Bloomberg Talks: “David Malpass Talks Inequality in America”

Episode Date: November 20, 2025
Host: Tom Keene (with Paul)
Guest: David Malpass, former President of the World Bank

Episode Overview

This episode of Bloomberg Talks features an in-depth conversation with David Malpass, the former World Bank president and former Bear Stearns chief economist. The discussion focuses on America’s deepening economic inequality, challenges in bridging the gap between prospering and struggling sectors of society, and the policy imperatives that could promote more equitable growth. Malpass shares candid thoughts on policy changes, the Federal Reserve, global trade, political centrism, and his own experience in and out of public office.

Key Discussion Points & Insights

1. The “Grind” of Public Office (01:34–02:05)

• Malpass opens with reflections on his time in public service, highlighting the often-overlooked challenge of relentless travel for conferences.

  • Notable Quote:
    “The grind is the travel. These conferences are constant and...nothing happens at the conferences.”
    — David Malpass [01:38]

• He commends President Trump’s decision to not send representatives to the G20 in South Africa, arguing that these gatherings often yield little of substance.

2. America’s Widening Inequality (02:05–03:22)

• Tom Keene introduces the central theme: the “physics” of two Americas—one booming, one left behind.

• Malpass asserts:

  • The “underperformance by the bottom is massive.”

  • The best metric for successful economic policy is growth in median income, especially for those at the bottom.

  • Notable Quote:
    “What we need is job growth at the bottom and median income growth. That is the whole concept of a good economic policy.”
    — David Malpass [02:28]

• He urges for:

  • Job and income growth as paramount concerns.
  • Several policies to improve affordability, including:
    • Changes to the Federal Reserve’s approach.
    • Increasing U.S. energy production.
    • Congressional permitting reform.
    • Capital gains tax cuts to unleash investment, especially for small businesses.

3. Fed Policy & Affordability Crisis (03:22–05:16)

• Paul references Malpass’s Wall Street Journal op-eds on affordability and asks if the Federal Reserve has been too slow to cut rates.

• Malpass criticizes the Fed for:

  • Missing the opportunity to cut rates in June, which could have spurred growth without stoking inflation.

  • Overpaying interest on government debt due to rates being too high for too long.

  • Notable Quote:
    “Wouldn’t the world be better if they had cut in June because you would have had the growth that came out of that and the inflation wasn’t occurring?”
    — David Malpass [04:14]

• He cautions that unless the Fed changes its backward-looking models, further necessary rate cuts may not happen.

4. Global Trade and Tariffs (05:16–06:02)

• Malpass critiques the global trading system, especially WTO shortcomings:

  • Asserts that China does not play by the same rules and pursues aggressive industrial policy.

  • Explains how economies of scale and “first mover” advantages allow China to wipe out competition.

  • Notable Quote:
    “You’re stuck in a world [WTO] system that doesn’t work at all when you have the second-biggest economy with very aggressive industrial policy.”
    — David Malpass [05:42]

5. Political Centrism and Economic Growth (06:02–07:45)

• Keene and Malpass discuss the decline of political centrism and how both Democrats and Republicans might reclaim a center-ground philosophy.

• Malpass advocates:

  • Return to policies that “create growth with lower tax rates.”

  • A comprehensive overhaul in Washington, with every department focused on removing barriers to growth.

  • Notable Quote:
    “You need more work on the tax code. You need more, of course, more work on restraining government spending...these Fed reforms would allow capital to flow to small businesses. So that's core of it.”
    — David Malpass [07:19]

• He frames this as consistent with Trump's basic economic message, but emphasizes the need for detailed, department-by-department implementation.

6. Jobs, Incentives, and the Micro Level (07:45–08:11)

• Discussion shifts to the importance of job creation at a local level.
• Keene references Nancy Lazar’s similar advocacy: “at the micro level, we have to create jobs.”
• Malpass and Paul agree incentives are the engine of job growth.

7. Life after Public Service & Personal Anecdotes (08:11–08:53)

• Keene asks Malpass about his life since leaving public service, who shares he’s enjoying the break and exercising more.
• Malpass lightheartedly recalls his part in signing the FIFA ball at a G20 summit in 2022, highlighting the lighter side of high-level diplomacy amidst global crises.

Notable Quotes & Moments with Timestamps

• “The grind is the travel. These conferences are constant and...nothing happens…” — David Malpass [01:38]
• “What we need is job growth at the bottom and median income growth. That is the whole concept of a good economic policy.” — David Malpass [02:28]
• “Wouldn’t the world be better if they had cut in June because you would have had the growth that came out of that and the inflation wasn’t occurring?” — David Malpass [04:14]
• “You’re stuck in a world [WTO] system that doesn’t work at all…” — David Malpass [05:42]
• “You need more work on the tax code...these Fed reforms would allow capital to flow to small businesses. So that's core of it.” — David Malpass [07:19]
• “I signed the FIFA ball...Biden was there and Macron and everybody and...the FIFA guy was there and he was the center of attention.” — David Malpass [08:27]

Timestamps for Important Segments

• 01:34 — Malpass on the real “grind” of public office
• 02:05 — The disparity between two American economies
• 02:22 — Malpass on economic policy and inequality
• 03:54 — Wall Street Journal op-ed and critique of Fed policy
• 05:16 — Comments on global trade, tariffs, and China
• 06:41 — GOP, centrism, and the challenge of policy implementation
• 07:45 — Micro-level job creation and incentives
• 08:27 — G20 anecdote and “signing the FIFA ball”

Summary

This episode delivers a candid, policy-heavy discussion on America’s struggle with economic inequality and global competitiveness. David Malpass blends high-level economic analysis with practical policy prescriptions, urging U.S. policymakers to focus on boosting the fortunes of those left behind via job creation, tax reform, regulatory overhaul, and smarter Fed policy. Listeners gain insights not only into economic theory but also the grind of government service and the quirks of global diplomacy.