Week of May 29th, 2023

Plus, a round of Half Full / Half Empty.

They have been known to fail, but generally they take less risk with their money than banks. Experts say make sure your deposits are insured.

A debt ceiling deal has been made, and student loan borrowers will have to start making payments again later this summer.

The labor force participation rate for “prime working age” women peaked after a dramatic drop. Plus, will we ever say goodbye to debt ceiling drama?

Millions of women left the workforce early in the pandemic. The strong job market and flexible working conditions have brought many back.

One new graduate is starting a career in broadcast journalism with realistic expectations.

As trace metals become more valuable, thefts keep climbing, causing headaches for drivers, mechanics and insurance companies.

The Census reports that construction of multifamily homes, like apartment buildings, was up about 25% year-over-year.

Now, agencies and Congress need to figure out how to implement the thing.

Econ Extra Credit newsletter #152

In this Marketplace special, we’re taking a look at how the debt ceiling drama further restricts us from addressing big issues like homelessness.

Today’s jobs report is in the books, and it showed something that economists didn’t expect: a rise in unemployment combined with a huge boost in the number of jobs added. FHN Financial Chief Economist Christopher Low explains what the data could mean, including that the quality of job openings could be falling. Plus, what’s inside the debt deal that passed the Senate last night? And finally, economist Monica de Bolle helps break down what’s gone so wrong in Argentina’s economy. 

A new Fed study goes beyond the “strong labor market” headlines and finds workers struggling with landing jobs, burnout and more.

The nation’s economic crisis, marked by unhinged inflation, has been developing for at least a decade, says economist Monica de Bolle.

President Biden overcame the final legislative hurdle to raising the nation’s debt ceiling last night as the Senate voted 63-36 in favor of the compromise agreement struck with House Speaker Kevin McCarthy last weekend. We look at what’s in the final agreement as it goes to the White House for the final sign-off. And finally, Argentina’s economy is in tatters as people deal with inflation over 100% — the BBC’s Leanna Byrne explains how that’s been affecting people on the ground. 

From the BBC World Service: Sudanese companies and individuals have been hit with new economic restrictions as an intense power struggle continues to cause devastation in the country. Dr. Mehrzad Boroujerdi, a U.S.-based policy analyst, believes it will take more than just sanctions to end the conflict. iPhone maker Foxconn has followed through on a plan to expand production into India by the end of the year. And find out why the pandemic has changed how we eat lunch at work.

How did homelessness become such a defining and intractable economic issue in America? What are the root causes of the recent rise in homelessness, and more importantly, how do we fix it? In this special report, we delve into six different facets of the fight against homelessness to get a better sense of what people have been going through — and what that can tell us about how to tackle the issue that’s been vexing mayors and legislators across the nation for decades. 

In the wake of the shift to working at home, many cities want to transform depopulated buildings into residences. Steven Paynter of Gensler is helping to automate the assessment of each property’s livability and cost-effectiveness.

Plus, a bond market pulse check.

How will the Treasury act to make up for lost time?

What one veteran and former bartender found in a new job.

Congress reaching a deal on the debt limit wouldn’t end the stress on the Treasury Department. And an empty college campus may be transformed into a luxury resort.

The Job Openings and Labor Turnover report for April showed that the quits rate has dropped back to average levels in 2019.

U.S. companies that have to comply with European Union rules see the benefits of using one standard for both places.

Replacing face-to-face service interactions with automation could change American tipping culture.

This week we’ll catch up with a former guest who struggled with class anxiety. Plus, an excerpt from Marketplace’s newest podcast, “Financially Inclined”!

That’s impacting efforts to get people into housing. But there are some programs trying to increase the number of specialists in the pipeline.

It isn’t easy to find buyers for typical cinder-block campus buildings.

Part of the advice prescribed as a “cure” to homelessness is getting a job. But what happens when the work people do still isn’t enough to afford a place to live? A new study from the Economic Roundtable nonprofit delves into the surprisingly-high rate of homelessness amongst California fast food workers. Plus, businesses in some resort towns are offering subsidies for landlords to rent to local workers. 

Fast-food workers, who are often paid low wages and work limited hours, make up 11% of homeless workers in California, a study finds.

Resort communities that saw growth during the pandemic are trying to stop the bleed of local workers being priced out.

After a bipartisan vote on the debt deal in the House of Representatives last night, the compromise legislation looks to be on its way to becoming law. We look at what the spending cuts in the bill, totaling about $1.5 trillion, could mean for the economy. Plus, organizations that provide services to people experiencing homelessness are finding it hard to staff enough workers. And finally, Amazon has agreed to pay $31 million to settle allegations that it improperly handled the data of children collected by its Alexa voice assistant. 

From the BBC World Service: The United Arab Emirates, for many years a zero-tax economy, has introduced new corporate tax rates for businesses. That comes as the country’s government seeks to move away from reliance on oil revenues. Plus, the BBC’s Nkechi Ogbonna reports from Nigeria, where a planned end to oil subsidies has led to a rush in people stocking up at fuel depots.

Artists like Remie Michelle Clarke rely on small jobs. The AI boom is making it easier for companies to outsource that work to machines.

But time is running out.

Prices received by U.S. farmers are down 2.2% since last year. But you may not feel it at the grocery store.

We explore the economic ripple effects of the government spending pact. Plus, the FCC looks to regulate rates for intrastate prison calls.

Businesses have been finding ways to absorb wage increases without charging customers more.

“I wanted to have something that I could easily add on to my current workload,” says chemist April Oliver of Bozeman, Montana.

Attendance was down from last year at Bitcoin 2023 in Miami, but faith in the cryptocurrency held on strong.

Reduced government spending can have an impact on the broader economy. But economists say the effects will likely be limited.

The agency has more authority to regulate the cost of those calls, which could mean significant savings for families of the incarcerated.

It’s not just Hollywood writers who have been lobbying for better working conditions — TV and film choreographers are also working toward establishing a fully-fledged union. We look at what workers want and what that could mean for the entertainment industry. Plus, we delve into the deep connection between two chronic and often-intertwined problems in America: mental health and homelessness.

They want the residuals and better working conditions other guilds have obtained for members.

There are moves afoot in numerous states and cities to criminalize elements of homelessness, including living in encampments. As part of our ongoing “Finding Your Place” series exploring the issue, we talk to Ann Oliva, CEO of the nonpartisan National Alliance to End Homelessness, about these moves and what they say about the debate over how to handle the unhoused crisis. Plus, a group of players in the AI space has issued a stark warning that calls for greater regulation of the technology. And finally, the Sackler family, owners of Purdue Pharma, has reached a $6 billion opioid settlement that also shields those individuals from civil liability. 

“The proven strategy is … to use housing as the base,” and then add services, says Ann Oliva of the National Alliance to End Homelessness.

From the BBC World Service: Tech industry leaders have repeated calls for controls on artificial intelligence, but Greg Jackson, CEO of Octopus Energy in the UK, says it’s transforming work for the better. And in Ukraine, the BBC’s Joe Tidy reports how demand for drones is skyrocketing as a new front emerges in its conflict with Russia.

After the surgeon general’s advisory, Mitch Prinstein of the American Psychological Association discusses social media’s far-reaching effects on young people’s identity, relationships, sleep and more. There are numerous risks, but the connectedness it offers can also provide support.

The rise of lab-grown meat and the future of food.

Black men made gains in warehousing and transportation, which tend to offer low wages. A recession could hit workers of color hard, economist Michelle Holder says

Instead of popping up in downtown centers, businesses are opening in the surrounding areas. We also hear from a woman seeking stability in postgrad life.

Americans are traveling domestically again, but the tourism industry is waiting for foreign visitors to come back in pre-pandemic force.

People in that age group have less time left to earn or save money for retirement and have had more time to accrue debt.

As the job market starts to cool, young grads are learning the ropes.

A lot of people started new businesses after the onset of the pandemic. That number has stayed high, in part because many businesses are popping up outside of traditional downtown urban cores.

The kingdom’s actions are not a violation of sanctions.

Though the affordable housing shortage is key, mental illness increases the risk of losing a home and makes it harder to regain one.

China’s nascent civilian plane-making industry notched a recent win when the Comac C919, the country’s first domestically-produced passenger jet, carried a cabin full of passengers for the first time. We look at what that could mean for the established aviation duopoly of Boeing and Airbus. Plus, this week should be no short of economic news, according to Julia Coronado, president of MacroPolicy Perspectives. And, a look at how initiatives to address homelessness are being slowed by a lack of government funding. 

We’re going to need a lot of money and cooperation to address homelessness.

Getting an unhoused person into a home can cost $10,000 a year — and more than 580,000 people are unhoused on any given night.

If there’s been a defining trend in American cities thus far in the 21st century, it’s been the rise of housing prices to astronomical levels. That’s also meant a huge increase in the number of people who aren’t able to afford a place to live, according to Gregg Colburn, a professor at the University of Washington who co-authored the book “Homelessness Is a Housing Problem: How Structural Factors Explain U.S. Patterns.” We spoke with him as part of our new “Finding Your Place” series exploring the reality of homelessness in America. And finally, the debt ceiling deal struck over the weekend faces a legislative test in Congress.

From the BBC World Service: Ahead of the launch of a new iPhone model, Apple supplier Foxconn is ramping up efforts to recruit more workers for the world’s largest iPhone factory. Delegates from 175 countries are meeting in Paris for a major conference on ending plastic pollution. In Portugal, the housing crisis is getting worse, despite new government measures to try to control it; in Lisbon, the average rent is now three times the minimum wage.

Generative artificial intelligence may help some people work better and faster, but possibly not enough to compete with the technology itself. “If we produce these machines of mind,” economist Anton Korinek asks, “will there be something left that only humans can do?”

Despite core inflation falling in April, one Florida small business is still feeling the pain of higher prices for beer and cleaning supplies.

Some experts back the idea for certain high-interest loans. But it likely wouldn’t put off desperate short-term borrowers.

The ratio covers people 25 to 54 years old. The strong participation means employers looking to hire may have a hard time finding workers.

Today, we unpack the spending caps and work requirements involved. We’ll also visit a Florida bar that hosts dog birthday parties.

As of 2020, people living alone made up 27% of new households. That trend has been accelerating.

Shipments of new vehicles are down over 50% since their pandemic highs as the industry heads into summer.

President Biden and House Speaker Kevin McCarthy announced this weekend that they had struck an agreement on raising the nation’s debt ceiling in exchange for spending cuts over the next two years. We look at what’s in the joint proposal, and why its passage in Congress may involve wrangling the votes of holdout legislators. Plus, one factor that’s contributing to rising rents and house prices are demographic trends, including more people living alone. And, a look at how Disney’s “The Little Mermaid” film is boosting businesses that make “real” mermaid tails. 

It’s Memorial Day, which means lots and lots of people across the country are on the move in their cars and campers. But even as the holiday travel season is expected to break records, sales of new RVs are not following suit. Plus, Turkish President Erdogan has won a second term in office following a runoff election on Sunday. And finally, we talk with the BBC’s Will Bain about what the CEO of Binance, one of the major crypto trading firms, had to say about the future of regulation in the digital currency space. 

From the BBC World Service: Turkey’s Recep Tayyip Erdogan has secured another five years in power. We look at what went on during Sunday’s election. It’s the 70th anniversary of the first successful ascent of Mount Everest, but you’ll need a lot of cash to follow in the footsteps of Sir Edmund Hillary and Tenzing Norgay. Despite Lebanon’s economy being in disarray, the club scene in its capital, Beirut is still going strong.

Because hybrid and electric vehicles make little noise at low speed, carmakers add synthetic sounds to alert pedestrians. Designer Danielle Venne explains her composition process for the Nissan Leaf.