Economy

In September the leaders of the world’s most powerful nations met in New Delhi for the annual G20 Summit to address such heady matters as the war between Russia and Ukraine, the future of energy production and the criticality of food security. Everyone smiled for the cameras, shook hands politely and agreed to do their best to do something about everything, just so long as they weren’t asked to make any enforceable commitments. At the end of the weekend, all the great men and women of the world put their shoes back on, took one more group photo and bid adieu to their friends (and enemies). Then they all headed for home. All, that is, except one.

Zyahna Bryant, a “fat acceptance” and Black Lives Matter activist, has been named the new face (and body?) of Dove, the company known primarily for its soaps. Conservatives are up in arms over the new campaign, and a Dylan Mulvaney-style boycott has begun among conservative consumers opposed to "wokeness" and also to Bryant’s role in attempting to get fellow University of Virginia student Morgan Bettinger expelled from UVA for “racist” comments she didn’t make. https://www.instagram.com/reel/CwnKlIGybvO/?utm_source=ig_embed&ig_rid=ddb08da2-6f29-4243-b80e-e93e92bba4ee Newsweek provides a brief recap of Bryant’s unsuccessful headhunt: “In the summer of 2020, Bryant claimed that she heard Bettinger refer to BLM protesters as ‘good speed bumps.

On a hillside on the outskirts of my town is an expansive cemetery where more than 20,000 of Philipsburg’s ancestors have been laid to rest since 1869. For decades, its thirty or so acres have been cared for by three dedicated men who dig and fill graves, mow and trim the grass, repair equipment, patch and plow roads, maintain old headstones and gather leaves “for next to nothing,” as Paul Springer puts it. This work must “go on constantly,” says Paul, but changes in the mores surrounding death mean “generating the income necessary to support these activities is becoming impossible.” Paul is my friend and one of those indispensable do-ers small towns across the country rely on to keep things ticking.

I have a memory picture of an urban highway in Shenzen, southern China. Recently built, with abundant flowering shrubs planted along its central reservation, it was lined as far as the eye could see by uncountable apartment towers, many of them unfinished. This was 2009 and it was my first glimpse of the debt-fueled property bonanza that had begun to grip the Chinese economy — alongside the export-led manufacturing boom that was also plainly visible, thanks to satellite maps of the vast agglomeration of factories surrounding the new-rich residential areas. It’s easy to be a permanent bear in any market, because history tells us they all come crashing down in the end.

With the current inflation rate still well above the Federal Reserve’s 2.0 percent target, it is only natural that critics of President Biden’s Inflation Reduction Act (IRA) treated its recent one-year anniversary as an opportunity to once again stress that the bill never had anything to do with inflation. Biden himself has finally admitted as much. But what has received almost no attention is the degree to which big spending programs like the IRA — whose estimated cost has already spiraled up from $384.9 billion to $1.5 trillion — will further erode America’s social safety net. Especially the Medicare hospital insurance fund (Medicare Part A), which its trustees say will be depleted in 2031, and Social Security, which runs out of money just three years later, in 2034.

Barely three years after the death of George Floyd, it appears the era of the corporate DEI officer is rapidly coming to an end. Or at least experiencing a major contraction. Across American business, the number of Diversity, Equity and Inclusion roles grew by 55 percent following the protests of summer 2020, reported the Society of Human Resource Management. At the start of 2022, the entire DEI “industry” was worth an estimated $9.4 billion. In 2023, it’s a very different story. According to the workplace trends consultancy Revelio Labs, DEI jobs shrank by one-third last year. The key problem with the DEI industrial complex is not the idea that American workplaces should be more representative of America — but the means often used to achieve those ends.

Cockburn has been mulling over in his mind a gloomy new report about his retirement prospects. “In a July poll conducted jointly by Axios and Ipsos,” the Hill writes, “29 percent of workers under fifty-five answered a retirement query with, ‘I don’t think I will ever retire.’ Asked why not, three-quarters of the never-retire group said they could not afford to stop working. A smaller share said they didn’t want to.” With inflation doing a number on folks’ 401ks and future inflation fears rising, Cockburn is not surprised by people’s responses to this poll (except for those who don’t want to stop working — seek mental evaluation). Still, he wonders: what does our future workforce look like if it’s composed of geriatric personnel refusing or unable to retire?

Wealth comes from ownership. Being involved in the financial industry for nearly thirty years, and spending the past dozen-plus years in the media helping people create economic freedom and wealth for themselves and their families, I know that wealth being derived from ownership is an indisputable truth. More concretely, wealth comes from the ownership of assets that increase in value over time. Ownership is a subject people tend to greatly misunderstand. We misconstrue where wealth comes from, and we misinterpret the benefits of hard work and taking risks. You can meet a poor construction worker putting in eighty hours a week for someone else. You can find professional athletes declaring bankruptcy as soon as their multimillion-dollar contracts end.

Walmart has reportedly stopped using Yellow as the shipping company stares down bankruptcy and a major strike by the International Brotherhood of Teamsters. Craig Fuller of FreightWaves tweeted that Walmart was one of Yellow’s largest customers, meaning their exit will cost the company dearly. The implosion of Yellow could magnify the impact of any potential IBT strike against UPS, which alone could have ground the US economy to a halt. Yellow had received a $700 million federal loan during the Covid pandemic, but has run into challenges paying it back, and the New York Times reports that the company had $1.5 billion in debt in March 2023.

Over the years since the financial crisis, economic power and wealth has become ever more concentrated in fewer hands. This is something leaders have acknowledged, and policymakers have tried to do something about. And yet, despite brave talk of breaking up mega-giant companies, anti-trust efforts have been anemic, as most recently demonstrated by the failure to stop Microsoft from swallowing game maker Activision. The future looked a little brighter in the immediate aftermath of the pandemic. There were signs of a grassroots resurgence, with a strong uptick in new business formations in the United States. But since then, as interest rates have risen and regulatory pressures have increased, there has been a slackening off of new firms.

Most of the attention paid to sovereign wealth funds inevitably lands on the Middle East. But it’s Norway’s $1.4 trillion national investment fund that is actually making the most noise.   Case in point: in April the fund’s CEO, Nicolai Tangen, said he believed global “authorities and governments should regulate” the use of artificial intelligence. “We are not seeing a pipeline of regulation coming yet,” Tangen lamented, without specifying the precise guidelines he’d like implemented. But no matter; he then added that Norway’s trio of SWFs — the world’s largest — are developing operational protocols for companies using AI which will be folded into the larger ESG (environmental, social and corporate governance) efforts that power their entire operation.

Recent advances in artificial intelligence have led many observers to worry that computers will soon replace far more jobs than imagined just a few years ago. The World Economic Forum now predicts that over 85 million positions could be lost to automation by the year 2025, many in law, medicine, accounting and other fields once thought immune to electronic substitution. Industry experts like IBM CEO Arvind Krishna argue that the worries about this dramatic change are vastly overblown. Like every past technological innovation, he says, AI will eventually create many more employment opportunities than it eliminates, producing jobs in which a person’s productivity will be enhanced by his or her ability to use smart and dexterous machines.

Airbnb is in trouble. Nick Gerli, CEO of real estate consulting firm Reventure, reports, “The Airbnb crash is real,” along with a list of the top ten cities where the company’s revenue has collapsed. “Watch out for a wave of forced selling from Airbnb owners later this year,” Gerli forbodes. https://twitter.com/nickgerli1/status/1673774695693385728 Last month the Wall Street Journal reported, “Airbnb reported higher revenue and profit in the first quarter, but customers reserved fewer-than-expected stays and the company gave a mixed outlook for the second quarter, spooking investors.” And while Investors Business Daily this week forecast “a new, more promising comeback attempt” for Airbnb stock, murmurings of an “Airbnbust” are hard to ignore.

Nike. Ulta. Bud Light. Anthropologie. Target. My boycott list is growing larger by the day. For the record, I’m pretty darn good at shopping according to my values. I haven’t purchased a single Nike product since the company pulled a planned shoe line featuring the Betsy Ross American flag because anthem-kneeler Colin Kaepernick convinced them it was racist. I quickly pivoted to purchasing Adidas products instead. Well, that is until Adidas started advertising women’s swimsuits using male models. Sigh. This boycotting business can be tough, especially when it means forgoing otherwise quality products or paying a higher price for alternatives.

“Chill, bitch, shut your ass up,” graciously replied a shoplifter to former Lululemon assistant manager Jennifer Ferguson earlier this month, when she told him and two accomplices to stop robbing the suburban Atlanta store where she worked. Ferguson and her colleague Rachel Rogers had good reason to be fed up. The same trio, which was arrested the following day after bystanders reported a separate robbery to the police, had allegedly burgled the same store a dozen times in recent weeks. When Ferguson told them “No, no, no, you can march back out,” the alleged thieves had already raided the store’s shelves yet again and were preparing for a second round, which they then carried out.