Warner who sits on the many minutes committees in the senate and i add a note that senator warner and senator doug jones and senator Bernie Sanders and blumenthal have introduced the paycheck security act which tries to keep hold and to guarantee paychecks for those workers who have been displayed by covid and it is much more direct than anything weve seen before but senator warner, thank you for joining us today. We will bring some other people [inaudible] great to see you. Tell us first about what youve done and why its so important. I think the federal governments response, which has been obviously a record size and speed, 2. 7 trillion directly appropriated, Federal Reserve to another for chilean lending have helped make this crisis at least not worse but still, we now know we have 36 million americans who have lost their job in about 25 million of those have lost their Health Insurance. Study statistics send the Federal Reserves show that the folks who make 40000 or less, 40 of those fellow americans [inaudible] and those who think this will be some de shape recovery are wishful thinking. Obviously the house has had a very ambitious plan and my idea is that we have more progressive to last and similar approaches taken by republican senators that before we simply get rid of the existing buckets lets pause and say lets work around the world and if we look at our european allies, not only brits but the germans, austrians, danes, where their governments have made direct payroll support to workers who have been displaced then we should think about doing that here in this country and this would attach onto pptp and if they run out would take care of those middle market who have been left with no support and a plan basically says lets tap the government for two quarters using the retention tax credit and 100 of furloughed workers salaries up to 90000 in income and then we would have a component for overhead as well and the interesting thing is that would take our unemployment numbers down back dramatically and reconnect workers with their employers and reconnect them with Health Insurance during this time and as we do reopen it would allow us to bring back workers much quicker. We interviewed secretary nugent this morning about how much more support would be needed out in the system and say we spent three chilean dollars and we need to wait and see a few weeks how this goes and he was aware that our unlimited is now up to 38 million and what is he getting wrong because he said he did make the point to bob cusack that this is not an economic crisis but its a medical crisis. Whether its a v or a you is dependent upon science and killing the virus which i have sympathy for but on the broadside its helping people and he says we need to see what weve done first. Do you think hes just running to slow . First of all, obviously dont agree with this administration on a lot of things trying to give you an opportunity to make that clear. I think the secretary has many square shooter as we try to negotiate a series of items in both cares packages. We have put a lot of money out and i think there are literally millions of americans who are terrified this morning and are worried about when the expanded unemployment runs out and they are grappling with how they get on medicaid because they lost Health Insurance with their job and from a competent standpoint i think we can make the case that they want to see that unemployment numbers go down and his paycheck security proposal would be a way to reconnect workers and drive down on a plane with they would make sure that our medicaid rolls would not swell and it would provide the kind of assistance for those micro businesses that did not [inaudible] 50010000 employees who really have been left out. I was with secretary middleton last night on a hearing together and he is talking about setting up the socalled main street facility but theyve been a slow to get that out and that is not going to be or that will be debt to the middle market and i think we need more. I think americans anymore and as senators go home this week for the memorial day recess you will hear back from our constituents. Im not asking this facetiously but you and i have talked about spending and debt before and that you are in the moderate wing so what is the fiscal conservative do in these times . Well, if we look historically and not just america but european other capitalism driven democracies, in moments of great crisis, usually the government response [inaudible] and that often leads to a longer recession or into a depression. I am longterm concerned obviously about the total national debt, 28, 29, 30 trillion depending on how this plays out and i do think the fact that we had the new normal with remarkably low Interest Rates have made that debt less problematic then i was afraid. For example, when i tried to advocate for the [inaudible] plan back in last decade i think its a problem long term but i the alternative of doing nothing or doing less we are under shooting when you have depression levels of unemployment and we have to, i think, acknowledge that the number of these businesses are not going to come back and the business had 120 employees and was a restaurant, if they come back with 60 employees so how do we also rethink that incredibly large segment of our workforce that will need to be retrained and retooled and that will take some level of government support. Rights. In a moment and will bring them to ceos of companies with large north american operations and before i do that i want to get your own thinking about we had talked about supply chains and about american not having the manufacturing muscle that it needs and there is a fear about china and nationalism, and away, is is rising but people are saying do we need to rethink how we deal with the crisis and get productive capacities set in this country in a more agile way and i have no idea where you are at on this. How do you think about the big production side of responding to the covid crisis . I think after this crisis is in the Rearview Mirror there will be a rash of federal actions not to similar to what happened after 911. I think there will be a recognition that we have done a pretty poor job on things like ppe on testing or on what we need to do right now is to get about a domestic supply chain for vaccinations. I think weve also been able to escape, so far at least, most americans now realize depending on the drug, 6070 of the basic chemical compounds that go into our drug supply are sourced out of china. It may be cheaper out of china but i think americans will be willing to pay a few cents more per pill if we can make sure that weve got a domestic supply and i think there will be a redefinition of National Security that will include things like ppe testing and drug supply. I also think my beef is not with the Chinese People but with the communist party of china and president she and his approach and there could be a coalition of the willing that would think about not only domestic supply chains but a liberal democracy supply chain that operate under rule of law but america under ts administrations retreat from that kind of International Cooperation will make that kind of coalition of the willing visavis china a little harder to pull out. Let me bring to our discussion barbara, ceo of siemens usc and one of the sponsors of todays. Brendan ogrady, ceo of [inaudible] usa today. We spoke yesterday and barbara, thank you for joining us. You heard the senator just layout that we need to do what we did after neat 911. Rethink what we are producing and even did it to their when it comes to when i learned was a pi or the active ingredient that right now are based in china and there may be things that you hear about barbara, you are at siemens and you are an International Transactional company of human at huge assets in the United States but as you look at it its not the question of restoring production, i dont think but its a question of what you think we need to do to take productive capacity in this country and better ready it for a time like this . Stuart, thank you for the opportunity to talk about this. I do agree with senator warner that this is a moment that will help us drive change that we have needed anyway. We are in the middle of a Fourth Industrial Revolution paid your bringing Industrial Software to the world and with tools today that simply did not exist one decade ago. While we have been on this transformation the last two months have shown us that manufacturing is absolutely Critical Infrastructure that we need to strengthen. But when we look at it, i see two really important opportunities. The first is something i will call the strategic digital twin reserve. What is that . What im thinking about is think about what happened as coronavirus began to impact us and we thought about the healthcare needs and we look for what kind of equipment our medical technology would be needing to take care of patients. Quickly identify ventilators is a real need. We needed hundreds of thousands, if not millions ventilators and we do not have that and feared we did not have the capacity. [inaudible] makes ventilators and they made their engineering, design and manufacturing process available and we captured what is called the digital twin. Capturing what is known about the physical properties and its parts that can make up and reassemble and make that available to digital file. Think about the powerful approach this could be if we could capture the digital twin of medical devices and even pharmaceuticals because its not really advantageous to manufacturing the scale and most businesses step forward to do that but in a time a real crisis, like weve been going through, this could give us the resilience and Rapid Response that we need. Barbara, that sounds great and we got a lot of laypeople, including myself listening. We got talked about the defense production act, it sounds like the government coming on and telling businesses what to do and some are applauding that and some say wait, thats too much so where are you enacted on the defense production defense production act connected anymore, do we need less . How do we do this right. What ive seen so far is an absolutely fantastic partnership between government and business. Youve seen public and private businesses stepping up to the plate and readjusting their manufacturing and a lot of people look to what siemens do and we chose to use our manufacturing knowhow and the technology that enables manufacturers to help them modify their lines with ramp up production of ppe or as i say enable others to step into vital roles of manufacturing, medical devices. I think that we have that technology now and we have the ability to use the defense production act but also to use grateful assets in the department of defense. A lot of people may not be familiar with the concept of the organic industrial and this is an opportunity for us to upgrade the 30 factories managed by the foreman of defense and prepare them to be able to produce supplies when needed. I want to bring in Brendan Ogrady and then get senator warner to help figure out what the deficits are right now. If we were to need something and if we were to think about acts that need to be put in place as he mentioned the 911 commission, brendan, you and i had a conversation and ill tell the public is available on the coronavirus report which the hell did yesterday and he made an important, the thing about strategic supply of medicines like we think about the Strategic Oil reserve. I love to give you an opportunity to expand more on that. Yeah, sure, stuart, i hope you can hear me okay. I think that when we think about pharmaceuticals and we about medicine and critical help needs you know, those are very important things to keep our country running on a daily basis. We think about a lot of things in this country, being strategic and having a Strategic Oil reserve and having Strategic Reserves of other things and i think pharmaceuticals, whether its medicines that are focused on icu patients or critical medicines that antibiotics, paralytics, things like that, you know, when we have a National Emergency or Global Pandemic for things like that making sure that we have access to those critical things and that supply chain is attacked and its important. There are numerous ways to be able to protect against that. You start to bring manufacturing back into the United States or partner with other companies and do things like treaties with other nations that also manufacture medical supplies but i think one of the shortterm things and maybe one of the easiest things to do is build from Strategic Reserves and stockpile some of those medications. So if there are a need and use for those we have those available. Thats a shortterm problem and there are maybe a longerterm issue. Let me ask you, and i will make this fun, senator warner decided he was surprised that china, in particular and other places out there, make so much of the active ingredients and drugs. You told me yesterday america makes almost none. How do you get between zero and something to make senator warner more comfortable with active ingredient side of drug production . Yeah, no. Its a discussion that we have been having internally for over a year. I spoke with numerous members of congress on the hill about it and i think that the fact is all of the chemicals are made in china and that moved offshore years ago pretty the pharmaceutical ingredients, api, has moved to china, to india, to Eastern Europe and other places largely because of cost and having to produce a competitive product. I think ultimately whatever we do to bring that manufacturing back to the u. S. Have to be cost competitive and has to be sustainable. There are numerous ways to attack that in the short term i think its partnering with those companies that have a strong api business and making sure that we have access to that api and those critical medicines is one of the shortterm things that i think we can do but its very little of, if any, api is made in the United States. Senator warner, and past we have had discussions about capitalism and rebalancing the social contract so that somehow when you look at technology and you look at everything that is happening and you look at the inequality in the United States that we needed to do something because capitalism was, in a sense, broken and you are one of the most successful former Business Leaders in the United States senate today and that is all before covid hit. Now we have a massive pandemic and shutdown the entire economy and i am interested in your insight on how capitalism will work now and do we have an opportunity to improve it or do we need to change course . Stay, i love that question, as you know. It is my sweet spot but i want to at least make a quick comment on brandons comment and barbaras comments first. No, i think, brendan is right on the ipa on the bicycle chemical compound but there is nothing unique about those businesses being in china rather then they are slightly more costeffective. I think americans and i think europeans Going Forward will be willing to pay a couple cents more if we can bring that Domestic Production back and i thank you will find huge bipartisan support Going Forward. I cant protect everything in the politics but i can assure you they will be on all these areas a real move to bring this manufacturing back to america and i think siemens is a Great Company and were proud of that and you have a great presence in virginia and i think the ventilators is one example but i think the administrations response on ppe has been a complete disaster and the fact that we have seen states bidding against states, hospitals and bidding against Hospital Systems and totally inefficient market when we tried to source activity and as opposed to having purchasing power of the u. S. Government and having the screening ability of the u. S. Government but im not as involved and someone who knows a guy who knows a guy who thats an absurd methodology. For us to access that kind of critical equipment we need to bring some of that supply back home and i think the same has happened on testing and the president put me on his reopening the economy and a commission and i appreciate that and ive been the Vice President and why can we have a master database of all our tech capability and what is in the pipeline from the fda and we should have that in a totally transparent forum and if the menstruation is not willing to agree that because they dont want to own this problem. That is, innocence, im not working with John Hopkins University because they are a trusted name and they tracked this virus and trying to create what should be a federal response in terms of a master database but on capitalism, as you know, i dont want to talk too long on this but three quick things, there will be an essential for growth growing bipartisan consensus. With the dislocation coming out of this pandemic we need a portable benefit system. The expanded unemployment to cover those gig workers, 1099 and others and i think we need to make sure that no matter what kind of work you do for every dollar you make there is some portion of that goes to benefits and travels with you from job to job, who manages that, experimentation and lets have that portable benefit system for a second we need to have those coming [inaudible] we need to change the Tax Accounting and reporting laws around investment and Human Capital we need to get rid of the absurdity right now were accompanied by his robots and we get an r d tax credit the robot is viewed as an asset on your Balance Sheet and you can brag about it for your company. Its the same company trained to human beings to be more efficient than the robot you dont get the same tax treatment and you are viewed as an expense and we dont get to brag about it. We need to move and the sec is doing this to at least equalize investment and human beings and to invest in stuff. Finally, both siemens might be a part of this and want to commend the Business Roundtable for what they did last august when they said and maybe think about steak over capitalism and rather than simply shareholder and that stakeholder capitalism says yes, we need to make money for our shareholders but we can do well by her employees and employees is offered that was the capitalism that postworld war ii that built the greatest economy in the world and americas economy and we went away from that and i think we are happy to see businesses, leadership recognizing fact and the American Public is going to demand that as we make all of this spending and there will be an expectation that business has a responsible role and i know you did this and other ceos have done as well but theres a moment in time and this ought not to be a part of [inaudible] but how we make capitalism work for more people in the 21st century. Thank you, senator. I know you have to run now. Ive got to go vote. Normally i would say in a room in a brick and mortar room we are all meeting and weve done this a lot and you get a big round of applause and so people are applauding in their rooms as you up moving on. Thank you. Let me continue with Brendan Ogrady and barbara. I want to ask brendan a question of what can be done between the pharmaceutical industry and i know you are on a key part, largest manufacturer of generics in the world and what can the pharmaceutical industry and your industry do with government to deal with this real anxiety that americans have right now about drugs in a time like this. Yet, stay, great question. Again, it is one we spent a lot of time talking about. Is unique at about 50 of our portfolios branded medications on the specialty side and the other 50 is generic so we occupy a unique space and we talked to the government about ways to ensure supply and medication and again whether that is bringing manufacturing back to the United States or whether it is making sure we have the right agreements whether its the treaty or some other agreement with from the allied nations as to where we make medications and where other make medications to making sure that we have access to those and share those collaborations and a time of crisis but this extends beyond the pharmaceutical industry and this extends to personal Protection Equipment and extends to other Health Supplies and so forth so it is a broad problem and one that was the right cooperation and we can certainly work with the government in one of the key parts of that is access to medication. Even in times of crisis you know, there are people in the United States that have trouble accessing healthcare and making that more affordable and more transparent and is also highpriority. Thank you very much but barbara, let me come back to you. You laid out the thing were begin to more and we have new tools and ive always wondered about this but weve seen signs and genetic engineering but we also have major leaps and how we think about manufacturing for one of the most moving things i saw for instance about ventilators and ventilator pieces making some of them go to more than one patient at a time was the people at home using 3d printers they had to do this so i know you are right but i would love to get because i know you are deep in this but share with people who may not be as familiar with big production and what some of that stuff is that has been revolutionary that can help us do more quickly dualpurpose saying of manufacturing lines in a crisis like this and i have to say before you go let me say i interviewed the head of the centers for Disease Control doctor Robert Redfield this week and he was or held nothing back, he said look, were lucky right now in a way, unlucky for some that covid hit when we are not in floozys in and when flu season comes youve got the double impact oversupply so we may be in a nightmarish situation without a vaccine but i hate to depressed people but it is something to think about so what you may be suggesting may be needed more quickly that we may be thinking today. That is right. Lets think about this on multiple fronts. It may be a pandemic plus storm season but maybe it is this pandemic and who knows some mutation or a different viral agent that has different effects. We have to face reality and be ready to mobilize. A lot of people dont know that manufacturing has really moved into the hightech era. Sometimes i will say it sounds like a joke but i mean this quite seriously, the best education in young people get today in this tools of the future of manufacturing could very well be the video games they are enjoying because what we have done is brought the really difficult engineering that has been developed over centuries and we brought these capabilities into tools that take advantage of the Digital Tools that transform communication and entertainment over the last couple of decades. Think about the transformation that occurred when the iphone was introduced. That same revolution is happening now within manufacturing and i will use pharmaceuticals as an example. The continuous processing for moving from generation to true generational processing within vaccine production, for instance, can be a game changer. I believe that the Digital Tools will enable us to begin to give out the things that we are bringing from science into practical medicine and it is happening very rapidly now. The tools that will help us simulate, not only the production, but also the capabilities of future medical devices and vaccines et cetera. Using simulation in advance then going through longer terms by processes we get a good idea of whether we are headed in the right direction and that can take months of trial and error and help put us on the right path. So, if we think about how to prepare a workforce for the future that is now in manufacturing then the really critical thing is to get people to the fact that manufacturing used to be thought of as dark, dangerous and dingy and now we have a really vibrant, hightech sector of the economy that can be really attractive to a lot of people. Its important now while we are in this cause for people to take advantage of online courses that will get them ready for these jobs that will become absolutely essential. The National Association of manufacturers has shared with us that prior to covid19 there were two and half million job openings in the u. S. In manufacturing and while we are, obviously, in a reduced production right now we will be coming back from because of the service that making production closer to the point of demand. In our last minute, brendan, barbara just laid out was a picture of what we can do with production, new tools, moving quickly, much more agile and i want to end on what i see something coming up, someone hopefully will come up with a vaccine. You dont make vaccines, you make other elements around the drug system. Someone has to come up with a vaccine and that will create an immediate 5 billion demand of files of stockers and of pieces and i talked to people like this and say its not out there so what is inhibiting us today from saint we will have Something Like this and people are talking about doses but you need to put those doses in a something and deliver them in ways. I would love to hear from you what we have just and short form, what do we have to get in place to stay for using what barbara just shared to not have a crisis when we come up with a vaccine . While, i agree with everything barbara said but that was very insightful and i do think manufacturing is changing and modernizing, not just in the pharmaceutical industry but in everywhere. I think, you know, once a vaccine does become available, its not just a vaccine but its the stocker and the vile and all the other elements that go around it. Really the key here is manufacturing supply chain, cooperation and preparing for that ultimate event because it wont just be an event here in the United States but obviously it will be a global event and all of our companies are have global select chains and Global Companies so making sure that we are cooperating, not just with the United States, but with other governments and making sure that we can ensure the consistency and distribution will be key. I want to thank you both and thank barbara, president and ceo of c means usa, thank you both for helping us understand and im sure that as i said to brandon yesterday this whole notion of supply chains and production it used to be one that made the eyes glaze over a couple of months ago but now its exciting. Thank you both for joining me today