Week of October 16th, 2017

Seeking answers on why inflation won’t do what everyone expects it to, Kai Ryssdal interviews a former Fed governor. In the world of health care, we investigate why rates of uninsured Americans are up for the first time since 2014 and what type of emergency President Donald Trump will declare the opioid epidemic. Plus, we’ll run through this week’s steps forward (and backward) in NAFTA renegotiations, tax reform and Trump’s impending appointment of the next Fed chair. And we get status updates from Puerto Rico, where power hasn’t come back for many residents, and the Florida Keys, where they’re busy luring tourists back to the islands. 

Michael Astrue, a former Social Security commissioner, talks about how and where the backlog starts.

At La Cachada Teatro, 5 single mothers from violent neighborhoods tell their stories.

The decline of chain restaurants coincides with the growth in income disparities.

Do you put your money where your mouth is? That’s the question we’re digging into this week. As businesses embrace activism and causes, does it actually help? Or is promoting a cause just a way for a company to boost its reputation? Plus, a look at the money around actual mouths — and how Netflix could partially be to blame for the decline of suburban restaurant chains like TGI Fridays and Applebee’s. Also, we speak with a former Social Security Administration commissioner about the Americans stuck on waiting lists for hearings to receive disability benefits. And, how a theater in El Salvador could be a secret solution to help victims of abuse rebuild their personal and financial lives.

A roundup of this week's business and economic news.

The dos and don'ts of office relationships and what happens when sexual harassment policy is unclear.

Daniel Tarullo, former Fed board governor, talks about his new paper on why the Fed hasn't got it right when it comes to measuring inflation.

The mission: Put things back the way they were, including 62,000 telephone poles.

Many companies have found that giving to these kinds of charities can ultimately boost their bottom line.

(Markets Edition) The GOP is getting closer to tax reform following the Senate’s approval of a budget resolution, which could mean $1.5 trillion in tax cuts. Chris Low from FTN Financial joined us to talk about how interest rates will play a role in making up that lost revenue, a crucial point going forward given that Trump has to select the next Fed chair. Afterwards, we’ll discuss Japan’s upcoming snap election, in which the current prime minister, Shinzo Abe, is expected to retain power. And to cap off the show, we’ll look at how one business incubator in the Mexican city of Ciudad Juarez is trying to turn the area into an innovation-based economy.

In the Florida Keys, tourism promoters and government officials want visitors to return. But some locals say money should be spent on the basics for permanent residents first.

(U.S. Edition) The Senate has approved a $4 trillion budget, checking one of the boxes the GOP needs before it pushes a tax overhaul. We’ll look at how this will help Republicans’ tax efforts, and whether the budget provides anymore clues about the party’s plans for tax reform. Afterwards, we’ll discuss Walmart’s courtship of Lord & Taylor, one of the country’s oldest department stores, and then report on the emerging demand for “greener” aluminum. 

One-third of Ciudad Juarez residents live in poverty. A city tech incubator is working to generate higher paid employment.

Can U.S. aluminum producers that use hydroelectricity distinguish their products from many Chinese producers, by touting their lower carbon footprint?

Enacting a tax overhaul by year’s end is a prime goal of Trump and Republicans.

(Global Edition) From the BBC World Service … German Chancellor Angela Merkel might have thrown British Prime Minister Theresa May a Brexit lifeline overnight, but will it be enough to reignite dialogue between the UK and the EU on their looming divorce? Afterwards, we’ll explain why football, kangaroos and meat pies might still be going strong in Australia, but not GM Holden cars, which have hit the brakes on domestic production. Then, we’ll take you to Gambia where a “back way” migration route is leading 6,000 young men to Italy – and leaving their home country virtually empty of young males. 

Sen. John Thune of South Dakota discusses his bill to create national regulations for autonomous vehicles.

Right now, states and cities decide if and how they want autonomous vehicles on their streets. The U.S. Senate is considering a measure that would standardize the rules of the road and let automakers sell more cars with self-driving capabilities over the next three years. It’s passed out of committee and will go to a full Senate vote in the coming weeks. The House of Representatives has already passed a different version of the bill. Republican Sen. John Thune of South Dakota, one of the sponsors of the bill, talks with Molly Wood about the legislation.

What the Super Bowl and company earnings reports have in common.

Kai Ryssdal promised we weren’t going to talk about tax reform today, but it kept coming up: Rep. Pat Tiberi’s resignation from Congress signals a brain drain of tax code experts in the Ways and Means Committee, which could make tax reform a lot messier. And we checked in with a union leader in Erie, Pennsylvania, who wasn’t exactly moved by President Donald Trump’s big announcement that tax reform would lead to the rebirth of American industry. But we mostly focused on government regulation of political ads on Facebook and Google, corporate restructuring and how Brexit could trigger a crisis in the U.K. cheese industry.

Can you name a single federal regulation? Probably not, but they're all around you, from the second you open your eyes in the morning.

Is Congress ready to regulate Facebook and Google?

(Markets Edition) In the third quarter, investors pulled $36 billion out of mutual and exchange-traded funds in the U.S. Diane Swonk, from DS Economics, stopped by to chat with us about the decrease in the number of Americans who own stocks, and the rising trend of people who are borrowing against their own 401(k)s. Afterwards, we’ll discuss companies that the stock market loves despite their unimpressive or completely non-existent profits, like Uber and Netflix.

There's some optimism, but it's not because of the GOP's tax plan.

Cheesemakers, importers and exporters fear that leaving the European Union will be bad for business.

(U.S. Edition) U.S. authorities are reportedly looking at connections some U.S. individuals may have to South Africa’s Gupta family, which is currently embroiled in a series of scandals. We’ll look at the family’s background and their political influence. Afterwards, we’ll discuss a new report that says the aging experience will be different for younger generations. One of these changes: growing inequality. Afterwards, we’ll look back at a major event in our financial history, which happened 30 years ago today. On Black Monday, the stock market experienced the largest single-day ever. 

(Global Edition) From the BBC World Service … China’s economic growth data came in better than expected today, just as the ruling Communist Party’s once-every-five-years conference gets underway. But can the numbers be trusted? Afterwards — it’s the 30th anniversary of Black Monday, the single-biggest daily decline in U.S. stock markets. The panic then rippled across the world, leading to double digit declines in places from Australia to Spain to Hong Kong. With global markets hitting fresh highs, have we learned any lessons from the intervening three decades? Then, the Hindu festival of Diwali celebrates the triumph of good over evil. But these days in India’s polluted capital Delhi, it’s also a battle between those who insist on celebrating with traditional fireworks, and those who just want clean air. We look at the winners and losers after the country’s highest court banned the sale of fireworks in the capital.

Amazon locker systems will be installed in apartment buildings across the U.S.

This week marks the 30 year anniversary of Black Monday, the day the stock market lost 23 percent of its value in just six and a half hours.

The money pool comes from universities, government entities and ultimately, you.

The tech industry’s economy hinges on venture capital. But what does venture capital’s economy hinge on? Private corporations, city entities and universities. These groups, called limited partners, fund firms with endowment money and pension funds, or part of your paycheck. On this episode of Marketplace Tech, we look into the world of limited partners.

President Donald Trump said that lowering corporate taxes could result in a $4,000 pay raise for U.S. households.

Girls Who Code founder and CEO Reshma Saujani talks about her plan to create a critical mass of women in tech within a decade.

A meeting of high-ranking officials in China signals the country's direction.

But, he "likes them all."

While that sounds like an opportunity he wouldn’t pass up, President Donald Trump is reportedly considering five economists for Fed chair, including current Chair Janet Yellen. Politico’s Ben White takes us through the list of potential candidates, weighing them against what Trump is looking for: someone he can relate to and influence, and someone who won’t raise rates as he enters the re-election period. All eyes should really be on China right now, where the Communist Party Congress opened today. It’s an important meeting that happens once every five years, and today’s speech by Chinese President Xi Jinping revealed China’s five-year economic plan, which includes valuable information for companies and China-watchers. Next, we go to Minnesota to check in on the wild rice crop, a cornerstone of life for local Native American tribes. And on this week’s edition of Corner Office, we talk to Reshma Saujani, CEO of Girls Who Code, an organization dedicated to teaching girls to code and getting more women jobs in tech. 

Could sharing salary data help achieve equal pay?

(Markets Edition) The markets keep hitting new highs. Is this bullish sentiment or are actual profits pushing these stock prices? Susan Schmidt from Westwood Holdings Group stopped by to discuss earnings season, in which the big banks have reported better-than-expected earnings. Afterwards, we’ll go back 30 years to revisit the markets when they weren’t doing so well. On Oct. 19, 1987, the stock market suffered its biggest single-day drop in U.S. history, and it turns out that in 2017, our regulatory system and circuit breakers might not be enough to prevent a similar decline.

Did we read the map wrong? Is there a better route?

Native Americans migrated to Minnesota centuries ago “where food grew on the water,” 500 years later, the wild rice harvest tradition is still being passed on.

Reshma Saujani, the CEO and founder of Girls Who Code, wants to solve Silicon Valley's gender diversity problem. And she says she's well on her way.

(U.S. Edition) President Xi Jinping delivered a big speech today to kick off China’s Communist Party Congress, which happens twice a decade. We’ll look at the economic policies Jinping is expected to focus on during the event. Afterwards, we’ll speak with author Diana Henriques about Black Monday, the stock market’s biggest single-day drop in U.S. history. She shares some of the lessons that America still needs to learn from that event. 

China's Community Party Congress — an event that happens twice a decade — kicked off today.

On Black Monday, the stock market plunged 22.6 percent.

(Global Edition) From the BBC World Service … Revitalizing the Chinese economy has been a key part of President Xi Jinping’s leadership, but some say those efforts have come up short. Can his promise of a “new era” in Chinese politics fire up the nation’s growth engine? Afterwards, we’ll discuss the rural and urban divide in Shanghai and why upward mobility is so difficult to achieve there. Then, we’ll take you to Australia where UK regulators hit Rio Tinto and two former executives with the biggest-ever fine, and explain what that could mean for one of the world’s largest mining companies. 

Ever since we started imagining robots, we’ve pictured them looking like humans. There are researchers who think androids are going to a part of our future. They’re developing robots that could become our caretakers, best friends and maybe even our lovers. Marketplace Tech’s Molly Wood talks with author Alex Mar, who profiled a designer who studies human intimacy and interaction with robots.

It will no longer import recycled scrap from the U.S. So what do we do with it?

At America’s largest ports in Los Angeles and Long Beach, bales of plastic and paper are piling up. Once upon a time, they would have been packed and shipped to Asia, where they’d be turned into consumer goods and shipped back. But China has plenty of its own recycled materials now to sustain the manufacturing of goods, leaving the U.S. with a big problem: where’s it all going to go? Maybe it can be hidden in the giant $2.4 trillion hole that the GOP’s tax plan would leave in the budget (but it’s likelier to end up in storage for now.) The tax plan is a big flip-flop from the fiscal responsibility Republicans have been been preaching, but it’s not without precedent — historically, each side cares more about debt when they’re in the opposition. Plus, NAFTA negotiations, what’s really behind Amazon’s choice of location for their secondary headquarters and how Houston’s undocumented parents are struggling to receive federal aid for their children as the city recovers from Hurricane Harvey.

Kelly and Zach Weinersmith investigate the not-too-distant future in “Soonish: Ten Emerging Technologies That'll Improve and/or Ruin Everything.”

Alison Green answers your questions about love and friendship at work.

(Markets Edition) Earnings season is looking good so far. Wall Street banks Goldman Sachs and Morgan Stanley have reported better-than-expected earnings. David Kelly, chief global strategist for JP Morgan Funds, joined us to talk about some of the factors fueling their success. Next, we’ll discuss the Senate’s expected vote this week on a budget resolution whose outcome is hard to predict. And finally, we’ll look at America’s growing shift to electric homes.   

After Hurricane Harvey, the hundreds of thousands of undocumented people living in the Houston area will have to find financial relief in other ways.

The framework would give fewer people tax incentives to give.

Natural gas used to be hailed as less polluting, but experts now urge a change to clean electrical energy generated by wind and solar power.

(U.S. Edition) Canadian jet manufacturer Bombardier has been in an ongoing trade fight with America’s Boeing. Well, now Bombardier is selling the majority stake of its C-series plane to the French company Airbus. We’ll report on why the Canadian company went through with the deal and how it may be able to sidestep a high U.S. tariff as a result. Afterwards, we’ll discuss whether Congress can help make consumer data safer, and then  look at Seattle’s bid to become home to Amazon’s second headquarters. 

The host of HQ2 should get ready for growth now.

(Global Edition) From the BBC’s World Service … The partnership sees Airbus take a majority stake in Bombardier’s C-Series jet and analysts say it could have huge implications for the industry. The planes can be assembled inside the U.S., potentially avoiding the crippling 300 percent import tariff the U.S. government wants to see imposed. The deal hasn’t been welcomed by U.S. rival Boeing — they complain that the firms receive too much state support. In China, preparations are underway for the Communist Party Congress, which begins tomorrow. President Xi will set out his economic vision for the next five years. We take the mood of state-run media, who have published an editorial attacking Western democracy. And is cash really heading for the trash? We hear from Victoria Cleland, chief cashier of the Bank of England, who says last year British banknotes grew 10 percent in value.

In the past few years, venture capitalists have invested more than $1.6 billion into companies working with low-earth orbit technology. Some of those companies are making small satellites that orbit closer to Earth than traditional ones. The goal: to blanket Earth with broadband internet and gather data on the planet. Marketplace Tech host Molly Wood talks to the innovators behind this mission.

"There has to be a more efficient way" to get health insurance.

Many nonprofits are shaking in their boots at the prospect of a GOP tax plan that would decrease incentives for giving, especially for individuals in lower tax brackets. And as the smoke begins to clear from massive wildfires in Northern California (some of which are still active), we examine the failure of maps that show places most at risk for wildfires. One neighborhood that burned last week was Coffey Park, a subdivision in the middle of Santa Rosa — the type of place that everyone assumed would be safe from wildfires. And on the latest installment of My Economy, we hear from one listener grappling with health care costs.

It puts growth "in the hands of individual property owners," the bill's author says.

(Markets Edition) The Federal Reserve still wants another interest rate hike or two. Julia Coronado, founder of MacroPolicy Perspectives, joined us to discuss why Fed Chair Janet Yellen has been pushing for them. Afterwards, we’ll look at the issue of distracted driving, which causes more than 3,000 deaths a year. We now have software that will allow police to scan a driver’s phone for activity.

The football player refused to stand for the national anthem in protest of racial injustice, and some in the sports community speculate his political activism led to the NFL blackballing him.

(U.S. Edition) Colin Kaepernick — the football player who began kneeling during the national anthem to protest social injustice — has filed a grievance against the NFL, claiming that the league’s teams colluded to keep him from getting a new contract. On today’s show, we’ll look at what the league’s collective bargaining agreement means for his case. Afterwards, we’ll discuss Alibaba’s plan to double its spending on research and development to $15 billion over the next three years. And finally, we’ll talk about the consequences that deportations in Texas could have on the state’s school system.  

The Textalyzer, a tablet about the size of an iPad which police can plug into a driver’s phone, can scan a phone’s system logs, and pulls up a list of activity.

(Global Edition) From the BBC’s World Service … European investors are waking up to the return of political risk — another showdown over Catalonia is playing out and Austria has elected the world’s youngest leader, with fears over immigration helping bring Sebastian Kurz to power. We examine the implications for Europe. Tensions have flared in the oil rich region around Kirkuk, with Iraqi forces saying they have captured the disputed city from Kurdish fighters. But how crucial is the area to the world’s oil supply? And host Anu Anand visits the home of Sir Isaac Newton, the man behind the theory of gravity, as a new coin commemorates his achievements. As well as his scientific breakthroughs, he also helped make British coins less prone to counterfeiting.

Microsoft recently announced that it’s doing away with its Windows Phone operating system. That basically leaves consumers with two options: iPhone or Android. Marketplace Tech host Molly Wood talks with Julie Ask, a principal analyst at Forrester Research, about how the smartphone industry got here and what it would take for a third player to enter the market. 

It won't be easy for another company to enter the field.