Week of February 27th, 2023

It may be more prevalent than you think.

When parent company Hasbro tried to monetize third-party content, fans stepped up to protect the role-playing game economy. Plus, the jobs report gets a Friday off.

A rule that makes the underlying data more consistent has delayed February’s report by a week.

There are ways to figure out the quality of jobs that are being added to the economy.

At least two dozen states — and Congress — have either proposed or enacted laws to increase teacher pay in the past couple of years.

A proposed carbon emissions disclosure law in the world’s fifth-largest economy could push such requirements into the mainstream.

When Hasbro wanted to change D&D’s open game license to get a cut of third-party company profits, the game’s fans went to battle.

Econ Extra Credit newsletter #140

Earlier this week, the Biden administration announced that companies could begin applying for funding under the CHIPS and Science Act, but only if they met certain conditions including limiting stock buybacks, providing childcare to workers, and others. According to Felicia Wong, CEO of the liberal-leaning Roosevelt Institute think tank, this could herald a new embrace of industrial policy by Biden to push forward his agenda. And, a look into a new report that details the growing extent of the racial disparity in home ownership in America. 

But will it work out as the President hopes?

ESG considers environmental, social, and corporate governance factors along with profitability. Republican opponents call it “woke investing.”

One key piece of the plan is to put more responsibility on tech companies to secure their products.

Legislatures in various Republican-controlled states have passed or are mulling restricting banks from ESG investing, which considers environmental, social, and governance factors. We look at what’s behind the backlash to ESG and why some are assailing it as “woke investing.” The Biden Administration released its new Cybersecurity Strategy yesterday, which includes a call to companies to play a greater role in securing their own products. And, excerpts from Marketplace host Kai Ryssdal’s interview with Treasury Secretary Janet Yellen, where they discussed the economics of the war in Ukraine. 

From the BBC World Service: The fallout from Tuesday’s deadly train crash has brought attention to the era of privatization that followed Greece’s financial crisis in 2015. We look at what role that could have played in the leadup to the disaster. A new report says Chinese scientists are leading their American counterparts in dozens of fields of technological research. And, could South Korean reality TV be the next big streaming sensation?

Private space companies are deploying satellite imaging and other technology to bring more visibility and transparency to the war. But there are ethical questions around how that tech could be directly involved in an armed conflict.

The yield for a two-year note is roughly a whole percentage point higher than the yield on the 10-year Treasury right now. And that often precedes a recession.

Today, Treasury chief Janet Yellen joined “Marketplace” host Kai Ryssdal to discuss global and domestic economic concerns. Plus, the shifting definition of “discretionary” spending.

Plus, our hosts get together in D.C.

Retailers’ financial results show weaker spending on nonnecessities like electronics. Here’s where consumers are pulling back.

The Treasury secretary says “people don’t need to lose their jobs” to cool down the labor market.

Social media platforms that bring people together IRL can help. Those that privilege one-way communication from influencers to followers may make matters worse.

The disparity between how much wealth — on average — people of different racial groups hold has been well-documented through research. Yet according to one study, the size of that gap is frequently underappreciated. We talk to Ivy Oyeandor, a professor at Northwestern University and co-author of the study, about that misperception as part of our Econ Extra Credit series. And, KPMG Chief Economist Diane Swonk dissects the latest economic data, which indicates economic strength because of infrastructure spending but risks prolonging inflation. 

The drug maker announced it’s cutting the price of its most commonly-used insulins by 70%, and capping patients’ out-of-pocket cost at $35 at certain participating pharmacies.

Ivy Onyeador of Northwestern University discusses why Americans overestimate the progress we’ve made toward economic equality.

Pharmaceutical giant Eli Lilly announced it would cut the prices of some of its most-used insulin products by 70%, as well as cap out-of-pocket costs for consumers at $35. We look at what that could mean for patients, most of whom have been paying sky-high prices for the drug. Congress yesterday passed a bill to prohibit ESG — Economic, Social, and Governance — retirement investing, a measure likely to be vetoed by President Biden. And, as part of American Public Media’s “Call to Mind” campaign around mental health, we look at the effects of social media on loneliness. 

From the BBC World Service: A new report by the International Energy Agency says global carbon dioxide emissions rose to a record high last year, but new technology — including sea-floating solar panels in Portugal — have helped slow it; BBC reporter Paul Carter has been to see them up close. Plus with a new president-elect in place, BBC’s Bisi Adebayo reports on the brain drain of young talent leaving Nigeria.

Matt Perault of UNC Chapel Hill says Section 230 won’t protect generative AI tools, and that could have social consequences.

The railroad industry spent millions on lobbying the federal government in recent years.

Economists say 3.5% wage growth is ideal — but we’re not there yet. Also, we’ll hear the sounds of a $10 million violin.

Total loan balances rose from last quarter and year over year, according to the FDIC. There are good reasons to borrow now.

An International Energy Association report found that SUVs emitted almost 1 billion metric tons of carbon dioxide last year, more than some countries. The cars now represent 46% of the global auto market.

Economists say 3.5% wage growth is about right when you take inflation and productivity growth into account — but we’re not there yet.

Errica Jamil moved seven times in about as many years, earning her free or reduced rent. Now she owns a home of her own.

Despite numerous scientific tests, there are no definitive answers for why Guarneri instruments have their unique, coveted sound.

A new tool shows the likelihood of wind damage by property address.

Less of a good thing: “Marketplace” listeners tell us about products they’ve seen that have undergone “shrinkflation.”

Amazon’s recent acquisition of a chain of health care clinics from One Medical is raising questions of Big Tech’s growing role in the sector. We talk to University of Michigan professor Erik Gordon about the potential antitrust implications, and what the Amazon example could mean for the sector going forward. Congress’ newest committee, which focuses on competition with China, held its first hearing yesterday, at a time of increased tensions with the People’s Republic. And, we talk to Susan Schmidt, Head of Public Equity at the State of Wisconsin Investment Fund, about the increasingly tenuous economic picture. 

Amazon’s acquisition of health care clinics represents new antitrust terrain for the Federal Trade Commission.

An ‘epidemic of loneliness’ in recent decades causes stress-related absenteeism, job turnover, and lost productivity.

Loneliness can have major effects on employees and employers alike in the workplace — in addition to the mental health effects, one study found it can cost businesses up to $154 billion annually. As part of American Public Media’s “Call to Mind” mental health initiative, we look into the effects of loneliness and how employers can mitigate it. Expanded SNAP benefits, formerly known as food stamps, are due to expire today after receiving a pandemic-era boost. And, Hong Kong is dropping its masking requirement amid a broader push from the government to revive the island’s slumping economy. 

From the BBC World Service: Bola Tinubu, who ran for the ruling All Progress Congress, has been declared the winner of Nigeria’s presidential election. BBC’s Peter Okwoche reports for us from the capital Abuja with the harsh economic reality and high unemployment high on his to-do list. In Sri Lanka hospitals, banks and ports close as people go on strike in defiance of a government ban; plus Leanna Byrne reports from Germany, as from today the city of Berlin is paying for young people to go out in the evening.

The Urban Institute found that people with disabilities are less likely to have internet access than people who are not disabled.

So what does this mean for fighting climate change?

Sales at restaurants and bars were up around 25 percent from last year. Part of that is likely due to pent-up demand.

Canada and the EU, too.

For Venita Cooper, owner of Silhouette Sneakers & Art, business is up. But will it last? “The big challenge is just trying to keep engagement,” she says.

Washington is looking at economic ways to counter China’s influence — especially when it comes to companies linked to the country’s military.

Consumers are spending up a storm at bars and restaurants. It’s a sign of pent-up demand, but can it be sustained? Also, surprise medical bills continue to surprise.

Since Fox bought the ad-supported streaming service in 2020, growth has been like a “rocket ship,” says Tubi CEO Farhad Massoudi.

ER doctor groups were among the top providers disputing claims in the first months of a resolution process created by the No Surprises Act.

Government funding from the CHIPS and Science Act, signed into law by President Biden last year, will come with a number of conditions for companies that receive a portion of the money. We look at some of the stipulations, such as employer-provided childcare and potential profit sharing with the government. Manufacturers spent more money on computers and other equipment, a sign that demand is growing as companies try to deal with persistent labor shortages. And, a look at a project in Georgia that’s using genetically-modified trees to pull carbon dioxide from the atmosphere. 

A new book explores how the most privileged in society attempt to “hack” the rules.

The idea is that they’ll be able to pull more carbon dioxide from the air than regular trees.

At issue is if the president has the authority to cancel up to $20,000 in federal student debt for some 43 million borrowers.

The Supreme Court will hear arguments today in a case challenging the Biden administration’s landmark student debt forgiveness program, which was initially announced mid-last year. We look into what could happen at the high court, and who could potentially be affected whichever way the justices rule. And, a conversation with Bruce Schneier, the author of a new book called “A Hacker’s Mind: How the Rich and Powerful the Bend Society’s Rules, and How to Bend Them Back.”

From the BBC World Service: The United Kingdom and European Union have renegotiated part of the Brexit deal that had been causing huge problems in Northern Ireland; new policies have been drawn up covering goods travelling into the country from England, Scotland and Wales. The BBC Northern Ireland Business and Economics Editor John Campbell runs us through the small print. Plus, with blackouts regularly affecting huge parts of South Africa, BBC correspondent Vumani Mkhize reports on the impact on the country’s wine industry.

It’s time for our inaugural “Money Mania” game show. Five listeners. Five money questions. Ready? Go!

Legislators across the U.S. use the software LegisPro to assist in drafting bills and tracking amendments, but they have largely stayed away from the ethical concerns that generative AI programs might raise.

The business implications of drag show bills.

The Fed took unprecedented steps to prop up the economy during the pandemic. Today, an examination of the central bank’s changing role and scope of its powers.

In her book “Limitless,” New York Times reporter Jeanna Smialek asks how the Fed arrived at this powerful state.

The latest outlook from the National Association for Business Economics offers mixed forecasts.

The family of seven left California with a modified travel trailer. Eventually, they found their way home.

Many home owners with low interest rates are reluctant to move. That’s pushing more buyers into new houses.

Global PC shipments fell more than 16% in 2022, but manufacturers are ordering more electronics to satisfy demand from businesses.

Worker productivity has been on the downswing for the better part of the last decade and a half, a new report from the McKinsey Global Institute finds. The good news for the economy, according to McKinsey Director Olivia White, is that there are ways that trend can be reversed. With the economic storm clouds seemingly being pushed back for now, we check in with Julia Coronado, president of the National Association of Business Economics, about what the organization’s recent survey of economists says about attitudes toward the economy. And, federal regulators have warned banks about the risks of investing in crypto. 

Fidelity Investments reports that average 401(k) and IRA balances fell to around $104,000 in 2022, as financial markets stumbled.

The Biden administration is lowering rates on the mortgage insurance people have to pay when they take out a loan backed by the Federal Housing Administration.

Higher productivity could drive up wages, temper inflation and aid the energy transition, the McKinsey Global Institute finds.

The Biden administration announced last week that it would  lower rates on mortgage insurance for federally-backed mortgage loans. We look into how that could save some cash for new and lower-income prospective homebuyers. That value of retirement savings accounts decreased by over 20% in 2022, according to a new report from Fidelity. China, in response to increasing energy demand, opened a significant number of new coal plants last year and extended the life of existing facilities. And, the BBC reports on talks between the leaders of the EU and UK on averting a potential trade dispute over Northern Ireland.  

From the BBC World Service:  The world’s largest economies have been meeting over the weekend. High up on the agenda – and supported by the IMF and the US –  was the regulation of crypto assets. The BBC’s Will Bain has been speaking to industry insiders about what could be achieved. A deal between the UK and EU over the controversial Northern Ireland protocol also seems to be on the cards as UK Prime Minister Rishi Sunak and EU Commissioner Ursula von der Leyen are set meet on Monday, and the BBC’s Jonathan Head reports on Thailand’s struggling elephant tourism sector.

Meta will implement a subscription model called Meta Verified, which may give paying users more security and attention — but may alienate users who don’t want to pay.