Council of economic advisors obama. Resident its an hour. [captions Copyright National cable Satellite Corp 2020] [captioning performed by did national captioning institute, which is responsible for its caption content and accuracy. Visit ncicap. Org] [captions Copyright National cable Satellite Corp 2020] here today as as part rebuilding the Global Economy project. A major initiative, not just in time for a u. S. Administration or a new term of an old depending on what happens, but in time for the stock taking going on and the on how to open the World Economy when the u. S. Has ehaved as it has for the last four years but also, equally importantly, if not more so, hen were all facing the vulnerabilities that came out of the pandemic. Before introducing my colleagues who will be speaking today about memo to the white house, economic council, the c. C. E. A. , and the u. S. China trategic dialogue let me say a couple of words about the rebuilding project. Were very excited about this and its open to everyone in the engage. Hat we wish to the world has been moving 2008. Ards since roughly both in terms of economic outcomes and international integration. They come from different causes degree but they reinforce each other. Whicht through decades in they went understand hand. Greater peace and prosperity for of the worlds population. Since the gone well Global Financial crisis and the pandemic has intensified those risk that wee real face, digital disinformation and the loss of privacy and the pandemics, are all rising in a world in which these are global threats. They are economic threats because our Economic Policy our economic incentives and activities affect we badly they hit us, and so need a global approach to get a world get back to where we can confront these pandemics and that does not mean globalization he fantasies of the late 1990s. Chosen the world, were rebuilding is the apt verb. E need to assess whats going on in the World Economy. What parts of it are salvageable. What parts of it are essential, of it can be restored. A practical to be exercise so my colleagues and i, fellows in thehe institute, are writing memos to key policy decision akers, what they should be doing firstoff. Thats what well hear about they should stop doing immediately which is what well also here today. Through coming months the end of the year well be rolling these out. Ast week we rolled out the memos to the secretary of commerce in the u. S. And to the u. S. Trade representative as associated senior officials featuring evan leading business person and a jones senior fellow. Well be having arry summers and pete blair henry speak about what the u. S. Treasury should do. Nd hear from International Organizations, foreign governments, particularly european organizations, and what rebuild ld be doing to the Global Economy. Starting in january well put a comprehensive plan developing some of the proposals fellows from our priorities and seeing how they fit together and well continue he track of how the Global Economy is coming bag together. Again im very grateful to all y colleagues at the Peterson Institute. Our onBoard Members, who are participating, our Board Members support us and to our stakeholders who want us to come up with practical ideas. Peterson t the institute is to push out the envelope. Be within the tent in the sense realistic and were talking to whoever is an office about what you can do better, but to be ambitious, not o be constrained by short term politics to actually push for what can be done realistically not is better and were wedded to the old ways. An e simply wedded to empirical reality. On the u. S. Administration and europe and International Organizations is ot to say that people of other continents, of africa, of latin of ica, of asia, are not, eastern europe, are not stakeholders at the table. Quite the opposite. Feel we we do not should be presuming to speak for hem as a bunch of people who were brought up in america and europe and served in american and european governments and so rnational organizations we hope to engage through the First Quarter of 2021, with representatives, fellow scholars, fellow former officials, around the world, to nonamerican, noneuropean perspectives and how we might Work Together and we to that engagement. And foremost the u. S. Has to get its house in order to economy. He global onstructstive Economic Solutions do exist to the international existential threats we face but they must be targeted and they must be based rebuilding. They must be global. So please join us in this effort. To my let me turn colleague, professor fellow. Ent senior jason has been one of the extraordinary Economic Policymakers of the last 20 serving in a variety of senior roles in both the clinton and obama administrations, and particular as chairman of the council of economic advisors in obamas second term. Jason, weve asked you to address what the criminal should do uncil articularly in the area of interNational Economics. Thank you so much, adam, for organizing this excellent series, and including me. I served as Deputy Director of National Economic council during the last financial crisis. I walked in the door of the 21, 2009,se on january second floor of the west wing where the leadership of the National Economic council is housed. Time, the unemployment 7. 8 . Was the Financial System was in crisis. And we were terrified about the future of the u. S. Economy. Walks into that office in january of 2021 will actually a very similar Unemployment Rate. Sevens. Will face an economy with over 10 million mean out of work. Illions of businesses having failed or facing enormous train, and problems in the Financial System as well. Respects,ee important the National Economic Council Director will be in a different we were in, in january 2009. The first respect is that in 2009, our worst days were ahead of us. The stock market was still falling. Unemployment rate was still rising, there was a daytoday to whether some of our largest Financial Institutions would even survive and if they collateral at other damage they would have for workers and the Global Economy. Now the unemployment at least to date has been falling. It may have a bump up with the vaccine ve, but as the gets rolled out next year very likely that Unemployment Rate continue to fall. The stock market and financial stable. Are much more its an enormous amount of suffering in the economy and an to beus amount that needs done but the ratio of the house put the flames out, to there is a longer term a bit ral problem is different than it was in 2009 more room to focus on the long term structural problems and also more need. The second difference is that the United States has more in 2021 than it had in 2009. That may seem paradoxical. Much all, the debt is larger as a share of the economy 2009. Han it was in that interest is, rates are much lower than they were in 2009. Interest on the debt is lower today than its much of u. S. History. Post war u. S. History and the eal inflation rate is actually negative. That means the United States can borrow money and repay it with valuable s even less in the future. Some of that is a byproduct of but much of self, that was true even before the crisis. January and february of this year. That gives effectively an unlimited amount of room to respond to the short term problems with fiscal measures, as is needed, and it doesnt give unlimited license policies. R term i still think they should be paid for so that the debt isnt and beyond what would happen in the baseline. Any pressure off considerations about active deficit reduction. He third important difference from 2009 is in 2009, the united unleashed the crisis on the world. We had caused it. It around the world, and at least for the first year or two, the united was the most severely impacted in the world. The u. S. Economy was reeling. This time around, the united not cause the immediate crisis. Moreover, in part because of the large initial fiscal response, one that tragically has not been followed through on to lapse, but d the initial was so large, the quick, y response was so effective and decisive, that the economy has actually many other s than economies around the world especially in europe. The United States in a better position to help lead a rebuilding of the Global Economy hat rebuilding of the Global Economy is absolutely necessary, immune to the re virus that causes covid19, but ravaged the rest of the world the way that it has had all would have likely recession in the United States, shock that e global is causing. It was terrifying that we might have a way of emerging debt crises. Oday that looks a little bit less likely, but i dont think were out of the woods on it, will be inted states a better position economically to show leadership. A side note chinas economy even better than the United States because its done better job of getting its virus under control but you taking steps,hina like bilateral debt forgiveness, g20 and the like. Really the United States is the only country that can do that. It hasnt done it to date. Immediate priority for the National Economic council for house, for the entire the nment, is going to be economic recovery. Karen will be talking about that any wont talk about it in detail except to say a very that whatever is done should not just last for one year. Its uld last as long as needed. One of the lessons i take from the financial crisis was its need your at you response to be large. You need a response to be long. Cares act, for example, was very large but it only lasted about four months. Need to make sure the next approach lasts as long as needed that linkthe triggers it to the Unemployment Rate, as ong as its elevated, assistance, would be delivered. Structural parts of the rebuilding will include elements, all of which have an Important International as well. The first that i highlight is investment in children. Really important in its own right bit also is absolutely the sary to give america security and confidence to global ate in greater integration and a greater u. S. World. The this is obviously almost entirely a domestic agenda but 2014, the g20 put on the agenda the issue of womens participation in the work force got all the g20 countries in that goal to improve dimension the g20 could similarly help the United States lock in its progress in this area. Reforming the tax code is going to be essential and one of the most broken parts of it is that tax code was essentially designed globally to avoid taxed. Es being double paying tax on the same income in two jurisdictions. To do this. Esigned as a result, in many cases companies are paying no taxes in any jurisdiction. Youve seen a set of ad hoc responses in a number of taxes es, digital discussed in europe. The guilty provision in the states. He oecd is the clear venue for accelerating cooperation on the profit shifting. Coming to the table by saying we did some International Reforms in 2017. Want to improve on them and work to make it more of a global concept, would put us in a very good position. Limate change, we all know, is an international issue. Its also a critical economic issue. Goal there is to take steps ike border adjustment and the like, that could protect economy that is choose to deal more with incentives ge, give to economy that dont do as much and to imate change, make sure thats done in a so ally agreed upon manner, it doesnt lead to unraveling of rules. Bal trade ill just list one more policy a very hink has Important International dimension, and that ive worked and a lot on personally thats competition policy and digital competition. United states has the right central goal for competition policy, which is a welfare. Consumer the problem is the United States hasnt lived up to that goal. Efforts around the world to redefine how to do competition, to include a regulatory on approach with leadership from united her places the kingdom, australia, germany, and france. The United States very much to catch up with all of them. Globally ave a negotiated way to do competition policy. Weve never had that but we can have a globally convergent way to o competition policy and have that happen. It cant just be left to the competition authorities. That the finance ministers and economic leaders and the National Economic involved in to be negotiating. Ill conclude, i think you have enormous opportunity. There is a sense of crisis that to be ng really needs done, but there is enough time and space to do something not run but about rt our bigger structural problems. United d needs the states. The United States cant succeed without the world, and these are tangible steps that can be taken in that rebuilding process. So much, jason, for someone like you, to so a case tely put forward for constructive optimism and series of purposes, great inspiration. Please allow me to turn to karen, who is writing an chair of the council of economic advisors. Karen is also a professor of the practice of economics at harvard university. Nonresident senior fellow at the Peterson Institute. She served as the assistant of the treasury for economics, basically the chief economy it and forecaster of the treasury in the second term of the obama administration. Prior to that she was vice economic studies at brookings and had a long distinguished career at the reserve as one of the leading researchers on savings and fiscalr behavior issues. Karen, overview, please. Thanks, adam. Be a , am delighted to part of this. Important. S policy priorities for the president s council of economic strengthen t would the u. S. Economy as part of ostering rebuilding and recovery, so in my remarks today want to emphasize three points. The First Priority is that we need to deploy additional fiscal stimulus to support the u. S. Recovery from the pandemic over the longer un strengthen automatic fiscal stabilizers. So, by way of background, the early phases of the u. S. Sharp rebound a in aggregate demand. So we saw that in employment, in consumer spending. In business investment. Other indicators. But, that was the good news. The bad news is that the partial has been only to date. Or example, non payrolls in september were 11 million above their april trough, which is respects, but me nonetheless were only halfway back. Create or ed to recreate 11 million more jobs where we were in february. And the pace of recovery has so the september change in nonfarm payrolls was 600,000. As you can probably calculate in at that rate of increase it will take a very long time to create the millions nd millions of jobs we need to get back to full employment. That we can even count on this slower pace of improvement continuing. Aggressive countercycle fiscal policy supported the early recovery, and as we know, most of those measures off or they have expired. So at a minimum, to avoid the stalling, i recommend that we pass more funding for states, additional aid for small businesses, we also need to reinstate some supplement to nemployment benefits, and extend the period of expanded eligibility. Thats short term fiscal policy, looking at what needs to be done longer run, we should recognize that fiscal stimulus uring periods of economic weakness, not just this downturn downturns in st this country and other countries, has been too small, and too lived, susceptible to short term political wrangling. Failure to pass more stimulus in the last three onths demonstrates this point miserably. And the fact that Monetary Policy is likely to be by zero lower bound issues for the foreseeable future means that countercyclical fiscal policy is going to have to play a much recessions fighting going forward. The point being, that we need to automatic stabilizers so that countercyclical fiscal reliant on t so discretionary fiscal policy changes. There are a number of good there for doing so, and this is building off of what jason said. It involves brigadier being more generous. For instance, you could have supplemental food stamps. Unemployment insurance. Higher federal medicaid spending and lower payroll tax rates, all turned on when the unemployment and is a certain threshold then turn off again when it comes back down. O thats the First Priority i have for you. A second and related priority is u. S. Social programs. The consequences of the pandemic income, and the wellbeing of American Family preexisting ed weaknesses in u. S. Economic and social systems. Vinolas cases, job losses, and usiness failures have all occurred disproportionately among people with less income among members and of disadvantaged racial minority groups. Pandemic has rds, really underscored the need to strengthen the safety net in mitigate the disproportionate harms of recessions on more vulnerable groups. Its also important to recognize hat strengthen the safety net revealed cyclical benefits more would reduce the likelihood, it dampens the peace f recovery and lengthens the time it takes for employment to get back to its full employment level. True that will be true in this recession. Ts going to be true in recessions going forward. I also want to emphasize the longer term benefits of more on social programs. O there is a growing body of evidence that shows that many of these programs represent crucial in peoples future lives. Studies have documented, for xample, that poor children exposed to medicare, food housing, and high quality preschool experience security as adults. Decades later, than they otherwise would. Told the evidence makes a powerful case for providing more support for programs that poor children and their parents. Not just because they relief hardship in the moment, but their longer term benefits. And we should keep in mind that the benefits would accrue to those directly affected. These investments would create a ore Productive Work force, which means higher potential output, and higher tax revenues, lower future spending, on safety net programs and fewer funds directed towards crime incarceration. Creating more economic mobility likely strengthen our social fabric which would be another benefit for everyone, just those directly affected. Hile were on the topic of investment in people i should also note that we need to do high o broaden access to quality, higher education, lthough college pays off well as an investment for most people, even when funded by to ent loans, we do need reform the Student Loan Program so that there are fewer cases investment turns out to be a poor one. E should also greatly expand pell grants to students from lowincome families to reduce the need for Student Loans in place. St and we should provide more Financial Support for Community Colleges, along with broadly reforming the Community College a tem in order to create stronger set of alternatives to high cost low value for profit colleges. The third priority i want to Infrastructure Investment. Even when the pandemicrecession is behind us well very likely be facing the longer term productivity ow growth. The investments in people i just its sed will help but also important that we invest in things, including public structures. So Infrastructure Investment in representsstates now a smaller percentage of gdp than past half rs of the century. The quality of Infrastructure Investment is declining relative that of other countries. In addition to reducing u. S. Income, inadequate public capital stock, investment foreign and trade in the United States. Of course, it matters how we do Infrastructure Investment. To focus additional spending on projects with high returns. Avoid bridges to nowhere. That, we need to recognize that its important to repair of nance and existing capital rather than flashy new ely on projects. Lso, who builds u. S. Infrastructure is less important than getting what is needed value from theng dollars that the United States spends. Hus we should allow for Competitive Bidding for construction, installation and of nonsecurity sensitive infrastructure. We should insist that foreign allow the same farms. Unity for u. S. Those are me three priorities. In closing i want to pick up on how jason was saying about to think about the budget. A prioritycluding as reducing federal budget deficits elative to those projected under current law. I agree with jason, that given low interest ally rates, the accumulation of federal debt is not one of the biggest economic challenges right now. Trying to pay for fiscal realtime would, of course, be counterproductive. I think we all agree on that but beyond that, i think it is sufficient that any discretionary or ongoing federal spending related o these priorities being accompanied by an increase in federal revenues. O thank you for letting me discuss what i think our priorities should be and, i look questions. Your thank you, karen. And its great to have the solid of investments, not just in children but in Human Capital up with infrastructure capital. People pay lipservice but we advantage of the opportunity. One of the hallmarks of the Trump Administration in its and perhaps only term is pursued an o industrial policy trade strategy reating a new office of manufacturing and trade in the white house. We asked Douglas Irwin to discuss the issues raised by industrial policy and such an approach. Doug, is sorry, i dont have name, chair, right with me, but as a distinguished Professor College and has served on the cea as a senior taff economist, hes a nonresident senior fellow, eterson is the author of definitive history of american policy, a in very thick paperback edition as well as and a hostunder fire of other extremely important books about history and reality Economic Policy. Doug, over to you, please. Adam. Ank you very much, its a pleasure to be here. As i mentioned in 2017 President Trump established a new outfit in the white house, the office of trade and manufacturing advise the president on policy measures to strengthen u. S. Based manufacturing. This is going to be a very important issue moving forward administration, but it might come as a surprise that even though i think the issues re important i also propose abolishing the office in my memo. And thats for a couple of reasons. That it duplicates many of the functions they are agencies inin other the executive branch. It duplicates what the commerce does, defense department, u. S. Tr in terms of trade and manufacturing. Its not clear what its Precise Mission is. Because its so recently established, it has no established expertise in the area. It doesnt have large staff. Nced it has no formal policy role or uthority, and no institutional standing thats been recognized by congress. Could perform a coordinating role in terms of coordinating trade and across uring policy various agencies. But the National Economic performs that role. One person could be deputized to but itse coordination not clear that we need this office. Regardless of whether what the next administration decides to do with this office, of the exact form it takes, there is no doubt that administration will have to deal with issues of bipartisan concern about the the state of u. S. Manufacturing. There has been concerns about of global bility supply chains. The security of those supply chains. Desirability of having a domestic sourcing base in terms manufactured products and other related things. Developments, of course, have given greater urgency to these concerns pandemic, ne is the which gives us a Public Health that we for ensuring have a strong domestic base, for course, easons, and, of National Security in china. And so, once again, there are many agencies that are involved formulating administration policy, and the national the ity area involves National Security council, defense department, homeland security, in terms of Public Health, and there is the nih, the f. D. A. , health and human many agencies have a say and a stake in these policy debates. In terms of moving forward, i think whats necessary is the has to seriously study using this inner agency process. Needed moving forward, n terms of domestic manufacturing capability, the chains, i of supply hink we need to have a clarity to the public and to the as well as nity [cutting out] and best achieve the electives. They dont necessarily it could be for certain products [cutting out] could be just to security or tional Public Health emergency. Now [cutting out] study. Rves serious thats a policy and horror and a thrill. Dont think really matters is. Ones visceral reaction hat affect the manufacturing its and the question is very important first study. [cutting out] need support from the government the particular policies be. Uld the principle policy the first [cutting out] can you hear me, adam . Now we can, doug, but please go ahead. Were going to have to move. You. Okay. I want to offer three broad principles to guide policy forward. The first is selfsufficiency should not be the goal. The goal. There are tremendous gains from trade. Vulnerabilityless to supply chains than has been sometimes reported in the press here i would recommend a wonderful episode of trade petersons series posted by anibal gonzalez. From the she had Simon University of geneva talking about a recent paper of his which is very important which the exaggeration of things of nce and that sort. Tradeal should be to keep open, but provide security, in those areas, where we think we additional support. The second point would be to industrial policy, family protectionism. Rotectionism does not distinguish between reliable and unreliable sources of supply. It does not distinguish between friendly allies from which we get imported goods. To a protectionist solution we tend to alienate that leads to d retaliation against many of the exports which are manufactured to help ng our ability out the very sector of manufacturing that were trying to support. Addition, what protectionism does is raise domestic prices. Downstream rts industries. A classic example of this is the steel industry. Where here the trump has tried to help out a very basic large the steel ng sector, industry but by imposing tariffs prices which hurt downstream Steel Industries stews. Se Ford Motor Company reported that its costs rose by over a billion ollars resulting in a higher price of steel that it has to pay and what this does, by arming the downstream industries, raising undermining their competitive other domestic and foreign suppliers cut out] jobs. Hurts we cutting out] doug, we just lost you again. A real shame. I encourage everyone to read dougs memo. His last points about the insufficiency, in fact, selfdefeating nature of trying to revive industry and manufacturing through protection and trying to derive resilience r selfsufficiency being selfcontradict tri are just not on. The evidence doesnt support it and weve seen that right now in and we have seen that in developments of u. S. Manufacturing. Again, my apologies to doug. We were unfortunately losing too much of your sound in this last bit. Well put out more by doug in a little while. Im now going to have to turn to have to in the sense of turning doug, which i am regret but im excited to turn to nicholas. Senior fellow at the Peterson Institute where hes been with us for nearly 20 years distinguished career in street. A and across the as the deanthony solomon fellow, hes the leader not only of china studies at our nstitute but arguably the leading americanbased economic analyst of china in the world. Remarkably,the u. S. , outside china. Two recent books of his are hard hitting intellectually sound books. Ant his book from a few years ago, arkets over now, which documents how he contrasts some of the fantasy theories being it wasat the moment that the private sector in china that led to chinas growth and more back. Ly the state strikes a book in which it got rave prominent venues and because it ffairs was a no holds barred look, who has been willing to say good the s about china, how state has come back under president xi. Reform has gone backward. Importantly that this does have costs. Critical part of the White House Mission to staff and appoint the chair of the chinau. S. Strategic dialogue, whatever it will be renamed. Dialogue being constructed is critical to the lobal economy and all of our wellbeing. So weve had nick to give us his chair of the u. S. China economic dialogue. Nick, over to you. Adam. Ank you, i think the first thing to ecognize is that any policy directed towards dealing with the challenge that china part of a has to be comprehensive program of u. S. Economic renewal that focuses on rebuilding our crumbling infrastructure, rebuilding our research and development, which has lagged, federal support in particular, thirdly, a smarter immigration policy that greiss in scientists and technician can improve the productivity of the u. S. Economy. What weve seen in the last few years is a policy that to enhance ed not the u. S. Economy, but tried to china. He rise of my view is that slowing chinas a viable ise is not Economic Policy in the medium and long run. To that. Back the second major suggestion i a more that we need robust interactingcy process to internal e kind of bureaucratic squalling thats led in recent years to a very policy to address chinas economic rise. Policy should s include a rigorous estimate of the cost to the United States of weaponizing trade policy. By weaponizing trade policy, i example, tariffs, export controls, and secondary sanctions. Currently, these policies are being weaponized with little or regard to the cost to u. S. Onsumers, to u. S. Businesses, or to the long term Competitive Position of the United States. Major thats a second change in the approach we would have to have on china. Back to why i think chinas rise is likely to in e, i think we have process of negotiation with china needs to recognize that relatively low level of per capital output, substantial potential for further economic convergence, and that means that china is likely to continue to more rapidly than the United States, and thus economy will nas surpass that of the united tates at least in terms of overall size, and i think the orollary of that of course, is chinas Global Economic role and its influence will continue to just to enhance and further what jason said, we certainly see that right now the covid pandemic globally. China was the first to get the under control. It has had a very strong recovery. While the United States and many other countries around the world struggling with multiple waves of infection, deaths. Izations, and as a result, china will be the only significant economy this to register positive economic growth, and by 2021, likely to be y is about 10 larger than it was in 2019, and thats a situation shared by any e other, or many other advanced economies or any other economies around the globe. Some may come close but i believe well see china is economy with a 10 expansion over a twoyear period. On a is also outperforming the trade front, imf forecast, that global trade will be down year, while in september, chinas exports and rosets measured in dollars by 10 and 13 respectively. So china is doing well in terms growth. Economic its doing very well in terms of its participation in global trade. The final point i would make is of i think a policy economic decoupling from china s likely to be a high costlow benefit policy for the United States, a nonstarter for u. S. Partners. D as i mentioned, given chinas i think other countries are unlikely to participate in a u. S. Led strategy, so de cupping is likely to look omething like a unit rat loll u. S. Decoupling from china resulting in u. S. Isolation from most important source of global trade and economic growth. Narrow decoupling in technology, for example, in is likely to lead to substantial reduction in in American Semiconductor firms, a decline in the research and development firms, and if this continues for any period of time, the United States could longstanding global eadership position in an industry thats crucial for u. S. Economic and National Security. I think those are the main to be kept in mind as we economic ystematic dialogue with china. Much, nick. U so the substance of not being unrealistic about what the u. S. Can and cannot achieve with what chinas vulnerabilities and benefits are its not about just being nice or being would put the e rhetoric, and you very carefully stayed te away of thing. That kind china is large with its selfinterest but interaction critical. This is spirit in which i think all of our speakers today spoke. Announcement, doug and i just exchanged on the chat, in full his rd remarks ideally later today and post them on the website. They are well worth everyone hearing. But now, let us open it up to questions. Can, pleasef you who use the q a function on the zoom time, in the interest of ill gather the questions but to the tribute them person posing them. So to start off, john west of he world trade center, orlando change, can weate get more about how this plays into the rebuilding of the economy initiative, and in particular, i think going to remarks, but ens also obviously, there is a China Cooperation aspect to this as well. So first to jason, and then karen, then doug, on climate please. Yes. So i could spend my entire time incredibly important topic. But the Paris Agreement was, in sense, a very good framework. Its the best weve ever had, because it got almost every world in. The but it got almost every country in the world in because it led every country in the world to what it wanted to do, and decide how it was going to do it. It aimed for breadth over strength. The whole logic of paris is that a ratchet, where countries could put pressure on each other to do more and build commitments that they had made there. Process only works if countries like the United States engaged both internationally in the paris domestically putting something forward. I think that a lot of the ideas deal spending money to with Climate Change play a role. More charging stations, more for wind and solar, and the like. To were never going to get 80 or a hundred percent net Emissions Reductions by 2050 also a price on carbon sweeping and e widespread changes throughout the economy. And businesses. The United States can do that olicy all on its own, but it would work a whole lot better if other countries are doing it so partly undone by leakage, as manufacturing shifts to other nited states countries, hurting our economy and undoing some of what we want to do on Climate Change. Thats the importance of the border adjustment that i talked in my opening remarks, and creating a system where you ont just have mutual cheerleading to get other countries onboard. You also have a concrete other countries to get onboard and some of that, colleagues trade here get nervous about it, i think should operate and needs operate through the trading system. Ill keep this short because with everyone ee jason said. Yes. Climate change agenda. E part of the a memo that i wrote was the need in the future, and the three types of investments i was thinking about, talking about, children and infrastructure, but climate and technology, and i just had to choose two of the three, but that third one is going to be very important for a whole bunch of reasons. Thank you. Nick, anything to add on the front . Well, china stepped forward first time a very ambitious agenda to be Carbon Neutral in a few decades. Havent laid out how they are going to do it but i think its very encouraging that they embracing the goal, so clearly its a country we could a more h if we had enlightened policy on our end. Thank you. Im now going to turn to doug erwin. We have a question from vinnette [inaudible] more effective so the u. S. Can be more engaged in a positive system. The now, we talked about this a bit at the event last week but in the white s advising house on trade policy, how would ou tackle the wto and especially the dispute issue, doug . Unmute, please. Comment. T to make one for the poor [cutting out] panels. Bad in in terms terms of job and its bad for change because it raises the court of buying those solar panels. Of the problems is that the United States has appellate about the body and the dispute Settlement System without putting forward a agenda for change. Once we identify exactly what the United States wants out of Settlement System then we can move forward but unless there is a positive proposal for change, were going be in this deadlock. Doug. Ank you, before going on to the next substantive question there, have been questions about where to memos that these speakers are posting from. On the Peterson Institute www. Pie. Com, all of the memos and videos are present. Continuing to push on a rolling basis new ideas, new explainers and there s a way to subscribe to piie rebuilding or rebuilding the Global Economy project, and get and stay up to date so thank you for the interest. The need pointed at for International Cooperation on taxes. Asks, could you elaborate a bit more about what specific changes could and be considered by the u. S. As part of this international process, and how that would ffect the large corporations who pay no taxes . Thanks for that question. Just give an overarching principle for how to approach it and then ill do the details. Nice if every country in the world could get into the room and agree on a new tax system. I think thats hard to imagine. Instead, what i think you can aim for, and this is similar to what i said on Climate Change, one country does, that puts pressure on other thing, es to do the same and its more of a race to the top instead of what the tax right now, which is a race to the bottom. Tax nited states has a provision called guilty. Global low tax intangible income. I got the order of that wrong, it was passed in 2017. And its based on the idea that you have to pay at least a tax rate on the income you earn overseas if it earned in a low tax country, in a way that looks like it to economic activity, for example. Through intangables. Provision was written in the United States, it had two important flaws. That you would do it based on your worldwide income. To do it y important on your per country income because when you do it worldwide you can use investments in one offset, you know, another. You can locate a lot of things andyou know, Cayman Islands then somehow get out of paying somethinghat by doing somewhere else in the world, if ou are in the cayman pretending to earn your income islands, its important that it applies to you. Second, it could be a higher tax rate. Would reduce t it some of the incentives other countries have to lower their attract activity because that wouldnt benefit american multinationals. Ther companies would have an incentive to adopt a similar essentiallyit would the e a de facto floor on Global Corporate tax rate. You, jason. Karen, following up on your about the minder importance of investing in Human Capital, given that education is funded and ely designed by state and local united nts in the states, what can the u. S. Federal government do to Fund Investment in u. S. Human capital . You specifically would suggest . Sure. Lot of education is done at the state and local level. When youre rly talking about higher education, important so a very federal component, so as i mentioned in my talk, we have federal Student Loan Program, which is working for many, many people but not for everyone. There are reforms that we need to do. Should also just be thinking about more federal tonts to low income students support their College Education through the pell grant program. Opposed to, you know, having to take loans in the first place. Third thing i would say is Community Colleges. So the federal government could push a lot more money towards which i colleges, think it should do. Colleges, some of them have excellent track records but not all of them do. Money should come with a set of reforms to make them more effective. Incentives that would help them build structures sure students get matched to the right programs that they are making the best skills, make sure that students finish those programs, and to help students jobs once they are done with the program, so i think all of those things are things that could be done at the federal level. Thank you, karen. There is a whole lot of uestions, unfortunately were not going to get to but we got wo supplement questions from gregory and Damien Williams about the divergence of u. S. Competition policy, and in particular, with regard to the digital sector. Jason, you played a leading role in the uk setting of a new policy agenda. You spoke at the start of this about how important the antitrust policy is to you, and credible its a concern. You also said we cant have one antitrust policy for the world, can you say a bit more about how to achieve the kind of or ergence in antitrust digital policies that you were talking about . Yeah. You apply to if merge as a multinational you have to clear competition all the countries you operate in. All of those countries, ompetition authorities, are using pretty similar rules, and so you know if you can clear the going to tes, youre e able to clear europe, australia, et cetera. Thats something that i think we on the procompetition regulatory side. Essentially a set of code of can and or what you cant do, that is relatively applies to the biggest platforms that have a gateway bottleneck power for the system, and thats similar to the responsibilities they have out antitrust but spelled more clearly, rather than having types of lawsuits that weve seen in europe and the United States. Intraoperability important bility is for creating more competition as well, and those types of rules, codes of conduct, you know, if you had a in one ked out one country would you probably see the companies complying with it, forthat effectively working them on a worldwide basis. Thank you, jason. Incredibly concise on such a complex issue. Weve come to the end of our time today. Our second event in the rebuilding of the Global Economy series, with the peterson social media our editor, bob, posted on the chat, memos, all the briefings, all the videos and accompanying materials are a rolling basis, and then permanently on Peterson Institute website. Encourage you to look there, to engage with us and as i said at the start over the coming roll out more and more of this work, we look forward to getting to hear from voices and other places, than the once weve emphasized election g into the and either a second term or a new administration in the white for us towas critical set out what should be the will be the d what right things to do for the council, for omic the council on economic advisers, for the industrial andcy of the United States, for the u. S. Dialogue with china. All of these, as all my said, take place in a Global Economy which like china withdrawing from it makes us worse off so the question is how do we best in a way that m cspans washington journal every day we are taking your calls live on the air of the news of the day and we will discuss policy issues that impact you. Coming up this morning, we look at this years president ial campaign in the battleground state of wisconsin with craig gilbert, Washington Bureau chief for the Milwaukee Journal Sentinel and david buchanan, Political Science professor at the university of wisconsin, madison. Watch cspans washington journal live at 7 00 eastern this morning. Join the discussion with your phone calls and tweet. Untilh seven days left election day, on november 3 when voters will decide who will control congress and occupy the white house, stay with cspan. Watch campaign 2020 coverage every day on sees and, learn more on cspan. Org or listen on the free cspan radio app. Your place for an unfiltered view of politics. Live on tuesday, cspans Campaign Coverage continues with joe biden speaking in georgia, home of fdrs little white house at 4 00 eastern on cspan. , kamala harris. Campaigns in reno, nevada. At 3 30 p. M. , Vice President to supportersaks in greenville, south carolina. On cspan2 at 1 00, the hill focuses on the pharmaceutical supply chain. And at 3 00, the Heritage Foundation talks about the speed. On work and the indiana governors debate at 7 00 between eric holcomb and his challengers including Whitney Myers and donald rainwater. Tonight, President Trump holds a Campaign Rally in omaha, nebraska. Watch live at 8 30 p. M. Eastern on cspan, online at cspan. Org or listen live on the free cspan radio app. That is what gives us the confidence to sit here and describe the first 10 seconds of the universe like we were there. It all started with the big bang. . S there a song in there i wouldnt give a reporter and interview unless they read it. They had to read the book before i would do the interview. Hosted20 years, book tv authors for indepth conversations with cspan viewers. On sunday at noon eastern, join us for a live anniversary special. Your phone calls and tweets and take a look back at memorable indepth moments. [laughter] what is in the book . 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