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The Business School of
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the Future is here.
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Daniels School of Business,
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you'll find the talent
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ready to tackle tomorrow's
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at Purdue. University
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slash DSB. Hey what's news listeners,
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it's Sunday April 27th. I'm Luke
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Vargas for the Wall Street Journal
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and this is What's News Sunday,
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the show where we tackle the
0:27
big questions about the biggest stories
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in the news by reaching out
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to our colleagues across the newsroom
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to help explain what's happening in
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our world. And this week, at
0:37
home and abroad, America's approach to
0:40
public health is changing rapidly. Tens
0:42
of thousands of federal health workers
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are poised to lose their jobs.
0:46
State health departments are seeing billions
0:48
in funding from Washington being zeroed
0:50
out. And foreign aid cuts are
0:53
interrupting programs for malaria prevention and
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treatment of HIV. But along with
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cuts, new programs and new priorities
1:00
are rising up in their place.
1:02
So what's in store as the
1:05
US embarks on its biggest public
1:07
health shakeup in modern history?
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Let's dive in. While we can't list all
1:11
of the changes that are being made
1:13
to the U.S. public health system,
1:16
but let me run through a
1:18
few of them very quickly. The
1:20
Department of Health and Human Services
1:22
is shedding around 20,000 employees within
1:24
the Centers for Disease Control and
1:26
Prevention. Entire departments are being eliminated,
1:28
including for HIV prevention, violence prevention,
1:31
and injury prevention. Also gone at
1:33
the CDC, is a team that
1:35
maintained a database of injuries and
1:37
violent deaths, which was widely relied
1:39
upon by policymakers and researchers. And
1:41
in a move that will be
1:43
felt beyond the beltway, the administration
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has cut off billions of dollars
1:48
in federal grants that were awarded
1:50
to state and local health departments
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for a range of programs, like
1:55
tracking infectious diseases or treating addiction,
1:57
that is being challenged in the
2:00
courts, but in the meantime... some
2:02
state health departments have already begun
2:04
layoffs. With me today are Wall
2:07
Street Journal health business editor Jonathan
2:09
Rockoff and senior writer Betsy McKay.
2:11
Jonathan, lots of changes clearly afoot
2:14
here. What reasons is the administration
2:16
giving for this shakeup? A lot
2:18
of this comes from this criticism
2:20
of the pandemic response and how
2:23
overarching the public health response to
2:25
the pandemic was and this feeling
2:27
that because the public health authority
2:29
sort of overstepped their authority, we
2:31
need to rein it back. And
2:34
we see this most saliently in
2:36
vaccines. There's a lot of criticism
2:38
on the right about mandating vaccines
2:40
and things like that. And so
2:42
a lot of the cuts have
2:45
been targeted at vaccines in
2:47
particular. Yeah, John is absolutely right.
2:49
We are at the tail end of
2:51
a very bruising pandemic, very bruising to
2:54
public health in the sense that there
2:56
was a lot of anger. and
2:58
backlash and that remains in the view
3:00
that government was not efficient. More
3:03
broadly speaking, the administration says
3:05
chronic diseases are worsening and
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changes need to be made.
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So there's two things here.
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There are the philosophical changes.
3:13
They view a smaller, more
3:15
effective government and more focused
3:17
on chronic diseases. Then there
3:19
is the immediate impact of
3:21
the changes being made suddenly and
3:24
the disruption that that causes.
3:26
difficult to conjure up, possibly
3:28
a re-emergence of certain diseases or
3:31
at least slowed efforts to try
3:33
and cure others, right? Yeah, absolutely,
3:35
because when you disrupt a
3:38
public health program or any
3:40
health program, you are going
3:42
to have consequences, if not
3:44
immediately, certainly down the line.
3:46
You know, an important part
3:48
of fighting HIV is not
3:50
treating people already infected
3:52
with HIV, but... preventing people
3:55
from getting it, giving them
3:57
access to pre-exposure prophylaxis. Educate...
3:59
many other programs and most of
4:02
them seem to be targeted for cuts.
4:04
We already see right now that no
4:06
matter who's in charge that there are
4:08
going to be public health threats and that
4:10
whoever is in charge is going to
4:12
have to deal with them. Right now we're
4:14
seeing this measles outbreak in the southwest
4:16
and then some other states and we're
4:18
also dealing with bird flu. So
4:20
these threats remain. I think part
4:22
of what the Trump administration and
4:24
Robert F. Kennedy Jr are doing
4:27
is sort of rethinking thinking what the
4:29
balance should be, and as Betsy has
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sort of laid out, I think there's
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a different sense of what we should
4:35
invest our preventative resources in, and whether
4:38
that should be in something like HIV
4:40
or whether it should be in chronic
4:42
diseases. Yeah, take us into what we're
4:44
seeing around chronic disease, a pullback in
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monitoring maybe, and yet Robert F. Kennedy
4:49
Jr. very focused on what he believes
4:51
to be the root causes of certain
4:53
health issues in the United States. Well,
4:56
it's a little unclear. He's definitely
4:58
been out front about how
5:00
he thinks we need to
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do more to prevent chronic
5:04
diseases, but we haven't necessarily
5:07
seen a lot of specifics
5:09
around how he would do
5:11
that. So that's TBD. What
5:13
we have seen is skepticism
5:15
about vaccines and about some
5:17
of the other sort of
5:19
infectious disease prevention efforts. And
5:22
then we see Robert F.
5:24
Kennedy Jr. himself. using mixed
5:26
descriptions of the efficacy and
5:28
safety of the vaccines and agencies
5:30
in HHS beginning efforts to take
5:33
a look at the safety and
5:35
efficacy of the vaccines, even though
5:37
most researchers say that's already been
5:39
settled and that vaccines are
5:41
really good and they prevent
5:43
diseases like measles and they
5:45
don't cause autism. One other
5:47
thing to note here is
5:49
the other sort of early
5:52
tangible impact that we're seeing
5:54
in the public health care
5:56
spaces and research. There's been
5:58
cuts to NIH and other. of
6:00
medical research. So for the
6:02
last generation, a lot of
6:04
the progress that we've seen
6:06
against serious diseases like cancer
6:08
has started in government-funded academic
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laboratories, which have found the
6:12
causes of the diseases, insights
6:15
that lead to drugs to
6:17
treat those diseases. And what
6:19
may happen, but we aren't
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sure yet, is that that
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sort of link between government
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funding academic advances may be
6:27
broken. We have got to
6:29
take a short break, but
6:32
when we come back, we
6:34
will look at what happens
6:36
when the US pulls back
6:38
on public health spending domestically
6:40
and abroad. Stay with us.
6:43
Jim Bullard, one of the
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nation's foremost economists and respected
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scholar leaders, is now Dean
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of Purdue University's, Mitch Daniel's
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School of Business. He's helping
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equip next-gen leaders and visionary
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founders for an evolving tomorrow.
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The Daniel School is tech-focused,
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data-driven, and STEM-infused, specializing in
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new tech, AI, and emerging
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engineering fields. This is how
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the future of business is
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built. Join us at Purdue.
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University slash DSM. All
7:20
right, before the break, we were
7:22
talking about some of the changes
7:24
coming to public health priorities and
7:27
funding in Washington. And John, I
7:29
just want to ask you, before
7:31
we start looking abroad, aren't there
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other entities in the US that
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could step in here, be it
7:38
states, philanthropies, the private sector to
7:40
cover any funding gaps that emerge?
7:43
This gets at the underlying debate.
7:45
We've been doing things for the
7:47
past generation a certain way, but
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there's no reason why we have
7:52
to do them that way. And
7:54
I think the Trump administration, to
7:56
its credit, is taking a hard
7:58
look at how we've been doing
8:01
things, and the government has been
8:03
this huge funder of medical reform.
8:05
But philanthropies have also funded medical
8:07
research and pharmaceutical companies and other
8:10
health care companies have also funded
8:12
research. And perhaps with the Trump
8:14
administration's prodding, that will get rejiggered
8:17
and we'll see a different amount
8:19
of life sciences industry funding of
8:21
academic labs, for instance. What people
8:23
say in the academic world, for
8:26
instance, is that without that government
8:28
funding we might not see a lot
8:30
of the basic research that has led
8:32
to advances against cancer, against
8:34
high cholesterol, against other diseases
8:36
because there needs to be
8:38
sort of a minimum level
8:40
of government funding of
8:42
basic research before industry and
8:45
philanthropy is willing to step
8:47
in. Betsy, something similar is happening
8:49
abroad. John referring there to going
8:51
back to square one on the
8:53
domestic public health funding model and
8:56
challenging old assumptions. That is kind
8:58
of what's happening as the US,
9:00
namely pulls back US Agency for
9:02
International Development projects for public health
9:05
around the world. Yeah, it's another
9:07
rethink. The State Department and the
9:09
administration have said there's a lot
9:11
of waste. in our funding, we're
9:13
funding a lot of things
9:15
around the world, we need
9:18
to rethink this and we
9:20
need to reevaluate exactly what
9:22
we want to fund. Secretary
9:24
of State Marco Rubio has
9:26
said that some of the
9:28
health programs that USAID funded
9:31
will be continued, but they
9:33
must qualify as serving American
9:35
interests, which is a pretty broad
9:37
definition. USAID was sort
9:39
of the epitome of the
9:41
United States' exercise of soft
9:43
power internationally. It didn't have
9:46
direct benefit to the United
9:48
States. It didn't help us
9:50
erase trade deficits or trade
9:52
deals or have any sort
9:54
of direct benefit. And the
9:56
Trump administration has completely rethought
9:59
that approach. We are already
10:01
seeing, just on the African
10:03
continent, health systems racing to try and
10:05
respond to a change in US funding,
10:07
Nigeria announcing measures to try and soften
10:09
the impact of these USAID cuts and
10:11
finding other ways they can fund their
10:14
health programs in South Africa. Scientists maybe
10:16
trying to find a silver lining here
10:18
saying this maybe is the opportunity the
10:20
continent needed to break its dependence on
10:22
foreign aid. Betsy, do we have an
10:24
idea of what that alternate model would
10:26
be? I know you spoke into a
10:28
lot of people as you try to
10:30
understand the effects of these cuts specifically
10:33
abroad. What's their thinking?
10:35
Well, it's difficult to understand what
10:38
that model would be right now.
10:40
Certainly every country that has lost
10:42
money, I mean, some African countries
10:44
are heavily, heavily dependent on donors
10:46
abroad. They have two things they're
10:48
looking at. One, how much money
10:50
can they themselves put up? Many
10:52
of these countries are servicing a
10:54
lot of debt and so don't
10:56
have as many funds as are
10:59
needed to keep everybody on HIV
11:01
prophylaxis or to combat tuberculosis in
11:03
the way that they need to.
11:05
The second thing is, can they find
11:07
other donors abroad? The US has been
11:09
a leader not only in giving
11:11
most of the governmental funds and pulled
11:13
other countries along with it. We're
11:15
going to give this much money. How
11:17
about you step up too? With
11:19
that gone, there's less incentive.
11:21
So it's a real
11:23
problem. The goal has always
11:25
been to help these
11:27
countries ultimately become independent. But what
11:30
global health advocates argue is
11:32
we're just not there yet.
11:34
Global health leaders have a
11:36
lot of concerns about HIV,
11:38
tuberculosis, and other infectious diseases
11:40
resurging. And while that would
11:42
happen in other countries, it
11:44
matters to us because as
11:47
we saw from the pandemic,
11:49
we live in a global
11:51
world. Anything that starts in
11:53
Africa, Southeast Asia, wherever can
11:55
come to us very quickly.
11:58
And so that's really big
12:00
reason why we have helped build
12:02
up health systems and surveillance capabilities
12:04
around the world. Jonathan, that seems
12:06
like kind of a theme as well, present
12:08
in some of the changes happening stateside as
12:11
well, right? You know, you can get a
12:13
problem under control, but then you ease off,
12:15
declare victory too soon, and you risk needing
12:17
to spend a lot more resources in the
12:19
future to get things back under control. We've
12:22
grown comfortable with a United
12:24
States where measles hasn't run
12:26
rampant, where there isn't polio,
12:28
where we're not dealing with
12:30
tuberculosis outbreaks all over, where
12:32
children are drinking fluoridated water
12:34
and avoiding a lot of
12:36
cavities and tooth decay. There
12:38
are, as we've discussed, reasons
12:40
why we would want to
12:42
take a look at how
12:44
we've... done all these infectious
12:46
disease and other public health
12:48
efforts in the United States,
12:50
and whether the mix of
12:52
federal and state funding for
12:55
those efforts needs to change,
12:57
and whether philanthropies and industry
13:00
needs to step up more. But what
13:02
public health folks argue we don't want
13:04
to do is to go back to
13:06
a place where the threat of polio
13:09
was... prevalent, where we
13:11
are dealing with measles
13:13
outbreaks spreading around the
13:15
country, where we are
13:17
seeing more and more
13:19
people developing HIV-AIDS. And so
13:21
the worry that they have is while
13:24
we take a look at how we've
13:26
done public health for a
13:28
generation, are we going to go
13:30
back to the place that we
13:33
thought we had left behind? Jonathan
13:35
Rockoff is the Wall Street Journal's health
13:37
business editor and Betsy McKay is a
13:39
senior writer for the journal. John Betsy,
13:42
thank you. Thank you. And that's it
13:44
for what's new Sunday for April 27th.
13:46
Today's show was produced by Charlotte
13:48
Gartenberg and Anthony Bancey, supervising producer
13:51
Sandra Kilhoff and deputy editor Chris
13:53
Sinzley. I'm Luke Vargas and we'll
13:56
be back tomorrow morning with a
13:58
brand new show. Until then. Thanks
14:05
for
14:11
Discover the business school
14:13
of the future
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at purdue .university .tsb.
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