[inaudible conversations] wednesday the house oversht committee look that washington d.c.'s response to pro- palestinian protest george washington university. the protest involved anti-sitism. testimony from d.c. mayor and metropolitan police chief. watch live 1:00 p.m. eastern on he's got three, he's got now, grateful to got or online at c-span.org. 100,000 miles of new

infrastructure to reach those who need it most. >> a front row seat to democracy. tenant jan talks about democracy in the gardens administration economic record interviewed by michael crow at an event hosted by sedona forum sedona, arizona, welcome, everyone. nice to see you all here. it's my job to introduce someone to take.

honor to introduce someone for such stature and independence

[applause] >> thank you so much and good afternoon, everyone. senator mccain was an american hero from his service in the navy to the senate you perhaps most important legacy and so

much more in common with each other. we'll talk about how john mccain was right it's impossible to overestimate how important democracy is. the founding idea for the country from the resolution itself in the constitution and how we find ourselves convinced those who question democratic values we must reaffirm basic principles can commitment to the values in our constitution. democracy is not only the basis of what is the basis for

success. he would not accept treatment for parental to american prison inmates. it is their fellow citizens you sent needs clear america's success and allows us to work out disagreements and address legitimate concerns and explains why america is viewed as one of the most hardest working successful countries in the world.

here is the same mind now. don't put money before people support our families democracy. we must work to protect

democracy isn't important in and of itself. it's critical for a strong economy. being away at democracy as necessary trade for economic gains is block. undercutting democracy undercuts the foundation. they attempted to block the peaceful transition of leadership and democracy heard

such a spherical authoritarian to gives them setting to ukraine's future and undermining order repression our freedom passes report 21. the importance of democracy as far perfect but work facilities.

democracy itself in the economy. the importance of democracy and economic growth a recent study analyzing 175 countries over a 50 year. god democratization increases tdp capital around 20% in the long run. today i would like to focus not topline numbers but three most important democracy seen throughout my life. accountability, and out of, democracy is about accountability.

in performing the country's direction or culture change. the peaceful transfer of power. concession beach, urged supporters to congratulate president-elect and work together to get our country moving. it provides for accountability between elections. citizens can voice their concerns and range from public comments to protest. the request purpose election and promptly correct checks and balances any sort of government at each goes on.

first and foremost, it drives economic policymaking and meets the needs. as much as 20 to 30% more for healthcare according to one study. these investments matter for individuals economic outcomes and an additional year of schooling increases earnings by seven to 10% on average. this is intuitive too many of us. as a child i heard stories about how good health enables reproductively lives in opening the door to higher education and second is democracy is working

as it should and government is accountable to all citizens regardless of income, ethnicity and geography. this accountability leads governments to take into account perspectives. caring for those who are left out. it's not a one-time mechanism citizens can demand different policymaking their needs are not being met and government can correct its course at the time. accountability is only one in freedom to participate in the brief flow of people and ideas you will growth in the

productive capacity for good constraints of the political economic right of certain groups. america has come a long way. i was a freshman in college in 1963 when the march on washington occurred at the same time i began to fully understand termination faced by women in professions like economics. as one of the women in my graduate economic slump no women on the faculty when i started

but it was also economic and one of the most important economic stories last time was millions of americans gaining access to our country's economic life. twenty-five to 54 -year-olds are women participating in it more than doubled. 74% and 9090. to the potential growth rate of gdp over that period. growth participation economies benefit from the fruit low of people and ideas. risk taking, entrepreneurship

and the microprocessor five decades ago. a recent study of 23 from 197222010 has the connection between democracy and social exchange. in the ability to form unions according to a recent treasury report. as treasury secretary, i benefit from public private and nonprofit stakeholders unafraid to speak openly and amplifies

perspectives. democratic governments rely on this freedom of the press and wise decisions to benefit every member of democracy. this leads me to the third, one side accountability and economic freedom democracy is associated strong independent institutions that uphold the rule of law. in a democracy individuals and firms can trust the rights will not change overnight they are not predetermined are subject to arbitrary vertical political leaders. and widely obey the law and they

do so because others important in view it as their duty to operate with law enforcement. in such cooperating and democracy and a need for democracy called legitimacy. democracy lapses but with it, democracy drives. in the federal reserve, stock markets grounded in law silicon valley. every day they put thousands of economic decisions through purchasing a home because of the

court to expand your business and ingenuity and hard work described to local officials. the robot altered by institutions insulated from interference. insisting on the fed's independence and transparency. the stability and economic growth. research has been consistent with my belief and it is with greater price stability. democracy on the economy influenced by observing.

example from my own experience and prior to the integration in west germany in 1991 i started the economy. it is believed strongly in the united states and elsewhere in the communist government. on the contrary. outside of the energy sector was only one single enterprise germany to make a profit after unification when mark was exchanged on a one-to-one basis. ...

those who disparage democracy. recent imf estimates of a gdp per capita of russia relative to the united states are about one-sixth. we present is highly educated workers from the country, taking their skills, ideas and capital with them. for example, to launch some of the world leading startups, not from russia but from the united states and other jurisdictions. in the -- any deficiencies that come from totalitarian state seem to be far more than offset by the advantages democracy. as for china, there's no denying

that china's catch-up growth lifted hundreds of millions of people from poverty. this is one of the great global economic achievements of the past century, and it's a result of its market and opening up. but china's future growth is far from certain. it's gdp per capita is 216th of americas, and less than one-third that of the european union. and i believe that the absence of some of the pillars i've described will continue to pose challenges as china navigates to transition to an advanced economy. limits on transparency and censorship give companies reason to doubt the information they receive, and coercive actions against firms undermine fair competition. in the nearby korean peninsula

offers another striking example. in the 70 years of democracy in south korea, and dictatorship in north korea, the countries economic trajectories have also diverged sharply. today, per capita income in south korea is estimated to be 30 times greater than in north korea, and life expectancy in the south is a decade longer. so what does this add up to? democracy is not just intrinsically good. promoting democracy is also good economic policy. it creates the conditions for workers to thrive, and for businesses to invest and grow among them the potential gains i've highlighted. the argument that eroding democracy would be fair or necessary trade for economic gains is wrong.

and yet this argument has taken root abroad and even here in america. i believe that's because economic success, even in a robust democracy, is not 100% guaranteed. democracies and economies take hard work to build and maintain, and it's easy to lose faith. i turn to that now. i've spoken before about the challenges faced by america's working families. over decades, communities across the country have been hollowed out from deindustrialization. median real wages have stagnated. healthcare and education have become harder to afford. many american working families are uncertain about their future, and there's been a significant increase in deaths

of despair. this insecurity and fear persist today, not only in america, but for people elsewhere around the world. and this has led many people to understandably question whether democracy can, in fact, deliver for themselves, their families, their communities, and their countries. over the past three years president biden and i have worked to show you at home that it can. despite this function in washington and the face of challenges still ahead. as the president said last september in honor of senator mccain's legacy, i've made the defense and protection and preservation of american democracy central issue of my presidency. we have shown democracy can deliver by addressing immediate

crises and kitchen table issues that matter to americans, and through the pursuit of a medium and long-term economic agenda focus on economic opportunity for all. we took office in the depths of the recession brought on by the pandemic. president biden went big at this time of national emergency. we provide cash relief for households, prevented tenants from being evicted, and support small businesses to keep employees on their payrolls. our vaccination campaign saved lives, and able to return to work. the funding we provided was unprecedented, not just in its scale, but in his flexibility. it was designed to reach every city and town in the united states big or small, urban or rural, and to empower them to meet their citizens needs.

and america bounce back quickly, achieving rapid economic growth and unemployment remains near historic lows. we avoided the scarring that affected a generation of workers after the global financial crisis. the recovery has been historically fast and historically inclusive. we have seen the lowest unemployment rates since the 1960s, and the narrowing of the black-white wage gap. there was a nearly 20% gap between the metropolitan and rural rates of unemployment. that gap has now been eliminated. now, we're designing and implementing choices for the president's investing in america agenda. it's a, they gains will be felt broadly, and no community or worker will be left behind. the results so far are

promising. treasury analysis has shown that states with lower median household incomes are receiving more funding per capita from the president's historic infrastructure law than wealthier states. that means new bridges, roads and airports, fast broadband come clean water and economic opportunities that come with upgraded infrastructure are being expanded in the communities that need it most. the same is true for investment in the industries of the future. we are creating good jobs and pathways to them for american families across the country. 84% of clean energy investments announced since the inflation reduction act was passed have been in counties with college graduation rates below the national average. 75% have been in counties with

median incomes below the national average. and i send him back myself in trips around the country, from a plant making parts for ev batteries in rural kentucky, two and workforce training center in downtown milwaukee. as i do this great work, i feel the ways in which democracy is influencing me and other public servants to serve all americans, strengthening my policymaking with diverse inputs, and making capital markets transparent. put simply, democracy is delivering for americans and for our economy. with democracy, it's the america of all of us. all of us must make a a contribution and listen to one another. that's what democracy is all about. and even when we disagree, we must respect each other. well, let me end with this.

churchill once quipped that democracy is the worst form of government, except for all the others. and he's right. we need to acknowledge democracy is not perfect, and it's messy. we have made and will continue to make mistakes. also in a democracy everyone does not get their way, and we are bound to see some dissatisfaction and frustration from those who feel strongly about their opinions. yet, it's essential that we do not give into the impulses of some and make devastating errors of turning away from our democratic spirit and system. ultimately, democracy provides the accountability, freedom, and will of law that give us the best chance of learning from our mistakes and doing better. with democracy, no one man or

woman dictates how we solve our problems. we work through them together. as we look ahead we need to make it easier for americans to afford childcare, access to education, live in quality housing, and retire with dignity. we need to do more than reaffirm our conviction in democracy. we must recommit to its protection, and we must also show that it can deliver. we live in a time of significant challenges. a once in a century pandemic took millions of lives and livelihoods. conflict in the middle east has led to humanitarian crisis. the physical and economic costs of climate change are a daily reminder of its existential threat. it's a moment that financed american leadership, including by bolstering our democracy and

supporting democracies around the world. john mccain once said that being american meant more to him than any other association. i i, too, feel immensely fortune to have been born and live here as my life has been made possible by the promise of american democracy. america gave me the opportunity to acquire an excellent education. in my own career, , democracy hs made me free to examine and question economic orthodoxy. being a woman in economics wasn't always easy, but butd on the shoulders of women who had fought for the democratic rights and pave the way for me and other women economists to reach the heights of our profession. and now i feel a special obligation to strengthen the institutions that i have benefited from my whole life.

i realize that the committee across this country and around the world who have not had my opportunities. that might give us reason to doubt the power of democracy. but on the contrary, it should be the reason for us to redouble our work, to bolster democracy for its own sake, and also for america's and the world economic future. so america can be the land of opportunity for everybody. for my own part i promise to do something i can to make this happen. a strong democracy is critical to building and sustaining a strong economy, and also it is the job of all of us to do everything possible to protect it. our commitment to it has been central to who we are since jul. thank you.

[applause] >> madam secretary, it's great to have your in a beautiful place. i know you've been traveling across the entire planet trying to find ways to advance the interest and success of the united states, i want to go back in time look at. you mention 1963, you mention 1963 community college i think you into brown and the later picked up a rapid peace the deal. you wouldn't start certification natures which is shocking, and so, and so what like to get at is thinking 63 -1971 has to be one of the most complicated periods in american history. the war, the senator in the war, fighting in the war, the things that went on in the country in 1968, the things that follow that come the reshaping, things were happening. what was driving you to go into economics? what was driving you to take on this very, very complex form of

political mathematics and economic modeling and so forth? what was driving you way back then? >> i always felt that economics concerned something that was utterly vital to the welfare of every american and every citizen around the world. and i learned from the economics i studied that there really was no better system than free market capitalist system. but there are problems and ways in which markets can this function or may fail to deal with problems that are critical to welfare, whether it's climate change or the need for public education or healthcare or regulation of financial institutions. so i felt from the onset that

good public policy plays a critical role in ensuring an economic system that works well for everyone. and i was fascinated but, fascinated by what i learn about what might be possible, and it's what really motivated me to study economics at that time. >> i went back and did a quick survey of the seven or so people that have been treasury secretary of the united states, and you're going to laugh when i say this but the person intellectually close to you, in my view, was hamilton. and what i mean by that -- [laughing] so hamilton did have the opportunity to finish college come the revolution came along. he went off to be a soldier but he later as you knew and the whole concept of the central bank and the whole concept of many aspects of our economy. and then you have been a san francisco and then chair of the fed and that treasury secretary

and you've been writing for all these decades and all these complex subjects. at founding, and this goes to the root of the questions about democracy, we really decided in the design of the united states that this democracy would be capitalists, this democracy would further personal development including wealth development and wealth enhancement that we were protect and defend intellectual property as it is in the constitution itself. i mean all these things were laid out as a design. as you movement that design now 200 plus years later in a world that no within could imagine, i mean, taken on aspects of as you were saying in your speech, democracy and our success economically. democracy and our success socially. what are some of those design elements that you think are most important? >> well, as i mentioned in the speech, accountability, the

ability of the population to wait in periodically on how things are going and whether policy needs to move in a different direction. i think that's critical. >> so in economic theory then, so the art economist that don't agree with that. they are not in democratic societies. they are in other societies. so what's the essential nature of that wayne in process the way the political process works, which it seems inefficient to outsiders who are not benefiting from our democracy. just help the audience to understand how that's important to economic success. >> listening to an informed debate about what is the right path and understanding different viewpoints, allowing people to weigh in these critical to actually understanding what the

issues are that we will need to deal with and figure out what the best way is to dealing with them. at treasury we have an important role in writing many of the rules that affect how programs are run where caught in the middle at the moment of formulating almost all of the rules pertaining to clean energy now, and our laws prescribing process, the administrative procedure act, the guarantees we listen to every voice that wants to weigh in. every affected party, every interested party, sometimes we can get 40,000 comments on a notice of proposed rulemaking that we put out, and we need to respond to those comments.

sometimes people, people point out things that were flaws in what we had originally done, and we have to respond to that. i think that that ability for people to weigh in for policymakers to be forced to explain carefully what they're doing and why and answering critics is fundamental to driving good policy decisions. so lively debate is critical to good outcomes. >> sometimes -- >> sometimes it slows things down come sometimes it takes a long time to get something done in democracy, but it's essential to economic success over long periods. >> absolutely. you mention russia and their won six of the per capita income on the united states if you look at their economic performance over

time. it's been a disaster. i was in russia the sum of 1991, sent there by the american government to help to get ways with the help statement they come as a seem to be moving in the path of democracy which is subsequently collapsed and it into an even tighter dictatorship. which strangely some american politicians seem to be enamored with. so you said it but let me put a little edge on it. our democracy is loud and boisterous and argumentative. we have these laboratories of democracy called the states. so to states over is a place called texas. and so in taxes, man, it's like they indict arguing every kind of strange idea that you could possibly imagine hopping up, and yet the economy is larger than the russian economy. so the texas economy is now larger than the economy of the russian federation. so when you travel around the world and you talk about democracy like in the united states will be argued and we debate and take time to

deliberate and put people in office and we throw people out of office and we do all kinds of things along the way, how do you help reject the success of the model? because people don't seem to want to actually look at the facts, the economy of texas is larger than economy of russia. oh, by the way, with about a quarter as many people. >> i guess as a travel around the world i would say that most people are very impressed with the success of the united states. i think early on in china one often heard the argument that americans can't get anything done. look, , i mentioned some of the. we've had some deep-seated structural problems that have really adversely affected many people in our country, lead to

dissatisfaction. the disappearance of good jobs in many parts of the country, the difficulty getting a college education, the disappearance of jobs for people without a college education -- >> aspirations of being realize realized. >> that's led to a lot of dissatisfaction and it's a part of what i think what has led americans but also for the chinese to make the case that will call our system, we decide on something and it goes into effect immediately. we have dictatorship and the president of china decides what he wants to do, and begins being intimated the next day. we don't have that in the united states, but most people do recognize the united states as a very strong economy. i think as the pandemic, as we've gotten beyond the

pandemic, if you compare how the united states is doing with every other developed economy,, the united states has had stronger economic performance and -- >> is it so strange, let me talk briefly before, david brooks did a great job of summarizing the world since 1990. in the world since 1990 the united states has outperformed everyone in everything, literally. everyone in everything. yet we seem to have difficulty understanding that, and i think, what you think is at the root of the difficulty of, other than i think what, what you are describing as dissolution in the job i i had at university las2 years as president, and i see his disappointment. you said we would have these opportunities and then they're not hitherto so we might have a chance to do this and is too difficult to get there. what do you think is at the root of not understanding the relative success of the united states?

>> so i think recently the pandemic has been a profound experience for most american families that lived through it. and profoundly disturbing to our way of life. it was a period in which there were a couple of years with very high inflation. and right now people are very concerned about the cost of living. now in fact, we just have gone up as much as prices, more than prices have gone up, but it has been profoundly disturbing to people to see things, whether it's a loaf of bread or a gallon of milk, prices so much harder than you were and it would if they're going to be able to keep up. on top of that, of course we have challenges that americans,

many americans have faced for a long time. a healthcare system where health insurance has not always been available, and when it is, it's been expensive, difficult to afford a college education. childcare, hard, expected to obtain, and the cost of housing, a tremendous burden on many households. these are areas where we need to do work. president biden's top priority is trying to address the high cost of living that it's been for a long time. this is not cost much of this is not new, its long-standing, problems that we have not dealt with. >> you probably didn't who was speaking earlier. imagine we won one of the carbon hubs in the infrastructure act. >> hydrogen. >> we won one of the carbon capture hubs.

we won one of hubs for the microelectronics comments in the chips and science act and we won one of the ancient project in the new nsf efforts to create whole new economies new areas of rapidly evolving technology and those are all things that have recently been funded. so for us, i mean things are on fire cottages every possible way. so here we have all of these initiatives, all of this spending, an economy which is making progress, things are making progress. as you try to explain both to ourselves and to others, you know, the role of democracy, the central of democracy as you were saying in his speech, what are the lessons you try to say to our allies, stay the course, or newly emerging democracies like hungary is unfair with the word democracy means. what caught as a come along and evolving a cell phone, how do you help them to understand the importance and the centrality of

democracy? >> there are threats to democracy in many parts of the world, including in some of our closest allies. but i think people appreciate what the strengths of a democracy are, that just the certainty of rule of law that you count on creates an environment for business that is essential. it's something you think about everyday, but a person who wants to build a business to invest in it really has to be able to count on predictability and enforcement of the rule of law to feel there may not be just throwing away their life savings. when you look at the strength of our universities and of

innovation in america, it's amazing and people see that and they are impressed by that. i mean, we are a dynamic economy. we have vibrant innovative entrepreneurial activity, and and that speed is all that is accelerating. >> we are investing again. i mean, president biden has worked with congress to increase the amount of funding for basic research and development. >> we feel that. >> which is really critical. it declined substantially over time, but when you think about what promotes higher living standards, a lot of it comes from r&d, basic r&d that then spills over into all sorts of innovations that make our economy stronger and more

productive. >> their flashing the red light but had to ask you, i was in china recently and you are in china and we have many, many, many american interest in china, thousands and thousands of companies and all its complexities, everything that's going on in this is worth i was exhibiting you sort of design level thinking. you are over there negotiating, if you will. you know, how were going to work together. a purchase large amounts of our debt. if all kinds of intricate connections into the american economy and with intricate connections into the economy. what was your general sense? i mean, i don't think they're become a democracy next month, but -- >> no, i don't think they are. so i didn't think is going to be successful in convincing them to make that change. but all that said, i believe we're going to have a more peaceful and stable world if the two largest economies in the

globe can manage to get along and live successfully together. we have vital national interests, national security interests. we sometimes have to restrict the export of technology or other things, or protest human rights violations. this is really our vital national interest. but there is a broad swath of trade and investment activity between our country's that is beneficial to us, beneficial to the chinese, and i think we need to allow space, make sure that in addressing our vital national concerns we don't needlessly destroy something that is very beneficial. my objective has been to be straightforward about the

concerns that america has about china in the economic realm, to seek to get china to address ways in which the playing field for firms is not level and to try to address that and to make clear that we will address our national security concerns. but look for peaceful dialogue to get along as best we can. >> i'd use the shore from when it's over there talking to them with some of the same arguments. i'm looking for full contact hockey between us and them where you could actually be put into the penalty box for cheating. they seem to understand but the did know know what he meant by hockey. [laughing] well, thank you, madam secretary. it's wonderful having you here. >> thank you very much. [applause] >> on wednesday's house oversight committee looks at

washington d.c.'s responseo pro-palestinian protest at george washingto university. the protest of the involved anti-semitism and unlful acvity. we will hear testimony from d.c. mayor myrtle bowser as wl as metropolitan police chief kamal smith. watch live at one p.m. eastern on c-span3, c-span now or free mobile video app or online at c-span.org. >> since 1979 in partnership with the cable industry c-span has provides complete coverage of the halls of congress from the house and senate floors to congressional hearings, artie briefings and committee meetings. c-span gives you a front row seat to have issues are debated and decided with no commentary, no interruptions, and completely unfiltered. c-span cost , your info vief government. >> -- ute