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tv   Washington Journal Rep. Warren Davidson  CSPAN  March 9, 2021 2:32pm-3:00pm EST

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for 5:30 p.m. eastern today. senators will vote to move america garlands attorney general nomination forward in the same vote series. the u.s. house today members will debate a bill making it easier to workers to unionize and some news the house has deceived the senate passed h.r. 1, the $1.9 trillion pandemic relief bill in the house rules committee is meeting today to facilitate getting that measure to the floor and we could see that debate and voted on as early as tomorrow. watch the house on c-span and the senate live here on c-span2. >> tonight california governor gavin newsom delivers the state of the state address in los angeles. watch live and 9:00 p.m. eastern on c-span2, online@c-span .org or listen on the free c-span radio app. >> you're watching c-span2, your unfiltered view of government. c-span2 was created by america's cable television companies and
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today were brought to you by these television companies who provide c-span2 to viewers as a public service. >> from capitol hill our next guest congressman davidson, from ohio sits on the financial services committee andhe is alsa member of the freedom caucus here with us to talk about a number of things going on in the u.s. house. let's start with the biggest thing i guess is a $1.9 trillion covid relief plan that comes to the house floor likely today and will be voting on it by the end of the week. as it comes from the senate with no republican support what is your take on it? >> look, we already voted in the house and no republicans supported it in the house either but frankly, two democrats opposed it but the only thing bipartisan about this bill is the opposition to it. it highlights that it the white house press secretary called it the most progressive bill in american history so it really is
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not a covid relief bill for the most progressive bill in american history. >> host: assuming that it passes in the house and is signed by the president what is the next step, how will house republicans try to move forward your agenda, in particular the freedom caucus, what efforts will you have two respond to it? >> guest: look, unfortunately in congress we fight by voting in that sense so we don't have the votes. that's the unfortunate part.t. we don't have the votes for it all we can do is call attention to the overstep and frankly the fallacies that are out there like only 9% of this is going to direct covid relief so a huge percentage of it is making it or what makes it the most progressive bill american history and you call attention to things like t 120% loan forgiveness for minority only farmers and ranchers and just if the market people support that
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they should celebrate it but the reality is the administration does not talk about some of atthose policies because they kw they're not broadly popular with the public. >> host: we ask congressman in the last segmentgr about the the and 50 billion headed to states and localities and whether allstate needed that or not but what is the situation in a state like ohio? >> guest: i had a bill since may and june of last year: flexibility for states and localities act and the biggest thing that states and localities need is flex ability out of the money that is already spent. as you highlighted there's a trillion roughly 25% of the money that was already spent in a bipartisan fashion by congress that is still sitting on the books unused and part of the reason it's amused is it's very tightrt conditions and what the money can be used for good originally there was a tight deadline that had to be used by december 31 so they moved the deadline out but have not increased the flexibility. far more than more money than they need flex ability out of
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the money they already have. then there should be conditions on the money because for ohio, for example, we reformed our pension system and only 4% of our budget goes to pensions but if you look at states like illinois they've not reformed their pension system and their systems i are on the path to bankrupting it and instead of reforming it this takes money ohio tax balers effectively and bails out illinois pensions. it's a punishment for the states that have kept their economies functioning and show discipline and it's a reward for states and localities that have failed to do that. >> host: you serve on the house financial services committee and a week ago or so your committee held a hearing into the game stop issue and the rise of the rapid rise in game stop stock and the principles were involved in that financial services committee hearing, including folks from robin hood and read it and elsewhere. what did you learn from adhering? >> as we dug into the issue one of the things that made it
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national attention was the dynamic of reddit thread producingna a long position, pro game stop in this company has a bright future and let's invest in it and wall street and the wall street pros basically saying this company is deadon ad the company will be bankrupt and so they were shorting the stock so effectively it became a short squeeze where the stock was going up and the wall street people were losing and the fact that people who were long on the stock were trading on robin hood was, you know, fitting of the story as the wall street hedge fund billionaires lose money for the small time investors and so it captivated the public's attention. we dig down into what are the mechanics behind it and some of it is free speech and can you say on a reddit thread things that you could say on a bloomberg terminal or to get special status if you use a bloomberg terminal on wall street? and what are the market dynamics
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that produce this. as robin hood ceo highlighted settling in the data and the trade two days later creates an inherent problem that a lot of the market participants and the traders and if it fromm and investors in actual companies that are trying to execute these trades would benefit from getting to t0 so you have clarity and potentially don't have musical shares. there's a point in time whenwh game stop was one of 40% shorted so you can't ever deliver 140% of the sharesn' so it's like musical chairs and the music stopped someone's left without a chair but if that there would be people left without a share to lay a claim to so there is a true market structure issue that needs to be addressed. >> to think for most americans it was hard to tell a good guy and a bad guy from this whole thing. >> , initially the reaction was the good guys were the small time investors and the bad guys were wall street and that is the
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freud dynamic that is inherent but as you look into it there was a piece where robin hood suspended trading and these are the bad guys and they are being manipulated to stop people from selling their stock and mutual down and say there was a market structure issue so the question ises are we going to respond to that in the right way and unfortunately the securities and exchange commission sec and center of the two main regulators are responding by shutting down speech and basically suspended trade after this subsequently a friday or two ago on more stocks about 15 more stocks and essentially who will be the next roaring kitty, mr. gill, who highlighted the potential of game stop and believed in it and created the phrase diamond hands because he held it in the face of opposition and was rewarded for it? who will be the next person that does the different stock than on his pain attended to and because so many people pay attention to
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a stock that is currently getting coverage and analysts aren't covering it and someone on the reddit thread says i believe in this company and as a future and they basically are saying that's causing market many ablation and market and the reality is this is the democratic access to capital and so if they respond by suspending treaty and respond by reforming the markets so we deal with the structural issues we will havewe more shutters and more people locked outs of investing and not get to the root issue but the root issue is we have to getet o t0 and ultimately to real-time settlements so that no one can have multiple claims to the same share. >> our guest is warren davidson from ohio. democrats 202748-0000, republicans (202)748-8001, all others (202)748-8002, we write
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about the broader issue of where people can participate in the market and where they can put their money and you write in that piece that the federal reserve keeping interest rates near zero there is little incentive or reason for americans to own cash and traditional savings accounts. over the course of the pandemic the dollar has lost its value in buying power has effected the values of currency. even while street pros have done everything to move cash and this is inflated asset prices distorted markets and poses related systemic risks to the markets. do you think that in the aftermath of the game stop frenzy that it will be harder for small time investors through robin hood or through other similar platforms to be able to participate? >> i think it will be easier in the sense that robin hood raised a lot more capital and it's inspiring even more people to
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copy and launch trading platforms. the question is are regulators going to arbitrarilyto cut off that participation like they did by suspending trade and stocks that have previously been ignored by the market. if the regulators cap it and basically protect the deal flow for the existing incumbentsts, u know, than that is the real issue but i think it's incumbent upon people to find those alternatives and look, when you print another $2 trillion and i say print because it will all go into paper money but because when we say it let spent $1.9 trillion and in this case no one is lending us the money. that money is destroying the value of the other dollars. smart investors get that the reality is it's growing a wealth gap. while the people have more marketable securities and more disposablees income and less of their cash tied up for current consumption but to the extent that people can they have to keep up with this. they're moving their
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investments to things that can see growth and asset appreciation. there will be more and more demand as you see the destruction of the dollar through bad fiscal and monetary policy. i hope the regulars can deal with the structural issues but like i said, t0 is one of the biggest ones because trades are settled on the day they are made. >> host: those regulate regulators based on the laws you write in congress. is there an appetite to address that issue in particular but the broader related issues? >> guest: i hope so. we've committed to having a follow-up earrings and i had a good dialogue with one of the companies that settles trades and dtc and they basically said clearing for the shares so once someone buys shares on robin hood they don't truly own the shares but of a claim the shares and then two days later in the market structure those are settled so there is time where that stuff is netted out and
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worked through. they set market and reserve requirements for a company like robin hood to trade for the day so we will have hearings to talk about that and i think my hope .is that this will produce real legislation so, you know, initially when you see somebody who's reaction like congresswoman alexander cortes has the same reaction as ted cruz you say is encouraging because it could be accommodation of the true bipartisan solution but since that i'm not sure because there's been lobbying to try to preserve the status quo and historically congress preserve the status quo which is may be a polite way of saying we don't get much done. >> let's hear from callers. lynn in las vegas, nevada. >> caller: hello. i had a proposal so why don't each congressperson do covid bill pertaining to their districts and find out how much
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businesses have lost whatever and have their district many number on that and bring that covid bill to a vote instead of all the crap in the bill now? $1400 really is not going to do a lot for people who have been waiting a year. i appreciate the help but if you haven't figured out a different way to take care or handle your business you are going to a homeless shelter so thanks but it's $1400 that the congressperson before, said people will appreciate it, yeah, we appreciate it but what is it truly costing us? thank you. >> guest: i appreciate your suggestion and a couple of my colleagues have talked about that. when you break the mass down o what isio this 1.9 trillion pass and you spend roughly a little over $6 trillion for cold relief
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in the year of course about 4 trillion was mostly bipartisan in the last 2 trillion totally partisan but nevertheless what do you get to the root issue? you are somewhere between ten and $15 billion per congressional district. my district has 730,000 people in it and if our office controlled ten or $15 billion of relief how much of a difference we can make and it's a great idea and i think it's worth studying in terms of how we appropriate money to look at ideas like that more and even if we communicate it to understand what is that per congressional district and is it really that much money flowing inst to my congressional district and it sure does not feel like it. >> host: are their oversight hearings happening on how the covid money has been spent togu date? >> guest: yeah, there was an oversight commission created a new panel of course our committee financial services has oversight of treasury broadly in a small business has oversight
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of small business so on and so forth and committees oversee health and human services, cdc, national institute of health but there was for the funding of separate oversight panel and of course congress has its own oversight committee so there have been hearings about it but really what you think about being able to be accountable each member of congress stands for election every two years and the idea that each member of congress controlled a certain pot of money to influencece outcomes in the district is an interesting idea. >> host: mary, independent line, california, go ahead. >> caller: hello, good morning good representative davidson, my question is have you ever noticed i the lines of cars were people are in the lines for food for vaccines? >> guest: yeah, we were at a food drive in november with a company that started as an apt
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challenge winners so there was a congressional app challenge and one of our app challenge winners turn their idea for a way to distribute food into a business or a nonprofit and this year with the covid relief package there was basically food boxes that were put in by the department of agriculture that help distribute food over and above the normal food stamps program supplemental nutrition, school nutrition and all that stuff, over and above that we had these boxes and so they got involved and they distributed just with these high school students start ups over 1 million pounds of food and so we participated in the drive and came out and handed out boxes to people and in other places you see news coverage of it but that is when i was personally involved in. early on you so lines for testing as you put out these outdoor mobile testing stations and i seen people standing in line outsidede, not necessarily
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cars but standing outside buildings to get their vaccines. you know, unfortunately distribution has not been perfect and tragically there has been an incredible need this year, not just for the public health but the response to frankly, political decisions to close massive parts of our economy that displaced a lot of workers and cost collateral damage for individual, families, businesses and communities. >> host: this morning's washington journal, wall street journal has a picture of the east front of the capital and the kids there with the fence and the razor wire on top. they find gap in staffing and training and members of congress in the house or breach estimate by the panel that is looking at security on the capital and did you participate in that, if so, what did you hear? >> guest: yeah, i went to a briefing. the general letter and one of my [inaudible] he was a battalion
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commander when i was in and i thought general pecan and had a great observation pit the community of command that yes ultimately hold someone accountable was one of the real failures and to her credit speaker pelosi fired the sergeant at our, how sergeant-at-arms and the police chief the day after or the day of january 6 and there was a complete failure of leadership. what we witnessed was officers who are ready, willing to do the right thing but they just adweren't able because they did not have the training or resources or the command and control systems with their radios and even a plan to do it. when they assume they have a quick reaction force that quick reaction force was far from quick sofr there was a lot of failures of leadership and i am encouraged that the senate has replaced their sergeant-at-arms, not with an internal higher but an external hire and i think one of the takeaways is that the house should do the same and one
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of the key recommendations is the chief needs to be more empower with a similar structure but basically make that structure so they can basically hire or fire the police chief but create a stronger chief or the capitol police and again not just at the top level but initially right now someone wants to be part of the capitol police they can come in as an entry level employee no matter what their level of experiences and say ohio state highway patrol so they don't come in laterally as a sergeant or captain or lieutenant or something else like that in the police force but you need some of that cross-pollination to get back on the right track. there are other recommendations in there and i think it's incredibly important that the fences turned down because it's the people's house and it should be accessible. but it does need to be secure and we can do that just like we did after 911 without this fort pelosi, fortress year.
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>> host: republican line, rebecca, ohio. >> caller: yes, good morning britt i would like to ask a loaded question i am thinking. i have a real problem and i've had this for a long time and i listen to senators and republicans talk and speak to us as american people and this is my problem, the money that you have is the money that the markham people are working for. you are throwing crumbs off the table to us and you make the same amount of money every year, every month y and it doesn't fluctuate because of the poverty level but the american people it fluctuates. i find it arrogant and another thing i'm trying to figure out why our congress allowed billions of dollars to be sent to other countries that have absolutely nothing to do with us. i don't want to pay for other countries. i'm sure 95% of the american people don't want to pay for other countries. one more thing, i want to know why the student loans interest
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rate was not brought down when all of the other interest rates were brought down to almost .01% so why wasn't the student loans brought down? >> guest: thank you for your questions. they are valid concerns. will rogers had a saying that i'm thankful i'm not getting all the government i am paying for. he was a star and paid taxes and was not looking for a really big government but i think a lot of republicans are rooting for smaller government but right now they ring people are getting far more in the federal government spends far more money than they and the revenues are going up so despite the narratives that there is a tax cut but revenue was still growing over 3%ro and the spendg has gone up even more in the problem is as people look for the government to be the giver of things andiv that is a pivotn history. the government should be the
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protector of our system and they should be the protector of freedoms that exist if endowed by our creator with these freedoms and instead the government has morphed to the giver of everything and it in government big enough to give everything they are big enough to take away everything. were saying that when it's not the government that is in doing it but they enable allies to do the same thing. we have to get a smaller more accountable government and we are a long ways from that with the current level of spending and so when you look atom one of ncyour other concerns there this foreign aid there is $12 billion in this covert relief package so how is $12 billion of american money going to help america'shi covert problem the foreign aid issue in some cases could be helpful to provide peace but i appreciate one of the comments i received was why are we going to give money for gender studies in
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pakistan when people in flint, michigan don't have clean drinking water in ohio still does not have a bridge over the ohio river between cincinnati and kentucky? those are valid concerns and i hope we can address them. >> host: the kahlo was from ohi but let me ask you about the political dynamics of your state but the headline fromm your appearance on fox couple weeks ago but it ohio representative davidson considering a run for senator or governor urges the republican party to pick a side on internal divide and this would be for the c4 rob apartment, correct? >> guest: i was not considering senator portman but when i first ran for congress i was not planning to run for congress but was a business guy at the time. speaker bain or surprisingly resigned and someone stopped in my office and suggested that the army business ranger and we laughed and i told my wife about it and she said what did you tell them and i said i laugh because it was crazy and i said no, it's not paid you be great
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to that. we talked over how great it would be and she said this would be for our country. ultimately i decided to do it but since then when the questions was what will you run for next because so many people go into politics to to go onto the next thing and so it's flattering and humbling to have my income and i'm energized and what were working on to take majority back in the house but when senate brown won the senate race in 2018 i said if i'm still doing this i will take a look because i don't think he's i ben a good senator in terms of representing the views of ohio voters but i was not excited expecting senator portman to resign. i have taken a look at the governor's race and flattered by people that have suggested i would be a good governor and a good alternative to the governor dewine. >> to think the governor is correct in continuing some of the covid restrictions. >> guest: i don't think he was correct in imposing most of them. through a question is how is it still an emergency almost one year later? i did an interview that
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highlighted the fact that he never communicated an objective strategy, exit strategy for this. on that day he communicated an objective strategy one year ago. almost a year later from when the first question was asked. the real problem isn't just what the strategy has been but it's a fact that it's completely ignored the legislator. as has many governors around the country. look, we have a republic if we can keep up or we can't keep it by empowering one single person per state with this kind of power. they should be accountable to a legislator and the legislators are accountable to people. if the people of the state decide that and pass a law that is one thing but to basically be ruled by governors by edict is a real problem. >> host: let's hear from david in south carolina on the republican line. >> caller: hello, good morning. can you hear me? >> host: yes, go ahead. >> caller: i have three quick points.
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what is your impression of the fact that we are spending ten tt one on states and localities versus small businesses? i thought the major problem with reaction tot the covid pandemic was the closing of businesses and thatmi was the biggest hit that we tookst but instead were getting ten to one and that says something about priorities. second point, federal workers are given a special benefit to be allowed to be stay home if their schools are if their children aren't in schools less than five days workyi and the lt one is it's off-topic but i'm not been able to get through but about unity. i would suggest that we end all language that arbitrarily sought to people with races and communities. i think people both putting in the slots is divisive.
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i would say and all racial language but pelosi was on the right track when she said to end any reference to gender but you can't -- gender is pretty strong but. >> host: alright, couple of points, congressman davidson. >> guest: yes, we should deal with the divisive factors. everything that has, for example, recently training for their employees encourage them to be less white. imagine if someone encouraged someone to be less black or less hispanic. i think the emphasis should be the other way. >> we leave this recorded program at this point to continue our over 40 year commitment to live congressional coverage. you can continue watching this program on our website c-span .org. u.s. senate about to gobble in today. lawmakers will consider the nomination of marcia fudge to be housing and urban development secretary with the phones to advance her

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