WEBVTT - Senator Bill Cassidy Talks Black Friday Spending & Healthcare

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Shoppers spent billions on Black Friday and could break Cyber

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<v Speaker 2>Monday records. Today, Luisy and a Senator Bill Cassidy joins

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<v Speaker 2>us now for more. Senator Cassidy, thank you so much

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<v Speaker 2>for being here. Could you square this idea of incredible

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<v Speaker 2>spending and the ongoing American consumer continuing to uphold the

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<v Speaker 2>underlying economy and this real feeling that cost of living

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<v Speaker 2>is becoming unsustainable.

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<v Speaker 1>Well, there's obviously segments within our society, and there's a

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<v Speaker 1>group of people who are still managing to do well.

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<v Speaker 1>There's another group of people who are really hurting. Now

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<v Speaker 1>they may have the money to go out and buy

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<v Speaker 1>their children the gift for Christmas. On the other hand,

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<v Speaker 1>there is an increasing cost of insurance, whether it's health,

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<v Speaker 1>property and casualty or flood insurance, as well as the

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<v Speaker 1>increasing costs of groceries. They have extra money but up here,

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<v Speaker 1>But there's a lot of folks down here who are hurting.

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<v Speaker 2>This is the reason why a lot of people are expecting,

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<v Speaker 2>even though we are seeing profits and companies continue to increase,

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<v Speaker 2>they're expecting the FED to cut rates to respond to

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<v Speaker 2>that case. Shaped economy or the massive people who really

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<v Speaker 2>aren't feeling the gains, and I'm just wondering how much

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<v Speaker 2>you're prepared to step in that you think that it's

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<v Speaker 2>government's job on the fiscal side to really support that

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<v Speaker 2>lower tier of consumers that are really feeling the pain.

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<v Speaker 1>I would argue that in the tax cut for workings,

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<v Speaker 1>families are the one big beautiful bill we attempted to

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<v Speaker 1>do that. We did it both by no tax on overtime,

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<v Speaker 1>no tax on tips for seniors, eliminating the tax that

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<v Speaker 1>most would pay on their Social Security, but also putting

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<v Speaker 1>in some some pro business efforts that would encourage business

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<v Speaker 1>to reshore to build out their manufacturing. Lastly, I will

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<v Speaker 1>say there's a lot of money taking place on infrastructure

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<v Speaker 1>right now, and that infrastructure creates jobs. AI cannot swing

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<v Speaker 1>a hammer, and so AI is not swinging in a hammer.

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<v Speaker 1>Those folks are being employed. I would say that there

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<v Speaker 1>is a business strategy to help those folks who are

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<v Speaker 1>in the kind of struggling area of the economy centator.

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<v Speaker 3>There's one area, it comes to affordability that actually might

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<v Speaker 3>become a lot more expensive next year if Congress does

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<v Speaker 3>not act, and that's the enhanced premiums when it comes

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<v Speaker 3>to the Affordable Care Act. You have a hearing this

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<v Speaker 3>week regarding this. Do you think we can get to

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<v Speaker 3>a decision before the deadline?

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<v Speaker 1>Yeah, I think we can. I have a plan, but

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<v Speaker 1>it's one that other Republicans have reposed some form of,

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<v Speaker 1>and we take that enhanced premium tax credit and instead

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<v Speaker 1>of giving it to insurance companies where they take twenty

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<v Speaker 1>percent for a profit and overhead, we give one hundred

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<v Speaker 1>percent to the patient in the form of a deposit

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<v Speaker 1>within a health savings account. This allows her not to

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<v Speaker 1>buy the more expensive silver plan, but also get a

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<v Speaker 1>cheaper plan called the Bronze plan. Now did I say

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<v Speaker 1>it's cheaper. It's cheaper, and so we're helping her own

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<v Speaker 1>our affordability. By the way, the money in our health

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<v Speaker 1>savings account also gives her first dollar coverage for a

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<v Speaker 1>child's trip to the er. You know, I practiced for

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<v Speaker 1>twenty years as a doctor, caring for the uninsured and

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<v Speaker 1>the poorly insured. I learned that if you give power

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<v Speaker 1>to the patient, you can lower health care cost. So

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<v Speaker 1>we're giving power to the patient, profit to the insurance company.

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<v Speaker 3>Well, Democrats come on board with this plan. It doesn't

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<v Speaker 3>seem like they are interested in this. They want at

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<v Speaker 3>minimum and extension for a year or two of the

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<v Speaker 3>extended premiums.

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<v Speaker 1>So think about it. We are we would actually be

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<v Speaker 1>if you will, in one sense extending the enhanced premium

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<v Speaker 1>tax credit. But instead of giving one hundred percent to

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<v Speaker 1>insurance companies, they take twenty percent for profit and overhead.

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<v Speaker 1>We're given one hundred percent to the patient.

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<v Speaker 3>So you're getting the extension, but the pool shrinks that money.

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<v Speaker 3>So to shrink it does not shrink well for the insurance.

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<v Speaker 3>Are they're going to have to pay more? Are you

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<v Speaker 3>going to have to say you're on say the premium plan,

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<v Speaker 3>or is your plan going to be even more expensive?

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<v Speaker 3>It's not being subsidized by those in the lower end.

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<v Speaker 1>No, Again, going back to this, if you got this

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<v Speaker 1>amount of money and currently under the current plan, you

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<v Speaker 1>give one hundred percent to insurance companies and they take

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<v Speaker 1>twenty percent for overhead and profit. Instead, you give one

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<v Speaker 1>hundred percent to patients in terms of deposits within a

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<v Speaker 1>whole savings account. First, you're lowering their deductible and because

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<v Speaker 1>you have low they're deductible, they can take a cheaper

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<v Speaker 1>bronze plan. Now, normally you don't because your deductible is higher.

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<v Speaker 1>We just lowered their deductible. They're getting a cheaper bronze plan.

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<v Speaker 1>By the way, when you get power to the patient,

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<v Speaker 1>she gets the health care she chooses to have that

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<v Speaker 1>she knows she needs, as opposed to the healthcare the

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<v Speaker 1>insurance company permits her to have a lot of wins

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<v Speaker 1>in here for the patient who would not be for that.

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<v Speaker 1>Whether you're a Republican or a Democrat, do.

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<v Speaker 2>You think that this is enough to prevent the government

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<v Speaker 2>from shutting shutting down again in January when this comes

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<v Speaker 2>back up.

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<v Speaker 1>Absolutely, Why, Because we've actually addressed affordability in the exchanges,

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<v Speaker 1>I would argue, we also begin to address the overall

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<v Speaker 1>increase in health care cost. When you give that woman,

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<v Speaker 1>and women make all the decisions in healthcare. When you

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<v Speaker 1>give her the power of the purse and you say listen,

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<v Speaker 1>if you go here, you save money. If you go there,

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<v Speaker 1>you don't, everybody begins to lower their cost to where

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<v Speaker 1>they can attract her business.

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<v Speaker 2>You said something earlier that I think is really important.

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<v Speaker 2>You said that businesses have a role in creating jobs

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<v Speaker 2>and creating a better landscape. For the lower core tiles

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<v Speaker 2>and de siles of the US economy and the US earners.

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<v Speaker 2>I just wonder what policies you think need to be

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<v Speaker 2>implemented to do that, because right now it doesn't seem

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<v Speaker 2>to be working.

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<v Speaker 1>Are you talking about in terms of overall business the business? Yeah, yeah,

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<v Speaker 1>So I think that the tax policy that we put

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<v Speaker 1>in and frankly with President Trump's tariffs, there's an incentive

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<v Speaker 1>for people to begin to reshore that's certainly nearshore, and

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<v Speaker 1>so when you reshore, you're going to create jobs. Now

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<v Speaker 1>that doesn't happen like that, think how long you need

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<v Speaker 1>to put together your financing stack. But that's going to happen,

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<v Speaker 1>and so as it happens, we'll see that kind of

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<v Speaker 1>upswing in jobs for construction, for service, all those jobs

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<v Speaker 1>that are related to that reshoring of manufacturing activity, and

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<v Speaker 1>that'll cause a general boom. So that is long that

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<v Speaker 1>is a sustainable strategy to create prosperity for folks.

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<v Speaker 2>A lot of people are saying that the reason why

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<v Speaker 2>companies haven't created more jobs is because they're using artificial

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<v Speaker 2>intelligence for efficiencies, and you're seeing that in terms of

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<v Speaker 2>Amazon coming out and saying they're laying people off because

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<v Speaker 2>of some of the efficiencies they're getting from algorithmic learning.

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<v Speaker 2>I'm just wondering, from a legislation standpoint, what you think

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<v Speaker 2>that the government's role is and trying to make sure

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<v Speaker 2>that people aren't left behind in this transition, given that

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<v Speaker 2>a lot of these new programs can take on roles

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<v Speaker 2>previously done by humans.

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<v Speaker 1>I'm a techno optimist. If you've got something that's going

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<v Speaker 1>to increase the productivity of our nation, we'll increase tax revenue,

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<v Speaker 1>not by increasing rates, but by increasing the overall growth

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<v Speaker 1>of the economy. When you increase that overall growth of

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<v Speaker 1>the economy and you have more money, We've got like

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<v Speaker 1>trillions of dollars of backlog in infrastructure. Let's just focus

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<v Speaker 1>once we're there. If you begin to invest that money

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<v Speaker 1>in infrastructure, AI does not swing a hammer, You're going

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<v Speaker 1>to create a lot of jobs for folks who right

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<v Speaker 1>now are struggling to get better jobs. By the way,

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<v Speaker 1>we're also building out our oil and gas industry, our

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<v Speaker 1>energy industry. That creates a heck of a lot of jobs.

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<v Speaker 1>And so everybody looks at the negative, Oh we're going

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<v Speaker 1>to downside, we need to look at the positive that

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<v Speaker 1>will just shift investment to a more productive area of

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<v Speaker 1>the economy. As we grow at the expense of other nations,

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<v Speaker 1>or maybe we all grow together, we'll create that employment.

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<v Speaker 3>Lisa started out this conversation talking about affordability. Americans are

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<v Speaker 3>still struggling. You're also looking at trying to address healthcare

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<v Speaker 3>affordability by actually having this health savings account proposal. The

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<v Speaker 3>President talked about two thousand dollars tariff checks. You're on

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<v Speaker 3>the Finance Committee, you're on the help you lead the

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<v Speaker 3>Health Committee. Do you think that that is a good

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<v Speaker 3>way to address affordability right now? Putting money directly into

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<v Speaker 3>consumer's pockets.

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<v Speaker 1>So I'd like to see what the President's going to propose.

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<v Speaker 1>We do know that the debt and deficit eventually takes

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<v Speaker 1>money out of our pockets, and so we absolutely know that.

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<v Speaker 1>So the question is better to pay down our nation's debt.

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<v Speaker 1>And as you've paid down our nation's debt, then it

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<v Speaker 1>makes it easier to lower interest rates for the FED

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<v Speaker 1>to lower interest rates, which then lowers a mortgage payment,

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<v Speaker 1>which then maybe lower other credit forms of credit. As

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<v Speaker 1>you do that, you make life more affordable that way.

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<v Speaker 1>The other thing you have to worry about is if

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<v Speaker 1>you give everybody a two thousand dollars check, does that

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<v Speaker 1>bump up inflation? And therefore the Fed is inhibited on

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<v Speaker 1>lowering their rates. So it can't be taken in kind

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<v Speaker 1>of isolation. It has to be taken in context of

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<v Speaker 1>everything we can do to benefit that person sitting at

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<v Speaker 1>home struggling a little bit.

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<v Speaker 3>It sounds like you would be a no. Then on

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<v Speaker 3>the two thousand zero sounds like.

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<v Speaker 1>I'm going to investigate so.

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<v Speaker 3>That I know, okay, while you investigate, there's also potentially

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<v Speaker 3>going to be another big Senate first to hearing and

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<v Speaker 3>then a vote when it comes to the president's FED peck.

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<v Speaker 3>Right now, the front runner is his counsel and Economic

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<v Speaker 3>Advisor's chair, Kevin Hassett. Do you think you would say

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<v Speaker 3>yes to him being the FED chair.

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<v Speaker 1>I've been impressed with Kevin. This is the second time

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<v Speaker 1>around Servant and Trump's administration. I think he's done a

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<v Speaker 1>good job. Of course, our reserve judgment until we actually

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<v Speaker 1>begin to look at him as FED chair. We are

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<v Speaker 1>having this problem of inflation which just is a little

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<v Speaker 1>bit sticky, and yet we want to decrease rates. How

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<v Speaker 1>you're going to navigate that, but I'm certainly predisposed to

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<v Speaker 1>support him. Are you worried about FED? And FED independence

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<v Speaker 1>is critical, you just have to have it. But I

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<v Speaker 1>also think that Kevin would step up and be as

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<v Speaker 1>aware of the importance of FED independence as anybody.

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<v Speaker 2>Louis Yana Senator, thank you so much for being with us,

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<v Speaker 2>Louisiana Senator Bill Cassidy here in the New York Studio.

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<v Speaker 2>Very much cost of living on the docket, especially given

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<v Speaker 2>how much healthcare has dominated the conversation, and potentially and

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<v Speaker 2>Marie could be the reason why the government could shut

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<v Speaker 2>down yet again.

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<v Speaker 3>Right, there's this going to the debate. It's happening all

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<v Speaker 3>of December. The Senator is going to be leading a

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<v Speaker 3>hearing on it. What do you do in the sense

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<v Speaker 3>that you have these enhanced Obamacare credits that are going

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<v Speaker 3>to be ending. And for Democrats this is really important

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<v Speaker 3>for them to have this fight because this is what

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<v Speaker 3>the entire shutdown, longest shutdown history was based around.