Week of August 22nd, 2022

and more news from Mar-a-Lago.

An artificial intelligence company’s feedback for a once-aspiring screenwriter.

A Chipotle in Michigan and an REI in California are the latest to continue a trend defined by Starbucks.

To prepare for threats like sea-level rise and intense storms, Montauk is considering relocating homes and businesses to higher ground.

The labor movement is seeing big wins at smaller stores. Today, we’ll dig into why. Plus, we’ll unpack Federal Reserve Chair Powell’s remarks in Jackson Hole and consider a popular beach town’s choices as the sea rises.

There are guidelines, but experts say it’s more art than science.

AMC sells APEs to tap into retail investors’ enthusiasm. Can it evolve beyond the meme?

Now that the NCAA allows players to make money off their name, image and likeness, attention is turning to revenue from media deals.

The latest earnings from the popular fitness bike company may mean the company needs to switch directions to retain customers.

It’s Day 2 of the Jackson Hole Economic Symposium hosted by the Federal Reserve. We check in with World Bank President David Malpass, who’s on the ground in Wyoming, about monetary policy around the world. Also, we delve into the latest downbeat earnings report from Peloton, the exercise equipment and fitness company that boomed during the peak of the pandemic but has since fallen back to Earth — hard.

Many day laborers are having difficulties paying bills because of rising prices and fewer work opportunities.

The world is shifting to electric vehicles. But the U.S. is home to just 10% of EV production and 7% of battery production capacity.

T-Mobile and SpaceX are partnering to provide mobile service everywhere, using satellites to patch up coverage in areas where there are no cell towers. And, we take today’s “Economic Pulse” by speaking with Pedro, an immigrant day laborer who organizes other workers to prevent wage theft and poor working conditions.

From the BBC World Service: As Fed Chair Jay Powell takes to the stage at the Jackson Hole Economic Symposium, anticipation is building that he’ll double down on the U.S. central bank’s commitment to stamp out inflation. Rising prices are a problem all around the world. But economist Dr. Mohamed El-Erian explains the factors driving it are different region to region. Plus, Russia appears to be burning natural gas it could have sent to Europe. And, the French government says energy giant TotalEnergies has questions to answer about reports it’s been indirectly involved in supplying fuel to Russia’s airforce.

Social media companies in particular are the least trusted tech firms in America, according to a recent poll from the Center for Growth and Opportunity.

We’ll discuss California’s electric car revolution.

While gross domestic product shrank in the second quarter, gross domestic income increased. That’s creating a puzzling picture of where the economy stands.

The Mortgage Bankers Association reports the average monthly payment on a new mortgage in July was $1,844, down $49 from June, as mortgage rates and loan amounts edged lower.

Bruce Ridenour has been a contractor for 40 years and said local contractors in Danbury, Connecticut don’t have bandwidth to handle all the new demand.

A New York Fed economist says 60% of inflation was driven by demand for goods, and 40% was from supply-side issues that magnified that higher demand.

Prices for school supplies like notebooks, glue, and labels have increased 11% from a year ago.

Pent up demand for in-person experiences may make up for slipping subscriber numbers.

GDI should be close to GDP, theoretically. It’s not.

Econ Extra Credit newsletter #115

How much wiggle room does the law give us to make dumb decisions and still seek compensation?

Officials in the Golden State are expected to approve a plan today that will ban the sale of new gasoline-powered cars by 2035. Auto regulations in California often influence other states to adopt similar rules. Also, we’ll preview the Federal Reserve’s big Jackson Hole Economic Symposium with economist Diane Swonk who will be in attendance. Plus, how China is aiming to boost the country’s economy with stimulus as it’s being hit by a strict zero-COVID policy, heat waves and more. Finally, a look at how your conduct matters when it comes to tort law and amusement parks. It’s some legal context for our “Econ Extra Credit” selection this month, “Class Action Park.”

Retailers are trying to get rid of excess inventory by marking down certain products. That’s likely to lure shoppers.

The Biden administration has officially rolled out a plan to cancel some student debt for certain individual borrowers. But that doesn’t change the fact that the cost of college tuition is running at record-high levels. We look at why higher education is so expensive. Plus, get your Federal Reserve “bingo cards” ready for the Jackson Hole Economic Symposium, which kicks off today. If you want to know what to watch for in Fed Chair Jerome Powell’s speech planned for tomorrow, we have you covered. And, welcome news for consumers: A handful of retailers have recently announced they’ll be marking down products to try to get them out the door and clear excess inventory they’ve accumulated during the pandemic.

From the BBC World Service: Chinese officials are putting a total of $146 billion toward measures aimed at propping up an economy hit by severe drought, energy shortages and a strict zero-COVID strategy. Also, French President Macron is in Algeria for a trip aimed at repairing relations between the two nations. He will also likely focus on how the country can help Europe achieve energy security without Russia. And, the war in Ukraine hasn’t just disrupted daily life in that country. We hear how it’s wreaked havoc on the global food supply chain and those who work in it.

There are some key words to watch for in Fed Chair Jerome Powell’s speech: “data,” “inflation” and “unemployment” are among them.

The game Mightier helps children regulate their emotions by monitoring their heart rate and offering ideas to process difficult feelings.

The actor, director and TV host who taught millions about the love of books and reading reflects on what he’s learned about his country.

We see you, Larry Summers.

After a 10-week trial, an employee survey revealed stress tied to the altered schedules. But the CEO is still working on solutions.

The ruble has rebounded, but Russia is suffering a brain drain and remains economically isolated. Plus, how the Fed’s changing role in the bond market could help tame inflation.

In the past fifty years, tuition at both public and private schools has more than tripled, even after accounting for inflation.

The Fed uses its buying power in the bond market to raise or lower interest rates by manipulating how much money is available in the economy.

Russia remains economically isolated and it’s suffering a brain drain of young, educated professionals, explains Kristy Ironside of McGill University.

Like many businesses, small businesses stocked up on inventory early in the pandemic, given the congested supply chain. Now, many are trying to get rid of that inventory, as the economy grows more uncertain.

Big-box retailers are dumping excess inventory because of lower sales. Liquidators, who resell that merchandise, are thriving.

President Joe Biden on Wednesday announced his long-awaited plan to provide $10,000 in debt cancellation for borrowers earning $125,000 per year.

Extreme weather events drive down cotton harvests and push up prices for the more scarce commodity.

The whistleblower complaint from a former Twitter security chief alleges that the social media platform doesn’t know exactly how many fake accounts there are. That sounds a lot like one of Elon Musk’s reasons for pulling out of a $44 billion deal to buy the company. But Erik Gordon, a professor at the University of Michigan’s Ross School of Business, says that’s just the start of the potential legal trouble Twitter could face now. Plus, housing sales might be down, but prices aren’t there yet. What does that mean for the fight against inflation? We ask Susan Schmidt, head of U.S. equities at Exchange Capital Resources. Also, how extreme weather caused by climate change is yet another force contributing to inflation, especially in commodities like cotton. And, an update on fundraising money for aid in Ukraine.

The city is doubling the amount of low-interest loans that first-time homeowners can qualify for in its Home Purchase Assistance Program, but analysts say that only addresses part of the problem.

We delve into the history of the Federal Reserve’s annual Jackson Hole Economic Symposium.

Every August, Jackson Hole, Wyoming, becomes the center of the financial world for a few days as central bankers, academics and economists from around the world gather for a symposium. But how did this get to be such a big deal? A teachable moment and a history lesson for you today. Plus, the latest on reports that the Biden administration will make an announcement on federal student loan forgiveness. And, a plan in Washington, D.C., to help first-time homebuyers with low-interest loans at a time when inflation is making down payments more difficult.

From the BBC World Service: The U.S., which has already sent $10 billion to Ukraine, is expected to announce another $3 billion package, the largest so far. Charities of all shapes and sizes have been doing what they can on the ground, but recently giving has slowed. We caught up again with Ukrainian chef and cookbook author Olia Hercules in her London home to hear about her latest fundraising efforts. And, South Africans are taking to the streets to protest against soaring food and fuel prices, and ongoing power cuts.

In New Jersey, allegations that police used a newborn’s blood sample to charge a man with a crime raised questions about who can do what with DNA from mandatory infant screening and the genetic databases built on those tests.

What you need to know about money in politics ahead of the midterms.

New home sales are down, which has builders crying “housing recession,” but prices are way up. What gives? Plus, what it takes to build a semiconductor plant and why Brits are gearing up for an energy bill-paying strike.

A new movement aims to persuade 1 million households to refuse to pay skyrocketing bills, driven by imbalance in natural gas supplies.

Amber Balakian went “to college thinking, ‘I’m going to do something else and get away from everything.’ I actually ended up coming back.”

Semiconductor makers seek locations with plenty of space, water, electricity and workers. First, they need megabucks for construction.

In “Take Back the Game,” Linda Flanagan looks at how the growing youth sports industry has become a recipe for haves and have-nots.

Trade groups say the industry is in recession, but prices are still high and foreclosures are low.

Sanna Marin faced scrutiny after dancing and partying, a reaction familiar to many women in positions of authority.

One therapist and executive coach says that recession fears are prevalent, but there are ways to mitigate the anxiety.

Some funds are seeing a rise in their budgets, but there’s also been a sharp rise in demand for services.

Markets saw their worst day yesterday since June with traders worried about potentially more interest rate increases to come from the Federal Reserve. We’ll get a better idea of where the Fed is at when Chair Jerome Powell speaks Friday at the Jackson Hole Economic Symposium. Today, we spoke with Stifel chief economist Lindsey Piegza about what might be next in the Fed’s fight against inflation. Plus, the average minimum salary someone is willing to accept for a new job has risen since last year. We get the latest snapshot of the labor market. And, the demand for help from local abortion funds has risen as some states move to restrict or ban abortion.

One of America’s largest automakers announced that it would cut 3,000 jobs to lower costs amid its shift toward EVs.

There’s fresh data out on when and if the U.S. economy will see a recession — 72% of economists surveyed by the National Association of Business Economics believe we’ll be in a recession a little less than a year. But all this recession talk weighs on Americans and their mental health. We talked to one therapist and executive coach about why we may be feeling more anxious about the economy this time around. Plus, Ford announced yesterday that it would lay off 3,000 workers to cut costs as the automaker moves more toward electric vehicles. And, we hear about the economics of offshore wind farms in Scotland.

From the BBC World Service: Poland’s Grupa Azoty is one of Europe’s biggest fertilizer and chemical producers. It’s now suspended fertilizer production and cut back further on manufacturing of other chemicals due to the high natural gas prices. Plus, Scotland’s largest offshore wind farm is now generating electricity and will eventually generate enough power for 1 million homes. And, Japan’s supermarket on wheels is offering a lifeline to older consumers.

The actor and producer says pivoting to educational tools online is important for teaching “digital native” youngsters.

We’ll discuss the changes at Ford.

A record number of manufacturing jobs are coming back to the U.S., a report says. Supply chain woes are part of the reason. Plus, how shipping issues are affecting a trio of small businesses.

Young workers’ sense of “wanting to untether my job from my identity” has grown in the past year, The Journal’s Lindsay Ellis reports.

But remittances have actually fallen as the war has dragged on.

An Indiana delegation is on the island seeking to expand academic and business ties, in particular bringing semiconductor production to the states.

A shorter chain means less room for error and uncertainty. But that security comes with a higher price tag.

Last month a new European rule went into effect mandating speed limiters on new cars. Now New York city is trying out the devices.

Supply chain problems remain an obstacle as demand picks up.

A federal relief program for farmers of color is facing changes with the passage of the Inflation Reduction Act. We delve into how the legislation strips out language referencing race, and what that means for farmers who have been waiting for the money. We talked to Julia Coronado, founder and president of MacroPolicy Perspectives, on the latest in the global economy and the buzz ahead of the Jackson Hole Economic Symposium hosted by the Federal Reserve. Also, we hear from Japan about the country’s struggle to combat work days that are so long they might be illegal.

Low-income, Black, and Hispanic Americans are much more likely to lack a bank account or use alternative financial institutions like payday lenders.

A federal program to aid farmers of color has been changed to omit references to race.

The oil giant Chevron recently launched a news website geared toward the population of the Permian Basin in Texas, complete with local stories about puppies laid side by side with stories about the company. We talk to Molly Taft, who writes for Gizmodo, about what this site says about journalism in the digital age. Plus, there’s a new report out today from the Joint Economic Committee in Congress that delves into which people are most susceptible to being “unbanked” and “underbanked,” and what kinds of problems that causes. And, Cineworld, the owner of the Regal chain of movie theaters in the U.S., has filed for bankruptcy protection.

From the BBC World Service: A rare cargo of liquified natural gas is arriving in England, and some of it could be piped to mainland Europe. Many European countries are struggling to find a solution to an energy crisis after Russia cut gas flows through the Nord Stream 1 pipeline to just 20% of normal levels. Plus, more than 10,000 employers in Japan have been found to be forcing staff to work illegally long hours. And, as South Africa expands its vaccine production capacity, is more localized manufacturing still relevant?

The DALL-E program can generate art, logos, even designs for safer streets.

Chevron has been upfront about producing the site, but there are concerns it may be the only source of news for some in the area.