker 1: school and said, we need about two hundred billion dollars 298 00:16:57,200 --> 00:17:00,200 Speaker 1: was the number to really help our schools. COVID would 299 00:17:00,200 --> 00:17:03,200 Speaker 1: proof themselves if that's possible. Well, state and local governments 300 00:17:03,320 --> 00:17:06,240 Speaker 1: need need resources, and I hope that we'll have that 301 00:17:06,680 --> 00:17:09,920 Speaker 1: UH and the next care's package, either through UH states 302 00:17:10,160 --> 00:17:13,280 Speaker 1: or through local school districts. But sure resources are a 303 00:17:13,280 --> 00:17:16,520 Speaker 1: part of it, not the only part. What about preschool, 304 00:17:16,600 --> 00:17:18,320 Speaker 1: I mean that in the particular focus on pre school 305 00:17:18,320 --> 00:17:20,520 Speaker 1: obviously that's terribly important. Is you know better than I 306 00:17:20,720 --> 00:17:24,720 Speaker 1: in the education process generally, but specifically with child care 307 00:17:24,760 --> 00:17:27,120 Speaker 1: issues as people try to get back to work. Absolutely 308 00:17:27,160 --> 00:17:29,920 Speaker 1: again that that goes to the functioning of our families 309 00:17:29,960 --> 00:17:34,480 Speaker 1: and our economy. And sadly, we're seeing millions of students 310 00:17:34,520 --> 00:17:38,320 Speaker 1: across our country who were registered in in school last 311 00:17:38,359 --> 00:17:42,240 Speaker 1: spring who didn't show up UH this year this school year, 312 00:17:42,560 --> 00:17:45,120 Speaker 1: and many of them at the early grades, and so 313 00:17:45,160 --> 00:17:48,119 Speaker 1: we must address those issues. We go, we need to 314 00:17:48,119 --> 00:17:50,760 Speaker 1: go find those students, We need to work with those families, 315 00:17:51,080 --> 00:17:53,600 Speaker 1: and we need to find ways where they can congregate 316 00:17:53,640 --> 00:17:57,640 Speaker 1: in small groups and pods. The new UH term of art, 317 00:17:58,320 --> 00:18:00,680 Speaker 1: so that so that our our school as, our kids 318 00:18:00,760 --> 00:18:03,960 Speaker 1: can learn and our families can function. Would it help 319 00:18:04,200 --> 00:18:07,000 Speaker 1: public schools to have some more guidance? I mean, I know, 320 00:18:07,200 --> 00:18:09,920 Speaker 1: speaking from experience here in New York, it comes from 321 00:18:09,920 --> 00:18:12,400 Speaker 1: the governor, not from the federal government. As so, when 322 00:18:12,440 --> 00:18:14,480 Speaker 1: you have to close down, when you can stay open, 323 00:18:14,520 --> 00:18:17,840 Speaker 1: things like that, should there be federal national guidance on 324 00:18:17,880 --> 00:18:21,119 Speaker 1: the conditions under which you should be opening? School Solutions 325 00:18:21,119 --> 00:18:23,399 Speaker 1: have to be customized to the facts on the ground 326 00:18:23,440 --> 00:18:25,879 Speaker 1: and the prevalence of the disease on the ground. But 327 00:18:26,000 --> 00:18:29,400 Speaker 1: can we learn from each other? Can we understand what 328 00:18:29,480 --> 00:18:32,960 Speaker 1: models are working? Can we understand how best to use technology? 329 00:18:33,040 --> 00:18:37,160 Speaker 1: Can we respond to uh to to finding students? I mean, 330 00:18:37,160 --> 00:18:40,080 Speaker 1: what are those best practices? How do we aggregate those 331 00:18:40,520 --> 00:18:43,159 Speaker 1: and share them? I mean right now? Uh, you know, 332 00:18:43,240 --> 00:18:46,480 Speaker 1: thousands of school districts are inventing this on their own. 333 00:18:46,520 --> 00:18:50,520 Speaker 1: Every day, individual classroom teachers are having to kind of 334 00:18:50,520 --> 00:18:52,359 Speaker 1: figure it out on their own. And we can we 335 00:18:52,400 --> 00:18:54,680 Speaker 1: can do better than that? Can we build and improve 336 00:18:54,760 --> 00:18:57,320 Speaker 1: our overall education system. At the same time, we're fighting 337 00:18:57,320 --> 00:19:00,439 Speaker 1: this this COVID nineteen epidemic, and I'm mindful effect that. 338 00:19:00,640 --> 00:19:03,680 Speaker 1: George W. Bush. Your old boss really made education of priority, 339 00:19:03,920 --> 00:19:07,320 Speaker 1: You really implemented the no child left behind? Did that work? 340 00:19:07,520 --> 00:19:09,239 Speaker 1: Do we have to set that to one side? Or 341 00:19:09,280 --> 00:19:12,679 Speaker 1: can we actually, in this crisis still pursue a fundamental 342 00:19:12,760 --> 00:19:17,040 Speaker 1: underlying buttressing of our education system. We we absolutely must, 343 00:19:17,080 --> 00:19:21,119 Speaker 1: because COVID has revealed the systemic you know, inequities in 344 00:19:21,160 --> 00:19:24,080 Speaker 1: our system that No Child Left Behind attempted to address 345 00:19:24,200 --> 00:19:28,240 Speaker 1: through investments in reading through uh, you know, holding ourselves 346 00:19:28,240 --> 00:19:31,680 Speaker 1: as adults accountable for the achievement of all students. And 347 00:19:31,880 --> 00:19:34,399 Speaker 1: you know it. Uh. It really bugs me when I 348 00:19:34,440 --> 00:19:36,600 Speaker 1: hear people saying we need to go back to normal. No, 349 00:19:36,720 --> 00:19:40,560 Speaker 1: we don't, because normal had you know, millions of students 350 00:19:40,640 --> 00:19:43,080 Speaker 1: left behind if you will, uh. And we have to 351 00:19:43,640 --> 00:19:47,040 Speaker 1: reinvent this model to be more responsive to all students matter. 352 00:19:47,440 --> 00:19:49,280 Speaker 1: You and I have been talking thus for a preschool 353 00:19:49,280 --> 00:19:51,760 Speaker 1: in case through twelve. Let's spend a minute on higher education, 354 00:19:51,800 --> 00:19:54,720 Speaker 1: because that was actually something raised during the campaign, questions 355 00:19:54,760 --> 00:19:57,679 Speaker 1: like free tuition and forgiveness of student loans. What do 356 00:19:57,680 --> 00:19:59,480 Speaker 1: you think is a sensible policy over the next four 357 00:19:59,560 --> 00:20:02,040 Speaker 1: years with spect to higher education? You know, I think 358 00:20:02,119 --> 00:20:05,439 Speaker 1: things that will address the immediate needs in the aftermath 359 00:20:05,480 --> 00:20:10,359 Speaker 1: of COVID around UH, displaced workers, around job training, around 360 00:20:10,400 --> 00:20:16,119 Speaker 1: getting resources to those individuals, but also alignment between what 361 00:20:16,280 --> 00:20:19,520 Speaker 1: we in colleges and universities produce and the and the 362 00:20:19,560 --> 00:20:23,080 Speaker 1: demands of the marketplace today. And so we have a 363 00:20:23,119 --> 00:20:26,320 Speaker 1: lot of retooling to do. I'm in Texas, an oil 364 00:20:26,359 --> 00:20:29,560 Speaker 1: and gas industry that is UH, you know, likely to 365 00:20:29,600 --> 00:20:32,560 Speaker 1: shrink over time in some ways. How do we engage 366 00:20:32,640 --> 00:20:37,920 Speaker 1: that workforce, retool, retrain UH so that those individuals can 367 00:20:37,960 --> 00:20:42,720 Speaker 1: participate in advancement and manufacturing and other fields. That was 368 00:20:42,800 --> 00:20:46,960 Speaker 1: former Education Secretary Margaret Spellings coming up. We turned to 369 00:20:47,000 --> 00:20:50,040 Speaker 1: our special contributor Larry Summers of Harvard to look forward 370 00:20:50,080 --> 00:20:53,560 Speaker 1: to the surprises, both upside and downside, that may lay 371 00:20:53,600 --> 00:20:56,880 Speaker 1: ahead in the next four years. This is Wall Street 372 00:20:56,920 --> 00:21:04,719 Speaker 1: Week on Bloomberg. This is Bloomberg Wall Street Week with 373 00:21:04,800 --> 00:21:09,200 Speaker 1: David Weston from Bloomberg Radio. President like Biden, is already 374 00:21:09,200 --> 00:21:12,200 Speaker 1: getting to work on building relationships with the world leaders. 375 00:21:12,520 --> 00:21:16,320 Speaker 1: I've spoken to think thirteen I'm not sure how many, Samanda, 376 00:21:16,359 --> 00:21:21,080 Speaker 1: the thirteen heads of state so far, and UH, I 377 00:21:21,160 --> 00:21:23,680 Speaker 1: don't think it's an exaggeration to say it is less 378 00:21:23,720 --> 00:21:27,280 Speaker 1: about me than the circumstances, there's a degree of enthusiasm 379 00:21:27,280 --> 00:21:30,439 Speaker 1: and expectations. The President elect has stressed the importance of 380 00:21:30,480 --> 00:21:34,359 Speaker 1: strengthening cooperation with allies. I'm letting him know that America 381 00:21:34,440 --> 00:21:36,880 Speaker 1: is back. We're gonna be back in the game. It's 382 00:21:36,920 --> 00:21:40,359 Speaker 1: not American alone. One of the most important and difficult 383 00:21:40,400 --> 00:21:43,439 Speaker 1: issues for the new administration would be U S. China relations, 384 00:21:43,480 --> 00:21:47,320 Speaker 1: which have grown more confrontational since the Obama Biden administration. 385 00:21:47,760 --> 00:21:50,760 Speaker 1: When President like Biden takes office in January, he will 386 00:21:50,800 --> 00:21:53,720 Speaker 1: have to deal with the nation's allies and adversaries, all 387 00:21:53,800 --> 00:21:56,800 Speaker 1: while controlling a global health crisis. I talked with a 388 00:21:56,800 --> 00:21:59,760 Speaker 1: Council on Foreign Relations President Richard has about the in 389 00:22:00,000 --> 00:22:03,160 Speaker 1: box President Biden will face on January twenty and how 390 00:22:03,240 --> 00:22:06,800 Speaker 1: he can set his priorities. China's in the inbox, and 391 00:22:06,840 --> 00:22:09,240 Speaker 1: it will be for presidents as far as the I 392 00:22:09,560 --> 00:22:12,240 Speaker 1: n see or the brain can imagine. It's one of 393 00:22:12,280 --> 00:22:16,199 Speaker 1: the structural challenges, shall we say, conceivably an opportunity of 394 00:22:16,240 --> 00:22:19,040 Speaker 1: the twenty first century. And as a result, there's no 395 00:22:19,600 --> 00:22:22,000 Speaker 1: urgency to get it right in the first couple of months. 396 00:22:22,000 --> 00:22:24,800 Speaker 1: And the contrast there is with COVID. We may not 397 00:22:24,920 --> 00:22:28,560 Speaker 1: think of a pandemic as a national security priority, but 398 00:22:28,600 --> 00:22:32,000 Speaker 1: it's exactly that. And unless we get it under control 399 00:22:32,080 --> 00:22:34,199 Speaker 1: here at home, we're simply not going to have the 400 00:22:34,240 --> 00:22:38,080 Speaker 1: bandwidth to do much much of anything else. Obviously, it 401 00:22:38,080 --> 00:22:42,520 Speaker 1: will hold back the economy, and so I think that 402 00:22:42,640 --> 00:22:46,040 Speaker 1: becomes the priority. It also has real foreign policy dimensions. 403 00:22:46,080 --> 00:22:48,120 Speaker 1: There is the question of the US getting back into 404 00:22:48,160 --> 00:22:50,800 Speaker 1: the World Health Organization. I think that makes sense, even 405 00:22:50,800 --> 00:22:53,600 Speaker 1: though it's flawed, it's the only way to gradually improve it. 406 00:22:54,400 --> 00:22:57,240 Speaker 1: I think there's a question participation in global efforts to 407 00:22:57,680 --> 00:23:02,840 Speaker 1: produce and distribute and fund any any vaccine or therapeutics 408 00:23:02,880 --> 00:23:06,280 Speaker 1: that that may emerge because one other foreign policy in 409 00:23:06,320 --> 00:23:09,400 Speaker 1: the David. If we can get COVID gradually under control here, 410 00:23:09,800 --> 00:23:12,840 Speaker 1: it sends a powerful message that the United States is back, 411 00:23:13,280 --> 00:23:16,520 Speaker 1: that essentially we can continue to function, and that with 412 00:23:16,560 --> 00:23:20,439 Speaker 1: our technology and despite our political divisions, we can we 413 00:23:20,480 --> 00:23:22,600 Speaker 1: can still make things happen in this country. And I 414 00:23:22,600 --> 00:23:25,159 Speaker 1: think that's an important message to the world. Richard. If 415 00:23:25,200 --> 00:23:27,639 Speaker 1: COVID nineteen is first oftheless, it's sure makes sense. It 416 00:23:27,680 --> 00:23:30,560 Speaker 1: would be Is this the worst possible time for a transition, 417 00:23:30,800 --> 00:23:32,640 Speaker 1: because we can only have one president at a time. 418 00:23:32,680 --> 00:23:34,639 Speaker 1: As you know so well, we're not going to have 419 00:23:34,680 --> 00:23:38,000 Speaker 1: a President Biden until January. And right now it doesn't 420 00:23:38,000 --> 00:23:41,359 Speaker 1: appear the President Trump is deeply engaged in fighting COVID nineteen, 421 00:23:41,359 --> 00:23:44,639 Speaker 1: at least to the outside world. I can't see it. No, 422 00:23:44,760 --> 00:23:47,560 Speaker 1: it's not. It seems to me he's disengaged. He's abdicated. 423 00:23:48,280 --> 00:23:50,560 Speaker 1: The only thing worse than a transition, David, would be 424 00:23:50,640 --> 00:23:53,480 Speaker 1: no transition. And the idea that you would have four 425 00:23:53,560 --> 00:23:56,560 Speaker 1: more years of an administration that has essentially not taken 426 00:23:56,560 --> 00:23:59,000 Speaker 1: ownership of COVID nineteen, that would be a nightmare, that 427 00:23:59,040 --> 00:24:01,920 Speaker 1: would be a disaster. You show you're right. We're gonna 428 00:24:01,960 --> 00:24:04,000 Speaker 1: lose the best part of the next two months when 429 00:24:04,000 --> 00:24:06,879 Speaker 1: it comes to things like promoting the use of mass 430 00:24:06,960 --> 00:24:09,480 Speaker 1: Unless some governors get on it, we're not going to 431 00:24:09,560 --> 00:24:14,280 Speaker 1: have a national testing priority to develop one. This situation 432 00:24:14,400 --> 00:24:17,120 Speaker 1: is going to get worse before it gets worse. I think, though, 433 00:24:17,200 --> 00:24:20,920 Speaker 1: though by the spring, some combination of use of masks, 434 00:24:22,119 --> 00:24:25,679 Speaker 1: the development hopefully of some better therapeutics. Obviously people are 435 00:24:25,680 --> 00:24:29,160 Speaker 1: optimistic about one or more vaccines, So I think if 436 00:24:29,160 --> 00:24:31,359 Speaker 1: I had laid out, things are going to get worse 437 00:24:31,400 --> 00:24:35,000 Speaker 1: before they get worse before. Hopefully ultimately they look better. 438 00:24:35,240 --> 00:24:37,800 Speaker 1: Let's come back to that U. S. China relationship, because 439 00:24:37,880 --> 00:24:40,040 Speaker 1: it doesn't look right now. Like President she's making it 440 00:24:40,119 --> 00:24:42,840 Speaker 1: that much easier for president like Biden as they made 441 00:24:42,880 --> 00:24:45,520 Speaker 1: that move in Hong Kong that caused the opposition to 442 00:24:45,600 --> 00:24:48,439 Speaker 1: all resign in mass. What do you think is the 443 00:24:48,520 --> 00:24:53,760 Speaker 1: Chinese position on President elect Biden. I don't think they 444 00:24:53,800 --> 00:24:55,480 Speaker 1: have any great hopes in the sense that this is 445 00:24:55,520 --> 00:24:58,480 Speaker 1: going to usher in a new age of US China 446 00:24:58,560 --> 00:25:01,919 Speaker 1: commitsy they under STANDARDI the will probably be more continuity 447 00:25:02,160 --> 00:25:06,520 Speaker 1: than than change. Uh. If one looks at the people 448 00:25:06,760 --> 00:25:09,439 Speaker 1: around via Vice President President like Biden, a lot of 449 00:25:09,440 --> 00:25:12,480 Speaker 1: them have said or written fairly tough things about China, 450 00:25:12,600 --> 00:25:15,880 Speaker 1: particularly over human rights. If anything, they'll be tougher than 451 00:25:15,920 --> 00:25:20,320 Speaker 1: the outgoing administration. Do you have widespread concerns across the 452 00:25:20,320 --> 00:25:24,280 Speaker 1: political spectrum on trade related issues, on on technology and 453 00:25:24,359 --> 00:25:27,080 Speaker 1: some of the people around Mr Biden have worked in 454 00:25:27,119 --> 00:25:29,760 Speaker 1: places like the Pentagon and have very strong views about 455 00:25:29,800 --> 00:25:32,480 Speaker 1: Taiwan or or the South China see, or what China 456 00:25:32,560 --> 00:25:35,480 Speaker 1: is doing on its border with with India. The one 457 00:25:35,520 --> 00:25:38,600 Speaker 1: constant here, David is Shiji and things. China is a 458 00:25:38,720 --> 00:25:42,520 Speaker 1: very different China. It's more repressive at home, state ownership 459 00:25:42,640 --> 00:25:45,400 Speaker 1: is not only continuing but growing in the economy. It's 460 00:25:45,400 --> 00:25:48,480 Speaker 1: more asserted and more capable in this foreign policy, and 461 00:25:48,520 --> 00:25:50,800 Speaker 1: I think the Chinese are plowing ahead. This is the 462 00:25:50,840 --> 00:25:54,639 Speaker 1: trajectory they are on. So as a practical matter, Richard, 463 00:25:55,000 --> 00:25:59,480 Speaker 1: what is the realistic possibility of having multilateral efforts to 464 00:25:59,560 --> 00:26:02,280 Speaker 1: really happen or redirect China at all? Because one of 465 00:26:02,280 --> 00:26:04,800 Speaker 1: the things you write about in your piece is returning 466 00:26:04,840 --> 00:26:07,960 Speaker 1: to multilower efforts to some of the international institutions that 467 00:26:08,080 --> 00:26:11,600 Speaker 1: we have. Can that really redirect or even a little 468 00:26:11,640 --> 00:26:15,840 Speaker 1: bit where China is headed? Oh? Absolutely, it's called the sense. 469 00:26:15,840 --> 00:26:17,960 Speaker 1: That's what diplomacy is about. The United States has this 470 00:26:18,080 --> 00:26:22,160 Speaker 1: great structural advantage or potential leverage called its allies and partners. 471 00:26:22,720 --> 00:26:24,840 Speaker 1: The Europeans could play a big role on things like 472 00:26:24,920 --> 00:26:29,960 Speaker 1: human rights pressure or technology. Uh, the Asian and Pacific 473 00:26:30,520 --> 00:26:34,080 Speaker 1: allies could have all sorts of role to play on economics, 474 00:26:35,320 --> 00:26:37,560 Speaker 1: on strategy. I think there's a real question though for 475 00:26:37,600 --> 00:26:40,959 Speaker 1: the new administration whether it's prepared to join into what 476 00:26:41,160 --> 00:26:45,600 Speaker 1: was the Trans Pacific Partnership and work with other countries 477 00:26:45,600 --> 00:26:48,159 Speaker 1: in the region to force China to raise its standards, 478 00:26:48,560 --> 00:26:52,560 Speaker 1: whether it's economics standards or or climate related standards, in 479 00:26:52,640 --> 00:26:56,560 Speaker 1: order to have access to half the world markets. So again, 480 00:26:56,600 --> 00:27:00,840 Speaker 1: I think the real advantage we have is UH is 481 00:27:00,920 --> 00:27:02,680 Speaker 1: changing the means of our policy. I think there'll be 482 00:27:02,720 --> 00:27:05,600 Speaker 1: a considerable continuity and ends. I think the real difference 483 00:27:05,600 --> 00:27:08,959 Speaker 1: will be the Biden administration will work much more with 484 00:27:09,040 --> 00:27:13,520 Speaker 1: our allies South Korea, Japan, Australia, Europeans, partners like India 485 00:27:14,000 --> 00:27:17,160 Speaker 1: to to to to approach China, and I think potentially, 486 00:27:18,080 --> 00:27:20,160 Speaker 1: and that's what foreign policy is about, is to shape 487 00:27:20,600 --> 00:27:23,719 Speaker 1: the foreign policy choices of a country like China, and 488 00:27:23,920 --> 00:27:27,760 Speaker 1: history suggests that's possible. What's not possible, just attack the 489 00:27:27,800 --> 00:27:30,040 Speaker 1: Secretary of State has been on is to try to 490 00:27:30,080 --> 00:27:32,639 Speaker 1: transform China. They're not going to walk away from the 491 00:27:32,680 --> 00:27:35,680 Speaker 1: Communist Party. They're not going to become liberal Democrats overnight. 492 00:27:35,920 --> 00:27:38,760 Speaker 1: That is to me just folly. But I do think 493 00:27:38,760 --> 00:27:42,720 Speaker 1: there's a chance we can influence what China does. Richard, 494 00:27:42,960 --> 00:27:44,760 Speaker 1: you're the tire. Your peace and foreign affairs is, as 495 00:27:44,760 --> 00:27:47,480 Speaker 1: I say, repairing the world. You draw distincts between repairing 496 00:27:47,560 --> 00:27:49,560 Speaker 1: and building. You have to repair before you build. As 497 00:27:49,600 --> 00:27:52,320 Speaker 1: I understand what you're saying here, one of the major 498 00:27:52,400 --> 00:27:55,639 Speaker 1: issues in repairing is those international alliances of all sorts, 499 00:27:55,640 --> 00:27:59,000 Speaker 1: of all sorts that you talk about here. How quickly 500 00:27:59,040 --> 00:28:01,560 Speaker 1: can that be done? Are people waiting for us with 501 00:28:01,640 --> 00:28:04,560 Speaker 1: open arms or has there been longer term damage that 502 00:28:04,600 --> 00:28:08,119 Speaker 1: will take long a long time to repair. When the 503 00:28:08,119 --> 00:28:10,919 Speaker 1: answer is both, I think, particularly the democratic countries in 504 00:28:10,960 --> 00:28:14,040 Speaker 1: Europe and Asia are very happy about the turn of 505 00:28:14,359 --> 00:28:17,480 Speaker 1: events here. Still in the back of their minds there's 506 00:28:17,680 --> 00:28:20,399 Speaker 1: some concern about the long term trajectory of this country 507 00:28:20,400 --> 00:28:23,880 Speaker 1: that saw the president Trump got seventy million votes. They 508 00:28:24,000 --> 00:28:27,800 Speaker 1: believe that Trump is um will be a permanent or 509 00:28:27,920 --> 00:28:31,600 Speaker 1: these longstanding factor in politics. I think there's a wariness 510 00:28:32,119 --> 00:28:34,800 Speaker 1: about the United States that didn't exist before. If this 511 00:28:34,840 --> 00:28:37,879 Speaker 1: could happen once, it could very well happen again. But 512 00:28:37,960 --> 00:28:40,880 Speaker 1: in the short run, the European countries, many of the 513 00:28:40,920 --> 00:28:44,760 Speaker 1: Asian countries are extremely happy that you'll have a government 514 00:28:44,840 --> 00:28:48,760 Speaker 1: that is oriented towards multilateralism, will rejoin things like the 515 00:28:48,800 --> 00:28:51,800 Speaker 1: Paris Climate Corps, will get back into the w h O, 516 00:28:52,320 --> 00:28:56,360 Speaker 1: will basically believe in diplomacy and rather than hammering allies 517 00:28:56,720 --> 00:28:59,400 Speaker 1: every other day will be more prepared to work with them. 518 00:28:59,440 --> 00:29:03,120 Speaker 1: It's not happy all the authoritarian governments, the Russians, the Chinese, 519 00:29:03,200 --> 00:29:06,920 Speaker 1: the Turks, Brazilians and so forth. And I expect Israel 520 00:29:06,960 --> 00:29:09,800 Speaker 1: and Saudi Arabia, or shall we say less, it's filled 521 00:29:09,840 --> 00:29:12,720 Speaker 1: with the outcome here. At the present time, it appears 522 00:29:12,880 --> 00:29:15,960 Speaker 1: that a President Biden will face a divided Congress, with 523 00:29:16,120 --> 00:29:20,440 Speaker 1: the Senate probably not certainly, but probably being in Republican hands. 524 00:29:20,960 --> 00:29:23,960 Speaker 1: Typically we think of the president has having more maneuver 525 00:29:24,120 --> 00:29:27,080 Speaker 1: room in the international sphere than domestically. At the same time, 526 00:29:27,120 --> 00:29:28,840 Speaker 1: you run your piece that it's time for us to 527 00:29:29,000 --> 00:29:31,840 Speaker 1: try to re establish more of a relationship with the 528 00:29:31,840 --> 00:29:36,080 Speaker 1: Congress and the Senate actually, and that might be possible. Yeah. 529 00:29:36,080 --> 00:29:37,800 Speaker 1: I think the value of it is if you if 530 00:29:38,080 --> 00:29:40,640 Speaker 1: the United States and operating and a fashion in which 531 00:29:40,680 --> 00:29:42,720 Speaker 1: the president just doesn't do you think you and alovely, 532 00:29:42,800 --> 00:29:45,640 Speaker 1: but instead of with the Congress, it hands a lot 533 00:29:45,640 --> 00:29:48,000 Speaker 1: more steam power. It makes it much harder for future 534 00:29:48,040 --> 00:29:51,239 Speaker 1: presidents or Congresses to come along and reverse things. So 535 00:29:51,280 --> 00:29:53,760 Speaker 1: I think the rest of the world would welcome that 536 00:29:53,960 --> 00:29:55,920 Speaker 1: kind of a change. That said, it obviously is much 537 00:29:55,920 --> 00:29:58,840 Speaker 1: more difficult to get things done if they're from different 538 00:29:58,840 --> 00:30:01,360 Speaker 1: parties and they can't do. But I do think there's 539 00:30:01,360 --> 00:30:04,160 Speaker 1: a decent chance, uh David, we could see agreement on 540 00:30:04,240 --> 00:30:07,000 Speaker 1: such things as the broad outlines of policy towards China, 541 00:30:07,480 --> 00:30:13,160 Speaker 1: on things like restructuring supply chains, on policy towards Raffia. 542 00:30:14,080 --> 00:30:16,680 Speaker 1: I don't even rule out some possibilities for things on 543 00:30:16,760 --> 00:30:20,000 Speaker 1: North Korea. I think it gets tougher to get bipartisan 544 00:30:20,400 --> 00:30:23,240 Speaker 1: agreement is when it comes to Iran, and probably when 545 00:30:23,240 --> 00:30:25,840 Speaker 1: it comes to trade. Though in trade the problem might 546 00:30:25,840 --> 00:30:28,720 Speaker 1: not just three Democrats and republic is not agreeing. It 547 00:30:28,840 --> 00:30:33,160 Speaker 1: might be Democrats and Democrats not agreeing. Yeah, it's exactly right. Finally, 548 00:30:33,440 --> 00:30:35,320 Speaker 1: do you expect a reversal of some of the decisions 549 00:30:35,360 --> 00:30:38,400 Speaker 1: on troop withdrawals such as West Germany to talk about 550 00:30:38,520 --> 00:30:44,840 Speaker 1: South Korea Afghanistan? Absolutely, I think Germany for sure. I 551 00:30:44,840 --> 00:30:47,600 Speaker 1: think the pressure on South Korea will fortunately go away. 552 00:30:47,720 --> 00:30:50,080 Speaker 1: I think Afghanistan is a little bit more complicated, but 553 00:30:50,400 --> 00:30:53,600 Speaker 1: my guesses will end up with some kind of residual force, 554 00:30:54,080 --> 00:30:56,760 Speaker 1: a modest force there. The agreement the United States time 555 00:30:56,840 --> 00:31:00,480 Speaker 1: with the Taliban, I think is a really Unfortunately the agreement, 556 00:31:00,800 --> 00:31:04,040 Speaker 1: it's not about peace. It's simply basically a cover from 557 00:31:04,080 --> 00:31:06,920 Speaker 1: the United States to rush to the exits and rather 558 00:31:06,960 --> 00:31:10,080 Speaker 1: than promoting peace in Afghanistan and will promote a whole 559 00:31:10,120 --> 00:31:13,600 Speaker 1: new wave of violence and turmoil. So I think that's 560 00:31:13,640 --> 00:31:16,560 Speaker 1: likely to be our return revisited, and then he will 561 00:31:16,600 --> 00:31:19,280 Speaker 1: probably also see some questions about some of the other 562 00:31:19,320 --> 00:31:21,240 Speaker 1: pullouts from the Middle East. So I think you kind 563 00:31:21,240 --> 00:31:25,600 Speaker 1: of see a much more internationalist farm policy and a 564 00:31:25,680 --> 00:31:29,240 Speaker 1: more multilateralist one. But I don't think Mr Biden has 565 00:31:29,320 --> 00:31:31,800 Speaker 1: any interest in going back to the era of the 566 00:31:31,880 --> 00:31:35,040 Speaker 1: last couple of decades when the Middle East overwhelmed the 567 00:31:35,040 --> 00:31:39,080 Speaker 1: rest of American foreign policy and military involvements overwhelmed the 568 00:31:39,080 --> 00:31:41,840 Speaker 1: rest of the American foreign policy. Fortunately, I don't think 569 00:31:41,840 --> 00:31:44,520 Speaker 1: we're going back to dot either. That was Richard Hayes, 570 00:31:44,640 --> 00:31:47,720 Speaker 1: president of the Council on Foreign Relations. That does it. 571 00:31:47,800 --> 00:31:50,400 Speaker 1: For this episode of Walsting Week, I'm David Weston. This 572 00:31:50,520 --> 00:31:52,200 Speaker 1: is Bloomberg. See you next week.