David Weston, Rick Davis, Larry Summers discussed on Sound ON

Automatic TRANSCRIPT

Rick Davis and Jeannie she and Zayn are all star panel the Bloomberg politics contributors who make us help us make sense of all the economic news happening today Let's start with what Larry summers the former US Treasury secretary had to say when he spoke to Bloomberg's David Weston on Bloomberg TV's Wall Street week this was first on the jobs report when he said we got a lot of demand not so much supply on the economy He said it's in a difficult situation still And he also says the global corporate tax accord is in his words the most important economic agreement of the 21st century Here is Larry summers speaking to David Weston The most important global economic agreement of the 21st century so far It's important in reality because it's going to fortify tax collections from corporations for companies all over the world It's important in principle because instead of countries running a race to the bottom with respect to taxing business income they're now going to level up in a way that's going to be fairer and permit tax reductions on working people all over the world Well Rick Davis I want your takeaway on this because just in the last segment we heard from congressman Kevin Brady the top Republican on the house's tax writing committee who really downplayed the importance of this as it pertains to the current debate in the U.S. over our own corporate rate So Rick who's right is this a massive deal or is it not the kind of thing that should factor in to our own domestic debates right now Well I think you really put it wisely in that if you're looking at just a domestic tax structure that we have in whether or not our current 21% corporate rates how that's going to be affected by it then you'd say yeah no it's not It's not much of an effect But if you look at the global economy and all the tech companies especially you know who have shifted their profits to low tax or no tax havens in a way to avoid a corporate tax in the amount of revenue that that has lost to jurisdictions around the world then it is a big deal So it just depends upon what point of view you have And I thought what was interesting about what Larry summer said is that he says this is so far the greatest thing that's happened in the 21st century in Texas What is he thinks coming next That does seem to be the key question on that I'm curious about the jobs report as well that we discussed with congressman Brady Jeannie obviously the Republicans are not painting a particularly positive picture of job gains and the report that came out this morning was lower than expected What does that actually mean though Should we be focusing on the headline number of a 194,000 or what really is the take away from today's jobs report in your view You know we did hear in a lot of the headlines echoed that You know it didn't meet expectations which were half a million But as the president said when he came out and made his remarks today there were positive signs there There was the fact that the unemployment rate dropped from 5.2 to 4.8 Those are very good numbers But I think the broader perspective here is something that we ignore oftentimes which is that the president does get the benefit in the criticism when the economy is doing well or in a slump But the fact is is that the president doesn't have as much control over the economy as we like to think And in this case what the economy is responding to in the president is right about this is the pandemic These numbers were collected end date was mid September He's right that's when Delta was soaring It's going to take time to get us out of a self imposed shutdown that we were in So I think we've got to be realistic here about how much the president controls the economy whether that president is Trump or that president is Biden You know Rick I also want to ask you a similar question that I asked the congressman because I think this is something that everyone's trying to figure out right now Why aren't these job numbers stronger Initially Republicans said that it was because of that supplemental unemployment insurance That's no longer a thing Democrats said it's because kids haven't gone back to school yet Well now a lot of schools are open What is going on here What's happening with these numbers Well I mean when you look inside of it there aren't very many good indications that we're in a trend I mean July this number was at a million And so what's happened in the last two months Well you know we stopped paying extra unemployment insurance Well hell that should have gotten everybody back into the employment line like Republicans have been proposing But even Kevin Brady who you just interviewed pointed out that 50% of this 194,000 number for September are 55 years and older I mean that really defies what we thought was missing in the job market which was driven by leisure and lodging and hospitality So it's kind of hard to tell where we go from here A lot of people's expectations have actually not materialized And so I think Democrats are looking for an answer But Republicans thought that this was going to be a better report because they really truly believed that the extra unemployment insurance when it ran out would drive people back to work The September number doesn't show it Well looking at the details of this report some of the private sector numbers were significantly better but actually in particular public education jobs declined in September seems like a strange time for that to happen Jeannie real quick What do you think caused that Well I think this is what we're going to be seeing as a fallout from the pandemic and the shutting down and I think you're absolutely right to point that out That was one of the oddities But as we saw when this report was released that was to a certain extent poo pooed They.

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