Emily Blanchard, Rachel Brewster, Mark Rash discussed on The Daily

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Kind of rebel It is Tuesday. Today, the eighth of June. Get as always to have you long, everybody. We are going to do a 12 to start things off today. A macro micro thing. Big picture and then granular look inside the gears of this economy. The case study at hand is the supply chain on which we have spent, as you know, no small amount of time the past couple of months, shortages and price spikes, logistical bottlenecks. Well to that end, the Biden administration says it has a plan. The supply chain disruptions Task force will the thinking goes Increased domestic production of critical inventory, like semiconductors and batteries that was announced today. It is also by the way, an admission that we are not going to be able to make everything we need. Ourselves. Marketplaces Justin Ho is on the macro desk today. What the Biden administrations really doing here is trying to reduce the economy's dependence on China. They're talking about trying to reduce dependence on other countries for rare Earth That's mainly China. Katie Rust is an economics professor at U. C. Davis. They're talking about trying to safeguard and encourage domestic sources of key pharmaceutical ingredients. Here. We import a lot of those from China. So the idea instead is to rely more on American allies as trading partners, says Rachel Brewster at Duke Law School. When we're discussing semiconductors are major allies will be South Korea, JAPAN, Taiwan When we move on to pharmaceuticals, it's going to be made much more in Europe. But there's a problem with that, says Emily Blanchard at Dartmouth. We have been antagonizing many of the same trading partners for a number of years, The Trump Administration slapped tariffs on trade with a lot of these countries, and even now, tariffs on European metals remain in place. I think here we are sensing a very deliberate and intentional policy shift by the Biden administration to say Let's deal with some of these national security concerns with our neighbors, not despite our neighbors, Blanchard says. We don't have the capacity to manufacture. Everything we need in the U. S. Would be a fool's errand, she says to try to go it alone. I'm Justin. How for marketplace? Micro Part of this supply story today comes to us from the National Federation of Independent Business, which released its small Business Optimism index this morning. The group's monthly survey of business owners in retailing construction manufacturing also services Among the highlights. 40% of small business owners plan on raising prices the most since 1981 marketplaces, Kristin Schwab made some calls. Bobby Williams in Columbia. South Carolina, is facing some tough competition not for who can make the best catfish or country fried steak. But who can Lauren workers like they say if you can fog a mirror? We will hire. Yeah, well, we just need some bodies. Right now. Williams raised starting wages at his restaurant Lizard's thicket to $10 an hour, up from eight. Meanwhile, prices of everything from pork to plastic goods are soaring. Bacon has doubled food prep gloves quadrupled because manufacturing processing trucking everything is backed up. Every week. There's five or six items that are out of stock. Williams has had to pass the costs on to customers because he simply can't sell more to make more money. Labor and supply shortages are holding business owners down. The big issue is that they aren't able to take advantage of that increasing demand for their good or service. Holly Wade is with the National Federation of Independent Business, which found half of small business owners had unfilled job openings in May, and of those more than 90% say there were few or no qualified applicants. That's jeweler Becky Bush inculcate problem in a chemist Michigan her Goldsmith moved to Hawaii during the pandemic. She needs sales associates to I can train people to sell, but I can't train people to have a personality finding people with that, you know. Hi, How are you in the it's more of a high She, too has had to raise wages, and that's not her only problem. Her suppliers are raising prices because mines and manufacturers overseas are still dealing with pandemic disruptions. I'm Kristin Schwab for Marketplace on Wall Street today, not a whole lot of enthusiasm either way, really, We'll have the details when we do the numbers. Bitcoin is trading today in the $32,000 range well off its recent highs, but more to the point down 8% or so from just yesterday. Perhaps probably most likely because the Department of Justice announced yesterday it has done something never before done in the fight against ransom, where they traced and got back some of the ransom the colonial pipeline paid. In Bitcoin to the hacking group known as dark Side that the tracking and tracing and reclaiming its not supposed to happen with Cryptocurrencies, at least not very easily. Marketplaces supreme ensure as more now and what this might mean for the epidemic of hacking that a lot of companies are dealing with right now. James helps run a small business in the Midwest with about 35 employees were not using his full name to protect his company showed up in the office one morning early last year Plane basically Couldn't do anything on our computers. It was a ransomware attack. They sent us kind of a cryptic ransom notes with broken English, asking for tens of thousands of dollars and Bitcoin. Hackers have been holding companies hostage since long before Cryptocurrencies were invented. But Cryptocurrencies can offer anonymity or at least a method of payment outside the control of law enforcement. It's allowed digital ransom and extortion to explode in recent years. Nick Weaver is a lecturer and computer science at U. C. Berkeley. It's probably in the couple billion dollar a year. Revenue for the ransom work gangs and collateral damage is probably 1 to 2 orders of magnitude greater on the face of it. The fact that the FBI was able to crack into a Bitcoin wallet and take back the money would appear to threaten one of the foundations of this criminal industry. But Mark Rash isn't so sure. He's general counsel of Cyber Security Threat Intelligence company unit to 20. And be part of the reason they they are successful in being able to claw back. A specific transaction is likely that they work closely with colonial pipeline in making the payment in the first place. The FBI recovered about $2 million that presumably could not get back the many tens of millions the hacking group took from countless other companies. It will probably take years of effort and regulation before the tide turns in the cat and mouse game between law enforcement and hackers, James, By the way, the guy whose company was act, he didn't end up paying a ransom. He had backups of all his data. In New York. I'm simply vanish or for marketplace. Always back.

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