Week of June 5th, 2023

Econ Extra Credit newsletter #153

Smarties take on Seattle.

Student services. Building construction. Athletics. Additional fees add up, leaving families confused about where their payments are going.

It’s not just about gas stoves.

Consumers have racked up an eye-popping $990 billion in credit card debt. Plus, a surge in Netflix subscribers follows its password-sharing crackdown.

But with interest rates high and wage growth slowing, that level of spending is becoming unsustainable.

Signups spiked after the streaming service limited account sharing. It was a bigger bump than during the start of COVID, one expert says.

Bolstering educational infrastructure for prospective students can address the worsening nursing shortage.

In a world connected via the internet, small businesses are taking advantage of social media to promote their brand.

Where there’s smoke, there’s a massive increase in costs for health care, commerce, and productivity.

It’s official: the S&P 500 is officially in “bull market” territory. We get this week’s Low-down on the recent market optimism with Christopher Low, chief economist at FHN Financial. Plus, there are real economic consequences to poor air quality, including higher spending on medical treatment and lower spending on other industries. And finally, Turkey’s recently re-elected president has put together an economic team that looks capable of handling the county’s inflation problem.

Recently re-elected President Erdogan’s appointments to top government positions may signal a return to normal economic policy.

The U.S. labor market has looked really good in the past year even as inflation bites in the wider economy. But an old theory that’s recently regained ground says that there are actually two job markets that differ substantially in pay, stability, and social mobility. Plus, the recent indictment of Donald Trump on federal charges over classified documents has turned into a fundraising call for the former president — and his Democratic rivals. And finally, Texas is looking to meet projected record-breaking demand for energy with the help of renewable energy.

From the BBC World Service: As Canada battles hundreds of wildfires, fire departments are struggling to recruit enough volunteers to quickly respond to calls; while cities employ career firefighters, small towns and villages rely on volunteers. Plus, Pride Month is well underway and amidst the parties and celebrations, it can also be a time for self-reflection. We chat with an openly gay UK banking chief who is keen to talk about his own experiences in a traditionally conservative industry.

The “dual labor market” theory paints a picture of two very different job markets in terms of stability, pay, and mobility.

Brain-computer interface technology can benefit people with disabilities by restoring mobility and communication. The University of Washington’s Sara Goering says it also allows potentially monetizable access to the center of our thoughts and feelings.

We sit down with General Motors CEO Mary Barra to discuss the company’s investments in batteries, a new vehicle platform and charging infrastructure.

Your stock market FAQs answered with the new Marketplace podcast, “Financially Inclined”!

They help when the sun isn’t shining and the wind isn’t blowing but everyone’s AC is on full blast.

The share of goods the U.S. imports from China has declined to its lowest level since 2006, as manufacturers and retailers seek to diversify their supply chains.

The automaker’s CEO says it won’t invest in hybrids, but instead focus on batteries, a new vehicle platform and charging infrastructure.

The Writers Guild of America has gone on strike over various issues, including pay, which has declined over the past decade.

Kate Beaton was determined to work her way out of debt. But nothing could have prepared her for the experience of working in the Canadian oil sands.

Google has become the latest high-profile company to step up its efforts to get employees back into the office. We look at the measures the company is taking to prod people away from remote work, including penalizing workers who refuse to comply with back-to-office mandates. Plus, a look at British Prime Minister Rishi Sunak’s effort to convene the world’s first international forum on AI regulation. And finally, Afghan refugees in the U.S. are facing numerous challenges with immigration processing, which affects their job searches. 

Many Afghan refugees are in the U.S. as parolees, without a clear path to citizenship. Their parole is set to expire within months.

Some pandemic-related tools get a second life, while investors look at more high-tech solutions.

How a change in the incentives for electric vehicles encouraged more leases.

As New York and other cities continue to deal with worsened air quality due to Canadian wildfires, people have been finding ways to adapt with a little help from technology. We look at some ways innovation is meeting necessity as wildfires become a growing problem because of climate change. Plus, President Biden vetoed a bill that would have curbed student loan forgiveness. And finally, a chat with the Peterson Institute for International Economics’ Chad Bown about how the U.S. is placating allies who say recent electric vehicle subsidies are protectionist and unfair. 

From the BBC World Service: Britain is hosting the world’s first global summit on the regulation of artificial intelligence this fall. The UK’s Prime Minister Rishi Sunak is expected to discuss the event when he meets President Joe Biden at the White House today. Plus, can the cruise ship industry reduce its emissions? We hear from one player, MSC, which is using biogas to power its first net-zero emission voyage. And finally, Messi’s next big move — sports journalist Joe Lowry explains the finances behind the Argentine soccer legend’s decision to join Inter Miami.

Rory Kozoll, senior vice president of product integrity at Tinder, is comfortable with people using the new tech if it helps them express themselves and form connections.

Reading the Fed’s tea leaves.

Recent data from job site Indeed shows that wage gains are slowing. What’s that mean for the Federal Reserve’s next move? Plus, the challenges of dupe hunting.

Despite the ongoing writers strike, Troy Cwynar aims for a career in comedy writing.

CEOs may not be economic wizards. But they have access to crucial data and make decisions that influence the economy.

Wages are falling fastest at the bottom of the income distribution.

Bed Bath & Beyond reportedly wants to sell its baby product chain, Buybuy Baby. Typically the most a bankrupt retailer can hope for is a sale.

“It’s gotten to the point where the logic of dupes has been sort of flipped on its head,” said Sangeeta Singh-Kurtz. “And people are spending more time and in some cases, more money dupe-hunting than they would if they just bought the original.”

Brexit supporters blame the Conservative government for failing to exploit the benefits of leaving the European Union.

By changing his name to a symbol, Prince changed how musicians negotiate with record labels.

The state is awarding $25 million in grants to get more women into construction apprenticeships that can lead to high-paying jobs.

Some of the world’s best race car drivers will compete this weekend at the renowned “24 Hours of Le Mans” race in France. This year, there’s an additional entrant — a souped-up Chevrolet Camaro engineered by NASCAR that represents the body’s hopes to win more international fans. We chat with auto journalist Jamie Kitman about the race and NASCAR’s Garage 56 project. Plus, an initiative to recruit more women into the construction industry is running into headwinds as potential apprentices struggle to find child care. 

Whelp, so much for that projected stock downturn. The S&P 500 Index is a hair’s breadth away from turning into “bull market” territory — a 20% rise in stocks — since a low hit last October. We look at why the market has been high on the economy this year despite earlier pessimism. Plus, a deeper look into yesterday’s announcement that the PGA Tour would merge with its Saudi-backed rival, LIV Golf. And finally, a look at how Prince reshaped the music industry by changing his name to the famous “Love Symbol” in the 1990s. 

From the BBC World Service: Golf’s breakaway LIV Golf Series, backed by the Public Investment Fund of Saudi Arabia, has struck a deal that will see it merge with the established PGA Tour. The BBC’s Olie D’Albertanson reports. Plus, Emily Nicolle from Bloomberg News explains why the U.S. Securities and Exchange Commission has temporarily frozen Binance’s assets. And finally, the BBC’s Monica Miller reports on a former TikTok executive saying that members of the Chinese Communist Party gained access to its data in Hong Kong in 2018.

So far, artificial intelligence isn’t known for its wit, but some researchers think of its evolving ability to comprehend comedy as the final frontier of development. University College Dublin’s Tony Veale explains why.

Why these unsigned, unexplained orders matter more than ever.

The Securities and Exchange Commission has sued two crypto exchanges, Coinbase and Binance, and the outcomes could have far-reaching effects. Then, will birdwatchers flock to Colombia?

Best Chef: Northeast winner Sherry Pocknett, a Mashpee Wampanoag tribal citizen, is part of a wave of Native chefs and restaurateurs proving there’s a market for Indigenous cuisines.

“The event parking business was not very great during the pandemic,” says Bruce Rowley. “In fact, it was a complete flatline.”

The IPO window is closed, the pros say, amid high interest rates and recession fears. But it will be back, they add.

Roughly 11% of immigrant women are entrepreneurs, according to the American Immigration Council.

There are more bird species in the country than any other in the world. And post-pandemic, Colombia hopes more bird-watchers will visit.

Are cryptocurrencies securities like stocks and bonds? There isn’t consensus, but the answer would make a huge difference to the crypto industry.

As Hollywood studios deal with the strike amongst film and television writers, actors could soon join the picket lines if a new contract isn’t drawn up by the end of the month. We look at the potential impact on an industry already dealing with huge labor upheaval. Plus, Saudi Arabia is cutting oil production to burnish energy prices, but other producers may be reluctant to follow. And finally, Ray Dalio, founder of the world’s largest hedge fund, says that it’s not likely that interest rates will return to the ultra-low levels seen in years past. 

The world’s largest crypto exchange is being sued by the SEC. What does that mean for crypto?

It’s seemingly déjà vu in the cryptocurrency world. Binance, the world’s largest digital currency trading platform, has been sued by U.S. Securities and Exchange Commission over alleged violations that include lying to regulators and mishandling funds. We look at what that means for a crypto industry that’s been licking its wounds since the collapse of FTX last year. Plus, a chat with Steve Isakowitz, President and CEO of The Aerospace Corporation, about the space industry’s push to diversify its workforce by 2030. 

The Space Workforce 2030 initiative includes some of the industry’s biggest companies, Aerospace Corp. CEO Steve Isakowitz explains.

From the BBC World Service: Doctors in the UK are calling for disposable vapes to be banned. Phil Mercer reports from Sydney where they’re only available on prescription. Plus, a cyber hack has seen tens of thousands of employees’ personal details being leaked across organizations including British Airways and the BBC. And finally, in a major energy breakthrough, a test satellite has transmitted and received wireless power in space for the first time.

Alex Engler of the Brookings Institution says the U.S. might consider regulating how artificial intelligence is used rather than the technology as a whole.

A reminder to be cautious with data points.

Strong supply and weak demand could derail Saudi Arabia’s effort to lift oil prices. Then, how a rural Nebraska tradition is shifting in the digital age.

More than 3% of such loans are now delinquent.

Cutting production usually leads to an increase in prices. Here’s why that might not be the case this time.

Higher borrowing costs are one factor holding back the manufacturing sector.

The pandemic drastically slowed down the number of critically ill children the Make-A-Wish Foundation could send to its top destination.

Farm auctions — a marketplace for knickknacks, farm land and everything in between — are often also social gathering spaces for rural communities. That’s changing as more auctions go online.

Ray Dalio talks educational spending, taxes and more.

New York City’s new law against formalized body discrimination, signed into law last month, makes it the biggest city so far to pass such protections. We look into what’s behind the move to prohibit the practice amongst employers and what it means for employees. Plus, Saudi Arabia’s announcement that it will cut oil production may have moved markets this morning, but economist Julia Coronado says this year has been a story of surprisingly low energy prices. 

The city’s new anti-body discrimination law is aimed at revamping workplace protections.

The debt ceiling issue officially wrapped this weekend as President Biden signed a compromise deal into law, but the saga has raised unanswered questions about how…and on whom…the government spends money. We talk with Ray Dalio, founder of the world’s largest hedge fund, about what the latest spat says about inequality in America. Plus, Allstate announced it would stop its home insurance programs in California in response to increased risk from wildfires and high building costs. And finally, construction is on the downswing as building new housing units becomes more expensive. 

From the BBC World Service: Oil prices rise after OPEC+, the organization enabling the cooperation of leading oil-producing countries in order to collectively influence the global market and maximize profit, cut production by a further million barrels a day. Oil analyst Cornelia Meyer explains why they’ve done it. Plus the BBC’s Archana Shukla reports from India on the train crash that’s cost at least 275 lives. And finally, China aims for the moon as it invests in the new space race.

Amazon has agreed to pay more than $30 million in fines and take corrective measures over allegations that its Ring and Alexa devices collected and misused user data.