Week of February 20th, 2023

Econ Extra Credit newsletter #139

Hint: Many apartments are still empty.

The consumer isn’t likely to see higher costs, but telecom companies say that Big Tech should pay its fair share.

A boost in disposable income fueled spending and saving. Data signals a healthy outlook, but lower-income people are draining reserves.

Actors, dancers and other artists in Ukraine say they are determined to protect their national identity from Russian aggression. Plus, a warning to banks about crypto.

Three agencies aim to keep traditional banks from getting too involved in cryptocurrency, which has lost value and seen corporate meltdowns.

Phillip Rollins, owner of Offbeat, wants to attract more college students and give them a place to hang out.

Actors, dancers, singers and theater producers in Ukraine say they are determined to protect their national identity from Russian aggression.

The war in Ukraine and the accompanying energy crunch was great news for oil companies, many of which posted profits that neared or broke records. That may sound bad for the climate, but as the Economist’s Vijay Vaitheeswaran argues, it could actually lead to an acceleration in the transition to greener energy. The U.S. and allies announced they would impose new sanctions on Russia today, the one-year anniversary of the invasion. And, a look at how Russia’s economy is faring under the existing sanctions regime.

New tech is sprouting up in subsectors that already thrive in NYC, like finance and media, according to Tech:NYC’s Julie Samuels.

Oil giants are going to invest in more oil while also preparing for a greener future, says The Economist’s Vijay Vaitheeswaran.

As technology becomes an increasingly large share of the U.S. economy, tech firms are setting up shop in cities outside of the traditional confines of Silicon Valley. We look at the burgeoning sector in New York City with Julie Samuels, president and director of Tech:NYC, a trade group. The Biden administration has announced new sanctions on Russia in concert with European allies — the additional U.S. restrictions are designed to hit Russian imports and individuals. And, a look into why GDP estimates are almost always changed after they’re released. 

From the BBC World Service: One year on since the invasion of Ukraine, we ask what has been the cost to both Ukraine and Russia. We find out how the Russian economy has been able to withstand western sanctions, what brands remain, plus we hear how Ukraine could look to rebuild after the conflict

Cyberattacks play a role in Russia’s destructive campaign but haven’t been as aggressive as feared, according to Adam Meyers of CrowdStrike. However, Ukraine has suffered the largest number of “wiper” attacks ever recorded, experts say.

Plus, bring on the runaway supermassive black holes.

A U.K.-based trial found that employees who had a four-day workweek trial experienced greater satisfaction. In the U.S., some companies and institutions have been experimenting with a shortened week.

The Bureau of Economic Analysis revised GDP down to 2.7% from the fourth quarter of last year.

The economic goals of the civil rights movement included access to good jobs and the expansion of workers’ rights. Plus, the war in Ukraine continues to fuel global food insecurity.

Continuing claims for benefits fell by 37,000 for the week, according to the latest data from the Labor Department.

Some platforms have laid off employees, citing the need for sustainable growth.

Legalized segregation was an economic system that determined people’s livelihoods, says history professor Robin D.G. Kelley.

In many countries, including Egypt, staples like bread have become much more expensive and harder to come by.

The number of strikes and other forms of labor organization — such as forming unions — increased sharply in 2022 from 2021. We look into how the strong job market could have contributed to the momentum behind workers. The stock market has been turbulent as of late, reflecting broader unease over the question of “how is the economy doing?” We check in with KPMG Chief Economist Diane Swonk, who says it’s likely a mix of good and bad. And, a look at a program at the University of Michigan’s School of Business to transform students’ interest in management into a real passion. 

The number of labor actions has increased, as has the number of workers involved.

University of Michigan Professor Andrew Hoffman wants students “to both lead successful organizations and make society better.”

Nearly a year on from Russia’s invasion of Ukraine, the sanctions regime imposed on Vladimir Putin’s regime by the West and its allies looks to be less effective than initially hoped. According to Brooke Harrington, a professor at Dartmouth, that’s been due in part to the difficulty of sanctioning assets that are being held in the nebulous world of international offshore wealth management. And, a look at what the potential ramifications of a U.S. debt default could be if the federal government fails to raise the nation’s debt ceiling. 

A forthcoming paper on Russia’s economic sanctions finds they could go further by targeting oligarchs’ wealth managers.

From the BBC World Service: It’s the last day of campaigning in Nigeria, the largest economy in Africa. With the country going through economic turmoil, BBC presenter Alan Kasujja is in the capital city Lagos with elections being held on Saturday. Plus a year in to the Ukraine war BBC’s Leanna Byrne investigates the impact of sanctions on the Russian economy.

Roman Osadchuk of the Atlantic Council says repurposed government apps have made a big difference for Ukrainians during Russia’s invasion.

ChatGPT vs. Bing

The bond market is trying to predict the economic future. What is it telling us? Plus, a flower company’s less-than-rosy Valentine’s Day.

A flower company CEO reflects on a shifting economic landscape.

Here’s why it took a pandemic to make it happen, and why the practice is probably here to stay.

A Rand survey finds that 16% of public school principals retired or quit in the 2021-22 school year, more than double the rate from the year before.

In 2022, over two-thirds of Greenbar Distillery’s sales were in the non-alcoholic market. For owners Litty Mathew and Melkon Khosrovian, that means that non-alcoholic drinks are going to be part of their future.

The markets that set the yield on bonds are trying to predict the economic future.

The airline will invest in startups developing sustainable jet fuels leveraging money from the Inflation Reduction Act.

Germany’s energy situation is much different than it was nearly a year ago when Russia invaded Ukraine — the country has effectively cut itself off from dependence on Russian natural gas. We look into the successful rapid transition. United Airlines announced the launch of a $100 million fund to back companies working on developing green jet fuel. Susan Schmidt, Head of Public Equity at the State of Wisconsin Investment Fund, walks us through yesterday’s market turmoil. And, the BBC reports on a Hong Kong scheme to give each resident a hefty stimulus payment. 

A warm winter in Europe helped ease the transition.

Customer and airlines like them better than higher airfares.

One of the world’s largest airlines, United, said it will ease fees for parents wanting to sit with their children aged 12 and under. This, as the Biden administration pushes to crack down on “junk fees” in a variety of industries. A look into why markets are looking turbulent again, which has something to do with the threat of a recession on the horizon. And, a look at the Supreme Court cases that could redefine the internet in the coming months.

From the BBC World Service: Bad weather in North Africa means less fruit and vegetables are finding their way into supermarkets in the U.K. and Ireland. Social media is full of pictures of empty shelves in economies dependent on imports. But we hear how the situation has also been exacerbated by supermarkets’ hard-nosed approach to negotiating supply deals with farmers. Plus, why Hong Kong is handing citizens $600 each. And, as we continue our look at the wider impact of Russia’s invasion of Ukraine last year, we speak to businesses in Russia facing a skills shortages caused by conscription.

In a recent Capterra survey, 98% of leaders in human resources said they would use software and algorithms to cut labor costs in a recession.

No, it’s still not over.

While economists mull the likelihood of a recession, sellers have to decide what to buy right now. Plus, charting business recovery in China’s most locked-down city.

The case centers on Section 230 of the Communications Decency Act, which shields tech platforms from legal liability over third-party content.

With thousands of items and products to choose from, consumers need to protect themselves from making the wrong purchase.

Prices are still rising, but more slowly. What does that mean for house hunters this spring?

Shelley Rivers, a substitute teacher in Iowa City, Iowa, says she never even had the expectation that she’d fully retire.

Manufacturers and retailers have to decide what to make or stock now based on where they think the economy will be later.

The Chinese city of Ruili, on the border with Myanmar, has had more lockdowns than almost any other place in China.

For incarcerated women, there are few options for where to send their children when serving their sentences — many lack family members who could take them in, and foster care carries the risk of losing custody. Hear how some groups in Minnesota are forming an alternative foster care system. We check in with Dr. David Kelley, Chief Market Strategist at JP Morgan Funds, about the markets picture underneath the good recent economic data. The Supreme Court is set to take up cases this term that could shape the tech landscape for the foreseeable future. And, in earthquake-torn Turkey and Syria, aid groups are disbursing U.S. dollar-denominated cash donations to victims.

Stanley, the popular drinkware brand, has transitioned from venerable camping staple to TikTok sensation.

Women sentenced prison time worry about who will take care of their children — and if they will be able to maintain custody.

One reason to give cash: It empowers people to buy what they need, not what aid groups think they need.

The Supreme Court will hear a case today challenging a liability shield that’s helped protect tech companies from what users post on their platforms. Many argue this protection helped build the modern internet — and wonder what will happen if it’s struck down. The BBC looks at the results of one of the world’s largest four-day workweek experiments, which was conducted in the UK over a period of six months. And, some personal finance tips for people making big life changes from CBS News’ Jill Schlesinger. 

Whether you’ve decided it’s time to change jobs or you’re dealing with an unforeseen circumstance.

From the BBC World Service: How would you like to get all your pay for working 80% of the time? We take a look at one of the world’s biggest pilots of the four-day work week. Nearly all the businesses that took part want to carry on. Plus, as President Putin makes a major address to mark the anniversary of Russia’s invasion of Ukraine, we take a look at the human toll. Millions of people fled to other countries and some of them have been setting up businesses. And finally, more heads are rolling in Spain after $250m was spent on trains too wide to fit through tunnels.

And how easy is it to make money of your own? (Asking for a friend.)

“Tech companies have some work cut out for them” to earn parents’ trust, says Taylor Barkley of The Center for Growth and Opportunity .

Consumers have racked up $986 billion in credit card debt, according to the New York Fed. Plus, Spain tries to attract digital nomads.

Retail sales were up 3% in January from the month before, but some categories — like building supplies — were mostly flat.

One startup’s method relies on the same natural process that pulls CO2 out of the air to create limestone.

Growing the business “has stretched me and changed me in all the good ways, and also in all the really hard ways,” says photographer Liz Hansen.

Card debt, which fell during the pandemic, is at a record $986 billion, according to the New York Fed. Delinquencies are rising too.

The Biden administration’s reshoring efforts, aimed largely at cutting dependence on China, dismays allies who seek U.S. investment.

President Biden arrived in Kyiv this morning on a surprise visit to wartime Ukraine. Hear about what was on the agenda, including fresh arms deliveries and other forms of assistance. The BBC investigates alleged sexual assault on Kenyan tea farms that supply some of the world’s largest brands. And, a look at how abortion funds and clinics in the South are sending services across state lines into communities where the practice became illegal after the overturning of Roe v. Wade.  Please be advised content featured in this podcast includes a story about sexual abuse that listeners may find difficult to hear or inappropriate for younger audiences.

People seeking abortions in the South, where it is largely illegal, face costs for travel, time off work and child care.

The American manufacturing sector is set to receive a huge deluge of funding in the coming years, thanks in large part to two major laws: the CHIPS Act and the Inflation Reduction Act. We spoke with Charlotte Howard, Executive Editor and New York Bureau Chief at The Economist, about what the laws could portend for the sector. President Biden is in Ukraine for a surprise visit, where he met with his counterpart Volodymyr Zelensky and announced new military aid. And, a view from Moldova, where Pro-Russian protests are causing instability for the country’s Western-aligned government. 

From the BBC World Service: A BBC investigation has uncovered widespread sexual abuse on tea farms which supply some of the world’s biggest international tea brands. Plus, the brewer Brewdog is expanding into China in a tie-up with Budweiser. And, we take a look at the economic implications of war in Ukraine on the eve of the first anniversary. Please be advised content featured in this podcast includes a story about sexual abuse that listeners may find difficult to hear or inappropriate for younger audiences.

While some Ukrainians attempt to preserve cultural artifacts as the conflict rages, a team of multinational archivists is recording websites in case they go offline.