Latest / Bloomberg Intelligence / Economist Buchholz on New Book: The Price of Prosperity (Audio)

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Economist Buchholz on New Book: The Price of Prosperity (Audio) · Bloomberg Intelligence

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  Speaker 1: Broadcasting live to New York, Bloomberg eleven, Rio to Washington,
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  Speaker 1: one nine team, and around the globe the Bloomberg Radio
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  Speaker 1: plus Appen Bloomberg got gone. This is taking stock. I'm
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  Speaker 1: Kathleene Hayes along with Pim Fox. It's something that fed
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  Speaker 1: your Janet Yellen mentioned in her commentary this week that
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  Speaker 1: maybe there are long term structural problems is holding the
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  Speaker 1: US economy back, things like a decline of work, more
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  Speaker 1: structural issues. Well, we're going to be joined shortly by
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  Speaker 1: a man who's taking these issues square on in his
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  Speaker 1: new book, The Price of Prosperity, Why Rich Nations Fail
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  Speaker 1: and How to Renew Them. He's got some answers to
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  Speaker 1: some of Janet Yellen's dilemmas. Todd buck Holes will be
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  Speaker 1: joining us shortly. All right, and right now, let's go
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  Speaker 1: to Charlie pelleg and the Bloomberg news room for Bloomberg
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  Speaker 1: this flash, and I thank you Phim, thank you Kathleen.
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  Speaker 1: Let's begin with the big picture here. Stocks lower across
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  Speaker 1: all year. Apple heading for its biggest slide in five weeks,
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  Speaker 1: dragging down technology after regulators in China said the latest
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  Speaker 1: iPhones violated a design patent of a Chinese company. Apple
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  Speaker 1: shares her down one percent. Turns out St. Louis Federal
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  Speaker 1: Reserve President Jim Bullard is the missing dot. When the
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  Speaker 1: FED released its economic projections in Washington earlier this week,
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  Speaker 1: one of the seventeen officials sitting around the table did
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  Speaker 1: not put forth an estimate for a long run interest
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  Speaker 1: rate projection displayed in the FED so called dot plot. Today,
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  Speaker 1: Bullard said it was his. Troy Gayski is senior portfolio
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  Speaker 1: manager with Skybridge Capital. You know, all along the lines,
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  Speaker 1: particularly last year, there's been a debate. Is the market
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  Speaker 1: right is the FED rights? The market right is the
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  Speaker 1: fed right, and it looks like the market's been right
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  Speaker 1: for quite some time, so you know, two and a
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  Speaker 1: half years out. He's also admitting that you really have
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  Speaker 1: no predictive power over that, so stop pretending you do.
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  Speaker 1: Viacom is forecasting earnings for the quarter ending in June
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  Speaker 1: that lagged behind analysts analysts estimates, adding to the woes
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  Speaker 1: of its leader under siege. CEO of Philip Domon. Viacom
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  Speaker 1: shares roses. Investors speculated that the earnings forecast would put
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  Speaker 1: him uh put more pressure on him to step down.
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  Speaker 1: Viacom up one point one percent to thirty two on
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  Speaker 1: Wall Street Now the other stories making news. Thank you,
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  Speaker 1: Charlie from the Bloomberg newsroom. I'm Oliver Rennick. There's likely
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  Speaker 1: to be a showdown over gun control next week on
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  Speaker 1: Capitol Hill. In the wake of the Orlando massacres. Senate
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  Speaker 1: Democrats pushed Republicans to allow a vote on their proposal
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  Speaker 1: bi order. The Russian track and field team is being
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  Speaker 1: banned from the Olympics in Rio. The International Association of
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  Speaker 1: Athletics Federations announced today the Russian Athletics Federation has not
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  Speaker 1: done enough to prove they've cleaned up the team after
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  Speaker 1: charges of systemic doping. Here's i Double a F President
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  Speaker 1: Sebastian co. Although good progress has been made, the Double
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  Speaker 1: a F Council was unanimous that Russa had not met
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  Speaker 1: the reinstatement conditions and the Russian athletes could not credibly
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  Speaker 1: return to international competition. The Duke of Cambridge is taking
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  Speaker 1: on cyber bullies, Prince Williams launching a task force with Google,
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  Speaker 1: Twitter and Snapchat to combat online of use. Social media
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  Speaker 1: and messaging had transformed bullying from something there was not
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  Speaker 1: only the torments of the classroom and playgrounds. That's something
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  Speaker 1: that followed you home as well to the one safe
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  Speaker 1: haven that children should have. William says becoming a father
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  Speaker 1: has made him increasingly sensitive to the problem, especially for kids.
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  Speaker 1: A judge has ruled it a New York man fatally
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  Speaker 1: poisoned more than a decade ago by his wife will
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  Speaker 1: from the Bloomberg News Room on Oliver Rennick, Charlie, and
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  Speaker 1: we thank you and again recapping with you have stocks
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  Speaker 1: law SMP five hundred index down four to two thousand,
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  Speaker 1: seventy three, a drop of two tenths to one percent.
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  Speaker 1: Gold is down one tenth of one percent, down to
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  Speaker 1: dollar twenty to twelve ninety seven. I'm Charlie Pellett and
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  Speaker 1: that's a Bloomberg Business flash. This is taking stock with
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  Speaker 1: Kathleen Hayes and Pox on Bloomberg Radio. For a lot
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  Speaker 1: of Americans in this election year, there is a sense
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  Speaker 1: that something they've once had is slipping through their fingers.
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  Speaker 1: Some would say that's why the likes of Donald Trump
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  Speaker 1: and Bernie Sanders have done so well this year. A
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  Speaker 1: new book, The Price of Prosperity, Right Rich Nation Failed
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  Speaker 1: and How to Renew Them, goes to the heart of
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  Speaker 1: this matter. What is wrong with this country? How can
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  Speaker 1: we regain our past economic glory? Todd Buckles joins us now.
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  Speaker 1: He is the author of many books, from New Ideas
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  Speaker 1: from Dead CEOs to his current new book, Ted Todd
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  Speaker 1: Welcomb Good to be with you. So what led you
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  Speaker 1: to write this one? Well, you know, all my life,
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  Speaker 1: I've heard friends and neighbors, starting when I was a
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  Speaker 1: little kid growing up on the Jersey Shore, And the
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  Speaker 1: book starts out with that. And I'm a kid and
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  Speaker 1: my dad's flipping Hamburgers some summer day and I'm squatting
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  Speaker 1: mosquitoes off of my legs, and some neighbors says, if
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  Speaker 1: Nixon gets elected, I'm moving to Canada. And then a
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  Speaker 1: few years later, of Carter gets elected, I'm moving to Canada. Oh,
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  Speaker 1: if Reagan gets elected, I'm moving. And I figured Canada
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  Speaker 1: must be a pretty crowded place, but it's not. But now,
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  Speaker 1: for Kathleen, for the first time in my life, when
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  Speaker 1: people bemoan the current state of US and the United
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  Speaker 1: States and our politics and threatened to move, now, I
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  Speaker 1: think they may not be bluffing. And I think that
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  Speaker 1: there's been a decline in patriotism, a decline in hope.
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  Speaker 1: And that's why, as you say, you see Bernie Sanders
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  Speaker 1: and Donald Trump out there creating all sorts of all
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  Speaker 1: sorts of passion and all kinds of millions of votes
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  Speaker 1: because America is not the place it was, and the
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  Speaker 1: question is can we become great again? Let me just
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  Speaker 1: put to you that's something you talked about recently, Todd.
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  Speaker 1: This has to do with tax cuts and trade agreements.
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  Speaker 1: You said, you can argue all you want about these things,
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  Speaker 1: tax cuts, trade agreements, but the fact is that the
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  Speaker 1: president is a symbol for whether the country is interested
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  Speaker 1: in strong economic growth or not. And as the former
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  Speaker 1: White House Director of Economic Policy under George H. W.
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  Speaker 1: Bush and also managed former managing director of the Tiger
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  Speaker 1: Hedge Fund, what do you mean by that? Because it
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  Speaker 1: seems as if you just described the problem, how do
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  Speaker 1: we deal with it? How do we face these challenges successfully? Well, there,
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  Speaker 1: of course many challenges, and in the book I point
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  Speaker 1: out five factors that undermine prosperous countries and have throughout history.
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  Speaker 1: We just just go to history for a moment. There
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  Speaker 1: used to be Habsburgs wandering around Europe. There used to
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  Speaker 1: be Ottomans, and they're gone. Those were very successful, prosperous empires,
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  Speaker 1: but they were undermined from within, and so are we
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  Speaker 1: now him. When you get to the question of what
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  Speaker 1: can a president do well, first and foremost, the president
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  Speaker 1: he or she needs to answer whether economic growth and
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  Speaker 1: is a priority or not. It was a priority, certainly
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  Speaker 1: under President Reagan, it was a priority under President Clinton,
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  Speaker 1: Democratic president. I think if you if you speak to
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  Speaker 1: many business people today about the Obama administration and how
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  Speaker 1: it looks at the idea of people earning money and
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  Speaker 1: the idea of companies earning profits, they feel almost as
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  Speaker 1: if the Obama administration sat on a tank turret and
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  Speaker 1: did a three sixty degree turn firing at every industry.
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  Speaker 1: First it was the HMS, Then it was the oil industry,
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  Speaker 1: Then it was the coal industry, then it was the
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  Speaker 1: pharmaceutical industry. And according to the administration, they were virtually
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  Speaker 1: all bad actors. And at some point they dragged in.
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  Speaker 1: You remember Tim Cook from Apple was almost shackled and
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  Speaker 1: dragged before the Senate for tax so called tax dodging.
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  Speaker 1: So what does that mean. It means it's telling business
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  Speaker 1: is that the US is no longer hospitable place to invest,
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  Speaker 1: and so it's not surprising, therefore, that you see that
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  Speaker 1: business investment has been the biggest laggard in this rather
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  Speaker 1: tepid economic recovery. Patriotism, you think we need more of
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  Speaker 1: it for everybody, people who have been born and raised
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  Speaker 1: here for decades, and the newcomers. Absolutely. I think there's
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  Speaker 1: a joint obligation that's missing from our society, and at
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  Speaker 1: the end of the price of prosperity, I put four.
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  Speaker 1: It's something I call the patriotist manifesto and their dual obligations.
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  Speaker 1: I believe that any immigrant or would be immigrant needs
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  Speaker 1: to embrace American history. I would make it a requirement
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  Speaker 1: that if you're applying for citizenship or a green card,
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  Speaker 1: I would require you to have your passport staffed, not
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  Speaker 1: simply at the port of entry at JFK or l
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  Speaker 1: A X, but at least five historical landmarks in the US.
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  Speaker 1: But I also would put an obligation on Americans American citizens.
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  Speaker 1: If a student is applying for a loan, I would
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  Speaker 1: require them to get their passports staffed, whether it's at
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  Speaker 1: Mount Vernon or the Museum of Tolerance in Ellis Island
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  Speaker 1: and the like. I think it's very important that immigrants
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  Speaker 1: feel that they have embraced American history, and American citizens
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  Speaker 1: need to need to honor immigrants and respect the fact
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  Speaker 1: that someone coming off the boat today has just as
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  Speaker 1: much right to embrace. Thomas Jefferson in Alexander Hamilton's someone
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  Speaker 1: who came Over on the Mayflower, give me about thirty seconds.
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  Speaker 1: Robots and minimum wage. Wow, you know the minimum wage
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  Speaker 1: is zero right at the minimum because companies can fire
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  Speaker 1: folks if they don't want to pay the minimum wage.
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  Speaker 1: When I when I travel, whether through the Guardian Airport
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  Speaker 1: or any other airport in this country, I'm amazed by
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  Speaker 1: the number of iPads I see that have replaced waiters
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  Speaker 1: and waitresses. So sure, you can make the minimum wage
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  Speaker 1: an hour, but you can't force businesses to hire. In
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  Speaker 1: terms of robots, I worry about our education system. Uh.
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  Speaker 1: People need critical thinking skills. You can't get by on
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  Speaker 1: braun anymore. You need brains. Thank you very much for
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  Speaker 1: sharing your brain with us. Is economist and author of
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  Speaker 1: the new book The Price of Prosperity, Why rich Nations
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  Speaker 1: Fail and How to renew them. You're listening to taking
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  Speaker 1: Stock on Bloomberg Radio. This Hampton's communter minute is brought
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