Jack Welch: Republicans Made a Bonehead Play

Your next video will start in

Recommended Videos

  • Info

  • Comments


Oct. 2 (Bloomberg) -- Bloomberg Television's Trish Regan reports on an interview with former GE CEO Jack Welch on the U.S. government shutdown. (Source: Bloomberg)

Take a look at what is happening here.

They pass a bill, it goes through, it goes to the supreme court, it is the law.

Then the president starts making changes.

One side starts making changes.

We will have waivers.

We will change the corporations.

They do not have to do it for a year.

All at one time.

Now the republicans come out and want to defund it.

You cannot the thunder the signature legislation.

You think it is the wrong way to go about it gekko mccain has been very critical.

Where they are now, moderate steps, they gave it to the employers for year.

If you want it, you can sign up.

If you'd told want it, you can do it.

There is some give their.

Both sides want to give.

I mean, the democrats passed in the senate a bill wanting to give that up.

Why would you want to tax a growth industry?

Entrepreneurs get killed.

It is based on revenue, not profits.

You are getting taxed out of it.

Look, if both sides and the president says he will not negotiate, you have one person asking for default.

House republicans asking for something that is not going to happen.

Constant standoff.

You were the ceo of ge during the last shutdown.

Did it have an effect on business?

Wax no.

I mean, the big one is coming up.

If i can get it to do it.

Throw the sequester in.

I would like to throw the cr in.

I would like to throw the deficit in.

One big ago she asian.

-- one big negotiation.

We can do all of these things and save face.

On both sides.

Do you actually think that this is helpful in terms of getting something bigger and better done gekko this standoff right now?

I think it leads to bigger problems on the bigger issue.

We always have paid the employees who were injured.

Every shutdown, this is a tougher time, financially.

I did not always ache them.

The individuals who were hurt, most likely, look, and a couple of weeks we are in the big league here.

Put it in a hopper and come out.

Trust each other, be transparent.

Do you think they can do that gekko a few of the republicans think they have a winning issue on obamacare.

Which we will only find out in time.

Secondly, the president is attempting to get the congress back from a shutdown, playing politics.

You mentioned obamacare.

What do you think the effect of the affordable care act is going to be on businesses?

Until now?

A little bit of uncertainty.

It has been the change in the work week.

That has pushed some people in.

We are catching money out of the pot, a lot of people.

It is an element of the bill.

That is some compromise their.

There are so many places to compromise in the big hill, we have to set a chance of saving face on both sides.

Right now they are equally guilty.

Last week you said that republicans would have a brain to kill obamacare exemptions for staffers, letting it pass without a vote is shameful and stupid -- the exemption you are talking about is the exemption for congress.

What do republicans risk?

I think they are all in it together, that is the important thing.

Both sides of the aisle have played dishonestly with this element.

They put $11,000 for families and $5,000 for individuals as a subsidy for themselves and their employees.

It is shaking and i am not sure it is legal, even.

I would guess that some people would say it was illegal.

It is just -- transparency is sort of a word that does not exist.

The president is having everyone over at 5:30. hopefully they can get to a bigger deal.

These are the beginnings of a discussion of a bigger deal.

Time is running out.

The media lives there, every hour on the hour, waiting for bigger news.

It would be one thing to throw all of this sequester stuff to give someone their one side and give something there the other, negotiations are critical.

And don't negotiate in a crisis.

I work for a company where we had strikes all through the 60s and the 70s. the first thing we wanted to do was become friendly with the union.

There are obviously some lessons.

I mentioned one of your tweets, a year and a half ago you had another one, questioning the limit -- the legitimacy of the government data around the labor market fudging the better-than- expected jobs numbers ahead of that reelection process.

The recovery has continued, albeit pretty anemic.

Are you still skeptical of some of the economic numbers and the data we are getting from the government?

By definition these statistics are ridiculous.

We have 2000 people and three officers making phone calls saying that it should work for a while and that is why the numbers are vastly adjusted all the time.

At this time last year around november, you have seen in the last two years the adjustments keeping the hundreds of people criticize and gathering the data.

2000 people making phone calls to households saying -- did you work?

How long?

One hour?

You are employed.

It is a half fast system for getting the data.

Over time people would argue that it works out.

Well, do you think that the economy is on more solid ground now?

How would you characterize it?

The economy is strengthening.

If you think back to one year ago, europe is falling apart.

The u.s. is in a tough situation.

Today almost every economy -- i just came back from europe and in europe there was a red nude optimism.

-- renewed optimism.

Their gdp was almost four percent in the second quarter.

Fueling that one here.

These were expansionary policies in the u.s. and japan paying off.

It let me ask you about ge, when you left there were $37 per share as the stock price.

And now we are around 44. that is a big dip.

Do you think that current ge management is doing everything they can?

I left 12 years ago.

They are working very hard.

I left 12 years ago and never went back to the office for the day.

I do not look at it, i do not follow it, i am onto a whole new thing in life with new interests.

Um, can i ask you about the nbc news and entertainment division spinoff, which ge acquired, acquiring nbc under you, they have now gotten rid of it.

Was that the right move over them?

They obviously thought it was.

When you make a change in ceo's, the ceo decides what is right for the company at that point in time.

They decided it was much better to get the cash at a very good price and reinvest it in new businesses.

And they are doing that.

So, that was their decision.

My predecessor left the same way.

He gave me the keys to the office and i never saw him again in the office.

Truly, i remain friends with him, but it is gone.

He taught me that is the way to go.

You do not want to sit around second-guessing.

The worst idea in the world is when the ceo stays on the board.

That should be illegal.

Someone being -- reading down your back all the time.

You are a legendary ceo.

One of the biggest ceo talked out there is microsoft.

Alamo, there has been talk of him taking that job.

Do you think you would be a good fit?

I know him from his days at knowing.

He is a terrific leader.

The question you have to ask about alan is -- does that technology stretch him beyond his capability?

Maybe that could happen.

I am interviewing a guy this afternoon.

Who is that?

[indiscernible] i have got to convince sam that there is a new 76. the new 60 is 50. sam is really 52 years old.

Well, we will be watching and waiting to see if he can shake that.

Thank you so much.

Great talking to you.

This text has been automatically generated. It may not be 100% accurate.


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change