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Speaker 1: This is Bloomberg Wall Street Week. What's the state of

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Speaker 1: corporate governance? The deficit is a real issue. The US

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Speaker 1: economy continues to send mixed signals, the financial stories that

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Speaker 1: cheap our world fed action to con concerns over dollar

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Speaker 1: liquidity and encouraging China data. The five hundred wealthiest people

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Speaker 1: in the world. Through the eyes of the most influential

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Speaker 1: voices Larry Summers, the former Treasury Secretary, star Ward CEO,

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Speaker 1: Kevin Johnson sec Chairman J Clayton. Bloomberg Wall Street Week

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Speaker 1: with David Weston from Bloomberg Radio. Washington always has some

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Speaker 1: effect on Wall Street, but perhaps never more than when,

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Speaker 1: as this week, Washington promises but cannot quite deliver a

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Speaker 1: big stimulus package. This is Wall Street Week. I'm David Weston.

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Speaker 1: We talked about the consequences for the C suite with

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Speaker 1: Eric Canter, someone who's dealt with it both from Washington

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Speaker 1: and from Wall Street, first as House Majority leader and

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Speaker 1: now as vice chairman of Mullis and Company. You know,

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Speaker 1: I think what we're seeing in Mullissey Company is actually

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Speaker 1: a pent up demand for quality assets. And if you've

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Speaker 1: got a quality, quality asset, there there is um a

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Speaker 1: lot of interest on the part of our corporate clients

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Speaker 1: are private equity clients. UH. And in many cases, um,

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Speaker 1: you know, those kind of assets are attracting so much

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Speaker 1: attention that some of the potential buyers are looking to

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Speaker 1: pay even pre COVID prices UH for for those kind

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Speaker 1: of assets. And when you're talking about assets, you're talking

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Speaker 1: about COVID resistance at resistant assets. So obviously assets in

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Speaker 1: the healthcare space and the technology space, the business services space.

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Speaker 1: This is where we're seeing now increasing momentum uh coming

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Speaker 1: forth and a lot more robust dialogue than we had

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Speaker 1: maybe a month or six weeks ago. How is the

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Speaker 1: very loose monetary policy, if I can characterize that, how

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Speaker 1: is that affecting prices? I think there's there's no question

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Speaker 1: than having the loose monetary policy. The consequence of that

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Speaker 1: is clearly a lower interest rates, So the cost of

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Speaker 1: borrowing is going to be lower. Access to capital continues

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Speaker 1: to be good, even the credit markets when they were um,

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Speaker 1: you know ailing in the beginning of this. The FED

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Speaker 1: stepped in is announced, it will be the backstop. So

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Speaker 1: for the most part, I think you've got a much

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Speaker 1: more healthy uh kind of environment in terms of access

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Speaker 1: to capital than people originally would have thought when we

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Speaker 1: entered this pandemic. Does that drive a CEO in fact

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Speaker 1: to have a little bit of an itchy trigger figure

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Speaker 1: because they can get access to an awful lot of

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Speaker 1: capital or she can well, I mean, I think it

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Speaker 1: depends on the kind of CEO and where where the

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Speaker 1: company sits. If it's a large cap company. Obviously we've

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Speaker 1: seen the latest figures and there's been an uptake on

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Speaker 1: the over ten billion dollar announcements in terms of M

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Speaker 1: and A deals. But you also have the private sponsors end,

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Speaker 1: and as we know, there's been a proliferation of private

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Speaker 1: sponsors over the last decade, and you're now at a

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Speaker 1: point where there's like nine thousand private equity firms out there,

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Speaker 1: and I would say maybe five hundred thousands or wits

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Speaker 1: or several billion dollars a piece. I've been to a

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Speaker 1: firm like Molus UH and those farms if you if

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Speaker 1: you think I mean those private equity firms they're built

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Speaker 1: to do deals. I mean they raise money their investors

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Speaker 1: expecting them to allocate and invest capital. UH. And so

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Speaker 1: those are the kind of things that these are the

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Speaker 1: elements that were in place pre pandemic, exist during, and

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Speaker 1: will exist after. So it's that dynamic that has continue

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Speaker 1: to push I think some of this dialogue along. In

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Speaker 1: order to make an investment makes sense. You need to

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Speaker 1: be confident that's gonna be demand for the product or

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Speaker 1: service coming up. And that takes us back to the

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Speaker 1: economy and economy that continues to limp along. It's made

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Speaker 1: some progress back, but I think it's fair to say

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Speaker 1: it's it's a long way from out of the woods.

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Speaker 1: What do you make of this fight over stimulus right

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Speaker 1: now in Washington? You spent so much time there, you

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Speaker 1: understand these players. It is a is a given that

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Speaker 1: we're not going to see a full return to our

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Speaker 1: economic normalcy until a vaccine arrives. Uh So, in the meantime,

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Speaker 1: I think it is incumbent upon the government to address

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Speaker 1: the needs arise for those who are out of work.

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Speaker 1: I mean that's first and foremost, and that's why you're

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Speaker 1: seeing a lot of the skirmist take place around the

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Speaker 1: unemployment insurance number. How much is it going to be? UM?

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Speaker 1: I just think, well, we're gonna see a prolonged period

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Speaker 1: of time where these what we call automatic stabilizers like

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Speaker 1: unemployment insurance are gonna be in place and are gonna

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Speaker 1: be elevated for quite some time. And you know, eventually

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Speaker 1: there will be, in my opinion, a deal done in

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Speaker 1: Washington around a relief package. I think it will be

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Speaker 1: a lot more targeting than perhaps the Cares Act was.

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Speaker 1: Companies on the whole that will be beneficiaries of the

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Speaker 1: continued support will be companies who have suffered disproportionately under

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Speaker 1: the pandemic. It won't be just all companies. I also

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Speaker 1: think that, UM, you can't do without some assistance to

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Speaker 1: state and local governments. Uh. Number one, there are a

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Speaker 1: large employer in our economy, and I don't think anybody

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Speaker 1: wants to see this massive number of people UM just

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Speaker 1: dumped onto the unemployment roles. And that's got that dislocation

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Speaker 1: is gonna have to be managed. And then lastly, UM,

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Speaker 1: it's about school openings. We're not going to see, um

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Speaker 1: a return to economic strength unless we see the school

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Speaker 1: opens the school openings, and that's where the localities the

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Speaker 1: states are gonna need some help, some guidens, some resources

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Speaker 1: to allow that to happen. President Trump came out and

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Speaker 1: said that he was at least seriously considering, as he

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Speaker 1: put it, UH unilaterally imposing some sort of relief on

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Speaker 1: capital gains tax Now we've heard that, particularly from Republicans

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Speaker 1: through the years. He says it will create a lot

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Speaker 1: more jobs. Does that hold true today, particularly when the

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Speaker 1: interest rates are so low? Well, I mean, I think,

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Speaker 1: first of all, um, you know cap gains UH and

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Speaker 1: taxation has to do with evaluations too, and with the

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Speaker 1: elevated nature evaluations right now, there are a lot of

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Speaker 1: gains to be had UH. And if an investor believes

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Speaker 1: that he or she can benefit from a lower capital

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Speaker 1: gains rates going forward, I think it does prompt more

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Speaker 1: interest in putting capital at risk. I've always been a

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Speaker 1: believer in our risk based system of investment in this country,

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Speaker 1: where the best there is in the world. UH. So

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Speaker 1: I do think it would be additive. Now, the question

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Speaker 1: has always been in Washington about the president or any

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Speaker 1: executives authority to actually affect the UH the rate, And

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Speaker 1: I think I believe the way we haven't seen a

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Speaker 1: lot of details on this, but I believe the way

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Speaker 1: that the White House for President Trump would go about

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Speaker 1: this would be to provide or impose an indexing on

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Speaker 1: the capital gains rates, which would then again um allow

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Speaker 1: for an investor to avoid the inflation of impact of

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Speaker 1: an increase in valuation. That was Eric Canter of Molus

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Speaker 1: and Company coming up. President Trump has been dismantling much

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Speaker 1: of US foreign policy crafted over seventy years. We talked

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Speaker 1: with Richard Hayes of the Council on Form Relations about

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Speaker 1: what this could mean for the help of the US economy.

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Speaker 1: That's next on Wall Street Week on Bloomberg. This is

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Speaker 1: Bloomberg Wall Street Week with David Weston from Bloomberg Radio.

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Speaker 1: The United States flourished under a post World War two

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Speaker 1: regime built on multinational institutions like the I m F

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Speaker 1: and the World Bank. But President Trump has gone in

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Speaker 1: a very different direction, something addressed by Counsel on Foreign

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Speaker 1: Relations President Richard has in his new piece for Foreign

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Speaker 1: Affairs present at the disruption. The President is trying to

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Speaker 1: undo a lot of his inheritance and almost like healthcare

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Speaker 1: repeal without replace, so the President said repeatedly on the

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Speaker 1: pant campaign to kill and then as as president, we've

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Speaker 1: been taken advantage of the United States, have been taken

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Speaker 1: advantage of other people are benefiting. We're paying all the

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Speaker 1: bills what has this international system created after War two

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Speaker 1: actually done for the prosperity of America. He does think

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Speaker 1: that when I met with him when he was still

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Speaker 1: a candidate, he believed that that fervently the trade agreements

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Speaker 1: have ripped us all up, and that essentially the costs

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Speaker 1: of foreign policy or stationing of troops overseas and the

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Speaker 1: like far outweighs any benefits. What he seems to be

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Speaker 1: missing here, David, is that for seventy five years, there's

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Speaker 1: not been a great power conflict. To the extent there

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Speaker 1: was a conflict the Cold War, one, it stayed cold,

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Speaker 1: and to it ended on terms that were extraordinarily favorable

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Speaker 1: to us. Meanwhile, standards of living in this country have

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Speaker 1: gone up dramatically, won by by some measures, ninetyfold since

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Speaker 1: the end of World War Two. The average American lives

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Speaker 1: on the order of ten years longer than he or

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Speaker 1: she lived seventy five years ago. Democracy is far more

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Speaker 1: prevalent around the world. So I'm hard pressed to someone

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Speaker 1: who's trained as a historian to find any other period

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Speaker 1: of history as productive and constructive as the last seventy

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Speaker 1: five years. I'm not going to sit here and say

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Speaker 1: we didn't make mistakes, of course, we did in Vietnam,

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Speaker 1: Iraq and so forth. But by and large, on balance,

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Speaker 1: this has been a remarkable run, Richard. Even when Donald

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Speaker 1: Trump came to office, things were changing. I mean, China

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Speaker 1: was growing very quickly. It was growing to challenge us

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Speaker 1: as the world's down economic power. Was it inevitable that

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Speaker 1: we had to do something other than what was left

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Speaker 1: over after World War Two? Oh? Absolutely, for several reasons.

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Speaker 1: When you point to China has emerged in many ways,

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Speaker 1: and we needed to adjust our policy. And I think

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Speaker 1: the President deserves some credit for calling out China. Where

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Speaker 1: where I think he gets the blame is I don't

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Speaker 1: see anything coherent or consistent for for dealing with China.

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Speaker 1: Probably an even greater problem with the American foreign policy

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Speaker 1: is a lot of the institutions that you refer to

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Speaker 1: are getting long in the tooth. We've got a whole

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Speaker 1: new set of challenges in the world, things like how

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Speaker 1: to regulate cyberspace, what to do about climate change, what

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Speaker 1: to do about proliferation, and we simply don't have the

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Speaker 1: mechanisms in place in the world. There's a real shortfall

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Speaker 1: when it comes to international arrangement. So addressing that has

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Speaker 1: got to be on our agenda. Unfortunately, the President is

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Speaker 1: essentially uninterested or even opposed the international agreements of those

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Speaker 1: sorts you mentioned. China obviously a terribly important relationship with

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Speaker 1: the United States economically as well as geopolitically. Where are

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Speaker 1: we headed right now with China if we keep going

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Speaker 1: in the direction we are. The President clearly believes that

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Speaker 1: if he keeps putting enough pressure on China, he will

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Speaker 1: do something good for the United States and good for

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Speaker 1: US workers. I can see two things happening if we

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Speaker 1: keep going in the short run. I'm actually quite worried

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Speaker 1: about a military incident, say between American and Chinese aircraft

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Speaker 1: or ships, and something like the South China see the

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Speaker 1: Taiwan Straits near islands also claimed by Japan and the Pacific.

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Speaker 1: And the real challenge then will will be to try

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Speaker 1: to put a lid on it so an incident doesn't

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Speaker 1: doesn't grow into a conflict in the longer run, David,

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Speaker 1: I'm actually concerned about a U. S. Chinese Cold war

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Speaker 1: and across the board uh competition that at times is

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Speaker 1: has us lined up against one another. It's dangerous, it's costly,

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Speaker 1: but also it would probably rule all out US Chinese cooperations,

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Speaker 1: say in dealing with the North Korea, or dealing with

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Speaker 1: global health, or dealing with climate change. And I think

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Speaker 1: we're pretty far down that road. So one of the

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Speaker 1: focal points of our relationship with China, certainly under President Trump,

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Speaker 1: has been trade. But the trade issues facing Unit states

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Speaker 1: are not limited to China. They go much more broadly,

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Speaker 1: including the very institution of the w t O and

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Speaker 1: our relationship with Europe with a lot of our allies.

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Speaker 1: What is happening because to our economy because of what

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Speaker 1: has happened with trade under President Trump, and we've lost

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Speaker 1: a real chance, I think, to grow global trade and

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Speaker 1: also to improve the way it's regulated. If we had

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Speaker 1: stayed in the Trans Pacific Partnership, that would have teamed

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Speaker 1: us off with countries altogether, we would have represented over

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Speaker 1: the world GDP. We then could have put tremendous pressure

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Speaker 1: on China to raise its game to meet our standards. Well,

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Speaker 1: we could reform the World Trade Organization. It's clearly flawed,

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Speaker 1: but then the question is how do you make it?

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Speaker 1: How do you make it better? Instead, what we're essentially

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Speaker 1: doing is undermining it, not approving any judges for the

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Speaker 1: one part of the World Trailing Organization that's you actually

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Speaker 1: worked quite well and often in our interest, which is

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Speaker 1: it's adjudication panel for the solve for resolving trade disputes.

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Speaker 1: As you know so well, Richard, we've got election in

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Speaker 1: this country coming up November third, and including for the

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Speaker 1: President States exactly. There's a rumor to that effect. But

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Speaker 1: as you look at that possible fork in the road,

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Speaker 1: how do you look at a Biden. Now we know

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Speaker 1: Harris administration with respect to foreign policy as opposed to

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Speaker 1: Trump Pence. But I think the differences would be uh

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Speaker 1: much more willingness to work with allies. I think that

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Speaker 1: would probably be sort of the foundation they deal with

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Speaker 1: allies and then approach all these regional and global challenges.

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Speaker 1: I think you'd probably see re entry into various international

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Speaker 1: arrangements and institutions. The problem for Biden Harris administration of

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Speaker 1: the challenge would be their inheritance would be rough. It

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Speaker 1: would be a really daunting inbox. Four years ago, David,

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Speaker 1: you recall I wrote a book called the World in

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Speaker 1: this Array. Well now it's disarray on on steroids. So

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Speaker 1: I think they would they would face that all the time.

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Speaker 1: Think about it. The next president and vice president are

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Speaker 1: going to have to still deal with the pandemic here

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Speaker 1: at home, tens of millions unemployed, a country divided by

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Speaker 1: politics and race, possibly by the election uh itself. So

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Speaker 1: that you're they're gonna have a situation where they'll be

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Speaker 1: greater demand than ever for American leadership and involvement in

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Speaker 1: the world. At the same time the home front will

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Speaker 1: be calling out for for repair. So, Richard, you deal

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Speaker 1: with these world leaders on a regular basis. Is there

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Speaker 1: a pent up demand for an alternative President Trump? I'm

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Speaker 1: reminded the fact that at the end of George W.

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Speaker 1: Bush's administration it was thought that were our reputation some

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Speaker 1: people thought was not very good in the world, and

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Speaker 1: then President Obama came in. Certainly the Obama decisions think

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Speaker 1: they turned it around pretty quickly. Is that realistic? Well,

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Speaker 1: I think the greatest demand for change and something like

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Speaker 1: a return to what people thought they knew for the

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Speaker 1: familiar is with our allies a treasure American reliability and predictability.

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Speaker 1: Consultations are important. So in Europe and Asia is where

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Speaker 1: you find the greatest demand for something familiar. But I

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Speaker 1: would think in countries like Turkey or Russia. They're pretty

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Speaker 1: happy with what they've got. Countries like Israel and Saudi

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Speaker 1: Arabia were very uncomfortable with the with the Obama administration.

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Speaker 1: China can't quite make up its mind. On one hand,

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Speaker 1: the United States has created geopolitical vacuums that China is

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Speaker 1: happy to fill. On the other hand, they find it

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Speaker 1: really hard to figure out in America that's so wildly inconsistent.

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Speaker 1: That was Richard has, President of the Council on Foreign

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Speaker 1: Relations and author of the best selling book The World.

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Speaker 1: A brief introduction coming up, reviving New York by creating

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Speaker 1: one hundred thousand new jobs for those who mediate most

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Speaker 1: explained by the co chair of the New New York

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Speaker 1: Jobs CEO Council, Julie Sweet, CEO of Accenture. That's next

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Speaker 1: on Wall Street Week on Bloomboard. This is Bloomberg Wall

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Speaker 1: Street Week with David Weston from Bloomberg Radio. Unemployment in

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Speaker 1: urban areas has been hit hard by the pandemic, but

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Speaker 1: especially for those in minority communities, something specifically addressed by

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Speaker 1: a new initiative announced this week by c e O

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Speaker 1: s the New York Jobs CEO Council, which is committed

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Speaker 1: to creating one hundred thousand new, well paying jobs and

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Speaker 1: making sure those in underserved communities have the skills to

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Speaker 1: fill them. We talked about the program with one of

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Speaker 1: the co chairs, Accenture CEO, Julie Sweet David. The council

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Speaker 1: brings together today twenty eight companies, twenty CEOs who are

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Speaker 1: going to work collaboratively to create a hundred thousand jobs

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Speaker 1: at our companies by thirty for low income and underserved

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Speaker 1: New Yorkers. Uh. There was a need for this before

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Speaker 1: the pandemic. How does the pandemic affect that need now? Um?

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Speaker 1: As you said, before the pandemic, we'd actually come together. Miss.

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Speaker 1: This council has been information for some time. The pandemic,

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Speaker 1: of course, has put even more pressure on underserved New

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Speaker 1: Yorkers and also, very importantly, it's changing the whole job's picture.

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Speaker 1: You hear about things like digital transformation. You're going to

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Speaker 1: have more automation. There's going to be pressure on jobs

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Speaker 1: UH that many underserved New Yorkers might access today, and

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Speaker 1: so it's even more important that we help uh these

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Speaker 1: communities get to stable, well paying jobs. And what's so

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Speaker 1: unique about you know, this effort is it's both CEO lead,

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Speaker 1: but you have some of the most important industries for

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Speaker 1: the future, like healthcare, financial services, and technology well represented,

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Speaker 1: which is critical for those kinds of jobs that we

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Speaker 1: need to create. We've seen a lot talked a lot

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Speaker 1: about the growing wealth and income inequality of the country,

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Speaker 1: and many people say that goes back to the question

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Speaker 1: of education and skills. There's a difference sometimes between education

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Speaker 1: and skills because we tend to think of, for your

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Speaker 1: liberal arts college, what are you going to be doing

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Speaker 1: to prepare these young men and women. Well, first of all,

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Speaker 1: it's it's it is important to distinguish between skills and

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Speaker 1: education because one of the things that we found a

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Speaker 1: at Xcenture, for example, is if many things that we

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Speaker 1: used to require a four year degree, we now have

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Speaker 1: apprentices with two years degree who are very successfully doing

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Speaker 1: that and then moving on to better jobs. We have

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Speaker 1: seven hundred apprentices at Accenture currently, and so focusing on

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Speaker 1: what are the demands of the job and what are

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Speaker 1: the skills are critical to opening up more opportunities at

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Speaker 1: companies like those represented on the New York CEO Council.

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Speaker 1: But separately from that, what the council is also doing

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Speaker 1: is working together to make sure that we also serve

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Speaker 1: the particular needs of these communities. Many of the individuals

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Speaker 1: that will be serving don't come from families where they've

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Speaker 1: had other people who work in the types of company

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Speaker 1: is represented here, and so we're also partnering with not

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Speaker 1: for profit organizations in addition to educational institutions like Quney

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Speaker 1: to make sure that these individuals have the soft skills

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Speaker 1: and the support they need to succeed at these types

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Speaker 1: of companies. A hundred thousand people you're looking at over

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Speaker 1: the next ten years, how are you going to find

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Speaker 1: them or how will they find you? These young men

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Speaker 1: and women. Well, our first step in finding these hundred

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Speaker 1: thousand people as to partner with Cuney. And we're really

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Speaker 1: excited because the Chancellor has been such a terrific partner

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Speaker 1: and really the entire Quney community is really focused on

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Speaker 1: helping make this successful. So the first twenty five thousand

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Speaker 1: will be sourced, you know, through our relationship with Quney.

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Speaker 1: How early will you start working with them? I mean,

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Speaker 1: are we talking about high school level? Are we talking

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Speaker 1: college level? At what point will you start really intervening

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Speaker 1: and helping them develop these skills, uh. The the We're

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Speaker 1: gonna be going deeper into details and some of it's

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Speaker 1: going to depend on the needs as we continue to

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Speaker 1: work with Qunei, but we do expect to have both

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Speaker 1: high school, a focus on high school as well as

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Speaker 1: for the QUI jobs are obviously uh starting in their

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Speaker 1: in their post high school education and City Universe Versity

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Speaker 1: of North course had a long tradition of dealing with

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Speaker 1: often first generation Americans and often underserved as you say,

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Speaker 1: minority communities in New York, so they have some experience

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Speaker 1: in this regard absolutely. I mean, this is a long

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Speaker 1: tradition for Cuney as as you suggest. But what's really

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Speaker 1: different here is the tight connection between the education that

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Speaker 1: Quney is providing, the the need in the market right

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Speaker 1: and the industries of both today and tomorrow. And it's

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Speaker 1: that combination that is really critical. And because this is

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Speaker 1: CEO lad you know, the int pensition is to have

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Speaker 1: these jobs and opportunities be part of our company's talent strategy,

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Speaker 1: which is very different. This isn't a corporate citizenship activity.

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Speaker 1: This is about embedding into our HR departments and our

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Speaker 1: talent strategies, tapping into a really tremendous source of talent.

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Speaker 1: That was Julie Sweet, CEO of Accenture. Coming up, we

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Speaker 1: talked with contributor Larry Summers of Harvard. That's next. This

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Speaker 1: is Wall Street Week. Off to the races. California Senator

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Speaker 1: Kamala Harris joins Team Biden, and the SMP five falls

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Speaker 1: short of a new record as economic data show and

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Speaker 1: uneven recovery. This is Bloomberg Wall Street Week. I'm Scarlet

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Speaker 1: poo In for David Weston. Nixed messages on the economy,

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Speaker 1: jobless claims dipping below one million for the first time

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Speaker 1: since Arch. Retail sales gain, but the pace is slowing down.

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Speaker 1: Boston Fed President Eric rosen Grin says a continued recovery

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Speaker 1: depends on more economic aid. My personal assumption in my

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Speaker 1: forecast is that some form of additional stimulus is going

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Speaker 1: to occur um. It would definitely be bad news, both

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Speaker 1: from my forecast and for the economy if we don't

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Speaker 1: do any additional stimulus at this time. Stocks rise, but

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Speaker 1: the SMP five hundred can't cross the finish line on

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Speaker 1: a new high. The real action, though, was the sell

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Speaker 1: off in treasuries, which sent yields climbing investors also have

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Speaker 1: a clearer picture of America's choice. In November, Kamala Harris

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Speaker 1: joins Joe Biden as his running mate. Her relatively moderate

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Speaker 1: stances give Wall Street some relief. Kamala, as you all know,

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Speaker 1: is smart. She's tough, she's experienced. She's a proven fighter

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Speaker 1: for the backbone of this country, the middle class, for

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Speaker 1: all those who are struggling to get into the middle class.

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Speaker 1: Kamala knows how to govern, she knows how to make

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Speaker 1: the hard calls. She's ready to do this job on

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Speaker 1: day one. Joining us now is Wall Street Week special

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Speaker 1: contributor and former Treasury Secretary Larry Summers. He is also

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Speaker 1: an advisor to presidential candidate Joe Biden. Larry, I want

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Speaker 1: to start with Biden's pick of Kamala Harris as his

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Speaker 1: vice president. The Democratic National Convention we know starts next

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Speaker 1: week and Senator Harris will give her acceptance speech. What

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Speaker 1: does her addition mean for the Biden agenda, especially when

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Speaker 1: it comes to his economic plans. Let me just say, Scarlett,

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Speaker 1: I'm one of many, many people who has spoken with

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Speaker 1: the Vice President about economic policy, but I'm in no

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Speaker 1: sense part of his campaign as an advisor, and certainly

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Speaker 1: I speak only for myself. I think Senator Harris is

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Speaker 1: someone who has had good relation ships with a wide

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Speaker 1: range of people in the economy, with workers and representatives

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Speaker 1: of workers, with corporate UH leaders, with consumer groups, with

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Speaker 1: other stakeholders UH in H the economy, and I think

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Speaker 1: she's widely perspective respected. I think that she had Senator

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Speaker 1: Biden are determined to govern in a very different way

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Speaker 1: than the economy has been governed for the last four years.

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Speaker 1: It's a way that will build on the mental class.

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Speaker 1: It's a way that will be positive about the role

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Speaker 1: of government in protecting people and redressing inequality and making

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Speaker 1: UH necessary public investments. And it's a way that isn't

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Speaker 1: about pitting one group against another group, but that recognizes

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Speaker 1: that we all rise and fall together with UH the economy.

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Speaker 1: And it's a very interesting fact, and I think one

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Speaker 1: that should get more attention than it sometimes UH does.

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Speaker 1: Scarlett that when we've had democratic administrations historically, corporate profits

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Speaker 1: have risen more rapidly. The stock market has earned higher returns.

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Speaker 1: And that's not because their loyalty has been to corporate interests,

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Speaker 1: but it's been because they've had a better effective economic

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Speaker 1: strategy because it was based on helping the mental class,

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Speaker 1: and in the end that's what's benefited UH businesses UH

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Speaker 1: to a greater degree. So I don't nobody knows what

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Speaker 1: will happen UH in the election, but in the event

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Speaker 1: that a Biden Harris UH team UH comes to power,

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Speaker 1: my best guess is that you'll see some significant acceleration

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Speaker 1: in economic growth and that things will benefit UH the

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Speaker 1: UH markets as well. You know, people talk about how

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Speaker 1: it's an accomplishment scarlet that somehow unemployment insurance claims are

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Speaker 1: now below one million. Never in the post war history

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Speaker 1: of the United States had they gotten close to one

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Speaker 1: million before the last six months. Even at the worst

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Speaker 1: of the two thousand and eight recession, they weren't running

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Speaker 1: at nearly the level that they're running even still now.

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Speaker 1: So it is madness that we are not supporting the

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Speaker 1: economy with extensions of unemployment insurance, with support state and

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Speaker 1: local governments that are being UH crushed, And certainly a

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Speaker 1: different amount of stration will get to a different place

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Speaker 1: on that. Well, that's where I want to go next,

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Speaker 1: because the other big headline of the week was what

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Speaker 1: didn't happen any kind of stimulus deal. How much does

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Speaker 1: Washington's failure on this slow the economy's trajectory? Millions what

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00:26:15,040 --> 00:26:19,439
Speaker 1: people will be unemployed who don't have to, Kids who

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00:26:19,560 --> 00:26:24,400
Speaker 1: come out of college will get on lower career trajectories

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Speaker 1: because of the mistakes that we are making. People will

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Speaker 1: die because of the budgets that will be taken away

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00:26:32,880 --> 00:26:39,800
Speaker 1: from municipal hospitals. Kids will have their UH gaining knowledge,

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Speaker 1: have their basic skill and learning to read taken away

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Speaker 1: because we will be inadequately investing in UH public schools.

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Speaker 1: Our streets will be less safe because we will be

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Speaker 1: inadequately investing in the programs that keep them, say, both

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Speaker 1: the social UH and emotional programs that help with disadvantaged youth,

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Speaker 1: both the protection um, the presence of people who ensure

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Speaker 1: our security, All of that will happen because of stimulus

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Speaker 1: not being passed. We are going to not be the

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Speaker 1: country that we can be. You know, someone said the

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Speaker 1: other day that the United States has been feared, the

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Speaker 1: United States has been admired, the United States has elicted

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Speaker 1: all kinds of reactions. But until these last months, the

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Speaker 1: reaction has never been to pity Americans. And that's the

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00:27:51,560 --> 00:27:56,400
Speaker 1: reaction we're having now, and what the stimulus bill would do.

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Speaker 1: Invest in healthcare, invest in education, invest in the front

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Speaker 1: line workers who are keeping us safe, invest in protecting

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Speaker 1: the people are unemployed and whose children's are going hungry.

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Speaker 1: That's what this bill is about. And when people stop

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Speaker 1: it from happening, they are a reason why the United

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Speaker 1: States is pitied. And uh, it's a very sad thing

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Speaker 1: that goes beyond the usual partisan disputes to take place

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Speaker 1: in a presidential election year. Larry, I have just one

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Speaker 1: question here, Yes or no? Would it take a stock

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Speaker 1: market tumble for Washington together? It's act together and catalyze

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Speaker 1: some kind of deal. Yes, it might, It might, And

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Speaker 1: it's a terrible thing that people being hungry doesn't move Washington,

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Speaker 1: but the stock market falling does. What moves you says

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Speaker 1: a lot about your values and it's something we really

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Speaker 1: need to be concer learned about, especially with respect to

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Speaker 1: this administration. Thank you Larry for joining us today. That's

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Speaker 1: Wall Street Week contributor Larry Summers. And that does it

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Speaker 1: for this week's Bloomberg Wall Street Peek. I'm Scarlet foot

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Speaker 1: in for David Weston. This is Bloomberg