 By now, you’ve probably heard that Jerome Powell has been nominated to serve another four years as chair of the Federal Reserve, our nation’s central bank. As we talked about on the show Monday, the decision boiled down to a political calculus. But what does the Fed do anyway? And why do we need it? “The main reason why the Fed itself was created was because in the lead-up to 1913, which is when it was created, there were a bunch of bank runs. It was sort of every bank for itself back then, where banks would issue their own money. There wasn’t a central source of money printing. And so, if one bank maybe ran into trouble, people would run and pull their money out,” said Victoria Guida, who covers the Federal Reserve for Politico. So basically, the Fed is supposed to be there when things go wrong to maintain the health of our economy. But the Fed does a lot of other things, like control borrowing costs and regulate banks. On the show today, Guida explains the evolution of the Fed and how it touches the life of every person in this economy and may be making wealth inequality worse. In the News Fix, we stick with the theme of the day and highlight a story about why presidents shouldn’t mess with the independence of the central bank. Also, inflation is coming to a dollar store near you. Later, we’ll hear from a listener who is changing up his holiday shopping habits this year and talk Thanksgiving turducken-inspired cocktails! Here’s everything we talked about today: “Biden renames Powell to lead Fed, risking the left’s wrath” Guida’s latest in Politico “Did the Federal Reserve make economic inequality worse?” from Marketplace “Turkish lira in historic 15% crash after Erdogan stokes fire sale” from Reuters “Dollar Tree hikes prices 25%. Most items will cost $1.25” from CNN Read the transcript here. We will be off the rest of the week for the holiday break. We are so grateful for our listeners and wish you a happy Thanksgiving! 

Make Me Smart with Kai and Molly

The Fed, explained

 President Joe Biden says he wants to reappoint Jerome Powell to serve as chair of the Federal Reserve for a second term. It’s a big deal, but it wasn’t unexpected. We’ll explain the political calculus behind the decision. Plus, we’ll highlight a few long reads you may have missed over the weekend, including one about how China is winning the clean energy contest. And a “Turducken”-inspired Thanksgiving dessert, plus we ask listeners to share their version of a “Turducken” Thanksgiving cocktail. Here’s everything we talked about today: “President Biden’s Appointments for the Federal Reserve” from The New York Times “How the U.S. Lost Ground to China in the Contest for Clean Energy” also from The New York Times “Why Japan Appears Immune to Global Inflation Surge, So Far” from The Wall Street Journal “‘Buy the Constitution’ Aftermath: Everyone Very Mad, Confused, Losing Lots of Money, Fighting, Crying, Etc.” from Vice “The Amazon lobbyists who kill US consumer privacy protections” from Reuters “US lawmakers call for privacy legislation after Reuters report on Amazon lobbying” more from Reuters “Amazon Leaks” from Reveal “Kenosha protesters demonstrate Sunday after Rittenhouse acquittal” from the Milwaukee Journal Sentinel Check out these really funny photos of animals in the wild The Wongducken Read the transcript here. Tomorrow, we’re doing a deep dive into the Federal Reserve. If you have a question about the central bank and how it works, send a voice memo or give us a call at 508-82-SMART (508-827-6278). 

Why Biden picked Powell

 Austria is getting ready for another round of COVID-19 lockdowns. With vaccine mandates hitting a roadblock in the United States and the fully vaccinated rate under 60%, we discuss the likelihood of another winter wave in America. Plus, we follow the drama over the auctioning of a rare copy of the U.S. Constitution. And, the hosts play our favorite game, Half Full/Half Empty. Here’s everything we talked about today: “Austria lockdown starts Monday; tourist travel ‘will not be possible'” from USA Today “Copy of U.S. Constitution Sells for $43.2 Million as Crypto Group DAO Is Outbid” from The Wall Street Journal “Citadel CEO Ken Griffin pays $43.2 million for Constitution copy, outbidding crypto group” from CNBC “UC slams the door on standardized admissions tests, nixing any SAT alternative” from The Los Angeles Times “Ford Scraps Plan to Develop an Electric Vehicle With Rivian” from The Wall Street Journal “United Airlines Resumes Hard Liquor Service Before Holiday Travel” from Business Insider “MoviePass relaunch may happen soon, says cofounder” from Fast Company “NYC to host New Year’s Eve in Times Square for fully vaccinated attendees” from CNBC “Reese’s reveas its largest peanut butter cup yet” from CNN “Staples Center to be renamed Crypto.com Arena as part of 20-year naming rights deal” from The Athletic Read the transcript here. Thank you for everyone who joined us on YouTube today. We’re live Fridays at 3:30 p.m. Pacific/6:30 p.m. Eastern for happy hour! Subscribe to our channel and sign up for notifications so you don’t miss it. 

What will Covid-19 cases in America look like this winter?

 Crypto enthusiasts came through. They’ve raised $40 million to buy a rare copy of the U.S. Constitution that’s up for auction to put it back in “the hands of the people.” We’ll explain how this all ties into what’s happening in the crypto space. Plus, why inflation is hitting some parts of the United States harder than others and the problem with Biden’s plan to open ports 24/7. Oh, and smiling quokkas! Here’s everything we talked about today: “A group of crypto investors is trying to buy a copy of the Constitution — for $40 million” from CNN “Truckers Steer Clear of 24-Hour Operations at Southern California Ports” from The Wall Street Journal “Where Inflation Is Highest in US” also from The Wall Street Journal “US auctions off oil and gas drilling leases in Gulf of Mexico after climate talks” from The Guardian “Furor Over Peng Shuai’s #Metoo Accusation Challenges China” from The New York Times Smiling quokka’s  Video: “Top Gun,” Ohio State vs. Purdue halftime Read the transcript here. Join us on YouTube Fridays at 3:30 p.m. Pacific/6:30 p.m. Eastern for our live happy hour episode! Subscribe to our channel and sign up for notifications so you don’t miss it. 

Crypto lovers go all in on the Constitution

 Texas is throwing a bit of shade at California. In a recent ad, it says Texas ports are open and ready to solve the nation’s supply chain problems. But can ships really be diverted from the Port of Los Angeles to Houston? It’s not as easy as it sounds. Plus, we’ll answer your questions about why skyscrapers keep lights on at night, ESG investing and the origin story behind a piece of Marketplace merch. Here’s everything we talked about today: “Why Container Ships Can’t Sail Around the California Ports Bottleneck” from The Wall Street Journal “Column: More nonsense from Texas Gov. Abbott” from The Los Angeles Times “Why Is New York City’s Skyline Always Lit Up?” from The New York Times “Is ESG investing really socially responsible?” from “Marketplace” Our episode on ESG investing: “Can capitalists save the planet?” Get your Marketplace Vintage Kai Tee  Read the transcript here. Thanks to those of you who sent us questions this week. If you have a question you’d like our hosts to answer in a future episode, call us at 508-82-SMART (508-827-6278) or send a voice memo. 

Can we divert container ships in California to other ports?

 At the start of the pandemic, and even a little before (remember the U.S.-China trade war?), some folks wondered if we were about to see the end of offshoring and whether U.S. companies would start to bring factories and jobs back from overseas. The process is known as onshoring, and the idea was that everything from personal protective equipment to semiconductors would soon be made in the USA, driven mostly by Donald Trump’s tariffs and the pandemic’s supply chain shortages. So that got us wondering, are we doing that? Is onshoring happening? “You got me. I think we economists have been intellectually dishonest and just putting this narrative out. But nobody’s actually gone to check to see what’s really happening,” said Megan Greene, an economist and senior fellow at Harvard’s Kennedy School. Greene said there’s not a ton of good data out there, but the data we do have shows onshoring is just not a thing right now. On the show today, Greene does some myth busting about why companies aren’t rushing to bring production back to the United States. She also explains why globalization isn’t over and what the future of global supply chains might look like. In the News Fix, an awesome tech story about NBA star Stephen Curry followed by a bizarre crypto-themed one. Plus, space junk is a growing problem. Then, we hear from listeners who are part of the Great Resignation movement. And a listener calls in with thoughts on that newborn baby smell. Here’s everything we talked about on the show today: “Don’t believe the deglobalisation narrative” Megan Greene’s latest from The Financial Times “No, the Pandemic Will Not Bring Jobs Back From China” from Foreign Policy “Carbon Tax, Beloved Policy to Fix Climate Change, Is Dead at 47” from The Atlantic “Crypto Investors Want to Buy Rare Copy of U.S. Constitution” from The Wall Street Journal “In basketball, the right tech can improve your shot” from “Marketplace Tech” “Russian anti-satellite missile test endangers space station crew” from Reuters “The Smell of Newborn Babies Triggers the Same Reward Centers as Drugs” from Smithsonian magazine Read the transcript here. 

Debunking the onshoring narrative

 We often look to history to stop us from making the same mistakes we’ve made in the past. But as American policymakers mounted their economic response to the COVID-19 pandemic, they looked to the Great Recession, and they may have overcorrected a bit. We’ll discuss how the crises compare and why it may explain a lot about where we find ourselves today. Plus, Wall Street is worried about the “antiwork” movement, and a listener sent us a story about a lost teddy bear with a happy ending. It’s making us smile. Here’s everything we talked about today: “How America’s Pandemic Economic Response Fought the Last War” from The New York Times “How the U.S. Hid an Airstrike That Killed Dozens of Civilians in Syria” also from The New York Times “‘Antiwork’ movement may be long-run risk to labor force participation: Goldman Sachs” from Yahoo “Elon Musk Sold $5 Billion In Tesla Stock This Week As Shares Plunged Following Twitter Poll” from Forbes “Elon Musk faces a $15 billion tax bill, which is likely the real reason he’s selling stock” from CNBC “Girl reunited with teddy bear lost nearly a year earlier in Glacier National Park” from NBC News Read the transcript here. If there’s something making you smile on this Monday, let us know. Send a voice memo or give us a call at 508-82-SMART (508-827-6278).  

We were prepared to fight the previous economic crisis …

 The United Nations COP26 climate summit is going into overtime because there’s still a lot of work left to do. We’ll explain why the meeting has been a disappointment both in terms of results and in terms of what it’s meant for the spread of climate misinformation. Plus, good news on the vaccine beat. Mandates work! Also, happy birthday, Molly’s mom. And … we have Make Me Smart T-shirts and sweatshirts! You can get yours at Marketplace.org/shop. Here’s everything we talked about today: “These researchers are trying to stop misinformation from derailing climate progress” from NPR  “Opinion | Social Media Is Polluted With Climate Denialism” from The New York Times  “COP26 Live Updates: Negotiators Race to Reach Climate Deal” from The New York Times Twitter thread from NBC’s Ben Collins on vaccine mandates “YouTube Will Hide ‘Dislike’ Counts to Avoid Creator Pile-Ons” from Bloomberg “Walmart is using fully driverless trucks to ramp up its online grocery business” from CNBC “There isn’t enough space for all the trees companies want to plant” from Marketplace “The Popularity of E-Bikes Isn’t Slowing Down” from The New York Times “McDonald’s teams up with Mariah Carey for holiday promotion” from CNBC “Arby’s Is Launching a French Fry Flavored Vodka, Available in Crinkle and Curly” from People Read the transcript here. Thanks to everyone who joined us live on YouTube for this episode! We’re live Fridays at 3:30 p.m. Pacific/6:30 p.m. Eastern for happy hour! Subscribe to our channel and sign up for notifications so you don’t miss it. 

Climate, climate, climate

 Electric truck startup Rivian made its debut in the public markets. It’s sold less than 200 vehicles, so how could the company be valued at $86 billion, more than Ford and almost the same amount at GM? We’ll explain what’s really going on in the EV market. Plus, a true hollowed-out shell of story about our climate and why COP26, the United Nations conference, probably won’t help much. Also, Iceland trolls Mark Zuckerberg, and we’re here for it! Here’s everything we talked about today: “Rivian Shares Surge in Largest U.S. IPO Since 2014” from The Wall Street Journal “World’s militaries avoiding scrutiny over emissions, scientists say” from The Guardian “Justice Department Sues Uber Over Charging Wait-Time Fees for Disabled People” from The Wall Street Journal “Nuclear Fusion Is Close Enough to Start Dreaming” from Bloomberg “Biden Marks First Veterans Day in Two Decades Without a War Underway” from The New York Times “The Icelandverse”  Read the transcript here. Join us on YouTube Fridays at 3:30 p.m. Pacific/6:30 p.m. Eastern for our live happy hour episode! Subscribe to our channel and sign up for notifications so you don’t miss it. 

Making sense of Rivian’s valuation

 We’re inflating! Today, we got word that consumer prices jumped the highest they ever have in the last 30 years. One listener wants to know how much of that has to do with former President Donald Trump’s trade tariffs. The answer? Not as much as you’d think. Plus, we’re fielding your questions about who is or isn’t keeping governments and businesses accountable on climate action, and the origin of “bananapants.” Here is everything we talked about today: “U.S. Inflation Hit 30-Year High in October as Consumer Prices Jump 6.2%” from The Wall Street Journal “Yellen says reciprocal lowering of tariffs could help ease inflation” from Reuters “Q&A: Understanding Paris Agreement NDCs” from the Center for Climate and Energy Solutions Wonk out with the October jobs report (Table A-15 is on page 28) And the episode that made “bananapants” a thing on “Make Me Smart” Read the transcript here. Thanks to all of you who submitted a question. If you’d like the hosts to answer a question in an upcoming episode, call us at 508-82-SMART (508-827-6278) or send a voice memo. 

Are trade tariffs affecting inflation?

 Listeners, it’s time to talk about the Great Resignation. That’s the name used to describe this moment in time as a large number of American workers quit their jobs at unprecedented rates. “I also like a lot of other great R-words. I use the Great Reshuffling to talk about the uptick in migration and business formation. I talk about the Great Rudeness when it comes to the fact that a lot of people have been sort of locked in their houses for the last year or at least going out less, or, you know, being rather jerkish to flight attendants and waitstaff. And I also call it the Great Reset, because … I think a lot of people are not only rethinking what exactly they want to do for eight hours a day in their next job, they’re also thinking about rethinking about their relationship with work,” said Derek Thompson, who has been writing about this phenomenon for The Atlantic. According to the Labor Department, 4.3 million workers left their jobs in August. The quits rate, as it’s called, is up to 2.9%, the highest since the department started keeping track. We usually look at the quits rate as an indicator about how optimistic workers are feeling about their ability to find another job. On the show today, we’ll talk about the reasons driving people to leave their jobs right now, why it might actually be a good thing for the American workforce and what it means for our complicated relationship with work. In the News Fix: a portrait of some of the underrepresented voices in our economy and what happened when they banded together. Plus, we’ll highlight a couple of the less talked about parts of the infrastructure package. Also, after one of our hosts (it was Kai) reveals his dislike for the Great Resignation moniker, some listeners call with their own suggestions. And what a pup taught a “Make Me Smart” listener about her love for dogs. When you’re done listening, tell your Echo device to “make me smart” for our daily explainers. This week we’re doing the numbers on health insurance and explaining HIPPA and the problems with being underinsured. Also, don’t forget to subscribe to our newsletter! You can find the latest issue here. Here’s everything we talked about today: “The Great Resignation Is Accelerating” from Derek Thompson in The Atlantic “The Religion of Workism Is Making Americans Miserable” also from Thompson in The Atlantic “The Great Resignation’ Misses the Point” from Wired “Inside the fast-food workers’ rebellion at a McDonald’s in Bradford, Pa” from The Washington Post “Congress’ new mandate to carmakers: Figure out a way to stop drunk driving” from NPR ICYMI: Our episode on Modern Monetary Theory Read the transcript here. 

“Work will never love you back”

 After years and years of trying, Congress finally came through with a bipartisan infrastructure bill. On the show today, we’ll discuss what’s actually in the bill and what it means for the economy. Plus, you may have noticed more and more businesses are pulling back on what they offer their customers without reducing their prices. Well, it’s not your imagination, it’s a thing dubbed “skimpflation.” And, finally, we end the show on a literal smile! Here’s everything we talked about today: “Roads, transit, internet: What’s in the infrastructure bill” from the St. Louis Post-Dispatch “Countries’ climate pledges built on flawed data, Post investigation finds” from The Washington Post “Moms with access to remote work were most likely to leave their jobs in pandemic, new research shows” from The 19th Opinion | “American Airlines’ cancellations are a window into why people are so upset with the economy” from The Washington Post Here’s a photo of a smiley face on the side of a hill in Oregon Video: Jurassic Park but with a cat! Read the transcript here. Don’t miss tomorrow’s deep dive into the Great Resignation. If you’ve quit your job during the pandemic, we want to hear from you. Send a voice memo or give us a call at 508-82-SMART (508-827-6278). 

The infrastructure bill is an “unqualified huge deal”

The stock market might not be the best way to understand how the economy’s doing, but the bond market is a different story. On the show today, Kai gives us his read on the bond market and the clues to our economic future it can provide. Plus, we discuss a big labor and sports story: NFL star Aaron Rodgers tested positive for COVID-19. And we wrap up the week with our favorite game, Half Full/Half Empty. U.S. 10-year Treasury note prices  “Green Bay Packers QB Aaron Rodgers tests positive for COVID-19, source says“ from ESPN “Aaron Rodgers tells radio show he is unvaccinated, getting Covid advice from Joe Rogan” from CNN “Elon Musk Says Tesla Hasn’t Signed Contract With Hertz Despite Earlier Announcement” from The Wall Street Journal Meghan Markle is calling U.S. senators to pass paid leave from Insider “Can a magic box full of new tech help solve the climate crisis?” from “How We Survive” “For hotels, leisure travel is roaring back” from “Marketplace” “How NFTs could change the music industry … for better or worse” from “Marketplace” Read the transcript here. Thanks to everyone who joined us live on YouTube for this episode! We’re live Fridays at 3:30 p.m. Pacific/6:30 p.m. Eastern for happy hour! Subscribe to our channel and sign up for notifications so you don’t miss it.

Reading the bond market tea leaves

 In a new securities filing, Exxon says some of its oil and gas reserves may face impairment, which means they will likely have to stay in the ground because of climate change. On the show today, we’ll discuss why this is big deal. Plus, the incoming New York City mayor wants to get paid in bitcoin, Hawaii is welcoming back tourists and tacos in space! Here’s everything we talked about today: “Exxon warns some assets may be at risk for impairment due to climate change” from Reuters “Hawaii Eases Covid Restrictions and Reopens for Tourists” from The New York Times “New York City’s mayor-elect says he wants to get paid in Bitcoin” from The Verge “NASA’s Latest Breakthrough: ‘Best Space Tacos Yet'” from The New York Times “Republican Edward Durr, Truck Driver Who Spent $153 on Campaign, Defeats New Jersey Senate President” from Yahoo And a photo of Willow. Willow wants to play ball, not take pictures. Read the transcript here. Join us on YouTube Fridays at 3:30 p.m. Pacific/6:30 p.m. Eastern for our live happy hour episode! Subscribe to our channel and sign up for notifications so you don’t miss it. 

Climate change is coming for Exxon’s assets

 Gas prices are up, and one listener wanted to know who is and who isn’t to blame. On the show today, we do a little fact-checking on who’s really responsible for the high price at the pump. Plus, we’ll answer a lingering question about the carbon tax and explain how companies make money from the stock market. And Molly shares some important news about a big change she’s making. Here’s everything we talked about today: “Why politicians have little sway over gas prices” from “Marketplace” “Three Reasons Why Gas Prices Are So High Right Now” from Business Insider ICYMI: our episode on the case for a carbon tax MIT’s study on carbon taxes “Understanding how an IPO gets priced” from “Marketplace” Read the transcript here. Keep sending your questions. Call us at 508-82-SMART (508-827-6278) or send a voice memo.  

How do companies make money from selling stock?

Make Me Smart is a weekly conversation about the themes of today, centered around the economy, technology and culture. Hosts Kai Ryssdal and Molly Wood use their expertise to connect the dots on topics they know best, and hear from other experts – CEOs, celebrities, authors, professors and listeners – about the ones they want to know better. As the world moves faster than ever, this podcast is where we unpack complex topics, together. Because none of us is as smart as all of us.

hubhopper

Make Me Smart with Kai and Molly

hubhopper