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00:00> > ALL OF US WANT PEOPLE TO VOTE, BUT WE ONLY WANT PEOPLE BUT HAVE A RIGHT TO VOTE. > > THE SUPPLY SIDE I THINK OVERWHELMS THE DEMAND-SIDE CONTRIBUTORS TO THE INFLATIONARY PRESSURE WE ARE DEALING WITH. > > THIS IS BALANCE OF POWER WITH DAVID WESTIN. DAVID: WELCOME TO BALANCE OF POWER. TOMORROW MARKS THE FIRST ANNIVERSARY OF THE MOB ATTACK ON THE CAPITOL. TO SET THE STAGE, WE TURN TO OUR WASHINGTON CORRESPONDENT. THANK YOU FOR BEING WITH US. GIVE US A SENSE OF WHAT WE SHOULD EXPECT TOMORROW. > > THE CAPITOL IS BUSY IN ANTICIPATION FOR WHAT IS GOING TO HAPPEN TOMORROW. TOMORROW, WE WILL HAVE THE PRESIDENT AND VICE PRESIDENT HERE GIVING A SPEECH AND REMARKS COMMEMORATING AND REMEMBERING THE RIOT AND SEAT THAT TOOK PLACE. WE WERE ALSO SUPPOSED TO HEAR FROM THE FORMER PRESIDENT BUT DONALD TRUMP ISSUED A STATEMENT THAT HE WILL NOT BE GIVING A SPEECH BUT HE WILL BE TALKING ABOUT IS UNSUBSTANTIATED CLAIMS OF ELECTION FRAUD AT A LATER DATE IN ARIZONA. GIVEN THE FORMER PRESIDENT'S UNSUBSTANTIATED CLAIMS, THAT HAS PUT REPUBLICANS HERE IN A PRECARIOUS SITUATION. YOU HAVE THE SENATE MINORITY LEADER MITCH MCCONNELL LEAVING GOING TO A FUNERAL AND GEORGIA. THEN YOU HAVE KEVIN MCCARTHY ISSUED A STATEMENT BUT NOT TAKING PART OF A SLATE OF EVENTS PLANNED AT THE CAPITOL. A LITMUS TEST FOR THE REPUBLICANS. DAVID: WE WILL BRING YOU MUCH MORE COVERAGE OF THAT TOMORROW. RIGHT NOW, WE'RE GOING TO TURN FROM THE CAPITAL TO THE ECONOMY. THE JOBS NUMBERS TODAY SURPRISED THE UPSIDE AS WE HEAD TOWARD THE MONTHLY NUMBERS THAT COME OUT FRIDAY. IT TAKE A NEST THROUGH THE LABOR MARKET AND THE ECONOMY OVERALL IS TYLER GOODSPEED. THANK YOU FOR BEING BACK WITH US. ADP SURPRISED THE UPSIDE. THOSE ARE UNSTABLE NUMBERS. DOES IT TELL YOU ANYTHING ABOUT WHAT TO EXPECT ON FRIDAY? TYLER: IT'S GREAT TO BE WITH YOU. IT WAS DEFINITELY AN ENCOURAGING NUMBER OUT OF ADP. WHAT WAS ENCOURAGING FROM MY PERSPECTIVE WAS HOW FRAUD BASED THE JOB GAINS WERE. I WOULDN'T READ TOO MUCH INTO THE ADP JOB NUMBERS EVEN IN NORMAL TIMES, THEY CAN BE WIDELY DIVERSION FROM THE OFFICIAL STATISTICS. ESPECIALLY DIVERSION OVER THE PAST TWO YEARS. THE ADP NUMBERS WERE LAGGING FOR MUCH OF THE YEAR IN 2021. IN THE PAST FEW MONTHS, WE HAVE SEEN THE ADP NUMBERS CATCHING UP TO WHERE THE BLS NUMBERS ARE. DAVID: ARE WE GETTING THE SERVICE JOBS BACK NOW? FOR A TIME, THE MANUFACTURING JOBS CAME BACK FASTER. ARE WE SEEING THE ONRUSH OF SERVICE JOBS? TYLER: YES, WE DID SEE STRONG SERVICE SECTOR GAINS AND I SUSPECT WE WILL SEE MORE OF THAT IN THE BLS STATISTICS. I IMAGINE THAT WEIGHING ON THE BLS NUMBERS FOR DECEMBER ARE GOING TO BE THE SEASONAL ADJUSTMENT FACTOR. WHAT I EXPECT TO SEE IN THE OFFICIAL NUMBERS IS THAT WHILE WE CONTINUE TO ADD SERVICE JOBS IN THE MONTH OF DECEMBER, WE PROBABLY DID NOT ADD AS MANY AS WOULD NORMALLY BE EXPECTED IN THE RUN-UP TO THE HOLIDAYS. DAVID: YOU HAVE BEEN ON OUR PROGRAM HERE CONCERNED ABOUT REAL WAGE GROWTH BECAUSE WAGES HAVE NOT CAUGHT UP. ARE THEY KEEPING UP NOW? TYLER: THE SURPRISING THING IS, AFTER A COUPLE OF MONTHS AND WE STARTED TO SEE WAGES FINALLY BEGIN TO OUTSTRIP INFLATION, IN NOVEMBER WE SAW THEM DIP BACK INTO NEGATIVE TERRITORY. THAT'S A TESTAMENT TO THE INEQUALITY OF INFLATION. IT DOESN'T PROCEED AT AN EVEN PACE THROUGHOUT THE ECONOMY SO A LOT OF WORKERS WHO DON'T HAVE MUCH NEGOTIATING POWER, THEY CAN'T NECESSARILY RENEGOTIATE WAGE CONTRACTS IN TIME TO KEEP UP WITH THE BIG INFLATION NUMBERS WE HAVE BEEN OBSERVING OVER THE PAST 12 MONTHS. DAVID: I'M NOT SURE THAT I EVER AND BEAT YOUR JOB, BUT I AM CONCERNED WILL WE HAVE THINGS LIKE OMICRON POP-UP. I'M NOT SURE HOW YOU FIGURE OUT WHERE THE ECONOMY IS NOW MUCH LESS WHERE IT'S GOING. DO YOU HAVE A SENSE OF WHAT OMICRON MIGHT MEAN FOR THE GROWTH OF THE ECONOMY THIS YEAR? TYLER: THE QUESTION I KEEP ASKING MYSELF WITH THESE NEW LETTERS OF THE GREEK ALPHABET KEEP POPPING UP IS DOES THIS HAVE A GREATER IMPACT ON BAR GOERS OR BARTENDERS? ON LABOR DEMAND OR LABOR SUPPLY? I THINK WHAT WE HAVE SEEN WITH THE DELTA VARIANT AND THE OMICRON VARIANT IS THAT THEY ARE HAVING A BIGGER IMPACT ON LABOR SUPPLY AMONG OLDER WORKERS, WORKERS WITH CHILDCARE ISSUES. WEAVING FORWARD, -- MOVING FORWARD, THE SUBSEQUENT WAVES OF COVID ARE GOING TO HAVE A BIGGER IMPACT ON LABOR SUPPLY THAN NEIGHBOR DEMAND AND THAT HAS ADVERSE IMPLICATIONS FOR THE INFLATIONARY PRESSURE GOING FORWARD. DAVID: WHAT DOES THAT MEAN FOR WAGE INCREASES? WE ARE ALWAYS CONCERNED ABOUT THE POSSIBLE WAGE PRICE SPIRAL. TYLER: I THINK I SEE INFLATIONARY PRESSURE EASING SOMEWHAT IN 2022 RELATIVE TO 2021, BUT STILL REMAINING VERY ELEVATED RELATIVE TO RECENT DECADES. THERE HAS BEEN A MISTAKEEN FOCUS ON SUPPLY CHAINS. EVEN IF YOU STRIP OUT SUPPLY CHAIN ISSUES, THEY'RE STILL THE FACT THAT WE HAVE $1.8 TRILLION CUMULATIVE SHORTFALL IN BUSINESS INVESTMENT. WE STILL HAVE 1.5 MILLION EARLY RETIREMENTS. 1.3 MILLION AMERICANS REPORTING THEY DIDN'T WORK -- DIDN'T LOOK FOR WORK IN THE LAST MONTH BECAUSE OF THE PANDEMIC. ALL OF THE SUPPLY-SIDE ISSUES REMAIN PRESENT IN 2022 REGARDLESS OF WHETHER WE SEE EASING UP SUPPLY CHAIN PROBLEMS. DAVID: CAPITAL INVESTMENT, WHAT CAN THE ADMINISTRATION DO ABOUT THAT? THE ADMINISTRATION YOU SERVED AND TRY TO ADDRESS THROUGH TAX POLICY. TYLER: ONE THING YOU CAN DO IS LIMIT UNCERTAINTY. WE HAVE A LOT OF POLICY UNCERTAINTY IN THE PAST 12 MONTHS INCLUDING UNCERTAINTY ABOUT THE DIRECTION OF CORPORATE INCOME TAX RATES. IF YOU CAN TAKE SOME OF THAT UNCERTAINTY OFF THE TABLE, THAT WILL HELP. THE OTHER THING IS, I WOULD I --EYE -- MAKE THIS PERMANENT. THAT WOULD BE THE FULL EXPENSING OF NEW BUSINESS INVESTMENT IN EQUIPMENT WHICH IS CURRENTLY SCHEDULED TO START PHASING OUT AFTER 2023. I WOULD LOOK TO MAKE THAT PERMANENT SO BUSINESSES HAVE MORE CERTAINTY ABOUT BUSINESS TAX RATES GOING FORWARD. DAVID: I'M NOT SURE THE HOUSE VERSION OF HOW TO PAY FOR BUILD BACK BETTER WOULD INCLUDE THAT. WHEN IT COMES TO PEOPLE GETTING PEOPLE BACK INTO THE WORKFORCE, ARE YOU SYMPATHETIC TO THE CHILD TAX CREDIT PROPOSALS? TYLER: I AM NOT A FAN OF THE CHILD TAX CREDIT PROPOSALS AS THEY ARE WRITTEN IN THE BUILD BACK BETTER BILL. WE DOUBLED THE CHILD TAX CREDIT IN 2017. WE EXPANDED ELIGIBILITY FOR. WE DID SO ONLY AGAINST EARNED INCOME. YOU HAD TO BE WORKING IN ORDER TO QUALIFY. THE CURRENT BUILD BACK BETTER BILL WHAT IT DOES IS IT ELIMINATES THE WORK REQUIREMENT. 20 HAVE A DISINCENTIVE EFFECT ON WORKFORCE PARTICIPATION. ECONOMISTS ESTIMATE IT COULD DETER AS MANY AS ONE POINT 5 MILLION PEOPLE FROM PARTICIPATING IN THE LABOR MARKET. THAT MAY HAVE BEEN A FACTOR IN THE DECISION NOT BACK THE BILL FROM SENATOR MANCHIN. DAVID: LET MICCO BACK TO THE BIPARTISAN INFRASTRUCTURE BILL. -- LET ME GO BACK TO THE BIPARTISAN INFRASTRUCTURE BILL. WE SEE THE EFFECTS OF THAT IN 2022 QUESTION MARK? TYLER: NOW. -- NO. IF YOU CAN BORROW NEGATIVE RATES, ANYTHING WITH A POSITIVE RATE OF RETURN IS WORTH INVESTING IN. THE AVERAGE RATE OF RETURN IS ABOUT 5%. EVEN WITH $1 TRILLION BILL, YOU'RE LOOKING AT ABOUT $50 BILLION IN INCREASE IN THE POTENTIAL OUTPUT OF THAT U.S. ECONOMY. 50 BILLION IN $20 TRILLION ECONOMY IS NOT VERY MUCH. OVER THE LONG RUN, WE'RE PROBABLY LOOKING AT A BOOST POTENTIAL OUTPUT BY A MAXIMUM OF .1%. THAT'S GOING TO BE OVER THE VERY LONG RUN. DAVID: THANK YOU SO MUCH FOR YOUR TIME. COMING UP, WE TALK WITH ONE OF THOSE AT THE CAPITOL BUILDING DURING THE RIOT THIS TIME LAST YEAR. ROBIN KELLY OF ILLINOIS. DAVID: THIS IS BALANCE OF POWER ON BLOOMBERG TELEVISION AND RADIO. MARK: VACCINE EXPERTS WHO ADVISE THE CDC OUR MEETING TODAY TO DISCUSS THE USE OF PFIZER AND BIONTECH BOOSTER SHOT FOR CHILDREN AGED 12 TO 15. AS THE OMICRON VARIANT CONTINUES TO DRIVE SURGE IN CASES ACROSS THE COUNTRY, EXPANDING BOOSTERS TO YOUNG TEENS COULD HELP KEEP SCHOOLS OPEN. PROTESTS IN KAZAKHSTAN TURNED VIOLENT TODAY AFTER A JUMP IN FUEL PRICES SPILLED OVER TO DISCONTENT WITH POLITICAL AND ECONOMIC STAGNATION. THE DEMONSTRATION STARTED OVER THE WEEKEND AND WEEKLY GROUP. TESTERS STORMED THE MAYOR'S OFFICE AND ATTEMPTED TO SEIZE THE PRESIDENTIAL RESIDENCE. FIRES WERE BURNING AT BOTH SITES. NORTH KOREA APPEARS TO HAVE LAUNCHED ANOTHER BALLISTIC MISSILE PREDICATE ORIGINATED ON LAND AND TRAVELED INTO WATERS OFF THE EAST COAST ACCORDING TO SOUTH KOREA'S MILITARY. THE MISSILE LANDED IN WATERS OUTSIDE OF JAPAN'S EXCLUSIVE ECONOMIC ZONE. THIS COMES DAYS AFTER KIM JONG-UN URGED TO WAS FOCUSED ON FOOD SHORTAGE AND CONTAINING COVID. GLOBAL NEWS 24 HOURS A DAY ON AIR AND ON BLOOMBERG QUICKTAKE. POWERED BY MORE THAN 2700 JOURNALISTS AND ANALYSTS IN OVER 120 COUNTRIES. I'M MARK CRUMPTON. DAVID: WELCOME NOW ONE PERSON CAUGHT IN THE ATTACK ON THE CAPITOL LAST YEAR, REPRESENTATIVE ROBIN KELLY. TAKE US BACK TO THE DAY JUST UNDER A YEAR AGO, WHERE YOU WERE AND WHAT YOU EXPERIENCED. REP. KELLY: INITIALLY, I WAS IN THE GALLERY WATCHING THE CERTIFICATION. SLOWLY, WE SAW CHAOS ERUPT. I SAW CAPITAL POLICE OFFICER RUN PAST. MEMBERS OF LEADERSHIP BEING ESCORTED OUT OF THE HOUSE. WE WERE TOLD TO GET OUR GAS MASKS AND HIDE UNDER THE SEATS THEN WE WERE TOLD TO RUN MORE TO THE DEMOCRATIC SIDE -- FROM THE DEMOCRATIC SIDE TO THE REPUBLICAN SIDE OF THE GALLERY. THAT'S WHEN WE HEARD THE GUNSHOT AND TOOK COVER. SOME LAYING FLAT AND OTHERS ON OUR HANDS AND KNEES. IT WAS TOTALLY CHAOTIC AND I REMEMBER PEEKING OVER THE BALCONY SEEING WHO I DIDN'T KNOW WAS LANE CLOSE POLICE PERSON AT THE TIME WITH A GUN. I THOUGHT THIS IS GOING TO BE IT AND I DO A LOT OF WORK AROUND GUN VIOLENCE PREVENTION. EVERY NUMBER THINKING THIS IS HOW IT'S GOING TO BE, I'M GOING OUT LIKE THIS. WE WERE THERE I DON'T EVEN KNOW HOW LONG. THEN THERE WERE THREE KNOCKS ON THE DOOR. WE WERE ASKED TO RUN OUT. WE RAN DOWNSTAIRS TO THE HALLWAYS TO AN UNDISCLOSED LOCATION. THEN -- DAVID: IT'S AN AWFUL EXPERIENCE. ANY OF US WHO WERE WATCHING ON TV, WE ARE ALL COMMITTED TO MAKING SURE IT NEVER HAPPENED AGAIN. WHAT HAVE WE DONE FOR THEM TO MAKE SURE IT DOESN'T HAPPEN AGAIN? REP. KELLY: I DON'T THINK THERE ANY GUARANTEES THAT IT WON'T HAPPEN AGAIN, BECAUSE THERE ARE SOME PEOPLE WHO BELIEVE IN MISINFORMATION, THEY BELIEVE THE BIG LIE. THERE'S A LOT OF FEAR OF LOSS OF POWER. THE CAPITOL HAS LEARNED AND THE CAPITOL POLICE, WE HEARD FROM THE CHIEF YESTERDAY. THEY ARE BETTER EQUIPPED TO DEAL WITH THAT AND WHETHER IT'S THE NATIONAL GUARD OR THE D.C. POLICE, THERE'S MORE COMMUNICATION NOW THAT THERE HAS BEEN LESSONS LEARNED, BUT I DON'T THINK THAT NECESSARILY PREVENTS PEOPLE FROM GATHERING OR TRYING TO ATTACK. IT'S JUST THAT THEY WOULDN'T BE ABLE TO GET AWAY WITH AS MUCH AS THEY GOT AWAY WITH LAST TIME. DAVID: WHEN YOU GO BACK, DO YOU FEEL SAFER TODAY THAN YOU DID ONE YEAR AGO? REP. KELLY: TO BE HONEST, I DON'T THINK ABOUT IT THAT MUCH. WHEN I GO, I WANT TO DO MY JOB. YES, I LOOK AROUND BUT I LOOK AROUND ALL OVER. I THINK IT MAKES YOU MORE CAUTIOUS IN A WAY, BUT YES, I DO SPELLS -- I FEEL SAFE. DAVID: YOU KNOW CHICAGO TERRIBLY WELL. THEY SHUT DOWN THE SCHOOLS THERE TO IN CLASS LEARNING. WHAT DO YOU THINK ABOUT SHUTTING DOWN THE CHICAGO SCHOOL SYSTEM? REP. KELLY: I CAN SEE IT FROM BOTH WAYS IF YOU WORK THERE, IF YOU SEND YOUR CHILDREN THERE, YOU WANT TO MAKE SURE IT IS AS SAFE AS POSSIBLE. THE SCIENCE AND STATISTICS SAY THAT SCHOOLS ARE A SAFE PLACE FOR YOUNG PEOPLE TO GO TO. ALSO, I HAVE A GRANDSON AND HE IS SEVEN YEARS OLD AND MY DAUGHTER HELD THEM BACK JUST TO SEE. WE HAVE TO MAKE SURE THERE ARE THE RESOURCES. I SEE IT FROM THE TEACHER'S POINT OF VIEW, BUT ALSO ACCORDING TO STATISTICS AND THE SCIENCE, THE KIDS ARE SAFER IN SCHOOLS. HOPEFULLY, WE CAN GET RESOLVED VERY QUICKLY SO KIDS DON'T HAVE TO GO BACK TO VIRTUAL LEARNING. DAVID: DO YOU HAVE THE TEACHERS THAT YOU NEED TO STAFF THE SCHOOLS AT THIS POINT? PERHAPS THEY ARE HAVING TO STAY HOME. REP. KELLY: I'M NOT THE BEST PERSON TO COMMENT ON THAT. WHATEVER THE PROFESSION IS, ALL PROFESSIONS ARE SUFFERING. I'M NOT SURE WHAT THE NUMBERS ARE FOR THE CHICAGO TEACHERS. DAVID: WE HAD BIG ANNOUNCEMENT YESTERDAY, BOBBY RUSH DECIDING NOT TO RUN AGAIN. WHAT IS YOUR REACTION? REP. KELLY: I WAS A LITTLE SURPRISED. EVEN THOUGH I HAVE HEARD DIFFERENT THINGS, I WAS SURPRISED. I WISH HIM THE VERY BEST AS HE TURNS A PAGE IN HIS LIFE. WE ARE LOSING A WARRIOR IN ILLINOIS AND D.C. DAVID: WHAT DOES IT TELL US MORE BROADLY ABOUT THE MIDTERM ELECTIONS COMING UP? THIS IS THE 34TH DEMOCRATIC MEMBER SAYING THEY WILL NOT STAND FOR ELECTION AGAIN. WHAT DOES THIS SAY ABOUT THE DEMOCRATS ABILITY TO HOLD A MAJORITY? REP. KELLY: I AM AN OPTIMIST. I THINK IF WE DO OUR JOB AND SHOW THE AMERICANS WHAT WE HAVE DONE, WITH DEMOCRATS DRIVING ALL OF THE BILLS, THE IDEA THAT SO MANY PEOPLE ARE VACCINATED UNDER PRESIDENT BIDEN, THE GOVERNMENT CAN ONLY DO SO MUCH. PEOPLE HAVE TO GET THE VACCINES, GET TESTED INTO THOSE KINDS OF THINGS. WE CAN'T MAKE THEM DO IT. TO A CERTAIN DEGREE, BUSINESSES CAN, BUT WE CAN BRING SOMEONE TO THE WATER BUT WE CAN'T MAKE THEM DRINK IT. THEY LOOK AT WHAT DEMOCRATS HAVE LEARNED AND WHAT WE HAVE GOTTEN DONE. DAVID: YOU MENTIONED BUILD BACK BETTER, THE PROPOSAL FROM THE BIDEN ADMINISTRATION WHICH HAS HAD SOME DIFFICULTY BECAUSE OF DEMOCRATIC SENATORS WHO HAVE RESERVATIONS. HOW CRITICAL IS IT TO THE DEMOCRATIC CHANCES IN NOVEMBER AND SPECIFICALLY, WHAT IF IT IS ONLY A SHADOW OF WHAT IT IS NOW? IT MAY HAVE TO GET TRIMMED BACK. REP. KELLY: I KNOW PEOPLE TALK ABOUT THAT, BUT IF WE PARSE IT OUT IN THE DIFFERENT AREAS, THEY WOULD STILL BE TREMENDOUS PIECES THAT WE PUT FORWARD FOR THE PEOPLE AND TO MAKE THEIR LIVES BETTER. I WANT TO GET BIG THINGS DONE, BUT IF WE HAVE TO COMPROMISE SOME TO GET THINGS DONE SO THAT EACH OF THEM ON THEIR OWN IT'S FANTASTIC. THAT'S HOW WE HAVE TO START, THEN THAT MIGHT BE WHAT WE HAVE TO DO RATHER THAN DOING NOTHING. HOPEFULLY, OUR SENATORS WILL COME AROUND. DAVID: THANK YOU SO MUCH FOR JOINING US. REPRESENTATIVE ROBIN KELLY, DEMOCRAT OF ILLINOIS. LATER TODAY, I WILL TALK TO GM'S CHAIR AND CEO AS GM ANNOUNCES ITS NEW ALL ELECTRIC VERSION OF THE SILVERADO PICKUP. THAT IS AT 2:00 P.M. EASTERN. THIS IS BALANCE OF POWER ON BLOOMBERG TELEVISION AND RADIO. DAVID: LOOK MARKETS TODAY, THE DOW CLIMBING ONCE AGAIN. THE YIELD ON THE 10 YEAR IS PUSHING BACK UP TOWARD 1.7%. THAT COMES ON THE HEELS OF THE ADP JOBS NUMBERS THAT EXCEEDED SPEC TATIAN'S AS WE GET READY FOR THE BIG JOBS NUMBERS ON FRIDAY. TO TAKE US THROUGH THIS IS MICHAEL MCKEE. WHAT IS GOING ON WITH THE JOBS? THE ADP NUMBERS SURPRISED ME. MIKE: IT'S ALMOST DOUBLE WHAT WAS EXPECTED BY ECONOMISTS. IF ADP IS TO BE BELIEVED, MAYBE WE HAD THIS WINDOW BETWEEN DELTA AND OMICRON WHERE PEOPLE WENT BACK TO WORK. YOU CAN SEE FROM THE CHART WE ARE SHOWING ON TELEVISION, I'M SORRY YOU CAN’'T SEE IT ON THE RADIO, GO TO THE LIMBERED AND CHECK IT OUT. ADP MATCHES THE DIRECTION OF THE NUMBERS BUT NOT THE MAGNITUDE. YOU CAN'T SAY BECAUSE THEY WERE DOUBLE EXPECTATIONS WERE GOING TO HAVE A HUGE REPORT ON FRIDAY, BUT IT DOES SUGGEST WE ARE SEEING MORE PEOPLE COMING BACK TO WORK. DAVID: IN THE MEANTIME, WE GET FED NUMBERS OUT TODAY. MIKE: WE KNOW THAT THE FED IS OPEN TO RAISING INTEREST RATES. IT BECOMES A QUESTION OF WHEN. WE WILL SEE WHAT KIND OF DISCUSSION THEY HAD ABOUT THAT. THE BIG THING IS THE BALANCE SHEET. WHEN ARE THEY GOING TO SHRINK THAT AND HOW. THEY WAITED TWO YEARS AFTER TAPERING LAST TIME BEFORE THEY STARTED SHRINKING THE BALANCE SHEET AND NOW, THEY ARE TALKING ABOUT DOING IT MORE QUICKLY BECAUSE IT WOULD TIGHTEN FINANCIAL CONDITIONS WITHOUT THEM HAVING TO RAISE RATES AS HIGH. WE WILL HAVE TO SEE IF -- JAY POWELL SAID THEY DISCUSSED IT, BUT HOW FAR DID THEY GET? DAVID: WHO IS GOING TO BE ON THE FED? THERE ARE REPORTS THAT THERE ARE NEW NOMINATIONS. MIKE: THERE ARE REPORTS CONFIRMING WHAT WE HAVE REPORTED THAT -- SARAH IS THE CHOICE FOR THE VICE PRESIDENT OF SUPERVISION. SHE HAS SERVED ON THE FED, SO SHE HAS BEEN CONFIRMED. WITH MCWILLIAMS LEAVING THE FBI SEE AND THE PRESIDENT LIKELY TO PUT A DEMOCRAT IN CHARGE OF THAT GROUP, REPUBLICANS ARE NOT GOING TO BE HAPPY WITH SOMEONE WHO IS INTERESTED IN, CHANGE AND BANK REGULATION. SHE IS ALSO MARRIED TO JAMIE RASKIN. PHILIP JEFFERSON, A WELL-KNOWN BLACK ECONOMIST AND LISA COOK ALSO A WELL-KNOWN BLACK WOMAN ECONOMIST, SHE WOULD BE THE FIRST BLACK WOMAN ON THE BOARD. DAVID: THIS IS BLOOMBERG. DAVID: THIS IS "BALANCE OF POWER" ON BLOOMBERG TELEVISION AND RADIO. I'M DAVID WESTIN. FOR "FIRST WORD" NEWS CAN WE GO TO MARK CRUMPTON. MARK: DEMOCRATIC AND REPUBLICAN LAWMAKERS HAVE HEALTHILY DISCUSSIONS ON ANOTHER ROUND OF CORONAVIRUS STIMULUS SPENDING. EARLY EFFORTS HAVE FOCUSED ON BILLIONS JOB BUSINESSES INCLUDING RESTAURANTS, PERFORMANCE VENUES, GYMS, AND EVEN MINOR LEAGUE SPORTS TEAMS. FRENCH PRESIDENT EMMANUEL MACRON HAS TAKEN FRANCE'S AGGRESSIVE STANCE AGAINST THE UNVACCINATED UP A NOTCH. HE SAID HE WANTS TO ANNOY PEOPLE WHO DON'T GET COVID-19 SHOTS. PRESIDENT MICRON DID NOT USE THE WORD "ANNOY." IN AN INTERVIEW, HE SAID IT IS THE TOP STRATEGY AGAINST THE PANDEMIC. HIS COMMENTS SPARKED AN ANGRY RESPONSE FROM OPPOSITION ADDITIONS AND LED TO PARLIAMENT SUSPENDING A DEBATE ON A NEW RESTRICTIONS. BRAZIL'S PRESIDENT IS OUT OF THE HOSPITAL. JOE BOLSONARO WAS HOSPITALIZED IN SÃO PAULO FOR TWO DAYS AFTER AN INTESTINAL BLOCKAGE FORCED HIM TO CUT SHORT VACATION. HE HAS UNDERGONE FOUR SURGERIES SINCE BEING STABBED AT A CAMPAIGN EVENT IN 2018. PRESIDENT BOLSONARO'S DOCTORS AND SAY HE DOES NOT NEED ANOTHER SURGERY RIGHT NOW. THE PRESIDENT ANNOUNCED HIS RELEASED IN A TWITTER POST WITH A PICTURE SURROUNDED BY HIS DOCTORS, ALL OF HIM GIVING THUMBS UP. THE BIDEN ADMINISTRATION HAS ANNOUNCED SANCTIONS AGAINST A BOSNIAN SERB LEADER, ACCUSING HIM OF ACTIVITIES THAT THREATEN BE STABILIZE THE REGION AND UNDERMINING A U.N.-BROKERED PEACE ACCORD FROM MORE THAN 35 YEARS AGO. THE TREASURY DEPARTMENT SAID DODIG USED HIS POSITION TO ACCUMULATE WEALTH THROUGH GRAFT AND BRIBERY. THE ACTIONS MEAN ANY PROPERTY OR INTEREST BELONGING TO DODIG IN THE UNITED STATES ARE NOW BLOCKED. GLOBAL NEWS 24 HOURS A DAY, ON AIR AND AT BLOOMBERG QUICKTAKE, POWERED BY MORE THAN 2700 JOURNALISTS AND ANALYSTS IN MORE THAN 120 COUNTRIES. I AM A MARK CRUMPTON. THIS IS BLOOMBERG. ♪ DAVID: THANK YOU SO MUCH, MARK. A YEAR AGO, A MOB ATTACKED THE CAPITOL WHILE CONGRESS WAS COUNTING THE VOTES FOR PRESIDENT. FRANK LUNTZ WAS ON THE SCENE THAT DAY, NOW HE JOINS US TO LOOK BACK, AND FOR THAT MATTER, TO LOOK FORWARD. HAPPY NEW YEAR. GOOD TO HAVE YOU BACK WITH US. GIVE US YOUR RECOLLECTION OF THAT DAY ONE DAY SHORT OF A YEAR AGO. FRANK: VERY DEPRESSING, AND THE FIRST AND ONLY TIME I CRIED ON LIVE TELEVISION.I WAS DOING AN INTERVIEW WITH THE CANADIAN CBC. I KNEW THAT THE HOST WAS CHALLENGING ME, THAT SHE WAS TRYING TO GET ME IN THAT PLACE. I WENT THERE, BECAUSE I'VE NEVER SEEN -- I NEVER THOUGHT IN MY COUNTRY WE WOULD SEE A RIOT, I NEVER THOUGHT THAT PEOPLE WOULD BREAK INTO THE CAPITOL, SMASH WINDOWS. THESE ARE VOTERS. THIS WASN'T A FOREIGN COUNTRY, THIS WASN'T A TERRORIST ATTACK. THESE ARE AMERICAN VOTERS BEHAVING THIS WAY. I LOST IT. I WAS OUTSIDE THE PENNSYLVANIA AVENUE, ABOUT TWO BLOCKS FROM THE CAPITOL, AND I SAW PEOPLE CARRYING SIGNS THAT SAID "REPUBLICANS DON'T RIOT." THAT PHOTOGRAPH IS NOW IN A JONATHAN KARL'S BEST-SELLING BOOK "BETRAYAL." LATER THAT NIGHT AND WAS INSIDE THE CAPITOL AND I SAW THE DAMAGE THESE PEOPLE DID, AND IT WAS DISGUSTING. THE BROKEN WINDOWS, GLASS, DIRT, CRAP, IT WAS AWFUL. I HOPE WE NEVER EVER RELIVE THAT. DAVID: LET'S GO TO THAT POINT EXACTLY. I WASN'T NEARLY AS CLOSE AS YOU WORK, BUT FOR THOSE OF US WATCHING ON TV, IT WAS A SHATTERING EXPERIENCE. A YOU LATER, WHAT DO THE AMERICAN--A YEAR LATER, WHAT DO THE AMERICAN PEOPLE TAKE FROM THAT? WHAT DO WE DO TO MAKE SURE IT DOESN'T HAPPEN AGAIN? FRANK: HERE'S THE AMAZING THING -- IT WAS REPUBLICANS AND CONSERVATIVES, TRUMPETERS, WHATEVER YOU WANT TO CALL -- TRUMP VOTERS, WHATEVER YOU WANT TO CALL THEM IN THE CAPITOL THAT DAY, AND YET REPUBLICANS MUCH MORE THAN DEMOCRATS PRIORITIZED DEMOCRACY. PRIORITIZED REFORMS TO THE ELECTORAL SYSTEM, PRIVATIZE ANYTHING THAT WILL KEEP OUR SYSTEM GOING, AND ADD HEALTH AND SAFETY TO IT. THE DEMOCRATS ARE FOCUSED ON REDISTRICTING, VOTER LAWS. AND YET IT IS THE REPUBLICANS WHO PRIORITIZED DEMOCRACY MORE THAN THE DEMOCRATS DEMOCRACY IS THE NUMBER TWO SHOE. INFLATION, RISING PRICES, NUMBER ONE ISSUE TODAY. DAVID: SOCIALLY DEMOCRATS ON CAPITOL HILL HAVE GOT PROPOSAL-- CERTAINLY DEMOCRATS ON CAPITOL HILL HAVE GOT PROPOSALS THERE TRY TO GET ENACTED. THE STATE LEVEL, VOTER REFORM AND CHANGES TO VOTER LAWS. FRANK: I DON'T KNOW IF YOU WOULD CALL IT VOTER REFORM. I ALWAYS TRY TO BE OBJECTIVE ON THESE INTERVIEWS WITH YOU, AND YOU CAN SEE THAT IT STRIKES ME AS NOT VOTER REFORM. BOTH SIDES ARE DOING IT TO EACH OTHER. YOU WILL NOT ELECT MORE THAN THREE REPUBLICANS IN ILLINOIS OUT OF A 17-DELEGATION STATE. IN CALIFORNIA, YOU WILL NOT ELECT MORE THAN 13 OR 14 CONGRESSIONAL DISTRICTS, REPUBLICANS, OUT OF 50. ONE AREA WHERE THE POLITICIANS ARE BIPARTISAN IS THAT THEY ARE BOTH TRYING TO TAKE ADVANTAGE OF THE SYSTEM FOR THEIR OWN PERSONAL GAINS, AND THE PUBLIC LOOKS LIKE THIS AND SAYS CUT IT OUT. NOT ANOTHER YEAR, NO MORE OF THIS CRAP. BY THE WAY, I CLEANED IT UP FOR YOUR SHOW. DAVID: I APPRECIATE IT, FRANK. I WANT TO ASK A QUESTION FROM A VIEWER, BECAUSE YOU SAY YOU TRY TO BE OBJECTIVE. SOMEWHAT PROVOCATIVE QUESTION -- WHAT DO YOU SAY TO DEMOCRATS WHO, ACCORDING TO THIS VIEWER, DISMISS THE RIOTING THAT WAS DONE IN THE AFTERMATH OF THE KILLING OF GEORGE FLOYD, DISMISS THAT AND FOCUS ON THAT? DRAWING AND EQUIVALENCY, IS THAT LEGITIMATE? FRANK: THE NUMBER ONE PRIORITY FOR THIS COUNTRY SHOULD BE CIVILITY, RESPECT, SUPPORT FOR ECONOMIC FREEDOM, BECAUSE THAT IS WHAT ALLOWS SO MANY PEOPLE TO DO SO WELL, AND GENUINE DEMOCRACY, SO THAT OUR POLITICAL SYSTEM IS RESTORED AGAIN. HERE IS THE PROBLEM, DAVID -- WE HAVE SO MANY PEOPLE ON BOTH SIDES THAT ARE DOING THEIR D AMNDEST TO DOING AS MUCH DAMAGE AS THEY CAN PROMOTE AS MUCH PARTISANSHIP AS THEY CAN, AND THE NUMBER OF PEOPLE THAT WORK ACROSS THE AISLE IS GETTING FEWER AND FEWER WITH EVERY SINGLE ELECTION. IN FACT, I'M FOLLOWING REDISTRICTING, AND I KNOW YOUR VIEWERS WANT TO KNOW SOMETHING ABOUT THE FUTURE. REDISTRICTING HAS NOT HELPED REPUBLICANS AS MUCH AS THEY EXPECTED, ALTHOUGH I STILL BELIEVE THAT KEVIN MCCARTHY WILL BE THE SPEAKER OF THE HOUSE COME THIS TIME NEXT YEAR. WHAT REDISTRICTING HAS DONE IS MAKE REPUBLICAN DISTRICTS EVEN MORE REPUBLICAN AND DEMOCRATIC DISTRICTS EVEN MORE DEMOCRATIC WHICH MEANS WE ARE GOING TO HAVE EVEN LESS COOPERATION YEAR FROM NOW THAN WHAT WE HAVE TODAY. I DON'T KNOW HOW IT CAN GET ANY LESS THAN WHAT WE HAVE RIGHT NOW. DAVID: I WANT TO COME BACK TO SOMETHING YOU REFER TO, INFLATION IN THE ECONOMY OVERALL. YOU TALKED TO A LOT OF REGULAR PEOPLE THAT HAVE A SENSE OF THE PULSE OF THE COUNTRY. WHERE ARE WE ON THE SO-CALLED GREAT RESIGNATION, WITH SO MANY PEOPLE WHO HAVE GONE OUT OF WORK AND ARE NOT EAGER TO COME BACK IN? FRANK: I THINK WE ARE A BIG BUSINESS, CORPORATIONS DON'T GET IT. IT IS NOT JUST ABOUT PEOPLE QUITTING THEIR JOBS. THEY ARE LOOKING FOR NEW ONES. IT IS ABOUT PEOPLE CHANGING THEIR FRIENDSHIPS. WE HAVE AN INCREDIBLE HOUSING BOOM BECAUSE PEOPLE DECIDED THEY WANT TO LIVE SOMEPLACE DIFFERENT, EITHER CLOSER TO WORK OR THEY WANT TO LIVE IN THE COUNTRY, OR THEY ARE MOVING TO DIFFERENT REGIONS OF AMERICA. WE ARE HAVING -- WHERE WE GET OUR NEWS, OUR FRIENDS, EVERYTHING ABOUT US. WHAT MAKES THIS UNIQUE FROM EVERY PREVIOUS ERA IS THAT IT IS HAPPENING TO EVERYONE THANKS TO COVID. WHETHER YOU ARE WORKING CLASS OR AN EXECUTIVE IN A WALL STREET FIRM, THIS RE-THINK IS HAPPENING, AND MY WANTING TO CEO'S, YOU BETTER PAY ATTENTION TO IT, YOU BETTER BE EMPATHETIC TO IT, OR YOU WILL BE THE VICTIM RATHER THAN A BENEFICIARY. DAVID: WHAT IS THE CAUSE OF IT IN YOUR ANALYSIS? I WILL GIVE A NUMBER OF POSSIBILITIES. ONE IS JUST GENERATIONAL. PEOPLE HAVE A DIFFERENT ATTITUDE TOWARD WORK AND MATERIAL POSSESSIONS. PART OF THE PROBLEM IS THAT THE GOVERNMENT HAS GIVEN SO MUCH MONEY THROUGH ALL THIS MASSIVE FISCAL STIMULUS. WHAT IS THE CAUSE OF THIS RE-THINK? FRANK: IT IS DIFFERENT BASED ON WHO YOU ARE. FOR MEN, THE HIGHEST PRIORITY IS MONEY. FOR WOMEN, THE HIGHEST PRIORITY IS TIME. THEY VALUE IT MORE THAN THEY DID TWO YEARS AGO. IF YOU ARE. CHAIRMAN, YOU WANT -- PRE-RETI REMENT, YOU WANT FEWER HASSLES AND NO WORRIES. IT IS NOT REGIONAL, IT IS NATIONWIDE, AND IT IS HAPPENING AMONG EVERYONE. DAVID, IT IS NOT GOING TO STOP, BECAUSE COVID IS NOT STOPPING. DAVID: ALWAYS SO INSIGHTFUL. REALLY APPRECIATE YOUR SPENDING TIME WITH US. THAT IS FRANK LUNTZ. COMING UP, THE CHICAGO SCHOOL SYSTEM HAS GONE VIRTUAL. WE TALK WITH THE FORMER HEAD OF CHICAGO SCHOOLS ARNE DUNCAN ABOUT HOW TO KEEP KIDS SAFE AND LEARNING. THIS IS "BALANCE OF POWER" ON BLOOMBERG TELEVISION AND RADIO. DAVID: THIS IS "BALANCE OF POWER " ON BLOOMBERG TELEVISION AND RADIO. I'M DAVID WESTIN. SCHOOL DISTRICT'S AROUND THE COUNTRY ARE TERMS WITH THE LATEST OMICRON VERSION OF COVID, WITH NEW YORK SCHOOLS STRUGGLING TO STAY OPEN AND CHICAGO SCHOOLS SHUTTING DOWN AFTER A VOTE BY THE TEACHERS UNION. WE WELCOME ARNE DUNCAN, THE FORMER HEAD OF CHICAGO SCHOOLS AND FORMER SECRETARY OF EDUCATION UNDER PRESIDENT BARACK OBAMA, AND NOW EMERSON NEGLECTED MANAGING PARTNER. ARNE, THANK YOU SO MUCH FOR BEING WITH US. YOUR FRIEND OF SCHOOL DISTRICT AND THE ENTIRE--YOU HAVE RUN A SCHOOL DISTRICT ANYTIME OR DEPARTMENT OF EDUCATION. IT IS A TOUGH PROBLEM. ARNE: IT IS A TOUGH PROBLEM, AND IT IS A PLEASURE TO TALK TO YOU AGAIN BUT WHAT I HATE IS THAT THIS IS THE THIRD SCHOOL YOU'RE DRAMATICALLY IMPACTED BY COVID. KIDS WERE SIX, SEVEN, EIGHT YEARS OLD HAVE NEVER KNOWN A NORMAL SCHOOL YEAR. OUR CHILDREN HAVE BEEN A TERRIBLE PRICE FOR WE TALK ABOUT WHY WE ARE HERE AND IT IS IMPORTANT TO DO EVERYTHING WE CAN TO KEEP OUR SCHOOL BUILDINGS OPEN. VIRTUAL SCHOOL DOES NOT WORK FOR THE VAST MAJORITY OF STUDENTS, PARTICULARLY FOR THE MOST VULNERABLE STUDENTS, DOESN'T WORK FOR KIDS WHO ARE AT HOME, THEY MAY BE FOOD-INSECURE. PARENTS TRYING TO GET TO WORK AND WORK TWO OR THREE JOBS. HERCULEAN EFFORTS TO GET THE DOORS OPEN. COVID ISN'T BEING TRANSMITTED IN SCHOOLS. IT COMES IN FROM THE COMMUNITY, SO IT IS OUTSIDE IN. SCHOOL IS THE SAFEST PLACE KIDS CAN BE, AND THEY NEED THE TIME ACADEMICALLY AND SOCIALLY AND EMOTIONALLY. DAVID: YOU MENTIONED REMOTE LEARNING AND THE FACT THAT IT IS NOT AS GOOD AS IN-PERSON LEARNING. EVERYONE AGREES WITH THAT. HAVE WE GOTTEN ANY BETTER AT IT? HAVE WE IMPROVED? ARNE: WE HAVE GOTTEN BETTER, BUT I'M RELUCTANT TO HAVE TO GO BACK TO WHERE WE WERE. STUDENTS HAVE FIGURED THINGS OUT. OBVIOUSLY IT WORKS BETTER FOR OLDER CHILDREN THAN FOR YOUNGER CHILDREN COULD THERE'S A SMALL PERCENTAGE OF CHILDREN WHO LEARN BETTER IN A VIRTUAL ENVIRONMENT, BUT THE VAST MAJORITY, OVERWHELMING MAJORITY OF KIDS, 95% NEED TO BE IN CLASS IN FRONT OF THE TEACHER WORKING WITH ADULT WHO CARE ABOUT THEM. IT IS NOT JUST THE SCHOOL, BUT THE CLASSES, IT IS ALL THE EXTRA CURRICULAR'S -- DANCE, DRAMA, ART, SPORTS, ROBOTICS. THOSE KEEP KIDS ENGAGED AND WANTING TO COME TO SCHOOL. IT IS A TERRIBLE PRICE WE ARE ASKING OUR CHILDREN TO PAY. DAVID: HOW WOULD YOU GO ABOUT IT? HOW CAN YOU MINIMIZE THE RISK? IS IT TESTING, MANDATORY VACCINATIONS FOR INSTRUCTORS WERE CHILDREN? ARNE: VACCINATIONS ARE FOR EVERYBODY, MAKES A LOT OF SENSE. IT IS MANDATORY MASKS. THESE ARE JUST COMMON SENSE THINGS, NOT CONTROVERSIAL, THAT GO A TREMENDOUSLY LONG WAY TO MINIMIZE AND MITIGATE RISKS. VACCINATIONS, FREQUENT TESTING, MANDATORY MASK-WEARING, MAKING SCHOOLS EXTREMELY SAFE RELATIVE TO OTHER PLACES. DAVID: WE HAVE A NEW MAYOR IN NEW YORK CITY, ERIC ADAMS, AND I INTERVIEWED HIM AT THE BEGINNING OF THIS WEEK, AND HE SAID THE SAFEST PLACE FOR YOUR KID IS IN SCHOOL. IS THAT WITH THE DATA SHOW? ARNE: 100 PERCENT, NOT JUST AROUND COVID, BUT IN LIFE. THE STREETS ARE NOT AS SAFE AS WE WOULD LIKE THEM TO BE WITH CHILDREN HOMELAND BECAUSE KIDS HAVE--PARENTS HAVE TO TO KEEP HER JOB TO PAY THE LIGHT BILL AND BUY FOOD. SCHOOLS ARE THE SAFEST PLACE FOR KIDS TO BE, AND ACADEMICALLY COME SOCIALLY, EMOTIONALLY, IT IS WHERE THEY NEED TO BE. WE HAVE HAD 150,000 KIDS LOSE PARENTS DUE TO COVID. IT IS UNIMAGINABLE. FAMILIES LOSING JOBS,, THAT WERE STABLE, LIVING PAYCHECK-TO-PAYCHECK, THOSE PAYCHECKS DISAPPEARED. IT HAS BEEN SUCH A HARD TIME. IT IS NOT JUST ABOUT ACADEMIC LEARNING. SCHOOL BUILDINGS ARE SOCIAL SAFETY NETS. THE ADULTS THERE ARE LITERALLY LIFESAVERS. THE MANY BENEFITS, MYRIAD BENEFITS OF BEING IN PRISON AND THE PHYSICAL BUILDING AROUND CARING ADULTS, I CANNOT OVERSTATE HOW IMPORTANT THAT IS GOOD . DAVID: ARNE , PUT THIS IN LARGER PERSPECTIVE -- YOU HAVE SPENT YOUR TRACK RETURN TO CLOSE IN EDUCATION GAP. WE HAD AN EDUCATION GAP THAT WAS LARGE AND GROWING BEFORE THE PANDEMIC THE KIDS WHO GOT HIT THE WORST ARE THE KIDS WHO CAN LEAST AFFORD IT. HOW CAN WE POSSIBLY MAKE UP FOR THAT TWO OR TWO-PLUS YEARS? ARNE: GREAT QUESTION, SUCH AN IMPORTANT ONE. I DON'T TALK ABOUT AN ACHIEVEMENT GAP, I REFER TO IT AS AN OPPORTUNITY GAP, AND WE HAVE TO CLOSE THE OPPORTUNITY GAP. ONE OF THE BEST WAYS TO HELP STUDENTS CATCH UP IS BY TUTORING. YOU CAN DO THIS IN PERSON. YOU CAN DO IT VIRTUALLY. MAKING SURE STUDENTS WHO MAY HAVE FALLEN BEHIND, TENS OF MILLIONS OF KIDS AROUND THE COUNTRY HAVE FALLEN BEHIND GIVING ACCESS TO TUTORING, MATH, READING, SOCIAL STUDIES, SCIENCE, FOREIGN LANGUAGE, WHATEVER IT MIGHT BE. MANY HAVE MORE CASH THAN THEY'VE EVER HAD THANK YOU PRESIDENT BIDEN'S ADMINISTRATION SO THEY CAN PAY FOR TUTORS AND WHETHER IT IS COLLEGE STUDENTS, RECENT COLLEGE GRADS, RETIREES, THAT IS THE BEST WAY TO CLOSE THE OPPORTUNITY GAPS CANNOT EDUCATION OR ACHIEVEMENT GAPS. DAVID: LET ME ASK YOU PERHAPS A PROVOCATIVE QUESTION -- ARE TEACHERS UNIONS OPEN TO THOSE SORTS OF MOVES? SOME UNIONS AROUND THE COUNTRY ARE PRETTY RESISTANT TO THAT. ARNE: I THINK IT IS A TOTAL NONISSUE. YOU CAN DO THIS AFTER SCHOOL, YOU CAN DO THIS ON THE WEEKENDS. IT IS NOT REPLACING WHAT IS GOING ON DURING THE SCHOOL DAY. THIS IS IN ADDITION TO. THIS IS TRYING TO SUPPLEMENT WHAT HAPPENED DURING THE SCHOOL DAY. STUDENTS NEED OR TIME AFTER SCHOOL AND ON THE WEEKENDS. WHAT CAN WE DO? WE CAN BUY EDUCATIONAL OPPORTUNITY FOR STUDENTS WITH DOLLARS FROM THE FEDERAL GOVERNMENT. DAVID: YOU GET TO LOOK AT SCHOOL DISTRICT AROUND THE COUNTRY, AND A YEAR OR MORE AGO I TALKED TO THE GOVERNOR OF CONNECTICUT, NED LAMONT, WHO SAID HE WOULD TAKE THAT MONEY AND EXTEND THE SCHOOL YEAR INTO THE SUMMER. DON'T CALL IT SUMMER SCHOOL, CALL IT SUMMER CAMP OR SOMETHING. ARE DISTRICT DOING THAT? IT IS SOMETHING YOU AFFECT ABOUT FOR YEARS. ARNE: I THINK HE IS BRILLIANT, AND NOT EVERY CHILD AGREES WITH ME, BUT CHILDREN HAVE LOST SO MUCH TIME. HAVING THE CHANCE TO GO TO SCHOOL OVER THE SUMMER, IT CAN LOOK VERY DIFFERENT, IT CAN BE AROUND STUDENTS' INDIVIDUAL PASSIONS AND INTERESTS. WHAT IS THEIR GENIUS, HOW DO WE NURTURE THAT, HOW DO WE GET THEM EXCITED ABOUT LEARNING? SUMMER SCHOOL, TIME ON THE WEEKENDS, TIME AFTER SCHOOL, HAVING OUR CHILDREN JUST GO TO SCHOOL SIX HOURS A DAY, FIVE DAYS A WEEK, NINE MONTHS OUT OF THE, THAT FEELS LIKE AN OUTMODED SYSTEM OF EDUCATION. IT IS BASED UPON THE AGRARIAN ECONOMY. MOST OF OUR KIDS DON'T WORK IN THE SUMMERS ANYMORE. STUDENTS CAN LEARN AND GROW. DAVID: ALWAYS SUCH A DELIGHT TO TALK YOU AND I HOPE YOU STAY SAFE. FORMER EDUCATION SECRETARY ARNE DUNCAN. LATER TODAY I'M GOING TO SPEAK WITH GM CHAIR AND CEO MARY BARRA AS GM ANNOUNCES IT'S ALL-ELECTRIC VERSION OF THIS OVERRUN A PICKUP. THAT IS 2:00 P.M. DAVID: THIS IS "BALANCE OF POWER " ON BLOOMBERG TELEVISION AND RADIO. I'M DAVID WESTIN. KATHY HOCHUL WILL DELIVER HER STATE OF THE STATE ADDRESS FOR THE FIRST TIME AS GOVERNOR OF NEW YORK FOR PREVIEW, WE WELCOME IN OUR NEW YORK BUREAU CHIEF. WHAT CAN WE SAY ABOUT WHAT KATHY HOCHUL WILL DO OR SHOULD DO? > > THIS IS HER FIRST BIG SHOW AS GOVERNOR. SHE TOOK OVER DURING A STORM OF THE ANDREW CUOMO SAGA AND THE COVID BACKUP. SHE HAS NOT BEEN ABLE TO ARTICULATE HER POLICY PRIORITIES YET. WE DON'T KNOW A LOT ABOUT WHAT SHE STANDS FOR. SHE WILL BE UP FOR ELECTION IN THE 2022 GOVERNOR'S RACE. A LOT OF VOTERS DON'T KNOW WHO SHE IS AND WHAT SHE STANDS FOR. THAT IS WHAT WE ARE LOOKING FOR TODAY. DAVID: THERE ARE SOME PRESSURES WITHIN THE PARTY, SOME TO GO MORE PROGRESSIVE, SOME TO GO LESS PROGRESSIVE. DOES SHE NEED TO TAKE A POSITION ON THOSE, OR CAN SHE FOCUS ON OTHER THINGS? SHELLY: SHE TALKED ABOUT ETHICS REFORM, SHE WANTS TO LIMIT THE TERM OF GOVERNOR'S TO TWO TERMS AND OTHER STATEWIDE OFFICES FOR THAT IS A BIG NOD TO PREDECESSOR ANDREW CUOMO, WHO WAS GEARING UP FOR A FOURTH TERM WHEN HE ENDED UP RESIGNING. ALSO, BAN APPETITE INCOME, SO THE GOVERNMENT ISN'T ABLE TO EARN $5 MILLION ON WRITING ABOUT. DAVID: OR-- WRITING A BOOK. DAVID: OR HAVE TO GIVE IT BACK. THE LOCATION OF THE SPEECH IS NOT IRRELEVANT. SHELLY: WHAT SHE IS DOING THIS TIME IS HOLDING IT WITH THE LEGISLATURE TO SAY TO YOU, I AM A PARTNER WITH YOU ON THIS. IT IS A BIG OVERTURE TO THE LEGISLATURE, WHO CUOMO REALLY SAID THIS IS MY SHOW AND YOU ARE ALONG FOR THE RIDE, AND SHE IS SAYING I WANT TO DO IT DIFFERENTLY. DAVID: LESS OF A CAMPAIGN RALLY, MORE OF A STATE OF ESTATE ADDRESS. SHELLEY BANJO IS THE NEW YORK BUREAU CHIEF. CHECK OUT THE "BALANCE OF POWER" NEWSLETTER ONLINE. IN THE SECOND HOUR, WE WILL TALK TO A SENATOR FROM GEORGIA. THIS IS "BALANCE OF POWER" ON BLOOMBERG TELEVISION AND RADIO.

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'Balance of Power' Full Show (01/05/2022)

"Bloomberg: Balance of Power" focuses on the intersection of politics and global business. Rep. Robin Kelly and pollster Frank Luntz reflect on the lessons learned in the January 6 assault on the U.S. Capitol last year. Plus, former U.S. Education Secretary Arne Duncan on how schools can best deal with the Omicron variant. (Source: Bloomberg)

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The only daily news program focused exclusively on technology, innovation and the future of business from San Francisco. Hosted by Emily Chang.
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