On Thursday morning, CNN Newsroom host Poppy Harlow used part of her interview with White House economic advisor Jared Bernstein to wonder if, as part of the Biden administration's near-constant insistence that America must become a country built on "equity," "fundamentally capitalism needs to change."
To prove her partisan point, Harlow cited the economic impact of the pandemic and a study from two progressive organizations: "When you looked at the report this week that said during the pandemic. you have billionaires gaining a trillion dollars more since March and in the last six months, eight million more Americans falling into poverty."
She then asked: "I wonder if you think fundamentally capitalism needs to change and if you do, what the Biden administration plans to push for on that front?"
Harlow declined to point out that much of that wealth was due to the tech companies, that can better withstand a pandemic and related shutdown than other industries (and thus are enjoying great stock market performances). Nor did she explain why capitalism was to blame or the economic impact of shutdown orders.
Bernstein, despite being someone pretty far to the left, ultimately said capitalism was not the problem: "When he talks about building back better, he's not talking about just getting back to where we were. He's talking about dealing with structural inequities, including, of course, systemic racism. That's at the core and you heard him talk about earlier this week. And that gets to the core of what you're saying. I don't think there is some sort of fundamental, you know, inherent problem with capitalism."
This confused Harlow, who interrupted to ask "You don't?" Again, Bernstein said, "No," and instead, like any good lefty, talked about trying to make capitalism work for everyone:
[O]ur package is trying to get us back to better than normal times sooner than later, generates enough wealth for there to be prosperity for all, including those left behind. But the policy architecture, the connective tissue, between overall growth and the prosperity of those in the middle class and below, has just eroded over the years because of such policy negligence that has favored those at the top, at the expense of those at the bottom and that is what we have to fix.
Harlow then quoted a Washington Post article Bernstein wrote in December where he said: "There is something foundational in the structure of economics that is too accepting about embedded racial injustice. The problem is that it is impossible to observe the imperial record of black economic outcomes and not conclude that the market failure is pervasive.”
She then asked, "For more than 50 years black families have not gained the kind of wealth white families have. In fact, it is ten times as much for white households in America still according to the Fed. Can you guarantee that after the Biden administration, it’s going to be any different?"
Bernstein replied that Biden's executive orders are about addressing "market failure" by "building the connective tissue" needed "to chip away at the systemic racism."
This segment was sponsored by Liberty Mutual.
Here is the relevant transcript:
CNN Newsroom with Poppy Harlow and Jim Sciutto
January 28, 2021
10:42 AM ETPOPPY HARLOW: I want to move on to the really big picture here as you take this critical new job and as this administration tries to lead us out of the devastating economy. It goes beyond this bill, it goes beyond job creation, it goes to the big question, Jared, I think of wealth creation in this country for people who have not even had a fair shot at it. When you looked at the report this week that said during the pandemic. you have billionaires gaining a trillion dollars more since March and in the last six months, eight million more Americans falling into poverty. I wonder if you think fundamentally capitalism needs to change and if you do, what the Biden administration plans to push for on that front?
JARED BERNSTEIN: Well, first of all, you're blowing my mind by taking me out of this very narrow, very appropriately thing of what is happening in the last five minutes, which is also important. But to this big picture that is so essential and, in fact, at the core of the Biden presidency. When he talks about building back better, he's not talking about just getting back to where we were. He's talking about dealing with structural inequities, including, of course, systemic racism.
HARLOW: Yeah.
BERNSTEIN: That's at the core and you heard him talk about earlier this week. And that gets to the core of what you're saying. I don't think there is some sort of fundamental, you know, inherent problem with capitalism, I think the problem --
HARLOW: You don't?
BERNSTEIN: --- is that the structure --
HARLOW: That the ---
BERNSTEIN: -- no, I think the problem is with the structure of the way this system is implemented in -- at this moment in time. That is we have an economy that in normal times, and by the way our package is trying to get us back to better than normal times sooner than later, generates enough wealth for there to be prosperity for all --
HARLOW: Yeah.
BERNSTEIN: -- including those left behind. But the policy architecture, the connective tissue, between overall growth and the prosperity of those in the middle class and below, has just eroded over the years because of such policy negligence that has --
HARLOW: Yeah. And --
BERNSTEIN: --- favored those at the top, at the expense of those at the bottom and that is what we have to fix.
HARLOW: And look, Jared, to your credit you've written a lot about this. Let me quote you from just December: “There is something foundational in the structure of economics that is too accepting about embedded racial injustice. The problem is that it is impossible to observe the imperial record of black economic outcomes and not conclude that the market failure is pervasive.” For more than 50 years black families have not gained the kind of wealth white families have. In fact, it is ten times as much for white households in America still according to the Fed. Can you guarantee that after the Biden administration, it’s going to be any different?
BERNSTEIN: Well, of course, no one can make that guarantee but I appreciate your reading what I wrote and I guess it's -- now, I don't want to be self-referential, but --- but that still resonates very strongly with me and it’s not brilliant insights. It’s just a bunch facts.
HARLOW: Yeah.
BERNSTEIN: and the key word there is market failure. For persons of color, this market has failed them not just in the recession, but in the expansion. And not the last expansion, but historical expansions. And yes, this is about building the connective tissue through the agenda that we've been articulating to finally bring folks who have been left behind along. If you listen to Biden's executive orders this week, we’re talking about for example in the area of housing, he's already talking about trying to chip away at the systemic racism reflected in those policies and the agenda goes much deeper than that.
HARLOW: So --
BERNSTEIN: So, by the way, let me say one thing ---
HARLOW: -- yeah?
BERNSTEIN: --- you asked for a guarantee. One reason you won't get a guarantee is because we need Congress to partner with us on this agenda.
HARLOW: Okay. Fair enough. We'll have many more conversations about this going forward. I certainly hope.
BERNSTEIN: It's a great time.
