Marketplace Podcast Summary: “Their Job is to Make Money. My Job is to Protect America’s National Security”

Release Date: January 14, 2025
Host: Kai Ryssdal
Guest: Gina Raimondo, Outgoing Secretary of Commerce

Introduction

In this episode of Marketplace, host Kai Ryssdal engages in a comprehensive conversation with Gina Raimondo, the outgoing Secretary of Commerce. Raimondo reflects on her tenure, discussing significant legislative achievements, the evolving economic landscape, and the intricate balance between fostering business growth and safeguarding national security.

Farewell and Achievements

Departure and Focus Post-Election

As Gina Raimondo prepares to leave her role as Commerce Secretary, Ryssdal probes into how the recent election results have influenced her focus. Raimondo responds:

“They concentrated my mind very sharply, although I can’t say they changed the work I’m doing here very much. We have had a plan all along to make the bulk of these investments by the end of the administration, regardless of who won the election.”
— Gina Raimondo [02:34]

CHIPS Act and Investment Milestones

Raimondo highlights the Administration's commitment to the CHIPS Act and broadband expansion, emphasizing the strategic investments made to bolster American manufacturing and technological prowess.

“Under my leadership here, we will have invested $90 billion. When the president hired me to help rebuild American manufacturing, that’s exactly what we did.”
— Gina Raimondo [03:13]

Balancing Business and National Security

Navigating Trade Policies and Export Controls

A central theme of the discussion centers on the delicate balance between supporting corporate interests and enforcing export controls to protect national security. Raimondo explains the pragmatic approach taken:

“If the US prevents US businesses from selling equipment or technology to China, but China can buy similar products from Japanese companies, it’s just not effective. We deny American companies revenue, which I never want to do.”
— Gina Raimondo [05:26]

She elaborates on the collaborative efforts with international partners to ensure that American companies remain competitive globally without compromising security.

Industry Relations and National Security

Addressing industry frustration, Raimondo calmly reiterates her priority:

“Their job’s to make money. My job’s to protect America’s national security. So I have no problem annoying them because China is going to use that to modernize their military and use it against Americans.”
— Gina Raimondo [06:39]

Strategy Against China’s Technological Rise

When discussing China, Raimondo uses a running race analogy to describe the competitive landscape:

“Export controls are like tugging on the shirt of your competitor a little bit. But fundamentally, you have to outrun them, which means more research and development, more innovation, more investments, better companies. We’re ahead of them now, and the way to stay ahead of them is to out-innovate them.”
— Gina Raimondo [07:44]

Looking Ahead: Advice and Economic Outlook

Encouraging Future Innovators

Responding to a hypothetical question from a student, Raimondo offers pragmatic advice on sustaining America’s economic leadership:

“Build the companies that everybody wants to work at, build the technology that keeps us in the lead... Maybe go get a job at TSMC or maybe get a job at Intel or go start your own company.”
— Gina Raimondo [09:07]

She also underscores the importance of public-minded leadership:

“I might also tell them to run for office. We need good, publicly minded people, not self-interested people to run for office if we’re going to solve the biggest problems in front of us.”
— Gina Raimondo [09:14]

Economic Insights and Updates

Producer Price Index (PPI) Analysis

Marketplace reporter Henry Epp breaks down the latest PPI data, highlighting a modest increase:

“The Producer Price Index was up 3.3% year on year, but notably up just 0.21% monthly in December, flat after stripping out the always volatile food and energy prices.”
— Henry Epp [11:13]

Leah Brooks of George Washington University comments on the implications for inflation control:

“We’re not out of the woods, but we’re near the edge of the woods.”
— Leah Brooks [11:52]

Transportation and Warehousing Costs

Raimondo and Jamie Hadari discuss rising costs in transportation and warehousing, attributing them to increased demand and strategic inventory management:

“Now carriers are able to increase prices more than they had been over the last couple of years.”
— Jamie Hadari [12:25]

Inflation Expectations and Labor Market

Kai Ryssdal and Kelly Wells explore consumer sentiment regarding inflation and employment, revealing nuanced concerns:

“Consumers expect household income to fall and spending to rise, but with consumer debt at record high levels, they may finally have to scale back spending.”
— Kelly Wells [21:10]

Commercial Real Estate and the Future of Work

Rise of Coworking Spaces

The episode delves into the transformation of commercial real estate, spotlighting CBRE’s acquisition of Industrious and the burgeoning coworking trend:

“In pre-pandemic times, big companies used to regularly sign long-term leases... Now, for satellite teams, the one to two-year contracts Industrious offers make sense.”
— Jamie Hadari [14:19]

Hybrid Work Models Impact

Flexible workplace consultant Caliost comments on the employer perspective of coworking:

“Employers have to know what they want their employees to do when they force them to leave the house.”
— Caliost [16:10]

Raimondo emphasizes prioritizing work over workspace:

“You’ve got to lead with the work, not the space. Start with the what and then the where.”
— Gina Raimondo [16:24]

Detroit Auto Show: Tradition Meets Innovation

Historical Significance and Modern Challenges

Mark Levin reports on the Detroit Auto Show's return to January, reflecting on its storied history and adaptation to contemporary trends:

“Detroiters love their cars. It’s the Motor City. Our parents, our grandparents, even my peers all work for a car company. So cars are a part of life.”
— Matt Levin [23:12]

Adapting to New Realities

The shift back to colder months and competition with events like CES is discussed, with Raimondo affirming the show's enduring appeal despite harsh weather:

“You take your life into your own hands to get to this Detroit Auto Show, and it will be worth it.”
— Gina Raimondo [25:51]

Small Business Optimism

Positive Outlook Amid Challenges

Kai Ryssdal concludes with encouraging news on small businesses, highlighting a six-year high in the National Federation of Independent Business’s optimism index:

“Small businesses are feeling pretty good these days. Members are expecting the best sales growth they’ve had since 2020.”
— Kai Ryssdal [26:49]

Conclusion

This episode of Marketplace offers a deep dive into the complexities of balancing economic growth with national security, the evolving landscape of workspaces, and the resilient optimism of small businesses. Gina Raimondo’s insights provide a valuable perspective on the Administration’s accomplishments and the challenges ahead, especially in maintaining America’s competitive edge in a rapidly changing global economy.

Notable Quotes:

• “Their job’s to make money. My job’s to protect America’s national security.”
  — Gina Raimondo [06:39]

• “If you take your life into your own hands to get to this Detroit Auto Show, and it will be worth it.”
  — Gina Raimondo [25:51]

For more details and to listen to the full episode, visit Marketplace.org.