Make Me Smart With Kai And Molly

Federal Reserve Chair Jay Powell has made it clear that he’s laser-focused on bringing inflation back down to the central bank’s target rate of 2% annually. But why is reaching that specific number such a big deal? And where did the 2% target come from? On the show today, David Wilcox, economist at the Peterson Institute for International Economics and director of U.S. economic research at Bloomberg Economics, explains why it’s important for central banks to have a target inflation rate in the first place, how the Fed landed on 2% in particular and whether that target rate should be lifted in today’s economy. Plus, some monetary policy pro tips. In the news, the Supreme Court considered a legal theory that had gained traction with Republicans and kicked it to the curb. We’ll get into what that might mean for future elections. And, an EV company went the SPAC route, and it didn’t turn out well. Later, listeners sound off on “Star Wars” and a Rubik’s Cube TV series.

Hey Smarties! Kai and Kimberly will be back in your podcast feed tomorrow for our weekly deep dive, but until then we’re bringing you a deep dive of a different kind. It’s an episode from Marketplace’s investigative podcast “The Uncertain Hour” which is all about obscure policies and forgotten histories. In the new season, Marketplace’s Krissy Clark and the team dig into the origins and evolution of America’s welfare-to-work system (which got lots of attention in the recent debt ceiling debate). Let us know what you think. And as Kai often says, history matters!

The median age in the United States, at just under 39, is the highest it’s ever been, and it’s been rising for decades. We’ll get into the economic implications of America’s aging population. Also, the Supreme Court has been getting comfy with ruling on technicalities rather than policy. We’ll explain how that played out in a recent immigration case. Plus, it’s Revenge of the Nerds: Billionaire Edition. And, we’ll play a round of Half Full/Half Empty! Here’s everything we talked about today: “Texas and Louisiana lack right to challenge Biden immigration policy, court rules” from Amylhowe.com “The U.S. Population Is Older Than It Has Ever Been” from The New York Times “How workwear went from functional to fashionable” from Marketplace “Wimbledon to use AI for video highlight commentary” from CNN “Talking credit helps visually impaired people make transactions safely” from

Since Roe v. Wade was overturned nearly a year ago, conservative-led states, including Texas, have passed a slew of bans on abortion and gender affirming health care. Now, many med students and doctors are choosing to work elsewhere. We’ll get into it. And, India has become a top customer for Russian oil. We’ll explain what that means for the global oil supply and regional geopolitics. Plus, a device that makes water out of thin air, and the head of Turkey’s central bank makes the hosts smile. Here’s everything we talked about today: “Bans on abortion and gender-affirming care are driving doctors from Texas” from 19th News “How India Profits From Its Neutrality in the Russia-Ukraine War” from The New York Times “Texas man’s invention provides clean water out of air” from Spectrum News “Turkish Central Bank Jacks Up Interest Rates in Reversal for Erdogan” from The Wall Street Journal “Turkey hikes in

The missing sub of wealthy tourists lost on an excursion to view the wreckage of the Titanic has been dominating news feeds this week, while the story of a deadly migrant shipwreck off the coast of Greece has, for the most part, stayed in the periphery. We’ll get into the disparities in resources and media attention paid to the two disasters. Plus, we connect the dots on interest rates, home sales and new home construction. And, confirmed by the man himself, Fede Chair Jay Powell is a Deadhead. Here’s everything we talked about today: “The Media Cares More About the Titanic Sub Than Drowned Migrants” from The New Republic “Did Hunter Biden get off easy? We asked the experts.” from Politico “Home Listings Plummet as High Mortgage Rates Tie Owners Down” from Bloomberg “New house construction is booming, but most of it isn’t affordable” from Marketplace “Listen to the music play: Fed Chair Jerome Powel

For Black workers in this economy, the last couple of years have brought gains in employment and wages. In April, the Black unemployment rate fell to a historically low 4.7%, and the racial wage gap has shrunk slightly over the last five years. But in terms of the economy as a whole, stark disparities still exist for Black Americans. “I’ve looked at the unemployment rates for the last 60 years,” said Algernon Austin, director for race and economic justice at the Center for Economic and Policy Research. “It’s important to remember that a historically low Black unemployment rate still tends to be a high unemployment rate if you’re a white person.” On this post-Juneteenth episode, Austin explains recent gains by Black workers, why the Federal Reserve can’t fix high Black unemployment alone, and how sputtering diversity, equity and inclusion initiatives in U.S. companies could impact the Black workforce. Plus, why racial justice movements have always been economic stor

The Carrie Bradshaw lifestyle is unreachable for most recent college grads in today’s New York City, thanks to high housing costs. We’ll get into the lengths some younger newcomers are willing to go to make it work and dig into a related problem: a potential commercial real estate crisis. Plus, how should cities deal with cannabis smoke? Then we’ll play a round of This or That! Here’s everything we talked about today: “NYC’s Rent Surge Defied by New Grads Pursuing a TikTok Lifestyle” from Bloomberg “Defaults on commercial real estate loans are rising” from Marketplace “Workers want to stay remote, prompting an office real estate crisis” from The Washington Post “Opinion | How should D.C. deal with pot smoke? from The Washington Post “D.C. resident wins case to stop neighbor smoking marijuana” from Axios The next $50,000 in donations to Marketplace are being matched by longtime fan Dr.

Leaked documents lay out how the conservative American College of Pediatricians (not to be confused with the American Academy of Pediatrics) has influenced policy affecting the LGTBQ community. We’ll get into how this splinter group gained national attention and the problems it poses for medical misinformation. Also, we’ll discuss the aftermath of Texas Gov. Greg Abbott busing migrants to cities like Los Angeles. And a new Rubik’s Cube world record to smile about, followed by a Rubik’s Cube anecdote from Kai Ryssdal. Here’s everything we talked about today: “Documents show how conservative doctors influenced abortion, trans rights” from The Washington Post “Texas sends busload of 42 migrants to Los Angeles” from The Los Angeles Times “Talking With Kirsten Neuschäfer, the First Woman to Sail and Win the Golden Globe” from The New York Times “Max Park Sets World Record for Rubik’s Cube Solution̶

This week, thousands of Reddit’s most popular communities went offline to protest the company’s move to start collecting fees for access to its API or application programming interface. One listener called in to ask what all the fuss is about. We’ll get into it and answer more of your questions about how we keep track of consumer debt and the relationship between the underground economy and GDP. Here’s everything we talked about today: “Why are Reddit communities going private?” from Marketplace “Reddit goes dark” from Platformer “A developer says Reddit could charge him $20 million a year to keep his app working” from The Verge “Reddit Wants to Get Paid for Helping to Teach Big A.I. Systems” from The New York Times “Twitter will make you pay to DM people who don’t follow you” from Mashable “Federal Reserve Board – Consumer Credit from The Federal Reserve R

Today we’re sharing an excerpt from our live show at Town Hall Seattle featuring our special guest, writer and comedian Lindy West. The Seattleite talked with us about Former President Donald Trump’s indictment, the Hollywood writers’ strike, being broke and what it means to be fat positive in the Ozempic era. Plus, she shares some smart facts about snakes, whales and the Canada goose. Here’s everything we talked about: “Lindy West Is Not a Star” from The Stranger “Butt News #24: Never Been Kissed” from Lindy West’s newsletter “Key Takeaways From the Trump Indictment” from The New York Times “Opinion | I Quit Twitter and It Feels Great” from The New York Times “Why writers are having a hard time earning a living in the streaming economy” from NPR Video: “It’s Adorable When A Snake Drinks Water!” from Nature Quest “Planet Money makes an episode using

China dominates the market for electric vehicle batteries, but it didn’t have to be that way. We’ll talk about a story of wasted potential: how a failed U.S. startup made headway on lithium battery tech a bit too early and got caught in the throes of American capitalism. Also, a declassified report shows how the U.S. government has been skirting the need for warrants by buying data about Americans. Plus, if you’ve noticed companies have been quieter about social and environmental issues, it’s not in your head. Mentions of diversity, equity and inclusion and other social initiatives in companies’ earnings calls have fallen recently. We’ll talk about why that is. Here’s everything we talked about today: “The US Is Openly Stockpiling Dirt on All Its Citizens” from Wired “Companies Quiet Diversity and Sustainability Talk Amid Culture War Boycotts” from The Wall Street Journal “I-95 Collapse in Philadelphia to Upend Tra

This special edition of Make Me Smart’s weekly happy hour is coming to you live from the stage at Seattle’s Town Hall. We’ll get to all of your “Economics on Tap” favorites: a little news, some drinks, plus an extended round of our Friday game Half Full/Half Empty! Today’s episode includes some adult language. Here’s everything we talked about today: “More Startups Throw in the Towel, Unable to Raise Money for Their Ideas” from The Wall Street Journal “Democrats Push for Debt-Ceiling Overhaul Bill After Default Scare” from The Wall Street Journal “Netflix (NFLX) Added Subscribers After Password Crackdown, Research Firm Says” from Bloomberg “Trump loses two lawyers just hours after 2nd indictment” from Politico “What All the Single Ladies (and Men) Say About the Economy” from The New York Times “What’s behind the SEC lawsuits against Coinbase and Bina

Hey Smarties! We’re taping today’s episode of Make Me Smart live from Seattle. We’ll have the show in your feeds soon. But for now, enjoy a rerun of one of our favorite episodes of the year so far. With all the rage tweets about gas stoves, it may be hard to believe, but climate change wasn’t always so polarizing. Studies show that public opinion on the topic started to splinter in the 1990s, when governments and corporations had to reckon with the threat of a warming planet. “Prior to 1997, it was a conversation among a bunch of scientists, but once the Kyoto treaty came, it became an issue that affected powerful political and economic interests,” said Andrew Hoffman, professor of sustainable enterprise at the University of Michigan and author of “How Culture Shapes the Climate Change Debate.” On the show today: Hoffman explains how climate change became a partisan issue, the financial and economic interests that got us to where we are today, and what might get us back to some comm

Hey Smarties! We get a lot of questions about the stock market, and today we’re sharing an episode from “Financially Inclined,” Marketplace’s new podcast for teens, that might answer some of them. Host Yanely Espinal gets into how the stock market works, the difference between stocks and bonds and what to consider when opening a retirement account. If you’re a newbie investor or want to talk more about this with the young people in your life, this episode will make you smart! This podcast is presented in partnership with Greenlight: the money app for teens — with investing. For a limited time, our listeners can earn $10 when they sign up today for a Greenlight account at http://ww.greenlight.com/inclined.  

Ahead of their upcoming monthly meeting, Federal Reserve officials have hinted at possibly holding interest rates steady. And they’ve been using a few terms to describe the move — a “skip,” a “pause” and a “hold.” One listener called in to ask: What’s the difference? We’ll get into it and answer more of your questions, like why monetary policy tools are so blunt and the possibility of a common currency for BRICS countries. Plus, why your favorite radio program asks for money. Here’s everything we talked about today: “Fed Officials Consider Skipping a Hike in June — But Don’t Call It a Pause” from Bloomberg “Why May’s Jobs Data Complicates Inflation Picture for the Fed” from The New York Times “How BRICS Became a Real Club and Why Others Want In” from The Washington Post “BRICS Ministers to Challenge US With More Members, Common Currency” from Bloomberg “What should the White House do to combat i

It’s that time of year when the Supreme Court issues a bunch of important decisions on high-profile cases before its summer recess. But it turns out there’s a whole other docket of decisions that usually fly under the radar. It’s called the emergency docket, or “shadow docket.” And the use of this lesser-known docket is changing the way the Supreme Court engages with wide-reaching, often divisive issues, and shaping law on the ground. “We’re seeing every big fight in contemporary American public policy getting to the Supreme Court faster through these emergency applications, and provoking the justices to take a position sooner because of these emergency applications,” said Stephen Vladeck, law professor at the University of Texas and author of the new book “The Shadow Docket: How the Supreme Court Uses Stealth Rulings to Amass Power and Undermine the Republic.” On the show today, Vladeck explains what the shadow docket is, why emergency decisions by the Supreme Court have become more

Hiring data shows that Republican-leaning states have been consistently hiring faster than Democratic-leaning states, and it’s been that way since before the COVID-19 pandemic. We’ll unpack the trend and get into the relationship between hiring and job growth. Plus, an inclusive running club is making us smile. And, are we handing out five star reviews too freely? Here’s everything we talked about today: “Why are red states hiring so much faster than blue states?” from The Washington Post “Oklahoma Approves First Religious Charter School in the U.S.” from The New York Times “A $1.5 Trillion Backstop for Homebuyers Props Up Banks Instead” from Bloomberg “Carbon dioxide levels in atmosphere surge, hit a new all-time high” from The Washington Post “Martinus Evans, of Slow AF Run Club, Wants to Make Running Everyone’s Sport” from The New York Times Customer Ratings Have Become Meaningless. Americans are handing out perfect Ube

After the 2020 election, YouTube started removing election denialism content. Now, the platform is having a change of heart, saying it will leave up misinformation related to previous U.S. presidential elections. We get into the changes to YouTube’s misinformation policy and what they might mean for the 2024 campaign. Plus, Kimberly and Kai do a little show and tell. Prepare for smoke and fire! Here’s everything we talked about today: “YouTube reverses misinformation policy to allow U.S. election denialism” from Axios “Inside the Meltdown at CNN” from The Atlantic “Pride absent for many LGBTQ+ Americans inside workplaces” from Axios “Most LGBTQ+ Workers Feel They’re Treated Fairly at Work” from SHRM “Are we expected to tip robots now?” from Marketplace “Apple Is Stepping Into the Metaverse. Will Anyone Care?” from The New York Times “Don’t judge Apple’s VR headse

The debt limit deal making its way through Congress comes with changes to work requirements for food stamps. We’ll get into why these changes may not be the cost-cutting solutions they’re cracked up to be. And Congress has blocked President Joe Biden’s student debt relief program. We’ll discuss what’s next in the battle over loan forgiveness. Plus, the heartwarming story of a bumblebee rescue. Here’s everything we talked about today: “Senate votes to overturn Biden’s student loan relief program” from NBC News “The new work requirements for food stamps in the debt ceiling deal” from The Washington Post “The Welfare-to-Work Industrial Complex,” season six of “The Uncertain Hour” from Marketplace “Billionaire SPAC Kings Dragged to Court After Boom Goes Bust” from Bloomberg “Treasury bill yields plunge with debt deal in view” from Axios “Company Insiders Made Billions Before S

Since the U.S. brushed up against its debt limit in January, Treasury Secretary Janet Yellen has been stretching the government’s money as far as possible using “extraordinary measures” to buy time for Congress. One listener thought to ask: How, exactly, does that work? And how long could they last? We’ll get into it and answer more of your questions about where the funds for military assistance to Ukraine come from and why the Federal Reserve’s strategy to bring down inflation may come with unwanted side effects. Plus, a little self-care talk. Here’s everything we talked about today: “How ‘Extraordinary Measures’ Can Postpone a Debt Limit Disaster” from The New York Times “Meet the budget bureaucrat in charge of tracking the U.S. debt” from The Washington Post “The U.S. hit its debt ceiling. Now it’s time for ‘extraordinary measures.'” from Marketplace “How Much Aid Has the U.S. Sent Ukraine? Here Are Six