Holiday chore or. I or holiday play them less time in the kitchen and more time with family and friends. Than ever. Wall Street I'm Michael Mackenzie Oh this is Bloomberg Surveillance on a day when. So much is happening we've got the Senate moving forward on the tax bill we've got North Korea in the news doesn't seem to be bothering markets this morning either one of those news story seems to be bothering markets s. And p. Futures up by 3 points now 10th of a percent Dow futures are up $310.00 futures up just about a 10th of a percent. Not moving a whole lot but to the extent they are they have gone up just a little bit so maybe reflecting some concern there big morning this morning Tom we have some big lines on the show you and I are the dumbest people in the room right now. On this. Yani verify will join us we get some economics to talk about today and controversy as well which I think willing. Gauge the mind towards. Some of these big issues of the moment big news as well overnight of course what's going on in Washington the markets as well the Dow 23036 the Vix under 10 again. A search I have even look let me look 12 months trailing folks before we get started with Professor Stiglitz 12 months trailing Dow up 25 percent as a b. 500 up 1000 percent Nasdaq up 28 percent. I don't know in u.s. Dollars The Hong Kong market up 29 percent I guess you know it's a single digit world bloomers surveillance brought you by Invesco learn of the college about $5.00 to $9.00 was built specifically for the unique needs of college savers visit college bound 5 to 9 dot com today that's college bound 5 to 9 dot com today he is a laureate from Columbia he is a gentleman of liberal thought who unfortunately conservatives have to read to try to keep up to speed on the outrages an income and wealth the pushback from conservatives is well the classic 2002 is Globalization and Its Discontents there's a long new afterward it's not just like a 6 page afterward you really put some thought into what when you wrote the afterword I'm sure you had an idea in your mind and then you had to rewrite the afterward what was the rewrite like of the new afterward with the big idea is that when I wrote globalization Its Discontents I just left. Being chief economist of the World Bank I saw the discontent in the developing world and I saw that there was a real rationale behind that discontent globalization had been unfair particularly for say Africa of Ethiopia and he afterward Yeah exactly and then. Trump becomes president and he says go to. Nation is unfair to the United States and you have to ask the question how can globalization be unfair to the United States unfair to the developing world how can it be that something that was supposed to be so good for everybody winds up being hated by everybody and one of the reasons for writing the book was to try to unravel that that dilemma Another one was the. Trump says. NAFTA and every one of our other trade deals or the worst deal ever and what he seems to suggest is that actually I'm sad is that our trade negotiations got snookered by just smart trade negotiators from Mexico and he said in China Joe just take us with us from Colombia folks for Stiglitz he said in shiny past presidents exact use of the a target that we use that we have been taken advantage of. By those in other countries and that you know I've watched these trade negotiations for 35 years and the idea that we were snookered by by those in other countries that they took advantage of us is absolutely wrong we got what we asked for the real question was were we asking for the right thing Ok but what is this Joe if you grew up in blue collar Gary Indiana Mr Trump fact represents a huge swath of disaffected blue collar America Now why is this blue collar now different from the blue collar you knew in Gary Indiana Long Ago and Far Away 1st he doesn't represent those they voted for him coming down the road for him but they voted for him because he says that he's going to put forward a set of economic policies that are going to that's make their plight better and that was the 3rd reason I wrote the book I wanted to ask answer the question would the policies that he put forward actually do what he promises or is there and 3rd way another way. It's clear that the policies that we did in the past don't work it's clear that. The argument was that his protectionism was not going to work either it was actually going to make them worse off Ok I learned people go wow did you learn. To wear a bow tie time and it wasn't that I got it from Senator Simon of Illinois but that was a good thing the esteemed economists from Illinois long ago and far away where are the Democrats in your party who can move centrist to assuage the fears of more traditional non trumpy and Republicans do you have any optimism the Democratic Party can get out of its own way in its own recent historical baggage I think so I do have some Why do you say that Well I think one of the elements they beginning to grasp. One of the elements of correcting where the problem is where things have gone wrong is market power that. What reason is that globalization is being so bad is that it has weakened. Workers bargaining power and. Provided a framework in which a large corporations have gotten larger and larger So there's an increasing concentration of market power just like that was in the gilded age at the end of the 19th century and they've grasp that and says we have and said we have to do something about that a 2nd element is that we have to have systems of social protection without protectionism. And part of Social Protection is having a tax system fair. So underlying one of the elements of of making our economic system work is that those who gain have to share some of the benefits with those who vote show the primal scream from conservative the 4 conservative Democrats that are out there but a huge body of people who I would suggest didn't want to vote for President Trump is there's the Democratic Party has lost its way from the wards of Gary Indiana from years ago and from other geography Opeth to. You have Senator from Pennsylvania has to deal with this every day why is he your world you grew up in so with the barest thing to East Coast to the left coast Democrats Well that's a political issue let's get back to. Live like with any political class is the only ones that shows we're going to say he doesn't talk politics. There are many complex cities to these political dynamics we all know that in the United States. Money matters in politics and. That the search for money has distorted as a lead. To a focus on where the money is you know it's that simple and unfortunately I think we have to get back to the roots of where where the voters are and the voters are. Ordinary citizens who've not done very well you know just the real the reality is that most Americans have lost. As a result what is going on in the last 33rd of a century and globalization as I point out in my book is a part well not the only part of the story but Porton part of the story and we have to restructure globalization is not with globalization Excel extent with the way we manage school validation Let's come back here to let me ask one quick set up please you only get 30 seconds and then we can delve into this later the tax bill argument that the administration makes is especially the repatriation that their concept is 70 percent of corporate earnings go to Labor go to Labor and only 30 percent of capital which is kind of the opposite of what most people have said so do you disagree with them. There now was his that will happen as a result of the corporate income tax cut is. Wrong you put it forget it I want to ask that because that's one of their major arguments that they make that that workers will get a big raise out of this and you're talking how we he didn't want any of those even the C.E.O.'s have said that's wrong I mean it's really striking that we've gotten a big dose of honesty from a lot of the C.E.O.'s you know. When asked a group of C.E.O.'s What were they going to do with the tax cut and only 3 don't make their hands things that maybe it will show that on investment we'll give you a job I mean it isn't intended if we miss our advertising breaks we'll continue to go to Lorien of Columbia and we're going to really focus on the new tax cut bill futures are up 3 this morning. Right. Now a check on my guitar for the list for the national headlines my exam bag a very much breaking news today show host Matt Lauer has been fired and because he says it was informed of inappropriate sexual behavior by Lauer rocked by allegations of sexual misconduct the House is moving ahead on legislation to require anti sexual harassment training for all members and their staffs the vote comes amid a wave of accusations against lawmakers and prompted calls for the embattled lawmakers to step down North Korea says it successfully fired an intercontinental ballistic missile that would put the entire u.s. In range of state run Korean Central News Agency said leader Kim Jong un declared with pride that now we have finally realized the great historic cause of completing the state nuclear force Global News 24 hours a day powered by more than 2700 journalists and analysts to more than 120 countries Michael Bar This is Bloomberg by talking mega thanks so much risk and feel we saw Sterling go to 130 for a very constructive Rexin news it's given a little bit of that back now to a pinpoint 30 $399.00 we're with Joseph Stiglitz of Columbia University coming up on your tax cut. For low anyone there. You know how. Thank goodness the giant Medicare means it's so complicated no worries United Health Care has the people tools and plans to get you through it including the only Medicare plans with the a r t name I'm so glad you found need to find a Medicare plan get help now at u.h.c. Medicare dot com a r p Medicare plans from United Health Care United Health Care pays royalty fees to a.a.r.p. Heir p. Is not an insurer I'm not much of a dancer never have been not at weddings not a concert not even when my favorite song is on the radio but there's something about seeing exactly what I ordered arrived at my facilities door the day after I ordered it that gets my foot tap and that's why I love Granger what 99 percent of in stock items shipped on the same day they're ordered to get us what we need when we need it which means we keep moving and I keep grooving all click Ranger dot com or stop by. For the ones who get it done and having it 659 feeling again what do you know that he panic attack right before the work day starts when you're sure you've forgotten something no that's my favorite time of day I work with syntax so I always know we're ready for the work day they handle our uniforms fire extinguishers 1st aid safety training for mounts and restroom supplies I continue to call sometimes they might just make a morning person out of your own. Learn how sentence could help you get ready for the workday visit sometimes that can. Have pain you can't ignore then try 1st until shortly from Salon pos salon post pain relief patches have everything you need in one clinically proven solution they're the strongest label pain reliever available without prescription safety relieving pain for up to 12 hours and so long pauses the 1st and only f.d.a. Approved o.t.c. Topical pain reliever full 1st in class relief gets a long pause pain relief patches in the green box with a big wave. I'm Jessica anger c n d c North Korea launched a missile that can reach the u.s. Question. Over the corporate tax cut plan all of this weighing on stock futures this morning they're mixed pointing to a mixed open on Wall Street major indexes are coming off record highs by the way markets are mixed in Europe and Asia right now the corporate tax cut bill sailed through a Senate committee but no one's sure what's going to happen next today the full Senate will vote on whether to proceed with considering it today we get a 2nd read on u.s. Economic growth in the 3rd quarter the forecast is for 3.3 percent which is fairly strong questioning why a corporate tax cut may be needed at all anyway jeweler Tiffany will report quarterly earnings this morning before the opening bell and then later today we get results from Jack in the box Lazy-Boy and Tommy Hilfiger parent p v h the Rockefeller Center Christmas tree lighting ceremony is set for tonight in New York City and it'll be on our sister channel n.b.c. C n.b.c. This holiday season you know just what you want to get the gifts on your list the. Bells is having our annual. Holiday event right now get an extra 40 percent off your purchase with your start credit card don't have a card it's still an extra 30 percent off he's got a gift for a shoe store wide including new apparel for the family cool toys and stylish successor look for your own in the mail or just go online to today's deals Well New bring out a new belt as part of our faith family. The Johnsons don't have that inflatable musical snowman switched on tonight yeah. Not have accidently on purpose cut the wires. I am Tammy Schaefer and the Washington press our out of business roundtable joins me to talk about the past year with the c o p r t you have a great event the partnerships and what we expect from you next year connect and collaborate weekdays from 4 to 5 pm right here on Denver's Monita 60901619. You dot com That's Denver Half Price dot com That's Denver Half Price dot com. Wrote list all the time I talk to the drivers and I said why I left and they say we're treated well we're paid well we have flexibility we can set our own hours and I thought that that spoke body and so the company hear more interviews like this one on Bloomberg Television streaming live on bloomberg dot com and I'm a Bloomberg mobile app or check your local cable listings. Movie Business News 24 hours a day are going to come on the radio plus mobile to your radio. Business but and I'm Karen Moscow 717 on Wall Street the number day break out on customer terminals right. All the news you need to start your day let's get a check of the latest headlines from Chris Kirkham at the Bloomberg daybreak Desk good morning Chris good morning Carol Corps you said pass $10000.00 taking us to this year to more than a 1000 percent Senate to start debating the g.o.p. Tax bill today and just a couple of votes could swing it meanwhile the president heads to misery to rally support Ok he's still wrangling over how long to keep I would put the United Arab Emirates energy minister says one option is a 9 month extension and 3rd quarter net loss to nearly one and a half $1000000000.00 That's according to people familiar with the matter who say the losses due to intensifying competition legal challenges and regulator you scrutiny for all the news you need to start here day check out day break on your mobile phone on the Bloomberg anywhere Karen Riker's here can thank you and you did mention bitcoin at $10858.00 right now Tiffany's new chief executive officer getting a boost from China as he pursues a turnaround of the 180 year old a jewelry brand same store sales increase 2 percent in the Asia Pacific region last quarter compared with a decline predicted by analysts futures higher s. And p. Futures up 3 people I said that's a little bird business or lash Tom in my carriage it's up $100.00 and you're on the last day to check that's scare you be quiet we're on radio no life we're going to key Why did you bring is a pretty it's a 1st time just to this is that we're having regular. Joe and I are talking economics you're talking bit coy which we could spend a half hour probably on that but I want to go back to what we were just talking about before the end of the break traditional economics. Research shows that workers get maybe 30 percent of. Corporate profits where is capital the owners get 70 percent which as you. We're just saying makes logical sense. The argument for the tax bill reverses that do you know of any economic research supporting that idea no no no no credible research actually after the cons of Economic Advisers came out with their report. There were 2 very good articles that were very quickly published. On the Internet. Analyzing where what the weight of evidence was and it was quite frankly embarrassment because for. 50 years since excretion the consul the Economic Advisors has always tried to be reflect the best of economic science you know is it. When the evidence was against it they would be totally silent you know and sometimes politicians do put for example but it which is never actually going on the record and and saying things that were against what economic sighing sec said and this was an embarrassment for what is has been a very strong execution in our government one that tries to give the American people want a bipartisan basis. With economic says about various policies being advocated by a ministrations you see what I've done here Tom I've set up a shameless plug for Bloomberg News is to Lou. And his story this morning on this if you look at bloomberg dot com He said look at what C.E.O.'s are saying they will do with the cash so there's a 3rd good story there for you Joe The other thing we're talking about during the break is the tax trigger that they're putting into this and let's leave aside the idea of you know the. The value of this tax plan and the politics of this tax plan but just from a from an economic point of view tax trigger bad idea the basic problem is that. When the nature of the tax trickery is that when the tax revenues are less than they say and surely they will be it raises taxes that's what economists call is pro cyclical tax policy in other words tax policy supposed to run against time so that when the economy is weak taxes or cut stimulate the economy and when the economy is strong you raise taxes we're doing just the opposite the economy is relatively strong and we're lowering taxes that's going to be proved you know exaggerate the movements of the economy and the tax trigger would do just the opposite if you count me gets weak tax revenues go down and the tax trigger says now we're going to raise taxes. And that will weaken economy further it's the worst kind of economic policy that you could imagine I tried to read yesterday my eyes glazed over by paragraph 3 and 42 numbers of it's formulaic me on belief Joe there's a lot of people out there who have grown up Republican who want to find an alternative can your Democratic Party generate an alternative for 2020 yes I think they can. Who is going to be a long process I mean I think one of the reasons that you don't see people. Putting their names forward is we know the political what the political process works looks like you have a fair there are no better job everybody who's running is older than you. Not everybody there are some. Who are younger who have a lot of. Ability the real question is what will the central messages of in the central platform of the Democratic Party look like and I think to come backstage in my book one of my messages in my book Globalization next discontents revisit it is we have to manage globalization better it's not with the problem of globalization it's the way we manage that when it's working well we can lead the economy and do well but the problem when it's not well managed even if economy does well no more than 100 percent of the benefits go to the people at the top and so you have to have systems of social protection without protectionism which is the route that the Republicans are going so it has to be a different part of that message is market power the glamour ational are getting within your afterwards we've got the phrase market power just because congratulations from 2002 on a strong new edition of his classic globalization Globalization and Its Discontents Happy's we've got to go I know you and