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Trump Spars With Disaffected Senate · Balance of Power

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Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. You're listening to the
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Speaker 1: get your podcasts, or watch us live on YouTube.
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Speaker 2: Here in Washington, as Joe mentioned, town has gotten a
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Speaker 2: little less crowded as the Senate has now headed out
0:30
Speaker 2: for effectively a two week break. They won't be back
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Speaker 2: until July thirteenth. Nothing left to vote on and perhaps
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Speaker 2: nothing left to celebrate as they thought they were going
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Speaker 2: to be celebrating yesterday in the capitalist signing of the
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Speaker 2: bipartisan housing bill that passed both chambers with massive bipartisan majorities.
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Speaker 2: It got eighty five votes in the Senate, and yet
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Speaker 2: it did not get yet at least the signature from
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Speaker 2: President Trump, who of course yesterday canceled that plan signing
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Speaker 2: because he wants to see the Save America Act pass first,
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Speaker 2: which raises the question as to whether and when he
1:01
Speaker 2: does intend on signing the housing bill at some point.
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Speaker 2: He was asked about that in the Oval Office yesterday afternoon.
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Speaker 3: I said it much so I need a housing BLL.
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Speaker 4: I want to see what happens.
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Speaker 5: We say, Look, the Housing bill is housing. I made
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Speaker 5: vinions of dollars with housing. I know housing better than
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Speaker 5: anybody maybe anywhere. It's all about the interest rate. Lower
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Speaker 5: the interest rate, so you can have all the housing
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Speaker 5: you want.
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Speaker 3: Lower the interest rates.
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Speaker 6: Of course, that's what he would love the Federal Reserve
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Speaker 6: to start doing. And it's been made more difficult by
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Speaker 6: the rise and prices reaffirmed today in economic data with
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Speaker 6: a fore handle still on the PCE.
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Speaker 3: But we want to get to the matter at hand.
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Speaker 6: With regard to this legislation, it has not been sent
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Speaker 6: to the President yet to our understanding.
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Speaker 3: Therefore, he could take some time.
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Speaker 6: In fact, all the time he wants until it's transmitted
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Speaker 6: to the White House. That he'd have ten days to
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Speaker 6: sign it before it automatically became law, unless again, he
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Speaker 6: decided to veto it. Bloomberg's Tyler Kendall now live from
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Speaker 6: the White House with the latest on this. Tyler, the
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Speaker 6: Speaker of the House is on his way to meet
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Speaker 6: with the President about an hour from now.
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Speaker 3: Can he turn this around?
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Speaker 7: Well, Joe, he's definitely going to try to We heard
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Speaker 7: from the House Speaker Mike Johnson yesterday seeming to indicate
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Speaker 7: that they're going to try to take some provisions from
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Speaker 7: the Safe Act and tie it into a reconciliation package, which,
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Speaker 7: as you both well know, would mean that potentially that
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Speaker 7: legislation could get through with just a simple majority. It
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Speaker 7: would pass on a partisan basis, alongside party lines. But
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Speaker 7: we're already starting to hear from some Republicans that that
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Speaker 7: path may not be so easy. As some of those
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Speaker 7: more fiscally conservative members, if you will, have raised concerns
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Speaker 7: about passing a reconciliation three point zero, they say that
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Speaker 7: they would need to see full pay force in any
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Speaker 7: such package, which could prove problematic as we've seen with
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Speaker 7: previous reconciliation packages. So this isn't going to be so
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Speaker 7: cut and dry or easy. Plus, also, Joe and Keiley,
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Speaker 7: that raises, of course, always the prospect that we could
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Speaker 7: see at lawmaker start to tack on some other priorities.
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Speaker 7: Once you start a reconciliation bill, it is very hard
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Speaker 7: to keep it on the slim and narrow. That means
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Speaker 7: that that could spark some other debates which could ultimately
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Speaker 7: derail the timeline. Because we know that President Trump wants
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Speaker 7: to see this as soon as possible. Originally, he had
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Speaker 7: said July fourth, It appears difficult that they're going to
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Speaker 7: make that timeline, But how Speaker Mike Johnson is definitely
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Speaker 7: coming over here to the White House to try to
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Speaker 7: continue with the conversation with President Trump. After quite a
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Speaker 7: contentious meeting with his colleagues in the Upper Chamber.
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Speaker 6: Yesterday, Bloomberg's Tyler Kendall live at the White House a
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Speaker 6: day after the President's meeting with the NATO Secretary General.
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Speaker 6: The Oval Office has been a busy place lately following
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Speaker 6: that meeting, involving the future of NATO, the President's commitment
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Speaker 6: to Ukraine, what's happening.
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Speaker 3: With regard to the war with Iran.
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Speaker 6: Mark Ruta, the Secretary General, made his way to our
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Speaker 6: cameras on the North lawn, right where Tyler was standing
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Speaker 6: for an exclusive conversation.
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Speaker 3: Here's what he said.
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Speaker 8: What I believe is to be fair when leadership is successful.
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Speaker 8: His leadership is successful, and what I wanted to show
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Speaker 8: today is the successful in three ways. One on in
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Speaker 8: around a degree in nuclear capability. Two or NATO not
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Speaker 8: only getting the allies to deliver to commit to five
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Speaker 8: percent defense spending, but also to deliver on the spending,
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Speaker 8: and that's clearly what is happening at the moment. And third,
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Speaker 8: by taking that code, that mental of being the leader
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Speaker 8: of the free world, and when he meets an Ancora,
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Speaker 8: he will meet with all the allies, but also ten
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Speaker 8: countries there as guests from the Middle East, from in
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Speaker 8: the Pacific, a total combined GDP of seventy seven zero
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Speaker 8: seventy trillion dollars two and a half the size of
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Speaker 8: the United States. Absolutely there to hear his views, to
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Speaker 8: get his thoughts on the next steps we collectively have
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Speaker 8: to take well.
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Speaker 2: Of course, the financial aspect of this and the investments
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Speaker 2: into the defense industrial base are one part of it,
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Speaker 2: mister Secretary General, but there's also the consideration of actual
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Speaker 2: human capital and US military forces that are currently stationed
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Speaker 2: all around Europe. Obviously we've now seen withdrawals and considerations
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Speaker 2: this administration is making about moving troops around. Further, how
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Speaker 2: do you avoid anything being chaotic in nature as that
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Speaker 2: plays out, and how does Europe make sure that it's
5:27
Speaker 2: able to adequately defend himself itself in a surprise scenario.
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Speaker 2: What are those preparations like I.
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Speaker 3: Think the United States is doing that.
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Speaker 8: So let's first agree that the United States has to
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Speaker 8: take care of multiple theaters, not only Europe, also for
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Speaker 8: example in the Pacific. And if a situation would occur
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Speaker 8: where they have to defend both sites of the equation,
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Speaker 8: both in the Pacific and Europe, they have to avoid
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Speaker 8: the situation in which they have spread their resources too thinly.
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Speaker 8: This is why Europeans have to step up. This is
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Speaker 8: NATO three points always strung you up in a strong
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Speaker 8: with NATO.
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Speaker 2: NATO three point zero is the message from its Secretary
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Speaker 2: General Marker, who just spoke with us yesterday on balance
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Speaker 2: of power exclusively after his meeting with President Trump in
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Speaker 2: the Oval Office. And now for reaction to what he
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Speaker 2: told us and what that meeting perhaps portends for the
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Speaker 2: NATO summit happening in Turkey in just a few weeks,
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Speaker 2: we turned to a former NATO ambassador, Kay Bailey Hutchison,
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Speaker 2: who of course was the US Ambassador to NATO, also
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Speaker 2: a former Republican senator from Texas. Ambassador welcome back to
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Speaker 2: Bloomberg TV and Radio. We were all speaking in advance
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Speaker 2: of the Secretary General's visit about what a tough job
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Speaker 2: he may have had ahead of him and trying to
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Speaker 2: message to this president the importance of the US maintaining
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Speaker 2: its alliance with this alliance, with the importance of the allies.
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Speaker 2: He even brought charts a poster board presentation to underscore
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Speaker 2: the commitments the alliance is making financially to the defense
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Speaker 2: industrial base. Do you believe that's enough for this president
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Speaker 2: for this administration?
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Speaker 9: Thank you, Kaylee for having me.
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Speaker 10: I do think the President is certainly looking at this,
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Speaker 10: and I think that G seven was a good beginning
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Speaker 10: for preparation for the NATO summit, because I think that
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Speaker 10: the importance of the alliance for the long term for
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Speaker 10: our own country security when we are facing potential adversaries
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Speaker 10: in Asia, Asia Pacific, in the Middle.
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Speaker 9: East, we need allies.
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Speaker 10: And I think the President was rightly disappointed when we
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Speaker 10: were trying to hold down the nuclear capability of Aram
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Speaker 10: and some of our NATO allies did not allow us
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Speaker 10: to use airspace or even bases that we join in
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Speaker 10: paying for.
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Speaker 9: I think the President was concerned about that.
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Speaker 10: I hope and what I'm looking for for the summit
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Speaker 10: is that we would now come together as it seemed
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Speaker 10: happened in the G seven and say okay, for the
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Speaker 10: long term, we're stronger together.
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Speaker 6: Until recently, until yesterday, Ambassador the President's been referring to
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Speaker 6: NATO as a paper tiger.
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Speaker 3: Did this meeting yesterday save the alliance as we know it?
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Speaker 10: I think everyone that is tuned in here believes that
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Speaker 10: NATO is a very important alliance. That we do so
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Speaker 10: much interoperability with our NATO allies, of our airplanes, are
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Speaker 10: intel sharing, all of those things are important that we
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Speaker 10: do together. I don't think NATO is a paper tiger.
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Speaker 10: I think NATO is a very strong and important alliance
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Speaker 10: in the security of our country, and I think the
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Speaker 10: members of Congress agree with that in the main and
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Speaker 10: are supportive of helping our NATO allies and to keep
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Speaker 10: us strong.
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Speaker 9: Does that mean that we wouldn't move troops around.
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Speaker 10: Yes, we will, I'm sure that's what the secret the
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Speaker 10: President is saying. But I don't think it's going to
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Speaker 10: be any kind of an abandonment of NATO. And in fact,
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Speaker 10: I hope that this NATO summit with all of the
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Speaker 10: heads of state, including our Asia Pacific partners, will strengthen
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Speaker 10: the alliance.
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Speaker 2: Well as we consider what may come of the summit.
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Speaker 2: Are you expecting, Ambassador, any firm tangible deliverables, either for
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Speaker 2: the members of the Alliance or even a country that
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Speaker 2: is not Ukraine.
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Speaker 10: Well, I certainly think there will be discussions of Ukraine.
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Speaker 10: That is Europe's most important priority, because it's so close,
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Speaker 10: and I think the President is getting weary, should have
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Speaker 10: been weary a long time ago of Russia's dangling peace
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Speaker 10: agreements and then not coming through. I think Russia should.
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Speaker 10: I think we should have more sanctions on Russia, and
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Speaker 10: I think we should help end this, and I think
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Speaker 10: that will be a major topic of the summit, which
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Speaker 10: is in all of our interests to help Ukraine and
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Speaker 10: this ridiculous invasion of their sovereign nation.
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Speaker 6: Well, so tell us more about that, Ambassador, What would
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Speaker 6: be your advice. How do we end this now? Is
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Speaker 6: it by providing more weapons directly to Ukraine?
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Speaker 3: Is it intelligence? Is it what we're already doing all
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Speaker 3: of the above.
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Speaker 9: I think more.
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Speaker 10: I think we do share intelligence. I think we should
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Speaker 10: be doing everything possible to help them get more of
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Speaker 10: the drones that have been so successful now that they
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Speaker 10: have perfected it on their own, are making headwork. They
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Speaker 10: have a right to do that. I think we should
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Speaker 10: be helping them and.
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Speaker 2: Having a bit of trouble. We're having a little bit
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Speaker 2: of trouble with your connection, ambassador, but we appreciate your
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Speaker 2: thoughts on Ukraine. Knowing, of course, and as the Ambassador
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Speaker 2: was alluding to earlier, Joe that we heard from the
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Speaker 2: President at the G seven summit in France that he
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Speaker 2: would like to shift his attention to Ukraine and ending
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Speaker 2: the war between Ukraine and Russia once this Saran situation
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Speaker 2: obviously resolved, though that is still very much a work
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Speaker 2: in progress. We've got the memorandum of understanding a final deal,
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Speaker 2: though still has many weeks to be negotiating.
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Speaker 6: Well, look, there's only so many patriots to go around
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Speaker 6: right now, as we have also learned, with a lot
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Speaker 6: of players around the world, including Israel, looking to replenish
11:54
Speaker 6: their stocks of defensive missiles. But we also know that
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Speaker 6: the President likes to align it self with a winner.
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Speaker 6: We've heard that a lot of times over the last
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Speaker 6: couple of days, and it does appear and we'll hear
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Speaker 6: about this on Twitter as soon as we say. The
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Speaker 6: tide may be turning with Ukraine reaching deeper into Russia
12:12
Speaker 6: and really inflicting some serious damage by using drones that
12:15
Speaker 6: are being built in people's garages.
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Speaker 3: It's a pretty remarkable moment.
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Speaker 2: Yeah, And we asked the Secretary General Mark Rute about
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Speaker 2: that yesterday whether or not any allies had concerns about
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Speaker 2: Ukraine striking deeper into Russian territory. His answer was basically, no,
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Speaker 2: Ukraine deserves to defend itself in there. Of course, happy
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Speaker 2: to see Ukraine advancing where it can. And on that note, Ambassador,
12:37
Speaker 2: as we've reestablished your connection when you consider Joe just
12:41
Speaker 2: mentioned the need for patriot missile systems for example, but
12:44
Speaker 2: the idea that there is not ample supply necessarily when
12:48
Speaker 2: we have all of these different theaters that require our attention,
12:52
Speaker 2: how concerned are you that potentially the funding isn't going
12:57
Speaker 2: to be there? As we know that there's been supplemental
12:59
Speaker 2: funding requests now sent to Congress to fund in part
13:02
Speaker 2: our war effort in Iran, and look at our stockpiles,
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Speaker 2: and it doesn't seem like there's massive appetite to acquiesce
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Speaker 2: to that request for the Congress to pass it.
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Speaker 9: Kayley, it's a good question.
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Speaker 10: I think every time Congress has voted for help for Ukraine,
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Speaker 10: for instance, that has passed and it has been significant
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Speaker 10: just recently, but we do need a bigger arsenal, that's
13:28
Speaker 10: for sure. We use a lot on Iran, and we
13:32
Speaker 10: certainly have been helpful to Ukraine. We hope the Europeans
13:37
Speaker 10: will step up also to help us as we help Ukraine.
13:42
Speaker 10: And I think we could do more for Ukraine, and
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Speaker 10: I think we could do more to tamp down Russia.
13:48
Speaker 10: I think it is time, and I think the President
13:52
Speaker 10: has shown that he is very frustrated with Russia and
13:59
Speaker 10: that we need to help Ukraine in this and I
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Speaker 10: think that can be done with more sanctions and of
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Speaker 10: a grip on Russia, but also helping Ukraine finish the job.
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Speaker 6: Ambassador, we've only got about a minute left. I'd love
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Speaker 6: for you to just reach back to your old Senate
14:17
Speaker 6: cap for a moment and reflect on what took place yesterday,
14:21
Speaker 6: as the President had a pretty tough conversation with the
14:24
Speaker 6: Republican caucus in the Senate about a range of issues,
14:26
Speaker 6: including Iran, the War Powers vote, which he apparently turned
14:29
Speaker 6: around within the day yesterday, but also the Save America Acts,
14:34
Speaker 6: the housing bill that he's put on ice. Is the
14:36
Speaker 6: President being fair to the Senate Majority leader?
14:41
Speaker 10: Well, I think the worst thing that Senate did was
14:46
Speaker 10: ever showing no support for the Iranian situation while we
14:52
Speaker 10: are in a very delicate negotiation. That was just short sighted,
14:57
Speaker 10: and I was glad that the President showed what he
15:02
Speaker 10: had to the Senate to do that.
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Speaker 9: The Senate certainly has. The Senate and the House.
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Speaker 10: Are at longerheads right now, and it is time for
15:12
Speaker 10: them to work together going forward on these very important issues. Certainly,
15:17
Speaker 10: the Same America Act is so important. The housing I
15:21
Speaker 10: think is important, but it can be negotiated to this, Yes,
15:26
Speaker 10: thank it even stronger.
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Speaker 6: But Kay Billy Hudgson, thank you, ambassador for the insights.
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Speaker 6: I'm sorry we're out of time. Stay with us on
15:33
Speaker 6: Balance of Power. We'll have much more coming up after this.
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Speaker 1: You're listening to the Bloomberg Balance of Power podcasts. Catch
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15:58
Speaker 2: I'm Kaylee Lines alongside Joe Matt. You here in Washington,
16:01
Speaker 2: where we continue the analysis the post mortem on the
16:04
Speaker 2: primaries that happened in New York earlier this week, in
16:07
Speaker 2: which number of progressive candidates backed by the Democratic socialist
16:10
Speaker 2: Marizona Mom Donnie won their primaries in two cases, ousting
16:15
Speaker 2: more moderate incumbents in those seats, or at least less
16:20
Speaker 2: to the left than some of these Democratic Socialists. This
16:23
Speaker 2: is a debate we had on the program yesterday if
16:25
Speaker 2: you heard our conversation with New York Republican Congressman Mike Lawler.
16:29
Speaker 2: But you're continuing to see more evidence of the wind shifting,
16:34
Speaker 2: perhaps in certain portions of the Democratic Party, in a
16:38
Speaker 2: break from what Democratic leadership wants versus what others are pursuing.
16:43
Speaker 2: Here in the AP now reporting Joe interestingly that Senator
16:46
Speaker 2: Chris van Holland of Maryland is now backing Abdul al
16:49
Speaker 2: Sayed in the Michigan Senate race. Of course, it's a
16:51
Speaker 2: three way race between him, Mallory McMorrow, and Congressman Haley Stevens.
16:55
Speaker 2: Hailey Stevens is the one backed by leadership by Chuck Schumer,
16:59
Speaker 2: and yet van hlla choice is il say It, who
17:01
Speaker 2: of course also has the endorsement of the likes of
17:03
Speaker 2: Bernie Sanders. Once again progressive versus moderate and which way
17:06
Speaker 2: does the party want to be going.
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Speaker 6: This is why we heard from Scott Bessant and other
17:10
Speaker 6: Republicans yesterday. So this isn't just a Manhattan phenomenon. Look
17:13
Speaker 6: at Maine, yeah, look at Michigan, look at what happened
17:16
Speaker 6: in California, and there are other examples. The President calls
17:19
Speaker 6: them communists. They are self described socialist democratic socialists who
17:24
Speaker 6: have become a significant part of this party, helped in
17:28
Speaker 6: part by Bernie Sanders. This is interesting for Van Holland,
17:30
Speaker 6: of course, a progressive from Maryland, but also an establishment
17:35
Speaker 6: Democrat has been in the mix for a lot of
17:37
Speaker 6: years here. So we didn't have a chance to get
17:39
Speaker 6: to Genie on this, which shall be very curious to hear.
17:43
Speaker 6: The question is do we have a national trend underway?
17:46
Speaker 6: Are the cross currents actually what they appear to be.
17:49
Speaker 6: We're still stuck at primary season.
17:51
Speaker 9: Yeah.
17:51
Speaker 2: Well, of course, at least on the Republican side, they're
17:54
Speaker 2: suggesting that this is showing directional where the Democratic Party
17:57
Speaker 2: is headed. That's actually what President Trump said in the
18:00
Speaker 2: Oval Office yesterday in reaction to New York's results.
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Speaker 9: Well, they're going radical left they're going.
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Speaker 5: Really, you know you talk about the Democrats socialists you took,
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Speaker 5: Really it's really a communist. He picked three they won.
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Speaker 8: They'd be a guy named Dan Golman, and.
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Speaker 5: He's a pretty liberal guy.
18:18
Speaker 3: When they go more liberal than Dan Goldman. They're really
18:23
Speaker 3: it to never never Let bringing our panel now, and
18:27
Speaker 3: we've got a good one today.
18:28
Speaker 6: Bloomberg Politics contributor Jeanie Schanzino are democratic analyst and democracy
18:32
Speaker 6: visiting fellow at Harvard Kennedy School's Ash Center, alongside Republican
18:36
Speaker 6: strategist Katie Frost back today the political director of the
18:39
Speaker 6: American Principles Project.
18:41
Speaker 3: Lady's great to have both of you with us, and
18:43
Speaker 3: thank you.
18:44
Speaker 6: What do you make of this conversation, Jeanie, you're not
18:46
Speaker 6: only coming from New York, but I don't know, are
18:48
Speaker 6: you a communist?
18:50
Speaker 11: I'm not a communist, Joan, not yet, but you know,
18:53
Speaker 11: I think a few things. The first thing is is
18:56
Speaker 11: that it is a little too early to say this.
19:00
Speaker 11: This is where the party is heading, britt Large. You
19:02
Speaker 11: know you just mentioned Mike Lawler. He is going to
19:06
Speaker 11: compete against a Democratic centrist named Kate Connelly, who is
19:12
Speaker 11: a special ops dedicated a decorated rather a veteran, a
19:16
Speaker 11: West Point graduate, a formidable force, and not a member
19:20
Speaker 11: of the DSA New York City, Richie Torres. You go
19:23
Speaker 11: over in New New Jersey, mikey Ryl, Virginia where you
19:26
Speaker 11: all are near, we have a governor. So yeah, I
19:29
Speaker 11: think Michigan is the bigger test of this. And it's
19:32
Speaker 11: fascinating what you were just talking about, how those endorsements
19:35
Speaker 11: are spreading out.
19:36
Speaker 3: But the other part of.
19:37
Speaker 11: This, and I think this is really important for people
19:42
Speaker 11: to think about, is that we did see the DSA
19:46
Speaker 11: do very well both for those endorsements from Mamdani and
19:50
Speaker 11: then quite frankly in the New York State legislature as well.
19:54
Speaker 11: Here's one reason why you have about seven percent to
19:58
Speaker 11: eight percent of turnout in New York York City, which
20:00
Speaker 11: is deplorable for these primaries, very low, and who is
20:04
Speaker 11: turning out a lot of young people And I talked
20:07
Speaker 11: to them day.
20:08
Speaker 9: On and what do they say.
20:10
Speaker 11: Somebody yesterday just pointed me to this wallet hub study
20:14
Speaker 11: that was just released where New York City ranked one
20:17
Speaker 11: hundred and eighty second, the last city in the country
20:21
Speaker 11: in terms of entry level jobs. Why because you cannot
20:25
Speaker 11: afford to live in New York City. So you know
20:28
Speaker 11: when we asked, oh, why are they voting this way?
20:31
Speaker 11: People are frustrated. And let's not forget the President just
20:35
Speaker 11: decided not to sign a housing bill yesterday that could
20:38
Speaker 11: have eased up on that.
20:39
Speaker 9: So this is something that makes sense.
20:42
Speaker 11: They aren't voting this way because they're socialists or their
20:46
Speaker 11: communists necessarily, or they want to abolish prisons. It's because
20:49
Speaker 11: they can't afford to live in New York City. And
20:52
Speaker 11: that's what's got to be addressed. And if the establishment
20:54
Speaker 11: Democrats aren't going to address it, they should vote for
20:57
Speaker 11: Democratic socialists.
20:59
Speaker 3: All I know is my didn't like it when you
21:01
Speaker 3: referred to his opponent as a centrist.
21:02
Speaker 2: Yes, And I didn't say centrist, I said more moderate.
21:06
Speaker 2: I'm thinking there's a spectrum, a political spectrum here. There's
21:09
Speaker 2: the far left, there's the far right in the middle.
21:12
Speaker 2: If you're less far left, that makes you more toward
21:14
Speaker 2: the moderate direction. But I would say, might think courage you, Katie.
21:18
Speaker 2: On Janie's point about New York City not necessarily being
21:22
Speaker 2: the tell here that a state like Michigan maybe will
21:25
Speaker 2: will lead us to know more than New York City.
21:27
Speaker 2: Is is that going to stop Republicans from tying mom
21:31
Speaker 2: Donnie to national Democrats? Even though he's not a president,
21:35
Speaker 2: he's not even a federal Democratic leader, he's a mayor.
21:40
Speaker 4: It was an extremely high profile figure within the Democratic
21:42
Speaker 4: Party and leading the largest Democratic city in the country.
21:45
Speaker 4: So of course Mamdani is going to be part of
21:47
Speaker 4: the conversation because what we're going to see is New
21:50
Speaker 4: York is going to become a hub for testing the
21:53
Speaker 4: actual ability to govern like a democratic socialist. You remember
21:57
Speaker 4: what was the big slogan that Mamdanni ran on free bus?
22:00
Speaker 4: What's happened since he was elected? Or the bus is
22:02
Speaker 4: free yet? No, it's actually gone up to three dollars
22:05
Speaker 4: instead of two ninety. Is the rent lower yet?
22:08
Speaker 10: No?
22:09
Speaker 9: Will it get lower? Probably not.
22:11
Speaker 4: He's talking about we're gonna have city run grocery stores.
22:13
Speaker 4: Those are many years away. So what we're seeing is, yes,
22:16
Speaker 4: they're frustrated young people, and that's actually a baringson point
22:19
Speaker 4: Jennie got on because the largest demographic that vote for
22:23
Speaker 4: Democratic socialists are young people. And you could say it's
22:27
Speaker 4: because there aren't entry level jobs that would counter it's
22:29
Speaker 4: because they're young. The frontal low probably hasn't fully developed yet,
22:33
Speaker 4: and they don't have other people in their lives that
22:34
Speaker 4: they're worried about. These are single people, they are not
22:37
Speaker 4: have children. But if we find a way to get
22:40
Speaker 4: these folks where they can have a good job, where
22:42
Speaker 4: they can get married, own a home, have kids, you
22:45
Speaker 4: know what's going to happen. They're all going to become
22:46
Speaker 4: Republicans because tim that all the data shows that if
22:49
Speaker 4: you are married and you have children, you're far more
22:51
Speaker 4: likely to be a Republican. That is the biggest indication
22:53
Speaker 4: of your party allegiance is actually your marital status and
22:56
Speaker 4: how many kids you have.
22:57
Speaker 9: So here's the thing we have.
22:58
Speaker 4: Young people are frustrated that no one says anything's affordable.
23:01
Speaker 4: So both parties have to put forward their ideas, here's
23:05
Speaker 4: what we're.
23:05
Speaker 9: Going to do to help you.
23:06
Speaker 4: And unfortunately, right now young people are being swayed by
23:09
Speaker 4: a bunch of theater kids who're running for class presidents
23:11
Speaker 4: saying they're going to give you ice.
23:12
Speaker 9: Cream every day.
23:13
Speaker 4: But it's just not actually going to work. And the
23:16
Speaker 4: National Democratic Party isn't going to have to deal with that.
23:19
Speaker 4: Every single member of Congress is going to be asked
23:21
Speaker 4: if they support the positions of the DSA, and if
23:25
Speaker 4: they support the positions of members of their own caucus.
23:27
Speaker 4: And when you have someone who's the nominee for Congress
23:31
Speaker 4: who wants to abolish prisons, not ice, not defunding the police,
23:35
Speaker 4: abolish prisons, how far have we gotten away from the
23:40
Speaker 4: mainstream where the idea that there should be no prisons
23:42
Speaker 4: is actually being discussed in politics. When you don't think
23:46
Speaker 4: that someone who commits murder or someone who commits rape
23:48
Speaker 4: needs to be incarcerated, how can we take you seriously
23:52
Speaker 4: when we're discussing policy.
23:54
Speaker 6: You said a lot there, Katie, and I'm just chuckling
23:56
Speaker 6: because I went to Emerson College. I ended up marrying
23:59
Speaker 6: a theater major. That wholest thing is hysterical. But hold
24:03
Speaker 6: that thought. Where's Jimmy McMillan when you need him, Genie?
24:07
Speaker 6: Because yes, the rent is still too damn high. Respond
24:11
Speaker 6: to what Katie said, is the socialist promise a false one?
24:15
Speaker 11: Yeah, Jimmy McMillan, he was a man ahead of his time.
24:20
Speaker 9: That still resonates. I remember it well.
24:24
Speaker 11: And yay for the theater kids. I was one as
24:26
Speaker 11: well as your wife.
24:27
Speaker 9: So there we go.
24:29
Speaker 11: You know, I don't think it is too much for
24:33
Speaker 11: young or elderly people or.
24:35
Speaker 3: Anybody in between to ask to have an.
24:38
Speaker 11: Affordable life, to be able to get married or not married,
24:42
Speaker 11: to be able to afford a home, to be able
24:45
Speaker 11: to have healthcare, to be able to do better and
24:49
Speaker 11: have their kids do better than they did, to be
24:51
Speaker 11: able to afford education. I mean, look at the cost
24:55
Speaker 11: of higher education. So you know, all of these things
24:59
Speaker 11: are not sort of pie in the sky. I'm promising
25:02
Speaker 11: you ice cream and I'm running around as a theater kid.
25:05
Speaker 11: These are real issues that people are facing. When young
25:09
Speaker 11: people that I teach go to college and their parents
25:12
Speaker 11: pay one hundred two hundred thousand dollars for an education
25:16
Speaker 11: and they can't get an entry level job, that is
25:20
Speaker 11: not America. We need to make the lives of our
25:24
Speaker 11: young people and our elderly people and middle aged more affordable.
25:28
Speaker 11: And when you have a president, the leader of a
25:31
Speaker 11: party whose party runs Washington, d C. Who says yesterday
25:36
Speaker 11: that housing costs are not a problem, this bill doesn't
25:39
Speaker 11: need to be signed. Affordability as a democratic hoax. I'm
25:43
Speaker 11: more interested in the reflecting pool. I'm more interested in
25:46
Speaker 11: the gold adornments on you know, my ballroom. This is
25:50
Speaker 11: what people are hearing. And it's not just the Republican establishment,
25:54
Speaker 11: it's the Democratic establishment as well, because where we started
25:58
Speaker 11: this is a Democrat on Democrat fight, and I for
26:01
Speaker 11: one think competition in both of these parties is a
26:04
Speaker 11: very good things good thing. Rather, let voters have their say,
26:09
Speaker 11: let them go to the polls and express what we're
26:11
Speaker 11: all feeling, which is our government has been run to
26:14
Speaker 11: the ground and is not working and we need a change.
26:18
Speaker 11: I don't see anything wrong with that. I'm glad they're
26:20
Speaker 11: expressing themselves. And when you have people with clear ideas,
26:24
Speaker 11: if you don't like what they do when they get
26:26
Speaker 11: into office, you can.
26:27
Speaker 9: Vote them out.
26:29
Speaker 11: If we have a fair electoral system, which gets us
26:32
Speaker 11: back to the Save America Vote Act.
26:35
Speaker 2: Well, and just on that note of competition being good,
26:39
Speaker 2: they're obviously Katie. Is an ongoing conversation around the primary
26:43
Speaker 2: system and whether or not the people who do turn
26:45
Speaker 2: out to vote in competitive primaries are the same type
26:48
Speaker 2: of voter that's going to turn out in the general election,
26:51
Speaker 2: or whether general election voters are enticed to turn out
26:54
Speaker 2: at all if they're getting potentially more extreme candidates on
26:57
Speaker 2: both sides.
27:00
Speaker 4: As someone who's run campaigns here for over a decade,
27:02
Speaker 4: I can tell you primary turnout is always one of
27:04
Speaker 4: most frustrating things because you will just go and knock
27:08
Speaker 4: on doors and spend all this millions of dollars to
27:10
Speaker 4: get five, seven, eight, fifteen percent maybe on a good
27:15
Speaker 4: year of the people to turn out, and it can
27:17
Speaker 4: always be frustrating. But usually what ends up happening is
27:20
Speaker 4: the people who show up in primaries are the ones
27:22
Speaker 4: that set the direction for the party. And that's what
27:24
Speaker 4: I would always argue to folks, is you have an
27:26
Speaker 4: outsized impact if you're willing to be one of those
27:28
Speaker 4: few people that will show up and vote in a primary.
27:31
Speaker 4: And what we're seeing is the young people who are
27:33
Speaker 4: showing up these New York primaries, are they truly reflective
27:36
Speaker 4: of the Democratic Party at large? Unfortunately. Let's get into
27:39
Speaker 4: happening is a lot of people have blind allegiance and
27:42
Speaker 4: regardless of the policy they're going to vote with, there's
27:44
Speaker 4: a D next to the name or there's an R
27:46
Speaker 4: next to the name, the real question is going to
27:48
Speaker 4: be the swing voter first, who doesn't have struggles.
27:51
Speaker 2: Always is there another Katie Frost and Genie Shanzena.
27:54
Speaker 3: We're out of time.
27:55
Speaker 2: Thanks for joining us here.
27:56
Speaker 6: Stay with us on Balance of Power. We'll have much
27:58
Speaker 6: more coming up after this.
28:03
Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch
28:06
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28:22
Speaker 6: One of the other big stories not getting enough coverage
28:24
Speaker 6: today we mentioned it a bit earlier, is the supplemental
28:27
Speaker 6: it finally dropped. We've been waiting a couple of months
28:30
Speaker 6: now for a supplemental budget request to pay for operations
28:33
Speaker 6: in Iran, knowing that a trillion and a half budget
28:37
Speaker 6: request has been made for the Pentagon overall, this one
28:40
Speaker 6: we round up to eighty eight billion dollars kaylei to
28:43
Speaker 6: help cover the costs of the war, along with some
28:45
Speaker 6: other priorities. And it got the attention once again of
28:49
Speaker 6: Steve Ellis at the group Taxpayers for Common Sense out
28:53
Speaker 6: with a blistering reaction here in which jumps off the page.
28:57
Speaker 6: About six weeks ago here writes, the Pentagon put the
28:59
Speaker 6: call of the Iran war at twenty nine billion dollars.
29:02
Speaker 6: Do you see the statement on your screen? Now they
29:05
Speaker 6: want more than twice that. Steve Ellis says, either the
29:08
Speaker 6: administration was not being honest about the cost then, or
29:11
Speaker 6: they are not being honest about the cost now. He
29:14
Speaker 6: is the force behind Taxpayers and WTHERSONCE Studio. Steve, it's
29:17
Speaker 6: great to see you. I fear that you might have
29:21
Speaker 6: an answer to that question, do you or doesn't it matter?
29:24
Speaker 12: Well, it doesn't seem like there's any real numbers. I mean,
29:27
Speaker 12: as we said they couldn't. They either were lying then
29:30
Speaker 12: or they're lying now.
29:31
Speaker 3: They can't. They don't add up.
29:32
Speaker 12: I mean, because you had twenty nine billion dollars after
29:34
Speaker 12: more than seventy days of shooting war is what they estimated.
29:38
Speaker 12: Now you're a little bit more than forty days later
29:41
Speaker 12: and it's been mostly a ceasefire in there, and they're
29:44
Speaker 12: more than doubling the request. It's sixty seven billion dollars
29:48
Speaker 12: is what they're asking for the Pentagon. And in addition,
29:51
Speaker 12: when you add in backfilling for the Coast Guard and
29:54
Speaker 12: State Department, you're looking at seventy billion dollars, so well
29:56
Speaker 12: over twice as much in a very short period of time.
29:59
Speaker 3: So it doesn't add up.
30:02
Speaker 2: Well, however, they're doing the math over there. There is
30:05
Speaker 2: an argument that I would imagine the administration is going
30:07
Speaker 2: to make, which is this is necessary for the defense
30:11
Speaker 2: of the country. Should this spending really be considered that discretionary?
30:15
Speaker 2: Don't we need to restock our munitions and the like?
30:19
Speaker 12: Well, Kayley, you're absolutely right, we do. But the thing
30:22
Speaker 12: is is that the Pentagon is a wash in cash.
30:25
Speaker 12: I mean, it's not just the one point five trillion
30:27
Speaker 12: dollar request this year. They got extra money in the
30:30
Speaker 12: One Big Beautiful Bill Act last summer, and they still
30:32
Speaker 12: have one hundred billion of that.
30:33
Speaker 3: Money just slashing around.
30:36
Speaker 12: So really, what we're seeing is the Pentagon is trying
30:38
Speaker 12: to do a money grab any which way they can.
30:40
Speaker 12: So they asked for two hundred fifty billion dollars more
30:42
Speaker 12: in their in their base budget, three hundred fifty billion
30:45
Speaker 12: dollars more another reconciliation package, and so now we're talking
30:48
Speaker 12: about another sixty seven billion dollars. So they're just trying
30:51
Speaker 12: to figure out get their finger in that appropriations pie.
30:53
Speaker 3: However they can.
30:54
Speaker 6: Well, of course, There's a lot more than defense in here,
30:56
Speaker 6: and I think the idea was to sweeten the pop firm,
30:58
Speaker 6: maybe get some more votes to talk about what's really
31:01
Speaker 6: in here. One point three to five billion to fight
31:02
Speaker 6: the Ebola outbreak in Central Africa. Half a billion for
31:06
Speaker 6: the National Park Service to repair the World War II Memorial,
31:10
Speaker 6: which would hopefully go better than the reflecting pool. Ten
31:14
Speaker 6: billion dollars in economic assistance to farmers. There's a farm
31:17
Speaker 6: bailout in this defense supplement of request, and more than
31:20
Speaker 6: a billion for Florida's agricultural section sector. Kayley, we find
31:24
Speaker 6: a billion to modernize Penn Station in New York City.
31:27
Speaker 3: I kind of hope that stays in there.
31:28
Speaker 6: To be honest with you, Steve, how does this all
31:30
Speaker 6: apply to defense?
31:31
Speaker 3: It doesn't.
31:32
Speaker 12: And I mean certainly there is a Christmas tree effect
31:35
Speaker 12: that happens on the easy you start putting the adornments
31:37
Speaker 12: on their.
31:37
Speaker 3: Try to get passed.
31:38
Speaker 12: Yeah, well, I mean arguably, then all of a sudden
31:41
Speaker 12: it starts attracting flies too, or you start wondering is
31:44
Speaker 12: this really necessary? And there's going to be criticism about it.
31:48
Speaker 12: I mean, you mentioned the ag bailout that they've gotten
31:51
Speaker 12: more than the AG sector's gotten more than fifty billion
31:53
Speaker 12: dollars in bailouts over the last or more than sixty
31:55
Speaker 12: billion dollars in egg bailouts over the last five years.
31:58
Speaker 12: So this is just another one of this sort of
32:00
Speaker 12: money slashing around that they're doing. There's other policy provisions
32:04
Speaker 12: in there too. They're trying to do year round A
32:06
Speaker 12: fifteen for ethanol, yes, and so they're just trying to
32:09
Speaker 12: sweeten the pot. Now, whether that actually gets it over
32:12
Speaker 12: the finish line is anybody's guests.
32:14
Speaker 2: Well, and it's a question as to whether or not
32:15
Speaker 2: this smaller in scale supplement, although you obviously think this
32:19
Speaker 2: number maybe is too big, whether that can get over
32:21
Speaker 2: the finish line, or whether you can still see a
32:23
Speaker 2: more than three hundred billion dollar Reconciliation three point zero bill,
32:26
Speaker 2: because they also have suggested the Pentagon should get more
32:30
Speaker 2: money through that. Of course, the House wants to attach
32:32
Speaker 2: the Save America Act to it. To unclear how or
32:35
Speaker 2: whether that will be ruled as budgetary. If you're dealing
32:38
Speaker 2: with numbers of that size, there's going to be fiscal
32:41
Speaker 2: hawks in Congress who are going to want to see offsets.
32:44
Speaker 2: Are they going to be able to find them.
32:47
Speaker 12: Well, we're we're coming up with a list of ways
32:50
Speaker 12: to cut the Pentagon's budget and cut spending, and we'll
32:53
Speaker 12: be out with that next week, actually available at taxpayer
32:56
Speaker 12: dot net.
32:57
Speaker 3: But no, they're not.
32:59
Speaker 12: They're not going to be able to find those offsets
33:01
Speaker 12: readily available. I mean, this is really serious cuts that
33:04
Speaker 12: you would have to do. And so, I mean most
33:06
Speaker 12: people think that Reconciliation three point zero the third bite
33:09
Speaker 12: of the apple. That three hundred fifty billion dollars. So
33:11
Speaker 12: the Pentagon is dead in the water. It is just
33:14
Speaker 12: going to be hard to get that level of support
33:16
Speaker 12: for something like that. They are not going to offset
33:18
Speaker 12: it for the most part. And so I'm feeling that
33:21
Speaker 12: this that's why something like this supplemental it gets some legs. Okay,
33:24
Speaker 12: you don't want to give us the three and fifty
33:25
Speaker 12: billion dollars, Well how about this sixty seven billion.
33:27
Speaker 3: I mean, that's a for action, come all right, daily.
33:30
Speaker 6: Saving money all the time around here, Steve. The numbers
33:33
Speaker 6: turned out to be very different from what I was
33:35
Speaker 6: told was the statement from Susan Collins, who shairs the
33:39
Speaker 6: Senate Appropriations Committee, which I'm first liked to know what
33:43
Speaker 6: the numbers are supposed to be sounds like taxpayers. You're
33:45
Speaker 6: either lion then or you're a lion now. So let's
33:47
Speaker 6: back off a bit. You remind us were what forty
33:49
Speaker 6: trillion dollars in debt? September's coming. No one's getting along
33:55
Speaker 6: midterm elections in November. We're cruising for a shutdown again,
33:58
Speaker 6: aren't we.
33:59
Speaker 12: I don't know if either party has really got the
34:01
Speaker 12: appetite for a shutdown right for the election, for each
34:05
Speaker 12: other's priorities, well, no, I think it's more like the
34:07
Speaker 12: appetite for a continuing resolution. I'm going to kick the
34:09
Speaker 12: can into the lame duck after the election, and then
34:11
Speaker 12: you deal with it, and then whoever's feeling their oats
34:13
Speaker 12: because of the election kind of is going to push.
34:16
Speaker 12: But I think that's more likely. The last shutdown was
34:19
Speaker 12: pretty bruising and extended, and I think it's still in
34:21
Speaker 12: voter's consciousness, so I don't think either party wants to
34:25
Speaker 12: be perceived as being responsible for that.
34:27
Speaker 2: Well, and if it's a continuing resolution we end up with,
34:30
Speaker 2: could the Pentagon actually end up with even less money
34:33
Speaker 2: than they had requested for this fiscal year?
34:37
Speaker 12: Ultimately, well, they still got a big boost last year,
34:39
Speaker 12: and you know, I mean they got they got a
34:41
Speaker 12: significant boost in the in this the base budget, so
34:44
Speaker 12: they'll be they'll be fine. And not only that, at
34:47
Speaker 12: some point they are presumably going to do the full
34:50
Speaker 12: year appropriations and so they can survive on a trillion
34:53
Speaker 12: dollars for a few months.
34:54
Speaker 6: That's interesting when we hear about though, the need for
34:56
Speaker 6: a generational investment and the defense industry real base. Is
35:01
Speaker 6: there enough money for that? Should that be a separate bill?
35:04
Speaker 6: Is this a wider conversation or is it not true?
35:07
Speaker 12: Well, for instance, when you break down with this request,
35:10
Speaker 12: was there was about two billion in there for UAVs.
35:13
Speaker 12: And so really what you've seen both in Ukraine and
35:16
Speaker 12: you've seen in Iran is that it's been less we
35:21
Speaker 12: need to spend on these exotic, expensive platforms, but that
35:26
Speaker 12: you want to have cheap and plentiful platforms which presumably
35:29
Speaker 12: would be less costly than you know, the sixth generation fighter.
35:33
Speaker 12: And so that's where I feel like it shouldn't be
35:36
Speaker 12: an and it's a pivot, and it's a sort of
35:38
Speaker 12: recognizing we still need to have aircraft carriers and things
35:40
Speaker 12: like that, but we need to be making these investments
35:43
Speaker 12: in the smaller and less exotic and more replaceable items
35:46
Speaker 12: than an F fifteen eagle that we've lost several of
35:50
Speaker 12: them in Iran.
35:51
Speaker 2: Were about out of time. We just have thirty seconds left.
35:54
Speaker 2: But the Speaker of the House is expected to be
35:55
Speaker 2: visiting the President at the White House just moments from now.
36:00
Speaker 2: What would you tell him about how he should be
36:02
Speaker 2: approaching these asks from the White House?
36:06
Speaker 12: I would Speaker Johnson did say to the President, or.
36:08
Speaker 3: What I would say to the Speaker?
36:10
Speaker 12: I would say that there is not an unlimited appetite
36:13
Speaker 12: for spending, and particularly in the Republican Conference, and there are.
36:16
Speaker 12: They've got a very small majority, so they need to
36:19
Speaker 12: be able to pick their fights.
36:21
Speaker 2: All right, We'll leave it on that note. Steve ellis
36:22
Speaker 2: the president of Taxpayers for Common Sense. Here with us
36:25
Speaker 2: in our Washington, d C.
36:26
Speaker 9: Studio.
36:30
Speaker 3: Thanks for listening to the Balance of Power podcast.
36:33
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36:39
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