Pod save America?
Gold closed day at a nine year. Now we're not doing a safe haven story think. Federal Reserve. From American public media. This is marketplace. In. Los Angeles. I'm Kai Ryssdal Tuesday today. The twenty first of July good has always have a long everybody. We begin today with a personnel story president trump's proposed staffing of the Federal Reserve Board of Governors the Senate Banking Committee Voted Day on two of the president's nominees economist Chris Waller. He's Kern executive, vice, president and head of research at the Saint Louis. Fed was approved easily. The other nominee economist Judy Shelton was approved with a much thinner margin thirteen to twelve straight party line. Both of course have to go to the full Senate for approval, but Chilton's controversial here for a couple of reasons. She has said the Federal Reserve ought to be much more closely aligned with the White House, an interesting point of view on a famously independent agency and she has said she wants to put this economy back on the gold standard, which we got rid of almost fifty years ago, marketplace's Mitchell Hartman reminds why the gold standard is such a central banking hot potato this morning I pulled out a five dollar bill to pay for my coffee, and just below the Federal Reserve seal, it says this note is legal tender for all debts, public and private would. It doesn't say. Say is this piece of paper can be redeemed for five dollars worth of US government gold once upon a time. It could be though I asked University of Oklahoma economist Gary Hoover to give me the thirty second monetary history. Initially, we actually printed gold coins, but carrying around all those heavy coins was cumbersome, so the government decided okay. Let's print out paper money, but they'll be redeemable for certain amounts of gold that lasted until World War One when the government needed to borrow and print a lot of money to fund the war. Then there was a great depression another. Another World War and the US gradually went off the gold standard altogether, and now we simply have paper dollars, which good faith of the United States government now every economist I talked to today, dismissed out of hand, the idea of the US going back to the gold standard but Scott Sumner at Mason. Universities Mercatus Center says he does understand the appeal of the idea to cut the Fed out of its current role of controlling the money supply in the economy, keeping the value of money strong, and in some sense, removing the role of government from the monetary system those. Those are things that attract people to the gold standard, but he says in the face of a great recession or pandemic downturn. The Fed needs its current monetary tools. The central bank the Fed can inject board dollars into the economy under a gold standard. Were dollars have to be back for gold as much less ability to do that and without the ability to control how much the dollar is worth. The US can't make its exports cheaper and more competitive, which is especially useful during a downturn I'm Mitchell Hartman for marketplace the by word of this pandemic so far. There are probably a lot of bywords. Actually pick your own, but the one I'm thinking of right now is adaptation. We are all adapting in one way or another to our changed circumstances. And for working parents though. Include Juggling Childcare. Schooling because what's going to happen, there is kind of up in the air as you now. Along with their full time jobs, they're juggling all that stuff, so the parental adaptation pandemic pods. Marketplace's Meghan McCarthy Corinna has that one taking care of twin nine year. Old Girls has become almost a full time job for DC photographer d'alene rows. He could use a break, but he's not sending the kids back to school in the fall. It doesn't matter how much you learn is not alive, right? He started seeing similar concerns from other parents on facebook and. And, just thinking, how can we make this team work? But maybe not having to be responsible for all the learning for five days a week, so he's looking into a pod. The idea being that trusted households can safely gather along with a teacher paid higher and share the cost. I'm mathematics specialists that can provide one and a half hour sessions to your. Former math teacher Geoffrey hollen posted that classified ad on his Brooklyn neighborhood for him yesterday. His base rate for pod teaching is two hundred fifty dollars a session and he's already getting interest, so is Mike Tang who runs swing education company that matches substitute teachers to schools in California and several other states, and now hires them for private learning pods, and it ends up being priced in a range. That's close to what private daycare private childcare might look like which of course raises concerns about equity the? The pandemic has already widened disparities in our education system says Matthew Craft. A professor of economics and education at Brown I don't fall. Parent's for trying to be creative, but why can't we provide that type of opportunity for all students? He says federal investments could help match newly graduated college students Surp- educators who have lost work to provide pod style tutoring for all families. I Megan McCarthy Carino for marketplace little up a little down inequities today we will have the details when we do the numbers. There's the political and epidemiological side of the trump administration's recent change in how data is getting tracked moving it from the Centers for Disease Control to the Department of Health and Human Services. It is not without controversy, but there's also the practical side as the data. Tracking site went live yesterday. Marketplace's Eric. Embarrass reports that hospitals already in the middle of a pandemic. New System to learn now. Less than half of the nation's hospitals reported to the old system about three quarters will report the new system and they'll have to enter the data manually. Katherine Baker held economist at the University of Chicago says the goal here is commendable. Having harmonized information is really crucial both to individual decision making, but also to getting resources in the right place at the right time, the problem is ideally you wouldn't be starting to do it in a pandemic, not only during the pandemic, but with only days of notice according to Dave Dillon up Missouri. Missouri, Hospital Association. We have not had the ramp up period to encourage hospitals to engage in this, but hospitals will have to engage if they want resources. The federal government controls such as the scarce supply of Antiviral Drugs Dylan, says the changeover has been more of a sanction than an inducement and hospitals already stretched thin by the pandemic, says Georgia's Benjamin. President of the American Public Health Association, the confusion over what to report and to whom and how may actually impair federal efforts in many ways that may very well delay the response. That they're having and I think that's that's the biggest rhys that. It really undermines their ability to move as quickly as they would lie. Benjamin says understaffed and underfunded. Hospitals may not have the resources to devote to typing information into this platform, and those are the hospitals that could most use help from the federal government. America barriers for marketplace. Negotiations over what a new federal government economic support plan started dig shaped day. The Secretary of the Treasury and others from the White House were up on Capitol Hill making the rounds. At issue keeping some kind of extended unemployment benefits the six hundred dollars a week. We've been telling you about that goes away next week. Senate Majority Leader Mitch McConnell wants liability protections for companies from corona virus lawsuits, and the president of the United States, says he wants a payroll tax cuts. That particular line item isn't getting a whole lot of attraction right now, but Washington's a funny town that way things just happen sometimes so today a payroll tax primer so payroll tax is a tax on earnings, and the more that you earn the more that you pay. That's Chris Cox Senior Tax Policy Analyst at the Center on Budget and policy priorities you and your employer, generally speaking each pay those taxes on every paycheck, hence payroll taxes six point two percent to help fund security our the one point four five percent for Medicare. You cut those taxes. People get more money to spend right. It's been done before president. Obama cut payroll taxes two percent back in two thousand eleven, but today in this economic climate when millions of people have. Have lost their jobs. The payroll tax cut delivers zero benefits to the jobless. Remember we told you yesterday. Thirty two and a half million Americans are getting unemployment benefits of one kind or another from the government, so some other suggestions from Chris Cox expansion extension of unemployment, insurance and state fiscal relief to states and localities. Otherwise we'll have to make large budget cuts and could result in many people losing additional jobs, which is also by the way that fiscal relief for states. A big bone of contention in this next package as well. On? The list of positive developments in the world day there is this marketplace has a new podcast launched today for kids and their families answering those tricky to answer questions that kids have about money. The show is called million Brazilian. Here is a little teaser from episode one. If you had all the money in the world. What would you do if I had all the money in the world I our find my private jets. Voter to my favorite Taco place called tackle Stan. I'll give it some foundations that of the world I looking dogs from the shelter homes. Then I would say to charity. May I add all the money in the world. Out of make own hundred feet, tall robot, I would I a full of stadiums I would plan multiple force then I would by hang glider. By some fever points and Save barraged for later I would be rich. That was banning in Irvine California Louise in Connecticut Chamara and here in Austin Texas, seven and AS Roma here in Los Angeles for new podcast million Brazilian. The first episode is out right now all about by the way who invented money downloadable pretty much wherever you live. gumming up if you really want to make a change in the world, you can do it with things that you're putting on the table food straight ahead, but first let's do the numbers. Dow Up one hundred fifty nine points today, six tenths percent, twenty, six, thousand, eight, forty, the Nasdaq down eighty-six points, eight tenths percent, ten, thousand, six eighty. Five hundred found five points in the couch cushions about a tenth percent, thirty, two and fifty seven. There are lots of quarterly earnings. Reports docked bats a here. We Go Coca Cola reported. A thirty three percent. year-over-year sales declined, but Gabriel's your guidance for the future, thus shares bubbled up. Coke Two point three percent I B I. Love My job. IBM reported better than expected profit and revenue results for the shares down two tenths of one percent United Airlines reported second quarter profits today. Revenue Down Ninety nine zero percent shares, though the session two and a quarter percent up after hours as well. You're listening to marketplace. This is marketplace. I'm Kai resolve were to ask you to name the biggest most important companies in this economy. Even Amazon Right Apple for sure facebook may be probably not though General Electric but once upon a time, and not that long ago, either GE was the most valuable company in America, making and or selling everything from home appliances to television shows to oil now. Not so much. The company's fall is the subject of new book called Lights Out Pride, delusion and the fall of general. Electric Tom Greta and Ted man from the Wall Street. Journal wrote it Tom Greta Welcome to the program. Thank you tell me the story? Would you the anecdote with which you start this book? John Flannery then about to be new. CEO of one of the Great American. Industrial conglomerates goes to one of the big subsidiaries GE power I think it was up in Schenectady. And starts going through the books. Tell me that story. Yeah I. Mean This was a where we're John, flannery had been named to the coveted position of becoming the next CEO of GE and he was examining the operations, and what he found was not what he expected. A The power business was. A mess there were some accounting shenanigans going on. Jeeze, biggest deal ever was buying this French Power Company and the integration has been. Quite a mess and all this is going on as the power market is taking turn, so they're bet essentially was failing. You end with a with a quote from Mister Flannery that I cannot repeat here on this family aren't the Public Radio Program But suffice it to say he was shocked and the question is. To step back to the thirty thousand foot view. How did G fall so far so fast? I think part of it is that GE never thought it could. It could fail. It was unbreakable. Costs got out of control. They took their eyes off of operations. the idea they would do these deals that didn't work out and nobody worried about it too much because Ge is so big that they could absorb missteps, but There are limits and they exceeded them. Maybe it would be helpful for people who don't follow this closely, certainly as closely as you, and and you know as as passing as I do. How was GE thought of in this economy back in Taytay? It was I. Mean for investors essential part of the portfolio they were. Or two in almost every industry they were in. For for folks in the factory floor, it was like a lottery ticket. You know great pension great benefits, and this goes back decades it really was this iconic model of American corporate culture, and just speaking a guy who radio program on which the General Electric theme song used to be embedded in our theme, music and longtime listeners will remember that, and maybe we should get out and put her on the Web it was a consumer products do right. It made appliances and all that good stuff. Oh, for sure for sure appliances, light bulbs. Some of these products still have the GE logo on it because they've licensed them. We have a general electric air conditioner in our house. It's made by a Chinese company now. And I think that that still holds true for a lot of people. It's a very recognizable brand I. think people feel that this sort of inherently American company? Okay but the reality now of General Electric as a corporate structure is completely different. What is GE? Look like today? Today, they are basically power aviation, which makes jet engines, they essentially dominate the jet engine, market, and healthcare which. X Ray machines scanners MRI's is in all these all those industries they have innovated for decades. They have gotten out of pretty much everything consumer. They recently sold the last piece of their light bulb business. So it's a very much a changed company in recent years. Do you think a general electric could start up again today? To be honest if you could look at Amazon or Google, and you could argue that these companies are conglomerates. What is key to conglomerate these days is about its management, and so if you have the right leadership. It's possible that you could make that work. Could you make it work for for decades and could some of these companies that are structured like conglomerates? Could they survive a hundred and twenty one hundred and thirty years like General Electric has time will tell you. Tom Greta with Ted man. both of the wall. Street Journal have a new book out about Gender Electric it's called lights out pride, delusion and the fall of General Electric. Thanks a lot. Appreciate time. Thanks, guys. Thanks for having me on. We've got an excerpt from Town Dad's book about that filled acquisition of the French. Company sound, mentioned and wine. Nobody stopped it. What say marketplace dot org also there and you're gonNA want to check this out that old marketplace theme music I mentioned with the Audio logo in it there. It's Kinda wild. US citizenship and immigration services, which is of course, the government's main office for Citizenship and immigration services says it's going to have to furlough two thirds of its staff unless Congress. One point two billion dollars its way by the first week of August why I hear you asking. because. By user fees, and as applications for legal immigration have dropped because fewer people want to come here, the agency is running out of money, and that means as marketplace's and Euler reports that for people trying to get work, visas or green cards, and already long and arduous process is gonNA longer and more arduous Sarraj. Voss came to the United States in two thousand to get a masters degree in Computer Science North Carolina. He's been working under an H.. One B. Visa since two thousand five, and he got tentative approval for permanent residence for years later. He's been waiting for his green card ever since after dying, we just stopped looking Suraj in his wife. Galina have two daughters born in America. Is a dentist and together they own their own practice in York Pennsylvania where they employ seven people. He's still works in it and has to renew his visa every couple of years. That is like a sword hanging hanging on your neck all the time because. Unless you, get your green card in your hand. You never know what happens is your age. When gets denied next FAT MONON? Shah data specialists in Austin. Texas is also waiting for his green card, but he's got a more pressing concern right now. He needs to visit his father in India who has cancer Shah's waiting for immigration officials to give him documentation that will allow him to get back into America if If they're already backlogged. And if the remote people my buddy is, it might even pause for the delay in a Lotta ways. Shah's experience is typical to be an evergreen in this country is to ship one anxiety to the Knicks Allen or is president of the American. Immigration Lawyers Association. He says the US CIS budget is so dire because it is discouraged new applicants double the amount of money it spends on. On fraud prevention and tripled what it spends on vetting shortfall right now with the budget is for mismanagement of the government by imposing new regulations. Warm needed USCIS declined comment. The agency also made it more expensive to apply for a visa raising fees earlier this year to make up for fewer applications, Richard Burke CEO of on boy global affirm that helps companies navigate the visa process says companies are willing to pay. Pay those higher fees, but just want certainty. Employers are worried that a reduction in us. CIS staff could mean they don't get the workers that they need those that we serve you. This is an entirely self inflicted wound, and the consequence is just another challenge is these companies try to rebound from Covid antsy to hire the best brightest without intervention from Congress. The shortfall threatens to put more than thirteen thousand. Employees on furlough beginning August third. I made be Euler marketplace. The United. States is the biggest cultural trading partner Mexico has, and as here a lot of small local farmers in Mexico wind up competing with big conglomerates and with pandemic. They're having to adapt to changes in farm production as well from K. Jay Z's Mexico, city bureau Rodrigo surveys reports. This think of on the coast of the Gulf of Mexico out Aliev Alabama recorded some of a sounds from the jungle where she grows organic produce and medicinal herbs. She uses them in lotions that. She sales for her business called monthly. The environmental. She says she's been forced by the pandemic to reinvent her business. Normally ships are products throughout Mexico. Because someone ordered anything since April, she had to shut down her first store close to where she lives, which opened fifteen days before the pan-demic dollars scale. Online, so during dispose volume. She's been taking online seminars about gardening to improve her skills knows evokes i. Said Gore saw and the intrepid enroll, so he's using this time to share her knowledge to create a free e book on how to farm vegetables at home and plans to teach people about gardening using social media. She hopes to find customers that way, but at the moment she's living on her savings. In Mexico City Enrica. Cervantes is also reinventing his business red frame to make a bridge between the people from the field with the people from the set of aunt. This organized Bonita, Yankees and Organic Produce Street market has been around for nine years. The last bizarre held in January attracted more than fifteen thousand people in four days, but the pandemic changed everything. We have canceled six events. When the market business closed, he opened a new store. It's not replacing the street market business, but at least it's helping him survive. If you really want to make a change in the world is, you don't have to wait, so the government makes its you'll have to wait coordinates. You can do it with things that you're putting on the table. Some farmers are flourishing independent. Make like blunt as he. Florida's is such miracle. It's a community of dozens of family owned businesses that grow decorative plants at the outskirts of Mexico City. Still dickey Sudan is a member of your organization. He shows me a cargo of pot. Flowers told plants perfume shrubs. These are all being delivered to customers in quarantine. Many people have found about instagram which the gross are using to sell plants. Says Zanthosyn. Interest Dude on the sales are up sixty seventy percents since ZIP endemic was also. Though. He says the government recently requested that blunt AC- floors such Emeco close. Some of its facilities weakens to decrease the chance of spreading covert. Nineteen could seriously affect the business as many plants need daily care. Around the GONNA. Says they'll keep improving their business model to build loyalty among customers. He says growth is important, not only for sales, but also for benefiting families dead depend on it in Mexico City. That Eagles this for marketplace. This. Final note on the way out today it has been fifty nine years in a row that Congress has passed and president of each party have signed a key piece of legislation known as the national. Defense Authorization Act the Pentagon's spending package, basically the house's version this year, coming in at seven hundred and forty billion dollars, including three percent pay raise for the military and a billion dollars for the corona virus, also language in the Senate version, requiring the Department of Defense to rename military bases, currently memorializing confederate heroes. The White House said today. If that provision is in the bills sent to the president, he will veto it one notes here for the record. The trump administration frequently makes threats. It doesn't follow through on. Here is your moment of economic context for this Tuesday air. We leave you the European edition today. The EU agreed on a corona virus rescue package early this morning Europe time almost two trillion dollars an all. Here's what's interesting. Though number one, it was a unanimous vote of all twenty-seven. E You members remember there used to be twenty eight, but brexit also number two. You can make a case that after Brexit, and all the warnings about the end of the EU. This actually brings that block closer together. We'll see. Our digital on demand team includes carry Barbara Samantha. Fields Ben Heck Coats Menendez. Allies, mills and Janet Win Attorney of is is our executive director of on demand and I am Kai. Ryssdal we will see everybody. This is APM.