Senator Bill Cassidy Talks Black Friday Spending & Healthcare

Summary

---

Bloomberg Talks: Senator Bill Cassidy on Black Friday Spending & Healthcare

Date: December 1, 2025
Host: Bloomberg
Guest: Senator Bill Cassidy (Louisiana, R)

---

Episode Overview

This episode tackles the contrast between Americans’ robust Black Friday spending and persistent struggles with cost of living. Senator Bill Cassidy joins to discuss the economic pressures facing diverse segments of the population, government roles in supporting lower-income consumers, healthcare affordability—particularly looming changes to ACA premium subsidies—and broader issues like job creation and the impact of AI on the workforce. The conversation flows from current economic challenges into policy proposals and the legislative path forward.

---

Key Discussion Points & Insights

1. Contradictions in Consumer Spending & Cost of Living

• Host (00:29): Opens by asking Cassidy how to explain strong Black Friday consumer spending, despite widespread concerns over affordability.
• Cassidy (00:56): Points to a "K-shaped" economy:
  • “There’s a group of people who are still managing to do well. There's another group of people who are really hurting... The increasing cost of insurance... as well as the increasing cost of groceries.”
  • Emphasizes the uneven impact: while some can spend on gifts, many face rising essential costs.

2. Government’s Role in Supporting Lower-Income Consumers

• Host (01:20): Asks about the government's fiscal responsibility in supporting struggling populations.
• Cassidy (01:44): Highlights “the tax cut for working families” in recent legislation:
  • No tax on overtime and tips for seniors.
  • Eliminates tax on most Social Security payments.
  • Pro-business incentives to encourage domestic manufacturing.
  • Stresses infrastructure investment: “Infrastructure creates jobs. I cannot swing a hammer. And so it's not swinging in a hammer. Those folks are being employed.”

3. Healthcare Affordability & ACA Premium Subsidies

• Reporter (02:25): Raises concerns about expiring enhanced ACA premiums.

• Cassidy (02:40): Proposes shifting subsidies:

  • Take enhanced premium tax credits from insurers to individuals’ Health Savings Accounts (HSAs): “Instead of giving it to insurance companies... we give 100% to the patient in the form of a deposit within a healthcare savings account.”
  • Patients can select cheaper plans and have “first dollar coverage” for some costs.
  • “If you give power to the patient, you can lower healthcare costs. So we’re giving power to the patient, not profit to the insurance company.”

• Reporter (03:28): Asks about Democratic support (noting opposition).

• Cassidy (03:36): Argues his plan amounts to an extension but routes dollars directly to individuals:

  • “Instead of giving 100% to insurance companies... We’re [giving] 100% to the patient.”

4. Potential for Government Shutdown Linked to Healthcare Debate

• Host (04:50): Asks if Cassidy’s plan could avert a government shutdown over healthcare funding.
• Cassidy (04:57): Confident: “Because we’ve addressed affordability... we begin to address the overall increase in health care cost. When you give that woman... the power of the purse... everybody begins to lower their cost.”

5. Fostering Job Creation; The Role of Business Policy

• Host (05:20): Asks what policies would help lower-income earners, noting the patchy results of existing initiatives.
• Cassidy (05:43): Advocates reshoring via tax policy and tariffs:
  • “When you reshore, you're going to create jobs... That's going to happen... jobs for construction, for service, all those jobs... and that’ll cause a general boom.”

6. Technology, AI & the Future of Work

• Host (06:18): Raises concerns that AI may displace workers instead of creating jobs.
• Cassidy (06:49): Is optimistic:
  • “If you've got something that’s going to increase productivity... [it] will increase tax revenue not by increasing rates, but by increasing the overall growth of the economy.”
  • Positions infrastructure and energy industries as “AI-proof” job creators: “AI does not swing a hammer.”

7. Direct Economic Aid vs. Fiscal Responsibility

• Reporter (07:35): Asks if direct $2,000 checks (as floated by the President) would help Americans with affordability.
• Cassidy (07:59): Cautions against inflationary risks and rising deficits:
  • “If you give everybody a $2,000 check, does that bump up inflation and therefore the Fed is inhibited on lowering their rates?”
  • Suggests reducing debt might be more effective in creating lasting affordability through lower interest rates.

8. Federal Reserve Leadership & Independence

• Reporter (08:45): Inquires about potential support for Kevin Hassett as Fed Chair.

• Cassidy (09:04):

  • Praises Hassett's credentials, but preserves judgment until hearings.
  • “We are having this problem of inflation, which just is a little bit sticky and yet we want to decrease rates. How are you going to navigate that?”

• Host (09:25): Asks about importance of Fed independence.

• Cassidy (09:28): “Fed independence is critical… Kevin would step up and be as aware of the importance of Fed independence as anybody.”

9. The Looming ACA Subsidy Fight and Potential Government Shutdown

• Post-interview Recap (09:53):
  • Highlights the critical December debate over ACA credits.
  • Notes the shutdown threat: “...for Democrats, this is really important... because this is what the entire shutdown, longest shutdown history was based around.”

---

Notable Quotes & Memorable Moments

• On Economic Divide:
  “There's a group of people who are still managing to do well. There's another group of people who are really hurting...”
  —Sen. Bill Cassidy, (00:56)

• On Healthcare Funding:
  “If you give power to the patient, you can lower healthcare costs. So we’re giving power to the patient, not profit to the insurance company.”
  —Sen. Bill Cassidy, (03:10)

• On AI and Jobs:
  “AI does not swing a hammer... That will just shift investment to a more productive area of the economy.”
  —Sen. Bill Cassidy, (06:52)

• On Direct Economic Aid vs. Deficit:
  “If you give everybody a $2,000 check, does that bump up inflation and therefore the Fed is inhibited on lowering their rates?”
  —Sen. Bill Cassidy, (08:13)

---

Timestamps for Key Segments

• 00:29 — 01:20: Contradictions in spending vs. affordability
• 01:20 — 02:25: Government’s fiscal role, tax cuts & jobs
• 02:25 — 04:50: Healthcare affordability, ACA premium subsidy debate
• 04:50 — 05:20: Potential government shutdown over healthcare funding
• 05:20 — 06:18: Job creation, business incentives, reshoring
• 06:18 — 07:35: Technology, AI impact, future of work
• 07:35 — 08:40: Direct economic aid ($2,000 checks) and inflation risk
• 08:45 — 09:37: Fed Chair nomination and central bank independence
• 09:53 — end: ACA subsidy fight and government shutdown stakes

---

Summary Tone and Takeaways

The conversation is pragmatic, with Senator Cassidy combining policy advocacy (especially for HSA-driven healthcare reform) with candid discussion about fiscal constraints and labor market disruption. He’s optimistic about the productivity-boosting potential of technology and reshoring, but insists on policy interventions that direct more value straight to individuals—especially in healthcare. The episode underscores deep partisan divides on how best to extend health insurance affordability, foreshadowing an intense showdown in Congress with real economic and political stakes.

---

Transcript

[Indiana University Narrator]

Old playbooks won't solve tomorrow's problems. Indiana University is proving how higher education can create solutions with industry. Our partnerships address future talent and workforce needs, support entrepreneurs and local businesses and create solutions that turn discoveries into dollars. Together, we're building a model for industry partnerships that fuel economic growth. Explore IU's impact at iu.edu impact.

[Podcast Host]

Bloomberg Audio Studios Podcasts Radio News Shoppers spent billions on Black Friday and could break Cyber Monday records Today. Louisiana Senator Bill Cassidy joins us now for more. Senator Cassidy, thank you so much for being here. Can you square this idea of incredible spending and the ongoing American consumer continuing to uphold the underlying economy and this real feeling that cost of living is becoming unsustainable?

[Senator Bill Cassidy]

Well, there's, there's obviously segments within our society and there's a group of people who are still managing to do well. There's another group of people who are really hurting now. They may have the money to go out and buy their children a gift for Christmas. On the other hand, there is a increasing cost of insurance, whether it's health, property and casualty or flood insurance as well as the increasing cost of groceries. They have extra money but, but up here. But there's a lot of folks down here who are hurting.

[Podcast Host]

This is the reason why a lot of people are expecting even though we are seeing profits at companies continue to increase, they're expecting the Fed cut rates to respond to that K shaped economy or the mass of people who really aren't feeling the gains. And I'm just wondering how much you're prepared to step in that you think that it's government's job on the fiscal side to really support that lower tier of consumers that are really feeling the pain.

[Senator Bill Cassidy]

I would argue that in the tax cut for workings families are the one big beautiful bill. We attempted to do that we did it both by no tax on overtime, no tax on tips for seniors, eliminating the tax that most would pay on their Social Security but also putting in some, some pro business efforts that, that would encourage business to reshore to build out their manufacturing. Lastly, I will say there's a lot of money taking place on infrastructure right now and that infrastructure creates jobs. I cannot swing a hammer. And so it's not swinging in a hammer. Those folks are being employed. I would say that there is a business strategy to help those folks who, who are in the kind of struggling area of the economy.

[Interviewer/Reporter]

So Senator, there's one area when it comes to affordability that actually might become a lot more expensive next year if Congress does not act. And that's the enhanced premiums when it comes to the Affordable Care Act. You have a hearing this week regarding this. Do you think we can get to a decision before the deadline?

[Senator Bill Cassidy]

Yeah, I think we can. I have a plan, but it's one that other Republicans have proposed some form of. We take that enhanced premium tax credit, and instead of giving it to insurance companies where they take 20% for profit and overhead, we give 100% to the patient in the form of a deposit within a healthcare savings account. This allows her not to buy the more expensive silver plan, but also get a cheaper plan called the bronze plan. Now, did I say it's cheaper? It's cheaper. And so we're helping her on our affordability. By the way, the money in her health savings account also gives her first dollar coverage for her child's trip to the ER. You know, I practiced for 20 years as a doctor caring for the uninsured and the poorly insured. I learned that if you give power to the patient, you can lower healthcare costs. So we're giving power to the patient, not profit to the insurance company.

[Interviewer/Reporter]

Well, Democrats come on board with this plan. It doesn't seem like they're interested in this. They want, at minimum, an extension for a year or two of the extended premiums.

[Senator Bill Cassidy]

So think about it. We are. We would actually be, if you will, in one sense, extending the the enhanced premium tax credit. But Instead of giving 100% to insurance companies, they take 20% for profit and overhead. We're given 100% to the patient. So you get an extension.

[Interviewer/Reporter]

But the pool shrinks that money. So is it on the higher shrink?

[Senator Bill Cassidy]

It does not shrink well for the.

[Interviewer/Reporter]

Insurers, are they going to have to pay more? Are you going to have to say you're on, say, the premium plan, or is your plan going to be even more expensive? It's not being subsidized by those on the lower end?

[Senator Bill Cassidy]

No. Again, going back to this, if you got this amount of money and currently under the current plan, you give 100% to insurance companies and they take 20% for overhead and profit. Instead, you give 100% to patients in terms of deposits within a health savings account, first you're lowering their deductible. And because you have lowered their deductible, they can take a cheaper bronze plan. Now, normally you don't because your deductible is higher. We just lowered their deductible. They're getting a cheaper bronze plan. By the way, when you give power to the patient, she gets the health care she chooses to have that she knows she needs, as opposed to the health care the insurance company permits her to have. A lot of wins in here for the patient who would not be for that. Whether you're a Republican or a Democrat.

[Podcast Host]

Do you think that this is enough to prevent the government from shutting again, shutting down again in January when this comes, comes back up?

[Senator Bill Cassidy]

Absolutely. Why? Because we've actually addressed affordability on the exchanges. I would argue we also begin to address the overall increase in health care cost. When you give that woman, and women make all the decisions in health care, when you give her the power of the purse and you say, listen, if you go here, you save money. If you go there, you don't. Everybody begins to lower their cost to where they can attract her business.

[Podcast Host]

You know, you said something earlier that I think is really important. You said that businesses have a role in creating jobs and creating a better landscape. Landscape for the lower quartiles and deciles of the US Economy and the US Earners. I just wonder what policies you think need to be implemented to do that, because right now it doesn't seem to be working.

[Senator Bill Cassidy]

Are you talking about in terms of overall business?

[Interviewer/Reporter]

Yes.

[Senator Bill Cassidy]

Yes. So I think that the tax policy that we've put in, and frankly, with President Trump's tariffs, there's an incentive for people to begin to reshore and certainly near shore. And so when you reshore, you're going to create jobs. Now, that doesn't happen like that. Think how long you need to put together your financing stack. But that's going to happen. And so as it happens, we'll see that kind of upswing in jobs for construction, for service, all those jobs that are related to that reshoring of manufacturing activity, and that'll cause a general boom. So. So that is. That is a sustainable strategy to create prosperity for folks.

[Podcast Host]

A lot of people are saying that the reason why companies haven't created more jobs is, is because they're using artificial intelligence for efficiencies. And you're seeing that in terms of Amazon coming out saying they're laying people off because of some of the efficiencies they're getting from algorithmic learning. I'm just wondering from a legislation standpoint what you think that the government's role is in trying to make sure that people aren't left behind in this transition, given that a lot of these new programs can take on roles previously done by humans.

[Senator Bill Cassidy]

I'm a technical optimist. If you've got something that's going to increase the productivity of our nation, will increase tax revenue not by increasing rates, but by increasing the overall growth of the economy. When you increase that overall growth of the economy and you have more money, we've got like trillions of dollars of backlog in infrastructure. Let's just focus once more there. If you begin to invest that money in infrastructure, AI does not swing a hammer. You're going to create a lot of jobs for folks who right now are struggling to get better jobs. Jobs. By the way, we're also building out our oil and gas industry, our energy industry. That creates a heck of a lot of jobs. And so everybody looks at the negative. Oh, we're going to downside. We need to look at the positive. That will just shift investment to a more productive area of the economy. As we grow at the expense of other nations, or maybe we all grow together, we'll create that employment.

[Interviewer/Reporter]

Lisa started out this conversation talking about affordability. Americans are still struggling. You're also looking at trying to address health care affordability by actually having this health system savings account proposal. The president talked about $2,000 tariff checks. You're on the Finance Committee. You're on the, you lead the health committee. Do you think that that is a good way to address affordability right now, putting money directly into consumers pockets?

[Senator Bill Cassidy]

So I'd like to see what the President's going to propose. We do know that the debt and deficit eventually takes money out of our pockets. And so we absolutely know that. So the question is, is it better to pay down our nation's debt? And as you pay down our nation's debt, then it makes it easier to lower interest rates for the Fed to lower interest rates, which then lowers a mortgage payment, which then maybe lower other forms of credit. As you do that, you make life more affordable that way. The other thing you have to worry about is if you give everybody a $2,000 check, does that bump up inflation and therefore the Fed is inhibited on lowering their rates so it can't be taken in kind of isolation. It has to be taken in context of everything we can do to benefit that person sitting at home struggling a little bit.

[Interviewer/Reporter]

It sounds like you would be a no then on the $2,000 check.

[Senator Bill Cassidy]

It sounds like I'm going to investigate so that I know.

[Interviewer/Reporter]

Okay, well while you. There's also potentially going to be another big Senate first a hearing and then a vote. When it comes to the President's Fed pick. Right now the frontrunner is his counsel and economic advisers chair, Kevin Hassett. Do you think you would say yes to him being the Fed Chair.

[Senator Bill Cassidy]

I've been impressed with Kevin. This is the second time around serving in Trump's administration. I think he's done a good job. Of course, I reserve judgment until we actually begin to look at him as Fed Chair. We are having this problem of, of inflation, which just is a little bit sticky and yet we want to decrease rates. How are you going to navigate that? But I'm certainly predisposed to support it.

[Podcast Host]

Are you worried about fed independence?

[Senator Bill Cassidy]

Fed independence is critical. You just have to have it. But I also think that Kevin would step up and be as aware of the importance of fed independence as anybody.

[Podcast Host]

Louisiana Senator, thank you so much for being with us. Louisiana Senator Bill Kasda here in the New York studio. Very much cost of living on the docket, especially given how much health care has dominated the conversation. And potentially Emory could be the reason why the government could shut down yet again.

[Interviewer/Reporter]

Right there's this going to the debate. It's happening all of December. The senator is going to be leading a hearing on it. What do you do in the sense that you have these enhanced Obamacare credits that are going to be ending and, and for Democrats, this is really important for them to have this fight because this is what the entire shutdown, longest shutdown history was based around.

[Amazon Advertisement Voice]

Amazon five Star Theater presents real Customer Reviews performed by Ed Helms. Tonight's review Tactical Jacket I was living a simple life. Didn't get out much. Then I bought this jacket and everything changed. Women came flocking to me from lands domestic and foreign. On the 245 day sailboat voyage home, I was attacked by a shark. I knew it was the jacket he was after giving up the jacket in exchange for my life. 5 stars Amazon Customer 69 Shop the perfect gift this holiday on Amazon.