35 Burst results for "Big Business"
Wall Street Reacts to Biden-Harris Ticket
"Today Joe Biden and Kamala Harris made their first appearance together as running mates for the Democratic presidential ticket. CARMELA. As you all know is smart. She's tough. She's experienced. She's a proven fighter for the backbone of this country. The middle class for all those who are struggling to get into the middle class. Connell. Knows how to govern. She knows how to make the hard calls. She's ready to do this job on day one. After the most competitive primary in history. The country received a resounding message that Joe was the person to lead US forward. and. Joe. I'm so proud to stand with you. And I do so mindful. Of all the ROIC ambitious women before me. Who sacrifice determination and resilience makes my presence here today even possible. This is a moment. Of Real consequence for America, Harris's pick is historic and has prompted reactions from around the World Harris's father is Jamaican. Her mother is from India. She's the first black woman and the first woman of South Asian ancestry on a major party presidential ticket in the US Also, Reacting Wall Street. Financial leaders were anxiously awaiting Joe Biden's pick for vice president, our tech money and politics reporter Emily Glaser has been speaking to many of them and joins me now. So Emily you bet on the phone with business leaders all day. How would you characterize their reaction? This leaders are generally really happy that Comma Harris was chosen as Biden's VP pick for a couple of reasons. But basically, they view her as a pragmatic person or realist who while she has been tough on big. Business in the past looks at the nuance issues and takes each thing at a time versus having a blanket approach as you know, the wealthiest bad or big businesses bad. We've seen president trump and his campaign try to paint Senator Harris as a radical left wing Pick Wall Street doesn't seem to see it that way. Definitely not a lot of what I. Heard from folks on the phone text messages emails. But that she's moderate, she sent her even though people don't like using those words that much anymore and that's similar to how they think about Biden and a lot of the reasons why think financial leaders are happy and pleased and cheering on this Harris pick is that she does represent a move away from. The. Far Left Progressive Part of the Democratic Party the part that Elizabeth Warren and Bernie Sanders. Are In and so they're relieved that you know things like more financial regulation or really taking back see right now it's all about economic recovery and harassed and Biden have said they think big business is good if the economy recovers and business recovers, that's good for. Everybody. You know it's interesting because after Biden made his announcement yesterday, we heard Praise from people like Senator Warren and Senator Sanders. We know Senator Harris has pledged to be tough on big banks as California Attorney General. She pushed for a big settlement with banks for their role in the foreclosure crisis. What about her record makes Wall Street thinks she's a moderate. It's a great question look like you said, she's touted her tough on banks record. But when you actually break it down, what folks in the financial community are saying is that she's made no secret that there's wrongdoing she will prosecute her background as a prosecutor, but it's also important to keep in mind that her big bank settlement was very nuanced and she did claim a lot of credit for it got brought a lot to. The State of California but we had reported earlier last year that she wasn't always really doing as much of the substance of the negotiations and she was doing a lot that solidified. The Big Bank settlement is helping her record as a politician. So when I spoke with bankers and financial executives last night and today they were saying look she's GonNa take swings at us. We get that it's politics. We're not gonNA take it personally. When there's wrongdoing you know she says she's going to prosecute. We got that but she's not going to have a blanket approach as all banks are bad or all wealthy people are bad. What were some of her other policies on the campaign trail and what do they tell us about her stance toward the financial industry. Healthcare was a really big wine and let's not forget healthcare with the most important issue on the campaign trail. Now, in coronavirus times, it's shifted more to economic recovery. But Harris struggled with this event she failed to really clearly state what her plan was initially, and then once she did she basically said she would have a government run health care plan that would still allow for private insurers an even mentioned that she proposed taxing financial transactions to pay for that. Health care overhaul. So that's something that certainly is out there would really impact the financial sector. Another one that was really big was her so called three. I'm agenda in the beginning of the primary when she was on the trail, she often would attack president trump a lot but she changed strategies partway through an efforts to really appeal more to the every man, every woman and the middle class and mentioned things like gender pay equality breezing teacher salaries and things. Like that that she hoped would get her more voters. She's also being welcomed warmly from the tech world. What can you tell us about that? You know, let's not forget that Kamla Harris has been a politician California in the bay area for a while she was district attorney. She was Attorney General She's been California senator since two thousand sixteen she knows tech executives in Silicon Valley and his raise money from them for her races for a number of years she. Also, lives part time in southern. California with her husband Doug Hav who is an corporate entertainment lawyer. So she's got these deep ties to the media telecom tech and entertainment world folks that have fundraise for her for years. They know her they think she's tough but fair and are very excited and already planning fundraisers now that she's the VP pick, she's also shown that she can raise big bucks from Wall Street donors. How might that help the Biden campaign overall? I think it will help double down on a lot of the money that they need. I saw an invite for recent fundraiser that has the high amount at two hundred and fifty thousand dollars. This is big money we're talking about a lot of the Biden fundraisers in recent weeks have raised millions while Harris and Biden do overlap on a lot of donors whether from the financial tech media entertainment world, a lot of them have known. Harris. For a really long time supported her during the primary and may be willing to give even more money than they already have to the Biden campaign now that she's on the ticket.
How the Sperm Donation Industry is Breaking Families
"Last month a wired magazine story described a storm that's brewing in the world of sperm donation as at home. DNA, test kits become more popular people all over the world are making unexpected family discoveries. These discoveries apparently have a name NPR. Or Non Parental events at home DNA test takers are discovering DADS or half siblings or dozens of kids that they never knew about, and they're mostly not happy about it. In fact, a growing subculture complete with lobbying organizations self help literature and support groups is emerging for people making these unwelcomed genetic discoveries. One therapist juice developed a podcast dedicated to helping people walk through these kinds of situations told wired that people who uncover hidden family secrets through DNA. Testing often exhibit the classic cycle of grief after the initial shock comes anger and. Depression, their stories are all the reasons we need to take a sober minded look at sperm donation a practice that goes largely unquestioned in Western societies. The four billion dollar sperm donation industry is shockingly unregulated especially in the US children born from sperm donors are among the victims of the bad ideas of the sexual revolution. They do not have the legal right to request information about their biological fathers on the turn eighteen, which means that in most states, these children don't even have a right to their own family medical histories, of course, anyone. Who opposes or even questions assisted reproduction technologies like sperm donation are often called prudish cast his grumpy old GRANDPA huffing about a teenager blue hair after all we're told it's not really harming anyone in reality. However, there are plenty of reasons to oppose sperm donation even if we don't find the practice achey first of all, the industry dehumanizes men god-given ability to procreate transformed into a crude financial transaction as is the case with egg donation. The way the product is marketed dehumanizes image bearers, reducing them to a list of so-called desirable qualities. Like. Height hair-color supposed athletic ability or where they went to college. This isn't some enlighten new way to make babies. It's rebranded eugenics. Sperm donation also dehumanizes children robbing them the right to know who their dad is and leaving them in the dark as to whether or not. Their Dad even knows they exist in fact, the industry relies on such secrecy. The FDA places no rules on how many children a sperm bank allows to be born from just one donor while some banks might impose their own limits the country's largest sperm bank which. Is in California limits to twenty five to thirty family units per man I family unit by the way could include multiples meaning that a set of twins or triplets only counts as one unit while some activists have been calling for more regulation on the sperm donation industry for years the problems inherent to the system that's corrupt from the ground up won't be regulated away the corruption and the sperm donation industries rooted in its very warped view of human sexuality and the Family God's designed for family is baked into the very nature of. Reality like gravity children hunger for connection with your parents. For example, study suggests that many adoptees do better emotionally and socially when they know who their biological parents are and understand the adoption process. But of course, sperm donation doesn't repair a fracture like adoption does rather it creates the fracture permitting even incentivizing a view of children as products and this country eighty percent of customers who use sperm banks are either same sex couples who've intentionally chosen a sterile union only demand children or women intentionally pursuing single motherhood despite the overwhelming scientific literature that. Shows kids do best with both a mom and a dad or as the headline of a New Yorker article. Put It years ago Dan Quayle was right. This wired article just tells what is in fact in old story just with new variables of people who long for family but are suffering in a culture where the family has become. So broken whenever children and family building turned into big business trails of grieving people are left behind reeling from what we now call non parental events the broken us at the heart of the sperm. Donation Industry begins with the man who've used pornography to sell genetic product and it ends with a child shocked to learn that his dad isn't really his dad olive which serves to remind us that just because something is culturally normal does not mean that it should be true moral clarity cannot come from whether or not we find something weird or icky that kind of thing changes it can only come from God's created intent for the world for his image bearers, which is in his own words and is proven time after time to be.
Chapter 10 TO EMPLOYERS
"Welcome back my friends to the big book podcast. My name is Howard and I'm an alcoholic sober since January first nineteen, Eighty, eight, one day at a time. In, this the forty sixth episode chapter ten entitled to Employers from the second edition of alcoholics anonymous originally published in nineteen fifty five. There were few changes from the first edition, a word here sentence there. But what stands out most about chapter ten is that unlike previous? It was not written entirely by Bill Wilson. In fact, it was penn by Hank Parkhurst, a friend and business associate of bills who got sober in nineteen, thirty five in the annals obey a history hank played an integral role in the early days of the movement and managed many of the business matters related to a as early growth, as well as the financing publication and promotion of the. Big Book Hank played such a pivotal role in the early days of a a and while the big book was being written that Bill referred to him as his right hand man when it came to chapter ten aimed at large employers who had active alcoholics in their mitts bill acknowledged the limits of his own experience in the corporate world by deferring to hang extensive background in management within Major. Corporations Including Standard Oil of New Jersey where he had sixty six, hundred salesman under him bill realized that hangs ability to speak to businesses and businessmen about alcoholism and recovery would be invaluable to the embracement and support of a by corporate America. It is interesting to note that hangs writing style was so different to bills writing style up to that point in the big book that Bill exercised his editorial authority by largely rewriting hangs original draft to match the uniformity of style and readability the first nine chapters. Bill also provided the opening statement of chapter ten introducing Hank Anonymously of course as the author. And now from the second edition, of alcoholics anonymous. Chapter ten to employers. Among many employers nowadays think of one member who has spent much of his life in the world of big business, he has hired and fired hundreds of men. He knows the alcoholic as the employer sees him. His present views ought to prove exceptionally useful to businessmen everywhere. But let him tell you. I was at one time assistant manager of a corporation department employing sixty, six, hundred men. One day my secretary came in saying that Mr be insisted on speaking with me. I told her to say I was not interested. I had warned him several times that he had but one more chance. Not. Long afterward he had called me from Hartford on two successive days. So drunk, he could hardly speak I told him he was through finally and forever. My secretary returned to say that it was not Mr beyond the phone. It was Mr B's brother and he wished to give me a message. I still expected a plea for clemency, but these words came through the receiver. I just wanted to tell you. Paul. Jumped from a hotel window and Hartford last Saturday. He left us a note saying you're the best boss he ever had and that you were not to blame in any way. Another time as I opened a letter which lay on my desk, a newspaper clipping fell out it was the obituary of one of the best salesman I ever had. After two weeks of drinking, he had placed his Co. on the trigger of a loaded shotgun the barrel was in his mouth. I had discharged him for drinking six weeks before. Still, another experience, a woman's voice came faintly over long distance from Virginia. She wanted to know if her husband's company insurance was still enforce. For days before he had hanged himself in his woodshed. I had been obliged to discharge him for drinking though he was brilliant alert and one of the best organizers I have ever known. Here were three exceptional men lost to this world because I did not understand alcoholism as I do now. What irony I became an alcoholic myself. And but for the intervention of an understanding person, I might have followed in their footsteps. My downfall cost the business community unknown thousands of dollars for it takes real money to train a man for an executive position. This kind of waste goes on unabated. We think the business fabric is shot through with a situation which might be helped by better understanding all around.
President of Minneapolis Federal Reserve Bank: We Need a Full Lockdown for One Month
"Of the Minneapolis Federal Reserve. Bank is calling for America to go into a quote hard shutdown for at least a month because it's necessary to stop the spread of coronavirus and don't worry the government can't afford it. According to this guy who is the president of the Minneapolis Federal Reserve Bank here's what he had to say if we were to lockdown really hard I know I hate to even suggested. People will be frustrated by it. But if we were to lockdown hard for a month or six weeks, we could get the case camp down. So that are testing in our contact tracing was actually enough to control it the way that it's happening in the northeast right now they had a rocky start, but they're doing a pretty good job right now. Now, if we don't do that and we just have this. Raging virus spreading throughout the country with flair ups and local lockdown for the next year or two, which is entirely possible. We're GONNA see many many more business bankruptcies, small businesses, big businesses, and that's GonNa take a lot of time to recover from to rebuild those businesses and then to bring workers back in and re engaged them in the work force that's going to be a much slower recovery for all of
"big business" Discussed on New Media Show
"Now, by combined spotify for Android spotify irs combined I, take those two numbers then that takes them to let me go back up here. One, you bree four five. Six some seven. For us. They would they would be the seventh most popular platform bras with IOS android combine. I break it out by. spotify by android by Iowa. But still remarkably to me, which is really really truly remarkable maybe because we have such a heavy. wordpress power press. Slash player. presence. Chrome desktop and chrome mobile in our list. This is shocking if you or by add those numbers together. They're number two. For. US. In the out of. Actual. Interactions that's to me is that at numbers changed quite a bit over the last few months, I don't know where bought them from. But You know. So it's it's. It's really surprising here. What's going on? But. If that's good news on the Google Front if they're if they at least for us moved up that far. Now. Let me go the bottom the stack I will tell you this number. A pod puppy palm classic. Then cast. Pocket tunes. All globally for our platform got one down looney. I'm never even heard pod puppy don't even know who that is. Remember doppler. Got It got three. pod Breeze got four. Oh Google TV oracle. Okay, you want to know about So probably. But let's see if I can find the Amazon Device I. Where do they fall? Beaker smart. Speaker stuff. Oh so So believe it or not at least in our system. Pandora for IOS Pandora for android is. And if I look at iheartradio where's Iheart Burr android were they fall way down Now. IHEART for O S. Holy. Rap. IHEART does better on Android side than it does on the IRS. So if I looked at those numbers combined Pandora's better doing better. By a significant amount then Pandora is combined o significant amount double. And doing. At, least on our platform what Iheart doing? This would be a good to publish this report. This would this make would make people's People. People don't want to see this report. Is this again, this is eighty three, eighty, thousand shows. Separately, good sample. Of what's really going on? Go Down Brothers. So again, I was looking for smart speakers. On my gotTa keep on? Further. By, think it what it is talked to the testament to the strength of the of the Of the of the longstanding platform, right they're holding on to their users. you know these new entrance are. Are, not really them. Apple TV's doing almost as much as I hartz IOS APP. Almost. Equal. deesor visual deesor deesor is doing almost as much as. IHEART. IOS. Rokos doing half of what I Hartz doing. Oh there are. So Amir's kindle by Amazon while it's horrible I mean it's it's not even worth. So. I'll tell you where the cutoff is. To get Glenn the other factor on this through is how many of the shows that you work with on your platform for actually in the catalog. That the variable on the. Majority you know especially on Iheart because it. Yeah. Yeah, it's it's an interesting in that that would be a good exercise rob but I don't WanNa do the the research on that to go look and verify all those shows around all those platforms right? Because I would think that would be a metric against the what those numbers show. Yeah. You you'd be ready they're being offset. Tom Just, looking at raw numbers with no. You know. So the break off he just is as you can imagine.
SiriusXM: Simplecasts price; Pandoras decline
"Sirius, XM's financial report for quarter to twenty twenty has been released. The company owns stitcher simple cast Pandora ads with the acquisition price for simple cast unreported at the time was twenty, eight, million dollars Pandora which Sirius. Xm owns now has fifty nine point six million monthly active users that figure dropped by one point three, million in the last quarter. Poor casting is finally big business as an article for Jovana which focuses on an overview of recent deals. You'll find it linked in our show notes and newsletter today talking about show notes spotify now supports html formatting for show notes as to use the description field rather than content and coded. Lasts in American podcast report is out from Triton digital covering the four weeks ending July the fifth the top ten podcasts have seen a slump in downloads down by over ten percent the highest new entry number eleven a financial podcast from radio's Grupo Globo. has made a fancy short pass. You can type podcast dot new into a browser straight into the episode builder. It's part of Google's ownership of the new to Maine and elision claims to be the world's first podcast APP that's focused on learning and issued a statement with podcasts enriched with rich audio visuals, which the company claims his quote, a unique listening format, which enriches the audio content with text photos and links, which is a bit like. Others. And Impalas News Nice, white parents, launched yesterday. It's the first from cereal productions, a New York Times company. It's a new limited podcast series about building a better school system and what often gets in the way wight parents,
Big Tech CEOs testify before House Judiciary antitrust subcommittee
"For some of the biggest tech companies in the world are speaking before Congress as the House Judiciary subcommittee on antitrust finishes his yearlong investigation of big tech Seen that executive editor Roger Chang. One of the big questions for Facebook is whether or not they'll spin off big businesses like Instagram or WhatsApp. There've been a lot of complaints about whether or not this company is too powerful. Facebook obviously doesn't want to do that. So we'll see how Zuckerberg respond to these questions and how he pivots away from that particular conversation. Yeah, that's him. The leader of Facebook will be there. Also, the leaders of Amazon, Google and Apple will be in attendance
Seattle adopts spending plan for new payroll tax on big business
"So how to jump start the Seattle economy. One idea is the tax on big businesses. The City Council has now approved spending from the new business tax, even though it has been collected yet, and the emergency fund to help the city get through the current crisis. And Kyra's Chris Sullivan has been looking into this screwed up. This tax goes into effect next year, and so what they're doing is there's a spending $86 million in emergency funds right now, in the hopes that when they start collecting that big business tax next year, they will pay it back. The money this year will go towards some covert relief. $67 million coming from an emergency fund. 19 million From the rainy day fund. As you know this business taxes a payroll tax charging businesses that have over $7 million in payroll on their highest earners. The more you make, the more that you get taxed, starting at $150,000 then moving on up in salary. It's expected to raise more than $200 million a year. Councilmember Theresa Mosqueda authored the plan. This is pushed back against status for politics in in the middle of a deadly global pandemic, with the highest rates of unemployment and business closures ever. We are doing something that has been proven to invest in our most vulnerable to spur local economic activity and create a more resilient and equitable economy. The so called jumpstart Seattle plan will spend over 60% of the tax revenues once they start collecting them next year on affordable housing and homelessness. This is what it looks like to lift up the voices of those shut out by establishment politics of the past, who listened to what community needs who find ways to get to? Yes. This is what happens when we have folks in office who don't accept the way things have always then who aren't going to just give lip service void of action. Mayor Durkin and her economic staff asked the council to hold off on approving the spending until it had a better idea of what the budget hole is going to be facing in 2021. They're expected to get some more economic data next month. Mayor called this plan risky, considering that a lawsuit over the business tax could be coming and depleting the emergency funds. In this way. We'll leave the city with virtually nothing in the bank next year, the mayor letting this tax become law as you know, without signature because the council has a veto proof majority Yesterday this authorization for the spending was approved unanimously by the City Council.
Seattle City Council Passes COVID-19 Relief and Fleshes Out Payroll Tax Despite No Mayoral Support
"This happened in the city. Seattle City Council unanimously passed a covert relief bill and long term spending plan the bill I'll be funded by money for the big business tax that recently passed almost Tamiflu Tosca breaks down where the money is going to jump Start spending plan includes two pieces of legislation, Kobe 19 Bill and a resolution on how they're going to spend the money from the recently adopted Jumpstart payroll tax. The city will be borrowing 86 million from the emergency fund. To pay for the community's immediate needs. Because of this pandemic, an economic crisis here is a breakdown of the proposed spending as it stands now for this year, 18 million for small business assistance. 36 million for housing and homelessness. 32 million for the grocery voucher program, city leaders say in 2022 the payroll tax will eventually pay back the money borrowed for the culvert 19 relief.
Capital Allocation with Blair Silverberg and Chris Olivares
"Blair and Chris Welcome to the show. Thank, you good to be here. We're talking about capital allocation today and I'd like you to start off by describing the problems that you see with modern capital allocation for technology companies. I'm happy happy to start there. So I think it might be helpful to give. The listeners, a little bit of our backgrounds so I was a venture capitalist at draper. Fisher Jurvetson for five years I worked very closely with Steve. Jurvetson and we were financing are very MD intensive. Technology projects that became businesses things like satellite companies companies that were making chips to challenge the GP you new applications of machine learning algorithm so on and so forth and I think the most important thing to recognize is that the vast majority of technology funding does not actually go to those kinds of companies. The venture space is a two hundred fifty billion dollars per year investment space. The vast majority of the capital goes to parts of businesses that are pretty predictable like raising money in in investing that in sales, marketing and inventory or building technologies that have a fairly low technical risk profile, so the vast majority of tech companies find themselves raising money. From a industry that was designed to finance crazy high technology risk projects at a time where that industry because technology so pervasive you know really do the great work of of many entrepreneurs over the past twenty to thirty years, technology is now mainstream, but the financing structure to finance businesses not has not really changed much in that period of time. Yeah, and then I guess I'll talk a little bit. My my background is I came from consumer education sort of background, so direct to consumer, thinking about how you use tools and make tools that ingrained into the lives of teachers, parents students I was down in the junior class dojo before starting capital with Blair. We were working on the Earth thesis He. He was telling me a lot about this. The the date out. There exists to make more data driven in data rich decisions. How do we go software to make that easy to access in self service and sort of servicing the signal from the noise, and we kicked around the idea and I thought that they were just a tremendous opportunity to bring. What Silicon Valley really pioneered which is I think making software that is easy to use in agreeing to your live into kind of old industry fund raising capital Haitian. The kinds of capital allocation that exist there's. And debt, financing and different flavors of these. Of these things say more about the different classes of fundraising in how they are typically appropriated two different kinds of businesses. So. You have the main the main groups you know. Absolutely correct, so there's. Equity means you sell part of your business forever to a group of people and as Business Rosen succeeds. They'll get a share in that. Success and ultimately income forever. Debt means you temporarily borrow money from somebody you pay them money, and then at some point in time that money's paid back and you all future income for your business, so equities permanent, not permanent. If you think about how companies are finance like. Let's take the P five hundred. About thirty percents of the capital that S&P five hundred companies use to run. Businesses comes from debt. In the venture world that's remarkably just two percent. And the thing that's crazy is this is two percent with early stage seed companies, also two percent with public venture, backed companies in places like the best cloud index, which is like a one trillion dollar index of publicly traded technology companies started their life, and in with injure backing many of them SAS companies, these companies, also just two percent finance with debt, but nonetheless within these these classes, the reason it's obviously economically much better for a business and pretty much every case to finance itself with debt because it's not. Not It's not permanent, and it can be paid back. It's much much cheaper to use debt. That's why you buy a house with a mortgage show. You know you don't sell twenty percent of your future income forever to your bank help you buy a house, but the reason that people use equity comes back to the risk profile so just like. If you lose your job and you can't pay off your mortgage. The bank owns your home. Same exact thing happens with debt in so restorick Louis, if there's very low. Certainty around the outcome in typically early stage investment you're you're doing a lot of brand new are indeed you have no idea if it's GonNa work you cope. You know over time that you'll be successful, but there's really quite a bit of uncertainty equities a great tool because you're. You'RE NOT GONNA lose a business, you know everybody can basically react to a failed. Are Indeed project. Decide what to do next had saints. Equity is kind of the continent tool for high technical risk, high uncertainty investments, and then debt is basically the tool for everything else, and it can be used as most companies do for. Ninety percent of The places that businesses are investing so if you're spending money on sales and marketing, and you know what you're doing and you've been running campaigns before. That were successful, very. Little reason you should use equity for that if you're buying inventory if you are a big business that's. Reach a level of success that on. Means you have a bunch of diversified cashless. Coming in businesses might take out dead on business kind of overall, so it's less important what specifically you're using the money for, but it's important to recognize that most companies are financed roughly fifty fifty equity versus dead, just just intra back companies that. That are kind of uniquely Equity Finance. Scaling a sequel cluster has historically been a difficult task cockroach. DB Makes Scaling your relational database much easier. COCKROACH! DVD's a distributed sequel database that makes it simple to build resilient scalable applications quickly. COCKROACH DB is post grass compatible giving the same familiar sequel interface that database developers have used for years. But unlike databases scaling with Cockroach DB's handled within the database itself, so you don't need to manage shards from your client application. And because the data is distributed, you won't lose data if a machine or data center goes down. cockroach D is resilient and adaptable to any environment. You can hosted on Prem. You can run in a hybrid cloud, and you can even deploy across multiple clouds. Some of the world's largest banks and massive online retailers and gaming platforms and developers from companies of all sizes, trust cockroach DB with their most critical data. Sign up for a free thirty day trial and get a free t shirt at cockroach labs dot com slash save daily thanks to coach labs for being a sponsor and nice work with cockroach DB. The capital that is being steered towards a recipient. It's often originating in a large source, a sovereign wealth fund or family office in it's being routed through something like capital allocators cater like a venture capital firm for example or a bank. How does this capital get allocated to these smaller sources? What is the supply chain of capital in the traditional sense? You know it's kind of funny to think about capital and things like the stock market in the form of a supply supply chain, but this is exactly how we think about it so at the end of the day. Capital originate. In somebody savings, basically society savings right you. You have a retirement account or your population like you know in in Singapore and Norway with a lot of capital, it sort of accumulated from. From the population and these sovereign wealth funds, or you're an endowment that's you know managing donations of accumulated over many many years, and ultimately you're trying to invest capital to earn a return and pay for something pay for your retirement pay for the university's operation so on so forth so that's Capitol starts, and it basically flows through the economy in theory. To all of the economic projects that are most profitable, inefficient for society, and so, if you step back, and you think about like how how is it that the American dream or the Chinese Miracle Happen? You know in in both of those cases different points of the last hundred years. Why is it that society basically stagnated? You know the world was a pretty scary. Scary place to live in up until about seventeen fifty, the industrial revolution started. Why is it that you know basically for all of human history? People fought each other for food and died at the age of thirty or forty, and over the last two hundred fifty years that it's totally changed. It's because we have an economic system that converts capital from its original owners. Diverts it to the most productive projects. which if they're successful, replace some old more expensive way of doing something with newer better way and so I think when when I described that like you know I, think most people can step back and say yeah, okay I. kind of see how capital flows through the system, it goes automatically to someone making an investment decision like a venture capital firm ultimately gets into the hands of the company company decides to invest in creating some great product that people love. Let's. Let's say like Amazon and then everybody switches from you know buying goods at some store that may or may not be out of you know may or may not being stock to the world's best selection of anything you'd never wanted. The most efficient price that's society gets wealthier basically through these these kind of steps in these transformations, but it's asking if you step back and think about it like nobody actually thinks it's processes as efficient as it could be like. We asked people all the time. People were interviewing journalists companies. We work with sewn. So how efficient do you think world's capital allocation is? I've never met a person that says it's pretty good. You know we're like ninety percent of the way there. In fact, most people think it's pretty inefficient. They think of companies like you know we work, and some of the more famous cases lately of of Silicon. Valley back businesses that that totally. underwhelmed disappointed. Their initial expectations and I think most people admit that the efficiency of capital allocation is either broken or nowhere close to achieving its potential, and so we basically we'll talk more about our technology and how we do we do. We basically think of this problem our problem to solve. There's an incredible amount of Apache inefficiency in how data that goes from a project or a company, ultimately funneling up to an investor flows, and so you know it's hard to place blame because there's so many people in the supply chain, but. But I think it super clear that if it's difficult to measure whether or not a project or a business is good at converting capital into value in wealth, and you know products that people want, it's nearly impossible for society to become really good and efficient at allocating its capital, so we're we're here basically to make the data gathering data transformation visualization communication of what's actually going on under the out of business as efficient as possible and you know from that, we thank some great things are going to happen to the economy. Goes a little bit deeper on the role that a bank typically plays in capital allocation. If you think about our bank works like let's take. Let's take a consumer bank that most people think about you gotTA checking account. Right, now you've got some money in that checking account. That account actually takes your money or dot and most people know this your dollars sitting in that account. You know just waiting around. You'd withdraw them. Your dollars are actually rolling up into the bank's treasury. There's somebody at the bank working with the regulators to say hey, how much of this money can we actually put into things like mortgages, commercial loans, all of the the uses of capital that society. Has In some some effort to. To, move the world forward and make the economy efficient, and so those deposits basically roll up into a big investment fund, and there's ratios that regulators set globally that say those dollars needed to be kept in reserve, versus how many are actually able to be invested, but with the portion that's able to be invested. It's there to fun. You know building a house to fund a business back -Tory to fund sales and marketing or inventory procurement for some other business, and so a bank was was basically the original investment fund, and a bank has unlike venture funds and other sources of. We typically think private capital. The bank has tricky. Problem were any moment all of the depositors holding the checking accounts could show up and say hey. I want my money back and so that's why banks have to deal with reserving capital predicting the amount of withdraw and classically everybody wants her money at once at the worst possible time, and so banks have to deal with quite a bit of volatility now if you take an investment fund on the other hand. Totally totally different structure, so your typical venture fund will have money available to it for a period of ten years from you know typically these larger pools of capital. We talked we talked about so very rarely. Individuals are investing retirement savings in venture funds, typically sovereign wealth funds down that's. Basically pools of that individuals capable. Win One of these funds makes a commitment to a venture fund. It'll say you've got the capital for ten years. You've gotta pay back. You know as investments exit, but other than that will check in ten years from now. We hope that we have more than we gave you the star with and there there's no liquidity problem because the fun has effectively carte blanche to keep the money invested until some set of businesses grow and succeed and go public and make distributions so one thing that's fascinating. The Tappan in the last twenty five years is private capital capital in the format of these kinds of funds. Have just grown tremendously and so today. There's a little over five trillion dollars. Of private capital being allocated in this way to think like buyout funds venture funds so on and so forth. Funds don't have the liquidity problems of banks. They can make much longer term for looking investments. This is created tremendous potential to make the economy more more efficient by taking out the time spectrum. You know this is why venture investors can do things like finance spacex or Tesla. Really. Build fundamental technologies in the way that a bank never could so this is an amazing thing it. However leads to a very long. You DAK cycle, so the incentive goes down when you take out the time line over which investment needs to pay back. To carefully monitor and understand what's going on in the business day today, so it's pretty interesting thing about the different pools of capital. There's not not to. Make it sound too confusing, but I think everybody will admit that the financial markets are incredibly diverse complicated we track basically about fifteen different kinds of capital, and they're sort of pros and cons with each one, but you know a bank is one. A private fund is wanted insurance companies balancing as another. You've got things like ETF and public vehicles that hold capital so there's quite a bit of complexity and the the structure of the financial markets. All right well. That's maybe the supply side of Capitol on. All kinds of middlemen and all kinds of different arrangements, but ultimately there is also the demand side of Capitol, at least from the point of view of companies getting started which is. Startups or computer in later stage with the maybe they're not exactly considered startup anymore, but they're mature. These companies have models for how they are predicting. They're going to grow, but oftentimes these companies are very. Lumpy in terms of how their their revenues come in how closely their predictions can track reality. So how do technology companies even model their finances? Is there a way to model their finances? That actually has some meaningful trajectory. Sure so first. Companies you know need need a base think of all the places that they're spending our money and. We're pretty. We Do I. Think a pretty good job of organizing this and making it simple so when we look at companies and we can, we can talk more about how the the cabinet machine operates, but when we look at companies, we basically think they're only a handful of places of money. Get spent you spend money on. Short term projects that you hope proficient things, sales and marketing. Houston money on paying for your sources of financing like paying interest on debt, making distributions to your investors, and then you spend money on everything else and everything else can be designing software building products on, and so forth, and so if you break the demand for capital down into just those three buckets. And look at them that way. Some pretty interesting things happen. The first is for the short term investments that you hope productive. You can track pretty granular nearly whether or not they are, and we'll come back to that. For paying back your investors, you sort of know exactly how much you're paying your investors so a pretty easy thing to track, and then for the operating costs you know most people will help us. Apax, that you're paying to keep the lights on things like Renton the your accountants, the CEO salaries on and so forth these are these are table stakes expenditures. You need to stay in business and so. Amongst each of those three things, there's different things that you wanna do to optimize and I'm happy to go into more detail sort of go through each one. If you think that'd be useful. Yeah Bliss a little bit more about about how these companies should be a modeling, their revenues are that is meaningful to model their revenue so that you can potentially think of them as targets for for capital allocation so. If we think about. Understanding what company might be a viable recipient of capital? How can you accurately predict the trajectory of that company, or or do they? Would they present a model? Would they develop a model good through a little more detail? How a company would serve justify? It's need for capital. So typically what what most companies do and this is not terribly useful or accurate, but I'll tell you what most people do I mean by the way like how central the entire economy predicts, predicts demand for capital works like this. Companies take. Their income statement on their. Balance Sheet historically. And they they basically have this excel file got a bunch of you know, rose and have different things like my revenue, my you revenue that sort of linked or my expenses that are linked revenue Mukasey could sold so on and so forth, and they grow each of those rose by some number that they hope to hit so if you want your revenue to double next year, you'll say my revenue one hundred dollars today I wanted to be two hundred. Hundred dollars twelve months from now I'm just GONNA draw a line between those two points and every month. There will be some number that's on that line, and that's why monthly revenue I want my expenses. You know everyone knows. Expenses are going to have to go up if my revenue goes up but I don't want them to go up as much as my revenue, so I'm going to draw a line. That's you know somewhere less than a doubling. and. You pull these lines together on one big excel file and there's your you know they're your corporate projections. In general, this is true for big companies small companies, but that's not actually how. Company revenue works because if you go back to the three categories, we talked about before, and you just focus on the one that talks about the short term investments. The. Way Company Revenue Actually Works is a company this month. Let's say they spend one hundred dollars on sales marketing. Well. They're hoping to get a return on that sales marketing, and so they're hoping that in the next you know six months. That's paid back. Twelve months that's paid back. You can actually track every time they spend money on sales and marketing. how quickly it gets paid back so it's that level of precision that can accurately predict revenue, and so what we do is we basically just get a list of every time? Money was spent on one of these short-term investments, so you sales and marketing for for an example, and then we get a list of all of the revenue that was ever earned. And we attribute between both of those lists causing effect. And we do that using a bunch of techniques that are pretty commonplace in your typical data, company or machine learning company. We use some math things like factor graphs. We use simple kind of correlations. We have You know a whole kind of financial framework to. Guess. What attribution should be because you learn a lot as you see different businesses and you see a bunch of different different patterns, which you can basically cluster on, but it is this linkage between spending on something like sales and marketing emceeing seeing revenue, go up or down, but makes or breaks a business, and you want to look at it and I is. Not a bundled. Entirety which is how financial projections are typically built? Okay, well! Let's talk a little bit more about what you actually do so if you're talking about early stage technology companies. Describe how you are modeling, those companies and how you are making decisions as to whether they should receive capital. When a company comes to capital they they come to our website. They sign up for this system that we built which which we've called the capital machine. And the first thing that they do is they connect their accounting system their payment processor typically, so think like a strike, and then sometimes they'll provide other things like a pitch deck or a data room, or whatever other information they have prepared. The system pulls down. All of the date in the accounting system and the the payment processor, and we look at other systems to these are the two key ones that all all dive into detail, and so, what ends up happening is from the accounting system. We get a list of all the times. Businesses spend money on these things like sales and marketing that we were talking about before. From the payment processor we get a list of all the revenue transactions in crucially we get it at. The level of each. Each customer payment, and so you know we scrub I all we really care about is having a customer ID, but once we have data at that level. We can start to do this linkage and say all right look. You know this business spent. A million dollars on sales and marketing and March of two thousand eighteen in April of twenty eighteen, and we saw revenue grow by twenty percent. That was a pretty substantial chain. You know what actually happened here. You can typically identify the subcategories of sales and marketing and start to do this link between these two, and this is really the you know the magic behind our our data science in our team pairing with our engineering team to figure out this problem and solve away that is, that's robust. Bud once we have these two data feeds, and the system goes through, and does all of these attribution. Populations were able to present that back to accompany a pretty clear picture of what's going on, and so we'll say things like hey. Your Business is pretty seasonal, and in the summer is when you're typically more more efficient at converting your sales and marketing dollars into growth so I, you want to finance growth in the summer. The second thing is only about eighty percent of your businesses financeable. There's twenty percent where you might not know it because you're not looking at this level of detail, you're busy building your business, which is exactly exactly what you should be doing, but Twenty percent of your businesses, not efficient. You're spending money on on your sales and marketing categories, product lines, and CETERA that just shouldn't exist and so if you get rid of those. If you double down on the part of Your Business, it is efficient. Then we predict your revenue will be act fifty percent higher, and we'll tell you exactly how much money you need to invest to raise money to to raise the revenue by fifty percent. We give you a bunch of charts that allow you to see how history and projections merged together and dig down. Inspect how we do that linkage to make sure you agree, but. This is what the capital machine does at its core. It Converts Company data into a fully audited completely transparent picture of. How business works where it sufficient where it's not efficient. And then that's where our technology stops, and where balanced she comes in, and so we then take this information, and we make balancing investments directly in companies, and so primarily at this point we lend money to technology companies that we see from their data are eligible for non dilutive funding. We make capital available to them directly. We basically allow them to access it through the capital machine. We use one system to communicate changes to the business. No keep both sides and form so on and so forth, but this is the kind of analytics layer that's essential to making these capital allocation decisions more efficient, and so I think you could imagine a day at least for us in the not too distant future when it's not just US using our balance sheet in this tool to make investments, but in fact, just like excel, every investor can benefit from a similar level of analytics and transparency, as can companies by getting more accurately priced faster access to capital less friction so on and so forth. Get Lab commit, is! Get labs inaugural community event. Get Lab is changing how people think about tools and engineering best practices and get lab commit in Brooklyn is a place for people to learn about the newest practices in devops, and how tools and processes come together to improve the software development life cycle. Get Lab commit is the official conference. Forget lab. It's coming to Brooklyn new. York September Seventeenth Twenty nineteen. If you can make it to Brooklyn, on September Seventeenth Mark Your calendar, forget lab, commit and go to software engineering daily dot, com slash commit. You can sign up with code commit s E. D.. That's COM MIT S. E. D.. And Save thirty percent on. Conference passes. If you're working in devops, and you can make it to New York. It's a great opportunity to take a day away from the office. Your company will probably pay for it, and you get thirty percent off if you sign up with code, commit S, e. There a great speakers from Delta. Airlines Goldman. Sachs northwestern, mutual, T, mobile and more. Check it out at software engineering daily Dot Com slash, commit and use code. Commit S. E. D.. Thank you to get lab for being sponsor. The inputs specifically if you think about a model for determining whether or not, a company should should be eligible to receive capital. I'd like to know how the the models are built. The the data science models that you're building are constructed from the point of view of the inputs. So how are you determining or how do you like company comes to you? How do you turn that company into some structured form of data that you could put into your models and determine whether it's worthy of capital. Yeah I mean it comes down to what what the data is your down so when we talk to a system like striper transaction records system, you know that that's the revenue of the company now where things get interesting when we connect to balance sheets in penalizing, it's of accompanying really onto understanding. Weighing. What exactly these numbers mean, and that sort of where we made our pipelines were built from the ground up to give us that granular. Of A company's cash family revolutions. Where's the money going where they allocating? And it's savable greenway or you once. What do you understand that data through that Lens? That let's build pretty sophisticated financial models Linda. And you know as soon as you have the picture of Company You can really do a lot of flexible analysis on the back leg distributed computation. Come stuff that you would never be able to excel and quite frankly a lot of these companies don't have the stacking internally or really the tools to understand for themselves, so you'd be surprised it you know when we surface this analysis back to the company by virtue of just being transparent on how we're making decision how it is perceived their business, the signals that were uncovering. These operators the CEO's the CFO's that are really focused on building company. Really surprising. They're really making these insights really transforming. How they think they should have capital. Should invest growing business. Are there any? Sources of Third Party data that you can gather to improve decision making. There are at a macro economic sense, and so it's actually quite useful to look at public company performance and say hey. SAS businesses in general. Most people notice, but facilities in general are seasonal in the fourth quarter. Budgets basically expire and people come in, and they buy a bunch of SAS. Software and so to take concepts like that basically shapes of curves, signals and apply them to private company. Financials is useful. Crucially though there is no private company. Data repository of any kind like it just doesn't exist, and you know notoriously even even with small businesses. It's actually quite quite difficult to get access to any sort of meaningful credit data, and so, what ends up happening is these aw. These businesses. Give you a picture of their business directly as an investor and you have to interpret it directly, and that's basically how this works totally unlike consumer credit, there's no credit bureau that people paying so most investors are analyzing the state and excel. Excel notoriously breaks when there's about a million cells worth of data, and so we've got this great visualization showing our data pipeline, and it's basically a bunch of boxes, and there's a little tiny. Tiny box in the bottom of corner that's excel, and there's a bunch of other boxes across the entire rest of the page that are nodes in our in our distributed computations, but accelerate very very limited, and so it makes it impossible to actually understand what's going on in business from the source data, and it's at the source that you see this variability in this linkage between profitable capital allocation decisions in unprofitable capital allocation decisions. Describing more detail, the workflow so a company comes to you and they're going to put their inputs into the. Would you call the capital machine? What does that workflow look like in a little bit more depth? Yes when they come to the website, they creighton count much like you would on. Twitter facebook account. When your details your email, you terrify your email, and then you on what's recalling like the capital portable on there? You have et CETERA. Tools to connect your sins record and these are typical offload. So you know people are very familiar with you. You know you say hey, let's connect by quickbooks you in your credentials and sort of be as secure way, and you click okay and the system checkmark by your quickbooks in the system start pulling that data out of regular cadence and. Depending on what system you're connecting you of the characteristics of that's not go systems of record, and how much data you have you know. The data's available anywhere from ten minutes to a couple of hours later and you know once we have Dr. System, we run that through our partake analysis pipeline in the users as a company. You get you get charged. In Tableau kind of call it, the insight Saban's these refused that we think would be helpful for you as an operator company understanding about Your Business in separately. We also get views of that data that are useful to our our internal investment team. Whoever is looking to capitalization systems? Are there certain business categories that are a better fit for modeling in better fit for the kind of. Predictable capital returns that you can, you can expect with the investments that you're making so like you ride sharing or Gig economy businesses or some businesses. What are the categories that are the best fit? Say Very few categories don't shit from the from the perspective of of linkages, but they're certainly models at their easier to think through and easier to understand, but our our system can underwrite today A. Lease on a commercial aircraft, a fleet of ships and Insurance Agency ask company the most important. Thing about our system is that the financial theory that underlies it is very general, just like p. e. rate is very general, and so that's kind of sounds crazy like. A lot of. A. Lot of people say what what businesses the best fit for your your system and you know it's kind of like asking what businesses the best for Warren Buffett like Warren. Buffett is a generalist. In any business, and he has a framework in his own head to figure out how to make ship comparable to American Express our assistant has a very similar framework. It just operates at the level of transactions instead of at the level of financial statements, but certainly within. That framework there's some examples that are just easier describes I think like you know thinking through the fishing of sales and marketing something. That's a lot more obvious than thinking through like the stability in refurbishment of commercial aircraft parts, which is a key question you know. Pricing pricing refurbished parts, which is a key question if your financing commercial aircraft and Our team, the ambassadors that use the capital machine internally which we primarily do internally do a little bit of partnering with without the groups to to use this as well. These people are all specialists in some particular area, but it's crucial to understand. They're looking at the exact same chance as all the other specialists and all the other areas, so it's like literally the the Fast Company and a commercial aircraft will have the same series of charts at investors. Are there two two draw their conclusion? Is the question for Chris. Can you describe the stack of technologies that you built in more detail? Yeah Yeah. Of course on the front, we are react type script, xjs, you know everything is on aws, and in the back, and we're. We're all python, and in really the reason for that is if you're doing any serious machine, learning or data science today can't really get away in python stack, so we're all python them back in. We have flasks. As a as our API late here and That's the that's a high level. And get a little bit more detail about how the data science layer works. Yeah, yeah, yeah, of course, so we put on the dea into basically a data lake the that goes down into Ardito pipeline in that's all air orchestrated on top of each called airflow, and we use a technology called desk for are distributed computation, and I think that this is a good choice. Choice for us at this moment you know I see us doing a lot of work on. You know using a spark in other distributed technologies in the future and his team and it turns out that when we pull this data down organizing the data was really important to us as we build a lot of attractions to make accessing that data, really easy for quantitative analysts. Important central to our whole technology is that we're able to do a lot of different financials experiment very quickly on top of this so the the implications of that really cascade down all the way into. You know what technologies where choosing how we structure our delayed. Even even how strokes are teams, so it really is brought up locations across all product. How is it when you're analyzing company that you have enough data that it warrants a spark cluster because I can imagine? The financial data around the company. How can there really be that much data to analyze how you do surprised in a lot of these transactions systems taking up the companies have been around a couple of years and their direct to consumer. These data sets can be can be pretty large. You know we're talking about in the millions and millions and millions of transactions that were pulling down and storing. Storing and that just on a per company basis. You know that's not even talking about if we wanted to. Benchmarks Cross companies, and also if we want to do scenario analysis, so you know one of the things we was part of a pipeline is take this data, and through like nine ninety nine hundred thousand simulations to understand the sensitivity of different variables on the performance of Your Business and If, you're starting out with starting that already large. Sort of a multiplying effect. On how much data the system is the old process? is you go through those different stages? And, can you tell me a little more detail? What would a typical spark job? Look like for a company that you're assessing. Yes, so first episode is ribbon. Our our financial didn't ingestion parts, so we download something on the order of you know forty fifty bytes of Tim's action data for for a company. We have to do all the work to interpret and understand what that means in reorganized that data in a way that are downstream analysis and primitives can. Make sense of and use for useful analysis so really the first step at this point job is is transformed the datum some it's useful, and then there's all the work on what are the clusters in order to machines and analysis in the computational. Resources needed to run simulations. You know not not just say local computer locally owned of fall over the only about thirty to sixty four gigabytes of Ram what league, so that's where workflow comes in creating easier faces into data, clusters and being. Should you know when you run a job? You know when it fails. You know it's done. You know when the team can't okay. This part of analysis done I had intermediate date asset to do more analysis on now get back to work is a lot of the time we spend developing internal tools to make. One other thing that'll mentioned that I think's important is. A lot of the underlying technology in our data pipeline it's no different than like what a tableau or you need. Traditional BI business would have access to, but what's fascinating when you have a vertically specific domain so financial data in our case you can make a lot of interpretations about the date of the let you do much more intelligent things, and so for example we. Don't have to make your own charts as a user of the capital machine. We make all the charts for you can of course. As a business we work with. Give us ideas for charts. You can mock up your own. We we basically have an interface for for business. The I team's to to write some code if they if they want to bought when you have clients who are thinking about financial risk, financial attribution across all of the companies that we see distilling that down into a series of indicators that are detailed, but generalize -able, and then publishing that back to all of the companies that use the capital machine to run their own capital, allocation, decisions and access, external fundraising and capital. Some pretty amazing things happen in so it's only with a vertical view. You actually having these we, we call our data scientists Kwan's, but but actually having these people who you know typically are graduate level economists, thinking for the first time about using transaction level data in their analysis, which is notoriously not not available to to normal economists that you get the kinds of insights and analysis the actionable for businesses, and then in terms of the data pipeline that then means we actually store a bunch of intermediate data that's opinionated in that way, and that makes it much faster to access much easier to benchmark much more useful across a network of companies, versus just that isolated excel model that. Explains only one business. One thing I'd like to ask you about. Capital intensity so there are kinds of businesses that are capital intensive for example where you have to pay upfront for a lot of ridesharing rides, and you know as Uber or lift. His has known in much detail. You allocate all this capital two things to subsidize rise because you try to win a market, there's all kinds of other capital intensive businesses. How does capital intensity change? What makes sense with regard to the equity financing the debt financing that you are shepherding for these companies? That is a great question and be because of where you focus in your audience. You totally get the most financiers don't so. The first point exactly like you said. Capital intensity means a business consumes a lot of capital. It doesn't mean a business has a physical factory or plant or railcars, so it is absolutely true exactly like you said that there are a lot of tech businesses that are incredibly capital intensive. If you are capital intensive business that means UNI especially if you're growing, you need to raise a lot of external capital, and so it is even more important that your capital or a big portion of your capital base is not dilutive. That's that's just essential. Table stakes because what you see with these businesses, the ride sharing companies are great. Example is by the time one of these things actually goes public the early owners in the business on a very very very miniscule. KEESA that business, still if you contrast that to company like Viva Systems which I think is one of the most capital capitol efficient businesses in venture history, I think that this race something like twelve or fifteen million dollars total before it went public in a at a multi billion dollar market cap. So capital intensity. Is a synonym for dilution your own way less. Than you think when you exit entities even more important that you figure out a way to raise capital non ludicrously upfront. Some broader questions zooming out in in getting your perspective. Do a thesis for what is going on in the economy right now where you look at. The fact that We have. Obvious pressures to. Reducing the size of the economy through the lack of tourism, the lack of social gatherings while the stock market climbs higher and higher, and it appears that the technology side of things is almost unaffected by Corona virus is there. Is there a thesis that you've arrived at or or their set of theses that through conversations with other people, you've found most compelling. Sure the most important thing to realize about the stock market is that it discounts all cash flows from all businesses in the stock market to infinity, and so the value, the stock market about eighty percent of the value. The stock market is. Pretty far into the future like more than three years from now, and so if you believe that the current economic crisis and this is why there's always a. At least in the Western, world, last two hundred fifty years after an economic crisis. If you believe the crisis will eventually revert, and there will be a recovery, then it only makes sense discount stock market assets by anywhere between ten and twenty five percent. If you believe businesses fundamentally going to go out of business because of this crisis, that's a different story, but that explains why something as terrible as Kobe nineteen and a pandemic. Only discount the stock market by by roughly thirty thirty five percent in a in March, but that's not what's actually going on today as you mentioned and so stock market prices now have completely recovered. That is something that we think is a little bit of out of sync with reality but I. I mention you know we're not. We don't spend too much time about the stock market beyond that we just look at you. Know Private Company fundamentals. We try to understand what's actually going on in individual businesses across all businesses that are network to see what you know what we can understand, and you know what kind of conclusions we can draw, and so if you take that Lens and you actually look at what's happening to businesses due to Cova nineteen, it's fascinating. Some businesses like think the food delivery space have gotten a lot more efficient, so those businesses lot like ridesharing businesses back twelve months ago, there was sort of a bloodbath between bunch of companies competing in local markets to acquire customers all all fighting Google and facebook console, and so forth you subsidies drivers, etc.. That's essentially stopped. These businesses incredibly profitable, the cost acquire customers has fallen by more than half a lot of cases. The channels were slot less competitive, and so if you're running one of those businesses. Now is a great time to be aggressively expanding. Weird things like commercial construction businesses. They're actually a handful businesses that we've seen do things like install windows and doors and commercial buildings whose businesses have accelerated because all of these buildings are closed down. Construction project timelines have gotten pulled up. All of these orders are coming. Do in they're you know sort of rapidly doing it solutions? There's obviously a bunch of other businesses have been that have been hurt by by the pandemic, but our general thesis are we've studied. Pretty detailed way the Spanish flu in nineteen eighteen, you know. These things eventually go away. There will be a vaccine. Economy will get back to normal, and as long as we can stay focused on working through this as as a society and of maintain our our fabric of of kind of economic progress then. DESAGUADERO values today will eventually make sense just sort of a question of of win for the stock market, and then if you're if you're actually running business in thinking about your own performance in isolation, really being clear about is now the time to invest and grow my business now the time to be very careful with my expenses interest, get through this for the next year or however long it takes for there to be a vaccine. So the way to think about your company, if I understand correctly if I was to to put in a nutshell, is that. I think of you as a data science middleman between large capital allocators, and and start ups deserving of capital, so the the sovereign wealth funds the banks the I guess. Funds of funds. These kinds of sources are essentially looking to you for guidance on where to direct the capital, and you're on the on the other side, absorbing data and creating opportunities from these startups to source the good directions of that capital. Just wrap up. Would you put any more color around that description or or refining anyway. Yeah I mean I. think that at the core of what capital is is where the. Core Technology Ambler of sort of. The private market if you think about public markets today, you've clearing-houses like the New York Stock Exchange, and you have companies that provide analysis on top of that like Bloomberg, you know we see a tremendous opportunity to shift the paradigm where you know the place where all the financial transactions happen. is also the place that collects the data improvise information for those making these decisions and yeah, so I think capitals really at the center of making a transparent technologically enabled financial marketplace. Guys. Thank you so much for coming on the show and discussing capital, and I guess one last question is. Do you have any predictions for how capital allocation for startups will look differently in five ten years? Sure so! The first prediction. And this is happening now. I mean the the infrastructure is. In place both within. And others. Most startups fairly early in their life. Think is equity only way to do this and. So. That's a cultural shift. That's that's already happened. People are starting to ask that question. The second prediction is. Seed and series a funding will be entirely unchanged. After series. There'll be a bifurcation between businesses that. Are Really. Capital intensive gigantic rnd projects think like SPACEX. The series, B. C. d. e. enough are really about building and launching a rocket. Those businesses will by and large not. Turn outside of equity to finance themselves, but there's very few of those businesses. Pretty much every other business businesses that you see raising a series B. Serie C. Will like any normal business in the entire rest of the economy raise maybe half of that capital nine allegedly either in the form of debt. Royalty financing factoring all of the other instruments that normal companies use to finance themselves in the void delusion that will happen roughly three years her. Now that'll that'll kind of we'll see obvious obvious signs of that from very early very early base, and then the final the final thing is. Steve Case talks a lot about this. With the rise of the rest, he's got this great venture fund that invests explicitly outside the coast, so kind of the rest of America and we've seen that there's there's a pretty dramatic distinction between being a coastal business non-coastal business from capital access perspective, but there's no distinction from an actual performance perspective, and so we'll start to see some of the regional. Differences in bias sees around where capital flows, go away. And so I would maybe put that on a five year timeline like raising capital is actually much more predictable, much less biased, and that's great back to the beginning of our conversation. That's great for the economy I mean every project or business that can convert capital, two products and services that people love should get finance. No questions asked doesn't mean it doesn't matter what the color of your skin is. What background you have whether you went to college didn't go to. College doesn't matter. You have a business with data that can prove whether people love it
Following in Seattle's footsteps, Washington State plans to tax high salaries paid by big businesses
"Passage of a new tax on large employers has caught the attention of state lawmakers come. Lt's Brian Calvert is here with their plans to take this statewide representatives Nicole Makri and Larry Spring or get their way. The plan called Jumpstart. Seattle may evolve into turbo charge Washington A pair of Democrats co sponsored a bill in the last session that would have allowed local jurisdictions the option to tax larger employers. Makri tells the Puget Sound Business Journal. The state faces a $9 billion revenue shortfall over the next three years. So there's a lot of interest in a bill that would raise money by taxing Cos salaries paid too high earners, she added. That's really attractive. The lawmakers now Just as the Seattle Chamber and downtown associations have been critical of jumpstart. Makri says she expects business lobbies to decry of statewide planned attacks These salaries of high earners quoting her here, it's difficult to imagine that if done thoughtfully, one new tax is going to be the thing that will drive business is away.
Pete Buttigieg and Joe Bidens's Economic Policy
"Presumptive, Democratic presidential nominee Joe. Biden rolling out his economic policy today. He's going to travel the Pennsylvania near his hometown. Scranton the agenda slogan is build back better. His campaign team says that Biden will prioritize small business workers and plans to focus on inequalities that prevent minorities from reaching a fair economic plainfield. We're going to hear a lot more about the plan from Biden campaign surrogate. Buddha judge is going to the squad team and just. To remember that the broadcast news. What is it? Bring back better, a lot of alliteration for remember that quote from broadcast I can't remember what it was, but Yeah, BRING BACK! A lot of bs there. Build back better is the name of the former vice president's economic recovery plan. That is the work of task force between Biden and Senator Bernie Sanders the key idea. Bring critical manufacturing back to the United States with incentives for companies and seven hundred billion dollars in earmarked funding for government contracts for American firms and Research and development. The campaign says this will create eight million new jobs if that sounds similar to president trump's platform, it is. Thank you very much. Thank you all for being here. A. Last year trump signed an executive order that would prioritize American manufacturers. In certain federal contracts, the Biden campaign says trump's efforts are working and contracts to foreign companies are up thirty percent. Vice President Biden has said he'd raised three point eight trillion dollars by increasing taxes on individuals, making more than four hundred thousand dollars a year and reverse in corporate tax cuts. Now this roll today will include a speech outside Biden's hometown Scranton Pennsylvania and. And his one time rivals from the Democratic primary race remember that it was just a few months ago are out in force today to support the former vice president and his plan one of them join us on Squawk box, Mayor Pete, the former mayor of South Bend Indiana Peop- Buddha Jr here's Joe I'm just going to call you. Mayor Pete I guess we all just feel comfortable feel comfortable. Everybody does around here countering next radio. I'm going to so we understand the primary process, and you understand it as well as anyone and we've seen it on both sides. Sometimes, there is a tendency to move towards the. Basis with some of the programs, and then when when it comes to governing, maybe you become more centrist and I'm just gonNa tell you. Here's the headline for this mirror. A Biden to map and economic path delaying progressives, biggest plans and I think Kayla alluded to it that he's going to call for a moderate approach towards reviving the US economy. Is that how you see it? And is that the right prescription to win, but I think there's a lot of boldness and the level vice president. Biden wants to invest in America I. think that's not only progressive already, but it's something that people across the out. We're going to I. Think it's in keeping with Joe Biden's instance to bring people together, but I think it's also in practical terms. What makes sense early on? We need to invest in our own competitiveness. In order to grow your own, and in order to compete with increasingly powerful economic competitors like China, we need to make less dependence on Safai chains for critical goods and infrastructure light. We're seeing right now with armed soon which she's on countries like truck and we need to make sure that American workers come I to me that nets bedrock through what democratic are spout, but I do agree with you that you don't have to Iraq Democrats to see why this is a good at. was so in the plans were pretty expensive as you know. And it was pre pandemic, and it was pre-, twenty, five trillion wherever we are right now, so this is cost a lot and inflicted a lot of economic damage and. Hopefully we're GONNA. Come out of this, but it might take years so. I mean. Is there something to that that it's not the we're not in the same position to be able to maybe be as as as free-spending with some of the democratic programs. Do you think do you agree with that and? We're GONNA need to to try to pay down some of this that with our taxes. No Democrats go is one of the first to talk about deficits and the debt, but the reality is. We can't afford not to make these vestments score. We will see economy stagnate, and since we're in a moment of distort low interest rates, and since these kinds of investments every time America's none have paid off investing our competitiveness in our infrastructure in our manufacturing base. Frankly they have much irate return than tax cuts, so as economic stimulus goes. I think this is the right way forward. Of course we got to be smart about the investments remain, and of course you can't get something for nothing. But, if you look at the overall picture, where are headed? We don't have a choice and we can handle these kinds of investments if we make before it's too late to a the I think that lowering corporate taxes helped. Corporations, become more competitive. Bring money back I think it. It was somewhat responsible for what we're pretty good. Economic Times before the pandemic and terms of historically low unemployment rates across the board. And some of the deregulation. The vice president is going to reverse the at least a portion of the corporate tax cuts. Do you not think that that that that plan helped the economy, do you? Do you disagree that lower corporate rates were were a boom for the US economy, and it won't matter to reverse them. John, I'm very skeptical that those rate cuts should get hosted at credit. And by the way those rate cuts rent led directly to exploding deficits, and as part of the reason, why oddly enough not to be too partisan about this, but across my lifetime one hundred percent of democratic precedents seem. Deficits go down one hundred percent. Presences seem deficits. Go Up, but you can't get something for nothing. And will we gotta decide is what's a responsible at tat hats not deliver the kind of investments that make an economy. and. This isn't something we have to just use our imagination for we look at the evidence and the evidence across Merton. History is the one we're making robust vassals with responsible, but not excessive taxation, the gross but I. We've talked about it earlier that right now with where American businesses and how important it is to get the unemployment rate back down. It seems like not the most ideal time to raise corporate taxes now. We're going to need to pay down a lot of what we've spent. A and maybe. Rick Razor on wealthy individuals, but that may not raise enough either. Are you for a blanket raised in the marginal rate into what level? or What. What would you advise? Vice President Biden to propose for a marginal rate across the board. Well. I would advise him to look at the evidence and find levels of taxation. They're consistent with growth as they have been historically now, of course, in American history, the economy's growing much quicker under much higher marginal tax rates but I don't think we have to go back to what it was like in the in the sixties or seventies. Again. Period of in many of those faces product to depress looked online. Is You've got to pay for what you and we should be able to strike a balance in the United States, but what we can't do is continue with these deficit. Exploding tax cuts that we were told would pay for themselves. You can check. They did and now. That was before we got the situation. We are now the debts. It's why we need to make sure. We're looking at the investment side as well as the cost side what I really appreciate about the plan. That's vice-presidents laying out. Is it does? Mayor Pete just wanted to. We wrestle with this issue of taxes. All the time said it's one of the press. Two questions related to one is just simply the timing of a tax increase, and it's the question. We asked the vice president when he joined us now more than a couple of weeks back, and he said he would do it immediately. Even amidst this and the question I say is to the to the extent. There are small business owners out there right now. That are clearly struggling and trying to get up on their feet. Seeing a tax increase right in front of them. Just make the case if if that's the case you WANNA, make in terms of the timing. Of course there's going to be a look at conditions on the ground and a glass. Four months has shown us in really blunt terms. How quickly things can change and I know that a new administration will make sure that every step that takes this is consistent with what the right thing is to do based on what we see around us, but we also know is that small business will benefit from the kinds of investments that president housing. And that this country will be more competitive one and were not successful. When we're investing the foundations, no country can't get away with disinvesting in education in infrastructure and research the way we have, and for a very long and the longer you go disinvesting and all that. The the sooner it's GonNa catch to you for small and big business away, and you know we already reached a point. Where even when there were low unemployment rates, the American standard of living was not secure life expectancy down. It raises questions about how our economy has been lined up. This is a historic opportunity to make sure that it's working for more Americans and made just GonNa fall with with the other big debate around this table a lot. is about wealth, the the wealthy and philanthropy yesterday? Warren Buffett gave away two point nine billion dollars and. which is a great thing and philanthropy, and by the way has helped even during this pandemic in a meaningful way, but oftentimes those shares are never taxed as we all know, and so the government will never be a beneficiary and other taxpayers won't be a beneficiary of those successes. Do you think philanthropy should be taxed in any way well, it would make more sense for that to happen on the front end. Look, it's it's wonderful one. There are these major commitments such generousness by. Individuals, but we've also got to ask how things got so unequal in the first place, because if a little bit more that was making its way into a democratically guided process in other words, the kinds of Research and development that invent trillion dollar ideas like the Internet itself and Space Travel. Are we know our country is better off, and we gotta ask where the balances I would argue. Look thing about this. In the United States right now there is not one county, not one. Where a fulltime minimum wage were can't afford a two bedroom apartment time. There's somebody works for a living in a job fulltime. Can't afford to bed in the part. I would argue that if that were the case. If we had higher wages and more public investment, we wouldn't need to knots landing quite as much as we did. Mayor Pete the one thing that President Biden's plan has in common with President Trump says that it it really leans intimate in America and not just from a position rhetoric there looks like there are going to be real incentives real penalties to companies if they're not making things in America. Do you think globalization is dead? I don't think we have to choose between closing ourselves off investing in our own country on the contrary I think global. Market, we are more competitive when we are starting right here at home made in America is really news and the vice president's fine America initiatives. Really good news for us here. The so called belt where we know that we are Cape. Producing some the finest goods in the world, but there are so many loopholes or waivers in the system and. I think you all report it. You know. Australia's actually gone up an awful lot under this administration so I don't do this since. The president. Fighting. I view it as an opportunity for us to make sure that taxpayer dollars benefit American firms and workers first,
Seattle City Council approves new tax on big business
"A new tax on big businesses is expected to get this Seattle City Council's approval today, the tax would raise more than $200 million a year for affordable housing and other community development projects. The Seattle City Council Budget Committee already gave its approval. If the full council does the same Mayor Jenny Durkan will have to sign off. Two years ago, the City Council approved attacks on big businesses. But a month later, that tax was repealed after the city got pressure from companies like
Airline Cash Flow
"All right our first story comes in from our Listener Linda. This is from one mile at a time surprising statistics about mileage, plus about united, mileage plus. In, we see that united has announced financing in the amount of five billion dollars secured through the airlines loyalty program. This is part of their to have seventeen billion dollars in liquidity by the end of September. Separately CNN reports that that's three times the cash. They normally have on hint. Of course all the airlines are. Struggling essentially with their cash flow situations and they they need to have. Cash on hand united is amongst them of course and It's it's an interesting strategy to take their mileage plus program and leverage off some financing based on that and the findings. He's GonNa come through Goldman Sachs Barclays. And Morgan Stanley and united will have seven years to repay that. These affinity programs like mileage plus our big business for the airlines united estimates that the value of their mileage plus program. If it was a standalone business, would be twenty billion dollars, so there's a lot of. A lot of revenue that changes hands here. We need Dan back as guest to explain all this 'cause. I tried to read how they mortgaged their frequent flyer program to raise five billion in my head started to hurt. Well I'm just thinking I I'm GonNa. Leave the show early right now because I'm GonNa, go start the airplane, Geeks, mileage plus program. I mean there's this is a twenty billion dollar business. We're wasting our time here, guys. I know it's It's pretty amazing so. The, the partners United Partners Pay United to award miles to their own customers, so says things like credit, cards and hotels when you earn united miles or mileage plus miles by reserving at a hotel or using a credit card. United gets a piece of that action and it adds up to quite a lot. So that large part of it comes from selling miles to other airline programs. I didn't see them call out specifically income from credit cards for example card I use most often still is the united mileage plus a credit card. I would imagine they must be earning. Some money from chaser manages that card. Even My my Hilton Program have the option the option of taking my awards, my my points, basically that I earned from staying at Hilton, properties and I, either get Hilton points which I can redeem for rooms, or I can get united, miles well Hilton. Kick something that United Four that for Hilton. There's value because it's you know. It's a service can offer its customers. If you look at the one mile at a time website. It gets down to break some of the stuff down. Like seventy one percent of the cat is offer twenty, one, thousand, nine hundred. Seventy one percent of the cash flow is from sales miles purchased by third party partners. But then when you look at how it was redeemed, ninety seven percent is redeemed by. using it on united. Right for travel, in yeah, only three percent of those milder redeemed for non travel rewards, it does make you start to wonder if the the planes are just kind of you know aside business. Instead they're making money off of mileage plus baggage fees. You wonder at some point Could this be one of these businesses where you know you give away the the razors for free, and you're making it all on selling razor blades. Absolutely I am particularly these days, but even you know even without the huge drop in air traffic is the result of the pandemic. Even before that the aircraft, just the promotional item Eb. Senses Yeah and in some in some way, so it's it's a really interesting business. It's not always what you What you think we also see here that you united his made an SEC filing an aide filing in in that filing. We learn a little bit more about the program. that united mileage. Plus program has over a hundred million members. And that fifty percent of United's flight revenue comes from mileage plus members. Which is that's? That's pretty high. Also the mileage plus program generated five point three billion in cash flow from sales in two thousand nineteen, and that's roughly twelve percent of United's overall revenue. So, Oh, another interesting The number here is it. The mileage plus program generated one point eight billion dollars in Eba, DA, which represents about twenty six percent of their total adjusted ebitda. That's. earnings before interest taxes depreciation and amortization. So that's that's sort of a A. Year of earnings from an operating standpoint, twenty six percent of united's basically operating earnings from this mileage plus
Nick Winkelman - Athletic Performance & Science Expert
"Welcome to episode fifty two of the functional tennis. PODCAST I'm your host Fabio, Molly, this week I've stepped outside the tennis world to speak to nick. Winkelmann Nick is highly regarded in the area of athletic performance and size, and is recently released a book which helps coaches communicate better without leads. It's a great chat and parts of the conversation. Bring me back to why start at funk's attends instagram account four years ago nearly two this very week. Nick has kindly agreed to offer discount for his book. The language coach which we share with you at the end of the show before we start a quick note to say, we launched a new tennis man that. Easily record tennis practice. Her matches which are phone don't always five hundred grams easily fits your racket by. And you can set up in seconds head of her website at functional tennis dot. com to get all the details. Finally shedded or podcast sponsors head who make amazing tennis rackets our favorite here at functional tennis. Okay, that's chat to nick. Hi Nick Welcome to the functional tennis podcast. Great to be here. It's great to have you on a I was asked by some friends of mine who work in the tennis street national coaches. I should get on the podcast so excited to have you on, and you're not our usual guest. You don't directly work in tennis but I. Think what you can offer can be really valuable to our. Our listeners who are mix of parents, young players coaches on so federation director, so it's going to be really great chat book before we get started. Can you tell our listeners a bit about yourself? Yeah, so I've been a string conditioning coach now for over fifteen years in, and maybe we'll kind of work from presidents to path, and so my my current role is as head of athletic. Science for the Irish rugby football you over here living in Dublin with my family, since two thousand fifteen, and just to give people insight into to what that long title actually needs. I have the fortunate opportunity to work across all national and our four provincial teams overseeing if you would in supporting the division, the execution and an application of all athletic performance and sport science. Let's say initiatives, which if I'm on very much so in lockstep with medical nutrition and rugby staff, but the really cool thing about. About Irish rugby is if you would we operate like team of teams, and we have the domain level weeds working for Irish rugby, then can support and connect all national and provincial teams, and obviously arm into supporting our domestic game as well and so my my role is probably seventy percent on the leadership, the vision coach, education side and thirty percent on the ground, but does background very much so in the trenches, helping people get bigger faster stronger for teams fourth primarily, but yet that interest prior. Prior to coming to Ireland, I worked for a company called xhosas orally athlete performance for the better part of the decade, and that was a Phillies high-performance company that is a multinational works across the United States in very country in private high performance, which is pretty big business in the United States in what I did. There was throughout the year. The string conditioning coach go primarily. My area was working with athletes transitioning into the NFL notably by the NFL. Combine and so I would help collegiate American. American football players physically prepare themselves to go to the NFL combine which happens at the end of February and the physical interview of sorts where they go run a forty vertical jump abroad job done so it's fairly big business in the united. Thanks to help. Let's say guide. These players transition to the combine to the draft, and then inevitably to the NFL and the other half of my job, so to speak was most certainly in coach education, and so it's always been a huge passion of. And when I started with excess, we were running these kind of weeklong coaching mentorship programs in Phoenix Arizona and by the time I left ten years later we at online certifications in running courses in over twenty five different countries, and so very much I see myself as one part coach and one part, a coach educator, and in kind of the reds thread throughout that really is just that it's my interest in coaching, interesting communication, or how he is moved it professionals whether you're a parent or a tennis coach. How? How we impact to others and their ability to learn to move through our language to our
Seattle Councilmember Mosqueda proposes competing big business tax
"The pandemic is feeling another plan to tax big big businesses like Amazon in Seattle city councilmember Teresa Mosqueda proposal would bring in about eighty six million dollars for coronavirus relief and raise up to two hundred million dollars a year for affordable housing The Seattle Times says the plan has some business in union by end but in a statement the downtown Seattle association said we continue to believe taxing jobs is bad public
BlackLine and LOOMIA
"You, for the kind introduction and I was so excited to speak with theresa and Fatty Day, because evolve have big. Businesses and I find that sells is something that can be really hard to hire for and really hard to learn. A lot of my background is on the product side so. We can make prototypes. We can get things out there. We can handle inbound, but when it comes to having a really strong smell strategy including hiring a sales voice. Something! That's been been tricky over time, so I wanted to have this conversation to get as much advice as possible about how you went about finding your sales hires what you looked for any challenges you had along the way. I love it awesome. This is my favorite kind of conversation so many ideas Matt. Let me ask you a question, so maybe can you describe it in like a minute so that we can maybe give you also some specific advice in your case, so how many? How many customers you have today, what is the enterprise sales cycle? Look like how long did it take? What's the average customer take? Do you have any sales reps like? Can you paint a little bit of the picture? Because maybe then we could actually give you some specific like actionable things out of this. So our team is very small and we're four people and we just brought on. To people went to help kind of conscious and sales. I'm in another person to help execute in sales, but there's not somebody who's full. We wanted to kind of test and see. What we liked to get a handle of this situation, we have about six customers or so are we generally sell to large businesses, and especially, because the product that we make is very hardware focused. It was really around the beginning of last year we were able to get to market in a meaningful way when we were able to have samples were like this. Versus like imagine what you could get. Rich is a really different process to last year. We say on a few fortune one thousand companies. This year we're hoping to bring out a few more, but as he mentioned as. Her and I do most of the sales calls, and at some point for these really high attached cells processes. It really doesn't scalp very well, so I think that in the past we felt a little burnt by certain sales hires, and so we're trying to think okay. How do we re strategize everything about this differently? In order to be able to hire better, and because I think for the company to grab, we definitely have to have to have someone. Well. Let's turn to our expert Therese, Tucker. What's your advice to Mattie? Mattie I like you don't come from a sales background. And I definitely made plenty of mistakes in the early days and I have to tell you that the first really capable sales leader that I hired made the difference between the company succeeding and failing okay, but before I found him I definitely went through a number of. Different attempts at trying to find the right people, and it's difficult, because people that are in sales can talk a good game right just about all of them, and that may or may not translate in terms of. Performance now with that you have to think about the kind of sales culture that you want I did not want a sales culture like some of the other software companies that I've worked at you know there are certain software companies that have reputations for people, basically just brawlers. They grabbed the prospect, and they throw them on the ground and stomp on them until they get a deal I've had a few of those okay again. That's not something that necessarily comes through in an interview, because everybody's on their best behavior in an interview, so you're GONNA WANNA. Look for proven success. You're going to want to look for culture alignment in terms of the culture that you're setting for your company. For your early sales. People I would suggest that you do options. A really good salesperson can work anywhere I mean they really, can't they? They've got all the options in the world right I mean in. Actual you know they can go anywhere. And so why would they come to a small company that may or may not succeed in a new market. So, what is the carrot to get somebody WHO's really good? And, typically that would be stock options that gives them tremendous upside.
Airbnb Gets Boost As Domestic Rentals Surge
"Course tourism is big business in Maine and the state plans to quadruple its corona virus testing capacity during peak tourist season which would be next month and all across the country CBS news correspondent Peter king tells us there are some indications that the travel industry is making a comeback Airbnb is among several vacation rental companies reporting increases in enquiries and bookings company CEO tells Bloomberg dot com that long planned long term vacation seem to be out more impulsive bookings in with long weekends sometimes becoming longer vacations this after months of people tired of being stuck at home here in Florida ban on vacation rentals ended a week ago for most counties and with central Florida theme parks reopening industry experts expect demand to
Engine Competitions for B-52 and F-15EX
"Wings mount to the pile or the pilots of the wings, and then a complete cockpit redesign. So. They're actually asking for eight engines and think young not to Max Flank and give us much more details, but think of these are the engines that are like on the back of big business jets. Yeah, yeah. We'll. We'll talk about those in just a second I. IT might be worth mentioning that previous on even Wanna use the plans, but in some cases plans in some cases, proposals or ideas to re engine. The the B fifty. Two's did include going four larger engines at at one point, they were looking at for Pratt and Whitney pw. Two thousand engines are the military designations F. One seventeen. which is what you find basically on the seven Boeing seven five seven and on the on the C. Seventeen. At one point, there was a proposal for four least Rolls Royce rb. Two eleven engines That didn't go. there was Competition at one point proposed between that are be to eleven, P, W, two thousand and also the CFM. In jains, which is what's on the Boeing seven three sevens and some other things. But now we're looking at. It's called the commercial engine. Reengineering program will redundant. They're the commercial engine reengineering program CRP or I guess we call that. SURP- well I. It's kind of funny because we've got now a commercial space program, this is a commercial reengineering. One of the things we've talked about recently. especially with military aviation is. Using off the shelf components for whatever whatever the need is not creating a specific, a specific mission, specific platforms, specific engine or electron ix, but what using what's out there to do that? So that's really where we're going with this and like Brad said. The the engine pilots in the structure they wanna keep as simple as possible, and this has been kind of a trend in believe it or not. The warbirds circuit. The recreated emmy to six choose. That were replicas. Have the NACELLE 's built for the. Engines from world. War Two, but have more modern engines hidden underneath them so you're you're so you're getting the same look and you're getting the same thrust ratios. ETC, but you have a more powerful much better engine, so they're. They're looking to keep the eight eight engines for balance and for. If you lose one on takeoff, etc, so and so max taken away with what are our choices? Envelope, please you have from from General Electric well, there's actually to possibilities, but one is the t.f thirty four, which has launchpad said is popular on many. Many Biz jets it's also a very to that is what powers the eight ten actually So that's that's one possibility, and that's an engine that's been around for you know for a while. It's very reliable. It's a good engine. Another possibility from GE is what they call their their. Passport engine, which is a newer newer design that GEE is working on for for a regional and business jets. so that's from. General Electric from Pratt and Whitney. There's the PW eight hundred. Series, which is also a an engine for regional jets and business jets, which is produced by pregnant Canada and it actually has the common core with the geared turbofan engine, except it doesn't have the big high bypass fan, and it doesn't have the gear, but the core of the. Pragmatism you. Eight hundred series engines the same as the geared turbofan. In from Rolls Royce. We have the F. One thirty, which is the military designation for the commercial. be are seven hundred series, which is another business jet. Engine so these are smaller diameter than the high bypass turbofans you see on seventy three seven's a three thousand family series in all of the others smaller diameter, but it turns out not a whole lot different from those t.f thirty-three engines. Their stuffed into the into the beef twos will as our insider into the engine world in our ringer. Where do we put our money on the bet I'll. Pick. Pick a winner now, so so the air. Force will have a relatively complicated or complex system for evaluating the proposals. Will take into account. A number of different factors in in this case. Some of those factors will include things like fuel burn because. A more efficient engine requires less aerial refueling. That's a that's a good thing. It'll include things like maintenance costs. What are the you know? The life cycle maintenance costs a variety of different other aspects to it I don't know if engine maintenance proposals or plans, or are going to be associated with these, or or not, or if it's you know, the maintenance is going to continue as it has with t.f thirty-three terms of WHO's doing it I don't know, but it'll be A. Interesting process, this is actually the sort of the second phase of this This proposal process the the the three of them in the first phase. If you WANNA, call it. That created digital prototypes. This is very interesting I. I don't know if this has been done to this degree in the past, but the since the first round submission from the three engine makers was a digital prototype submission, but the final proposals is comes up really fast July. Twenty second is the deadline for the air force the government to receive the final proposals.
"big business" Discussed on Think: Sustainability
"There are various frameworks designed to regulate and monitor commitment set out by companies want. Such framework is corporate social responsibility. Al-siyassah a whole set of policies organizations can adopt to prove. They're trying to do good. As they pursue prophet this can be shown to relevant stakeholders government regulators consumers or workers. The idea is that organizations try and particularly for profit organizations. Try and build some of sustainability and social environmental sustainability into their business model. Just don't burn and chair and everything around him but Peter says even these frameworks of being used as a sort of marketing tool. It has also been argued that corporate social responsibility is something of monks. Great that once a gain it is used to market an image that may not necessarily be Telling of the essential business model imply so for example you see a lot of corporate social responsibility a lot of Airtime given to see his in The most controversial industries I'm whereas organizations who have nothing to hide tin not need to want a corporation responsible at the program so again we get into tricky tricky areas. They away in large oil funds. For example talking about how They abide upon a sustainable business model. Which is clearly lenders and And in far away from the truth it certainly makes you raise an eyebrow get these companies that make these promises about sustainability but then on the other side the other practices that they do are in fact damaging to the environment. So there's been various studies that have shown the organizations invest. The most serious are the ones that are doing the most damage Tobacco companies or a great example. Who have huge elaborate in California? Very very plush CEUS POLICIES. Just check out One of the big players Websites in you'll see what I mean. They are really kind of investing heavily. Endless and pay two suspects. The muddle isn't fooling anyone from the consumer on the straight to the SASSA offices themselves and it's interesting because see us has been around for Wallin's being critiqued along and I'm not too sure many people you know on the street. Really buy it anyway. Make sure what the cynicism runs very deep is and I'll think what what I'm saying here is controversial. We got out onto the street us. Typical person that probably say exactly the same. So it's interesting. It's an interesting that it kind of continues and a lot of money spain-poland And the keeping up appearances but no one really believes at least of all. This is our officers that are designing these programs. I I suspect Cesar has been around for about forty years and pay. Taxes are worse now than they once were when it comes to greenwashing and it's difficult to really figure out way in genuine marketing shifts into you know that blurry that blurry line shifting into of misleading marketing. It's difficult to see that line and therefore I think that accountability is very very difficult to Place online time if information isn't always clear If you relied on the organization provides information as well and this is why I think that when it comes down to it if we're really truly interested in Sustainability Hamer truly interested in reducing carbon emissions. And so on are really isn't really isn't going to do the trick.
"big business" Discussed on Fresh Air
"Best teams. Kovic nineteen has up ended. Our lives shaken us from all sense of security. When it comes to pandemics we just are in. The cycle live panic and complacency. We'll see if this one puts an end to this. I'm how can we protect ourselves against future global outbreaks that's on the Ted Radio Hour from NPR? Subscribe or listen. Now this is fresh air. And we're speaking with New York Times economics reporter Nelson Schwartz. He has a new book about the special services now available to the super rich and their impact on our social and political relationships. His book is called the Velvet Rope economy. Let's talk about what we as a nation and an economy are going through right now Have these heightened distinctions for the super-rich affected the experience of the pandemic? Yes Basically you know one of the most striking aspect of the emergency of corona virus is the inability to get tested enter. Concierge doctors One concierge doctor. I spoke to rounded up viral. Swabs ahead of time. He had the foresight to do that. He was able to arrange testing for his clients When others couldn't get tests Leslie Michaelson Of private health. Who We talked about earlier. He has been able to connect Clients for tests. I mean he emphasized that it was only clients who met the CDC guidelines. They weren't jumping the line. But the bottom line is these concierge. Folks can get you tested when other can't get tests or waiting hours or days for tests which is really something Then they've they've done other things like they've been able to get oxygen concentrator 's for people with underlying conditions And to you know to head off Cova died covert situation. So they've been they've been very active and it's not bad to have a second home to retreat to if you need that for social isolation yes. I mean in. I'm on the Upper East side of Manhattan and Park. Avenue is a ghost town and the parking lot where I go to half. The cars are gone. Many many people have gone to the Hamptons gone to Nantucket Martha's Vineyard to the point where local authorities in these places are asking New Yorkers or people from the cities to stay home because they can't handle They can't handle a deluge of Cova cases. And then there's things like Internet access right. I'm in the poorer never more important to be able to connect with your teachers and your friends. Not Everybody has that right. I mean school is now done via zoom or Google hangout and high speed Internet connections. Are Everything for Kids and you know. Many many kids don't have that many families don't have that and again. I think you know people say we're all in together but to me. This pandemic has exposed these class differences and And and I think in the future I think it may help. Customers Medicine People may say you know I wanNA concierge Doctor. Something like this happens when we see all of these services that that spare the wealthy the inconveniences of every day live and in some respects kind of distance than from the experiences of ordinary people. What do you think the impact is on all of us on the kind of society we have? I think it's two fold. I think the rich and even meme members of the upper middle class become more disconnected and really don't understand or relate to how ordinary Americans live and I think the result is less sympathy less empathy and a sort of a harder edge society and I think the other side of the coin is that there's a lot of anger among people who were not Benefiting from these kind of privileges who don't have the kind of convenience of skipping the line and I think you see that anger in politics I mean whether it's Donald Trump or Bernie sanders or other politicians. You see that free floating anger out there. And that I think this kind of stratification contributes to that where people have less in common with one another and there is a feeling that we're on together and instead it's each man for himself. I think that leaves people feeling more angry disconnected. You don't have to say you're in New York. You didn't flee what's your daily experience like basically my wife and I in two young daughters age Six and three are confined to a two bedroom apartment and I think the the the hardest thing has been. There's a park a of blocks from our house. That has playgrounds and I would take them there in the afternoon after school after you know virtual school on the computer and To stretch their legs and run around and scoot around on scooters and the last week they closed the park. So I think that's been that's been really hard. Central Park is still open. But that's where we're at sixty nine and I so that's a bigger walk for us to Central Park. I mean it's it's hard I think for people who are cooped up but part of me feels sort of proud to be staying in New York City. I'm not going anywhere. Not Fleeing the ship. When things are tough in one of your earlier answers we could hear an ambulance in the background. has a New Yorker. Is this a more common experience ambulances? Yes yes I mean. In all honesty I live near Weill Cornell Hospital so you do hear Hamlin's lot but we are hearing them quite a bit and I mean you don't know obviously as corona virus but with each one you here. That's what you think. Let's talk a little about the economy. It's obviously undergoing a huge shock. Is there any historical comparison that is meaningful here? Is this anything like the Great Depression? This is unprecedented in terms of the speed. At which unemployment is risen. Seventeen million people have filed for unemployment insurance. That's going to go to twenty million this month unemployment's GonNa go to fifteen percent just the speed. It was so many people have been put out of work. I mean the Depression in the Great Depression unemployment was higher Reach Twenty five percents. But I don't know that it's going to this high but the idea that you could go from three and a half percent to fifteen percent in two months is pretty incredible. Does that say something about the kind of economy we have that? These jobs are so tenuous and easily destroyed. Well what it says. We're a service economy and these jobs are in services and you know. There was a time when the economy was more built around goods producing around manufacturing. But that's not the case anymore. We're service economy and things like leisure and hospitality restaurants hotels gaming things like that form a large part of our economy today. And it's they're vulnerable to shock. And that's what we experiencing right now and not to sound so clinical about it. The interesting thing will be how long it takes for those industries to get back on their feet. No one really knows that at this point. Everybody's kind of guessing that but I have a feeling it's GonNa take a little bit of time before all the restaurants and smaller establishments get up and going and that's GonNa take time to get people back in the workforce right and you've talked to a lot of economists when these restrictions are lifted. What did they say about what kind of economy? We're going to find how many of these jobs are even going to exist. You know there's different theories. There's a v-shaped recovery. Which sort of what? It sounds like Avi like things bounced back quickly versus a U-SHAPED RECOVERY. Most economists for cu shape recovery in that things will not bounce back so quickly. It's GonNa take time for restaurants to reopen. You know something's we will reopen more quickly like stores or movie theaters. But you know I think you know you talk about small business. You're talking about small restaurants. How many of them are going to have the resources to reopen plus I don't think the all clear is in a lot of this. Depends on what happens. Medically in health and terms were public health perspective with the virus. But if it's not it's not clear if the all clear is going to sound instantaneously so I think there's a lot of economic pain right and I know no one wants to worry about the measures to help people you know. The importance now is saving lives and preserving people's economic wellbeing. But this is a huge amount of money. Wh- what will be the impact on this on the federal deficit and the economy? Well the federal deficit is going to you. Know be blown out Hugely and the national debt is well. The thing is if you don't do this there's not going to be much of an economy left to kind of bounce back. I mean the program seemed to be helpful. I've talked to small businesses. Who say there's this? Pp program where small businesses can get loans You know whatever logjams our cur and sort of ministering at the small businesses. I've talked to say it is helpful. And it is enabling them to keep some workers on the payroll and keep afloat enough so that they can reopen in May or June or when things go back to normal. So yes it's yes it explodes the deficit explodes the national debt on the other hand. You know we have. We don't have much choice if we want to have an economy to come back to we'll Nelson Swertz. Thanks so much for speaking with us. Great Nelson Sports reports on economic for the New York Times. His new book is the Velvet Rope Economy. How inequality became big business. Coming up Maureen Corrigan. Says Books are essential cargo? When you're coping with stress. She has recommendations for reading during the pandemic. This is fresh air. There's no getting around it. The Corona virus pandemic has upended everything and daily decisions made by the White House and Congress will radically impact the human and economic toll to keep up with the latest join us on the NPR politics. Podcast will cut through the noise and let you know what decisions are being made and how they affect you support for. Npr comes from whyy.
"big business" Discussed on Fresh Air
"Going to a ballpark. Socially new part is walking all the way through the park and getting a look at the game from the different angles. That's not so easy in these new stadiums as you know that sort of the opposite of what this new velvet rope stadium is about. I mean I went as a kid with my grandfather went Yankee Stadium. You all would go in through an entrance with everybody else. People sitting in all parts of the field people from all kinds of backgrounds. And you go through this huge hallway and then you'd kind of filter through two different areas and you know but basically the food options were hot dogs or Nachos that kind of thing in the new Yankee Stadium you have legend section which is which I paid seven hundred dollars for two seats exercise right. Yes yes but you know. I'm not allowed to accept comps For something like that so I I as part of the reporting for the book I paid for it out of my own pocket and You know it's a totally different experience. You know you're kind of waved through like your old friends you know with with the security guards and then you enter this food hall which has food from Gourmet New York restaurants and They have hotdogs and other other kind of stadium food but they also have you know like lobster tails and crabs legs and stay. Can you name it? They have it. And you know you're totally cut off from the arrest of the stadium and from other fans and You take your seat. People aren't really watching the game. They're looking at their phones or making deals. And then you know when you're sitting in your seat you can walk down to the field and try to get an autograph or talk to a player but if you're farther back you can't do that. There's what the fans call a moat that separates the rest of the stadium from the legend section again. That seemed like a metaphor for what happens in sports and the way it's become so stratified that ordinary fans can't even go down to get an autograph anymore. You right at the end of the book. About some businesses that have succeeded by taking down the velvet robe and treating people more equitably. Tell us something encouraging yeah I mean the most profitable airline of all time is South West and southwest doesn't have classes and I think southwest shows. You can have more Galateri envision and still succeed beyond you know all measure I mean you know Delta American wish they were as profitable southwest so Southwest has done it. I look in sports. I look at the Green Bay packers which is fan owned. So that makes it easier but They redid their stadium a few years ago and they have luxury boxes. I mean it's not Socialism it's not it's not Bernie Sanders idea football but In Green Bay. They've stripped try to make the fan experience rewarding for the ordinary fan and they've kept some of the best seats as regular boxes and just not try to make it such a stratified tiered experience and then I write about golf course called Bandon Dunes in Oregon. Which is just a great great course but the owner charges prices that he feels make it within reach of ordinary golfers and So not as elite as sort of the masters or something like that Nelson Schwartz reports on economics for the New York Times. His new book is the Velvet Rope Economy. How inequality became big business. We will continue our conversation in just.
"big business" Discussed on Fresh Air
"It's for the advice finding scouring the country and finding the best treatment and the best people. Yes exactly you also write about the wealthy and their advantages in getting their kids into good schools. I mean this is. It's not shocking to hear that this happens but you write about a company called Ivy Wise Ivy as an Ivy League. What does this outfit provide I? V. Wise provides college counseling. But they are now you had for years. Even since I was a kid thirty years ago you had college counselors. But they have as bad as much in common with the normal college counselors as Jordan. Slain does with You know a normal concierge. Doc Ivy wise employs former ivy league admissions officers and they can provide what economists call asymmetric information in namely they can say you know. The Dean of admissions is really interested in South East Asia. We think you should do an internship or a summer travel to Cambodia and write your essay on that that will appeal to the dean of admissions. Or if there's an athlete applying for school they'll say you know Cornell Needs Goalie Columbia doesn't apply to Cornell and that kind of a symmetric information is very very valuable and then they do the the normal kind of stuff which is sort of advising essays. Advising on what schools to apply to talking about course loads that kind of thing but what struck me. Was this the information quality and the idea that they employ all these former Ivy League admissions officers. Who can really give you the sort of get an idea of you. Know being in the room where it happens to us the Hamilton Line. Yeah I'd ever heard of a revolving door for college admissions officers. Do they pay more than college? Admissions officers get doing their jobs. And what does it cost you to hire Ivy wise? Yes Basically Ivy wise admissions counselors make much more than they would Working College admissions offices and taken charge as little as thirteen fifty for a starting fee up to one hundred and fifty thousand dollars. It really varies quite a bit. Who you see at the firm if you see the firm's founder Cat Cohen. She charges a minimum of one. Hundred thousand dollars each family so Then the families will go to Ivy wise beginning very early on in the process like several years out so that work with them for for years. Sort of hewing there Core schedule sort of shaping. Their admissions effort just years in advance. Wow advising you on like whether you should be in the chess club run track. Yes yes and what and again sort of thinking? About what college is you want? And what that college is interested in Nelson Schwartz reports on economics for the New York Times? His new book is the Velvet Rope Economy. How inequality became big business. He'll talk more about the impact of privileges for the rich and how they might affect the economic recovery. After a short break also book critic. Maureen Corrigan has some recommendations for reading..
"big business" Discussed on Fresh Air
"Schwartz writes that the privileges of wealth go far beyond convenience. They have big advantages in securing the best medical care and education for their children as well. I'm working from home these days and I spoke to Schwartz. Who's at his home in New York? His new book is the Velvet Rope Economy. How inequality became big business Nelson Schwartz. Welcome to fresh air. Great to be here so this book has amazing stuff. That I didn't know is available to the super rich. A lot of it involves enhanced recreation experiences and a lot of involves hassle free transportation. Let's take air travel you know. Everybody knows they're the chore of getting to the Airport Standing Security Lions walking between terminals waiting at crowded gates. What services are available if you have the money to avoid all this well basically You can avoid ever having to wait in line when you're flying The the most sort of striking example to me was in la where there's a terminal within a terminal and it's called the private sweet and for about three or four thousand dollars a pop you can have a separate entrance to the airport. Forget a separate entrance you know for the law and for the plane. You have a separate entrance for the airport. You wait in a you. Know a separate waiting area. We can have canapes and and relax and there's no hassles or long lines and when it's time they take you directly to the plane that's again that's at lax at other airports. I mean if you're an elite frequent flyer you have a separate entrance to the terminally over separate line. You Board the plane separately. You really don't come into contact with ordinary flyers and I think that kind of explains why flying can be such an assault of experience because you know for normal passenger. That's what it is whereas for the elite who make up the bulk of revenues. It's you know exercise inconvenience right and the private suite at the Los Angeles airport. You said three to four thousand dollars per flight. Yes yes and it costs something like that to join but it could cost per flight and that might sound like a lot but for Hollywood studios. It's much cheaper than booking a private jet for a flight so for them. It's it's a bargain. And if you have to go from one plane to another or to get to the plane you're not walking through these long corridors right. No one of the most interesting Sort of features for elite flyers. It's fewer super elite frequent flyer on Delta like a member of Delta three sixty that's their frequent flyer club. There's something called surprise and delight so if you have a tight connection Porsche will meet you. And take you on the runway from airplane to airplane and deposit you right at your departing flight and you can't book it in advance and what's interesting. Psychologically this sort of creates a tremendous bond between the passenger and the airline. I mean it's kind of like with animals. Intermittent reinforcement is. How zoos train animals to do different tricks. This really you know creates a tremendous loyalty because you never know if you're going to get it but if you if you land and as a Porsche waiting for you you feel this immense gratitude towards Delta right and the rest of us have that little anxiety. Oh my God my flight leaves at seven seventeen. Am I GONNA get there? Can I grab n? None of them were run. We're running we're running through the terminal while the elite frequent flyer is cruising around in a porsche now. Driving to the airport can be a problem in a big city like Manhattan. There are alternatives. Right if you need to get the JFK under her yes in Manhattan. There's something called Blade. Which is a helicopter service which can jump over the traffic in fifteen minutes and get you again. Deposit you right by your flight. Blades pre popular JFK or Newark. And they even have kind of a Sinatra era ring a Ding Ding bar with drinks. And you can have a drink before boarding your helicopter flight. You can take it to the Hamptons. If you're not going so far afield but yeah you'll get to fifteen minutes instead of two hours to JFK in rush hour right. And what is it GONNA run me? That are running about one hundred and ninety five per person to go from the west side to JFK or Newark cruise lines you used to be pretty a gala -Tarian. I mean there were different. Charges for the more exclusive cabins that were larger and had better views. But but once you got the cabin pretty much everybody had. The run of the ship could at least have access to everywhere. This has changed. What's it like? Now Yeah this is changed quite a bit and and this is one of the things that really made me want to write the book because people would say to me wasn't always this way and you know it's true that a century ago you had the titanic where you had very defined class lines are a little more than a century ago you had gates between classes and all that that's all true however at mid century and beyond things got much more gala. -Tarian I'm dating myself a little bit but if you remember the love boat people had different sized rooms but they all mixed together in the in the in the tiny rooms in the common areas. And that's how it was on board ship that began. That's begun to change about twenty years ago and now you have sort of a ship within a ship on or Wegrzyn called the haven and you have sweets class on Royal Caribbean and these are and they have you know different dining rooms and and different areas of the ship where other passengers can't go and again it seemed like a metaphor for society And you know there's it's interesting. The psychology of the cruise ships are very very sophisticated in terms of understanding the psychology of passengers. And what how far to go with the velvet rope and and we went to not push it too far..
"big business" Discussed on Fresh Air
"From whyy in Philadelphia. This is fresh air. I'm.
"big business" Discussed on Slate Money
"Okay Emily you had a big story this week about Amazon and one of the things that has fascinated me about the way that this crisis has played out. Is the seventy four paged documents that you get from the state of California and the state of New York and stuff like that talking about all of the things that are essential and all of the services that turn out to be essential even under lockdown and you know people going to work to make the chips go into the radios the EMT's use to communicate with each other like the there's absolutely enormous parts of the economy which fall under essential services and supply chains clearly. Part of that Amazon is like the biggest and most visible incarnation of like modern supply chains. And so everyone else in is basically working. Allow right yes. Everyone at Amazon is working full out. The company announced. It's going to hire one hundred thousand more people Everyone's ordering Amazon right now and they're definitely an essential business and service. What I wrote about is given all that the company should be doing everything in its power to keep its workers as safe from this virus as they can and from my conversations with Warehouse workers and drivers Advocate they're not and I think that big businesses so far through this crisis have really shown how I mean. In my opinion that cannot be trusted to keep Americans safe and protected so like for example with Amazon. They're not in all cases telling workers when Someone in the warehouse has tested positive. Cove in nineteen. They don't have the protective equipment right now that everyone needs to save when they're working altogether And that's mostly because there's a shortage countrywide over that but even given that they're not social distancing necessarily and all the facilities Workers are really scared and the way they've set up their leave policy is kind of this distorted thing where they've raised. Pay Two dollars an hour for workers at least through April right to really incentivize people to work and come to work and they're I think they're even giving bonuses as well and then on the flip side there cove. Nineteen leave policy is that you can take unlimited sick-leave but not get paid so it's like thanks so the choices you know. Protect your health and go bankrupt or risk your finances or go into work and risk your health and there's no guarantee when you go in and risk your health that they're really doing as much as they need to do to keep you safe Amazon. Of course says it is. We should say. Jeff bezos wrote a lot. I am I feel like this is a little bit. A Pre cast what we're about where with rich lesser. Which is this conversation that you're having about Amazon right now. And how much can you do? And how much should you do? And what kind of measures can reasonably be taken? Is the exact conversation that pretty much. Every reopening business is going to be having in the next few months and you know people want to go back to work but also people don't want to go back to because the minute you go back to work you open yourself up to a greater number of potential infections and you know it does seem. I think you're absolutely right. The Amazon is in the perfect position to try and work out. What best practices in this kind of thing because everyone is going to have to go through this pretty soon. I think that's right. I mean I think that obviously no no company at least especially the United States has ever had to deal with anything quite like this and doesn't really as pretty much making everything up on the fly but for those companies like Amazon that as an enormous company and be. We're now very much. Seeing is also a vital part of our economy in many ways is going to have to figure out how to make this work. Not only for this crisis. But I just can't imagine that once this is over every single company is GonNa have to show how in the next crisis they will be able to keep their workers safe right and I mean these companies. I did a similar story about Walmart. Workers also going through a lot of the same things with just as bad of a paid sick leave policy. These companies should should have been doing better on this all along like you speak to these Walmart. Walmart has publicized. We give sick leave but when you speak to the workers. They're like Oh. Yeah earns eight hours of sick leave like it's it's meaningless stuff And it's not like we have a massive public health crisis all the time to deal with in this country but like there have been studies after studies that show les places that have paid sick leave have lower rates of of flu like these companies have never done enough to keep their workers safe and now this is coming home to roost. And policymakers still aren't like getting it either. And it's just like this rolling crisis of irresponsibility that as I see it before we get into this episode. We have a big favor to ask one of our advertise. His is conducting a survey. And we would be very grateful for your help with answering. If you're if that questions it will take less than ten minutes of your time and your participation helps her show so go to sleep study dot com to complete the short survey. Now thank you. Let's have a numbers round Emily Watson number five dollars my numbers five dollars That is what Insta- cart workers want per order for hazard pay now. We talked about Amazon markers but insecure workers are also the true heroes of the cove nineteen economy bringing groceries to all of us people holed up in our houses So on Friday Some insecure workers threatened to basically go on strike starting Monday. If they don't have their demands met by the company and their demands are five dollars per order hazard pay and Ten percent like to have the minimum tips at at ten percent instead of whatever it is now five percent And then some other protections while they are our nation's heroes delivering our milk and eggs to our doorsteps and I really need my insta- cart to keep flowing here up in Westchester. So this is my plea to Insta- cart to just meet the demands of these people and Just keep going like. They're making a lot of money right now. They're one of the few companies making tons of money. Right and support has never had business like this before. I would never have used instagram before. Maybe I would use it again but please like just give the workers what they want in start please. We need our milk and eggs here in Westchester. My is twenty four. Which is the number of days that elapsed between much three and much twenty-seven see that's that's how sophisticated. I am much twenty. Seven is the day that Boris Johnson announced. He had tested positive. For Corona Virus March. Three is the day that both Johnson came out on a press conference and said quote. I can tell you that I am shaking hands. I was at a hospital the other night. I think there were actually a few corona patients and I shook hands with everybody so twenty four days to from shaking hands with Greta virus patients to. I can't believe I've tested positive. I was hoping you would. All of the world leaders are GONNA have the current virus. But I mean it's kind of impressive. Britain has is managed to infect the actual head of state as well as the technical has got Prince Charles and Boris Johnson. Both have covert. Now you WANNA wish Boris Johnson. Good Health I'm not wishing him poor health or anything but like sometimes Karma's beautiful thing. Can I say that is that okay? It's true I can. I can see a little image of Harvey Weinstein going for your head. Right now. I mean not Harvey Weinstein but anyone who is out there telling an entire population that it's totally fine to shake hands with people with virus like life comes at you fast so my number. My number is one point. Three billion people. So that's the biggest shutdown that we have in the world right now which is an India. And Yeah I mean. I feel like we think it's rough here but like you know if you're thinking about a country like India where you have lots of parts of the country where you have people living very very close quarter you have a lot of migrant workers so you're telling everyone to go home and kind of close themselves off which is essentially almost impossible for a lot of people you also have such a large informal part of the economy. That isn't going to be really having any way to access basic necessities. Now I will say the Indian government is giving money and they're giving food so I don't want to say that they're not but like we think things are bad here like other and I'm not trying to downplay how bad things but they're worse than a lot of other places India. I mean not to find the point on it. It doesn't have everyone doing like Zoom Kohl's getting cut. Yeah like it's the fear is that they're gonNA have a hard time stopping it. I mean sarin reading a book on the Spanish flu but this the Spanish flu it was something like almost twenty million people in India were killed. I mean it was an enormous number that I mean the estimates are kind of all over the place but still you know and and the fear is that it's going to be very hard to contain it if it starts spread. I mean it's true. India is probably the most terrifying country. I mean 'cause you ably what goes India also go to Pakistan and Bangladesh and he has the subcontinent if it starts tearing through. India has very little in the Doobie on what it's doing already trying to look down the entire country and if that doesn't I have no idea what else they could do. It's absolutely terrifying. I think that's it for us this week. thanks to rich lesser as well as to ski and just mean. Molly and Emily Beck and all you guys listening. Do keep the emails coming slate money at slate dot com and we will talk to you next week on sleep money..
"big business" Discussed on Slate Money
"So rich was talking a bit about this owner delve into a little bit more because we a couple of requests over twitter which is basically. How does this whole fed thing work? We have two trillion dollars of stimulus. Bill and then fortunately in dollars of fed money where basically and this is this is the magic of loans is that because loans needs to be paid back you can leverage multiply and the Treasury puts four hundred billion dollars into this sort of bucket and then the Fed talks up the bucket with another three and a half trillion dollars of of money that just invents from nowhere and then all of that money goes out in the form of loans to businesses who then pay it back and then the Fed doesn't lose any money and it's all kind of weirdly magical and this is this is how capitalism works like this is fractional reserve banking best. Say Yeah very similar. I mean when we think of how a lot of money is created normally in the US system. I mean you have the Federal Reserve that creates like the monetary base and then of course they set rules for banks in terms of how much money is created. But you know if your bank you're if you're if someone comes in and you give them a loan you are essentially creating money you know and this is very similar to what we're seeing happen now that the Fed has this amount of money that the Treasury is given it and it's not as though we can only lend that amount of money it can basically keep lending out that same amount of money over and over again and so it's into creating all of these loans. It's creating all of this additional money in the system now eventually when that money is paid back in theory then that would come out of the system but the but the payback period is is GonNa be. What twenty is something? Enormous exactly and the Fed doesn't care because like the Fed. I mean it is actually a very profitable institution but it's not. The purpose of the Fed is not to make money and so the Fed is like yeah. We'll have that money out there in the form of loans and there are any actual losses on the loans than treasury will eat those losses. The Fed doesn't either. This is the Fed is doing risk free lending of trillions and trillions of dollars into the economy which seems amazing and that kind of makes me. Why do that like all the time just normally because that would that would not be good? Because if you're thinking about it right now you know. The the Fed is essentially going to be lending money to many investment a great companies and also potentially even small businesses here. But if you think about it so like if a lot of money is going to the people at the top and some of the best companies out the top then that means amount of money that a private investor would get to lend to them is going to be less because the risk is now going to be less because you have the Fed in the market so in not only the risk on that bigger company going to be less but the risk on all of the companies that are kind of down the line. The smaller riskier companies. You're also GONNA get less money for lending to them and something brilliant. Everyone gets to borrow for to you know now. It's not because for another reasons one. It's an like it's fine right now I am not criticising what the Fed is doing right now. This is a crisis but long term you want the market to allocate capital to the businesses. That can survive. You don't just want this kind of flow of money coming in so then you're not pricing risk which means investors are gonNA take horrible risks. You're not getting money to the place where it can be used the most effectively and also I mean we have the ability to do this right now because the United States is in a very unique position but if all of a sudden we started functioning very very differently in terms of how our Central Bank works. We would not be in that position anymore. We would be a very different type of economy and that is not how our economy works. Normally we are not going to talk about the platinum trillion dollar coins coins. Play once but we I think we we. I would like to just ask you one more question about the finances of big business and bailouts and stuff. There was a article in the Washington Post which we will put in the show notes Basically saying there's absolutely no point in bailing out the airlines because go buster. Hold time if you look at the history of airlines. This is all they do is they. Go Bust in. Remember who said if you WANNA make a million dollars? Just start with a billion dollars and stuff and airline and what happens when airlines go best. Is THEY CONSOLIDATE? They go through bankruptcy but ultimately as far as the routes being flied and the you know the pilots and the employees all seemed just continue with the same brands and the keep on getting their paychecks and the passengers keep on flying from A to B. And you know a bunch of shareholders become a bunch of bondholders become shareholders and this financial engineering and his death nece equity but is there any particular reason why having the airlines go to you know? Fifteenth BANKRUPTCY BOWS OF BANK ELLEN. Bankruptcies would be a bad thing right now. Yeah I mean I would probably argue that. Airlines are a really really significant part of the economy. Because not just because they're getting people that is still significant in terms of moving people but they're also moving goods. It is just now. You're not wrong that you could of course continued to operate while going through bankruptcy. But that's not seamless and to me over. Isn't that basically what we did? With the auto industry and the financial crisis it continued to operate while going through bankruptcy and seem to work quite well. It did although I would again though argue that it was definitely not seem less and and it would also mean that the airlines would have to make some very difficult choices. And I'm not saying that they perhaps shouldn't have to make some of those difficult choices. I just don't know if they should be doing those in a crisis. I think what probably makes the most sense is to get the airline industry through this but two then afterwards say okay in the same way that financial crisis taught us that the banks are too big to fail. We cannot allow them to kind of go under so that means there have to be more regulations around them. I think that this is the same with the airlines. I'm not saying we have to go back to like way back in the day with how we regulate airlines but I do think that right now. It is reasonable if we understand that every time there is a crisis the airlines are probably GonNa meet. Help that then. It's also possible that when this particular industry the government could have a little bit more. Say in what they do and you know. I don't always say that. But in this instance I will say that. I do think that we are seeing a very interesting lesson right now. In terms of how governments really do learn from previous crises. And what we're seeing in Korea and Hong Kong and Singapore in places like that is there reacting incredibly swiftly and effectively to cove it precisely because they went through size they went through the you know h one n one and MS and they know the playbook and and they can just basically fingers and make it happen and they Equipped to deal with this kind of crisis and I think that one of the little silver linings that we're seeing in this crisis is there is no banking crisis. We went through the financial crisis in two thousand eight. Two thousand nine we were like the banks are way too levered. We need to do something about that. We need to make sure they're much better capitalized. We did and they up as a capitalist and now we don't need to worry about. The bank says the one part of the economy. We don't need to worry about it. Worked now and in fact they have so much capital. Hey it's an emergency go and Linda capital grades. I think you're right. I mean granted. I think if this went on forever without any federal aid the banks could be in trouble at some point. But you're totally right. I mean clearly what we did work and I feel like that's important to say over and over again because once this is all over I give it a year or two. The banks are going to be complaining that they have to hold so much capital so I do feel like you can say wait a second. You know remember two years ago so I'm not saying there's anything good about this. Obviously there's nothing good about what's going on but you are correct. This definitely did teach us that lesson. I feel like that's the one. Bright spot is the banks are okay and that. Jerome Powell seems to be willing to do whatever he needs to do to keep capital flowing and it was reassuring to see him on the Today. Show on off everyone washed. It was like the first time the Fed chair has been on the today. Show I think Savannah Guthrie said in like forty years or something and he. He did a good job talking like a normal person to in the human language like for example he said very simply like the Fed can lend out ten dollars if it just has a dollar of backstop treasury. Which for me was like a lightbulb moment. I was like oh I get it. This is how they do the they make four hundred billion into whatever trillion dollars ten to one. Okay fine got it. Thanks Jerome And he was very smart and reassuring and the contrast to. What's been going on this past week or so with getting this third stimulus package passed was pretty striking. Because even though I think it's like a two trillion dollar bill and will provide all this money for loans too big and small businesses and has beefed up unemployment insurance and has payments going out to a lot of families households. It's still not enough. It's still not that good and they're still all this ridiculous squabbling over it like at some point. The bill was held up because a few conservative senators were worried. The unemployment benefits would incentivize people to work. Which is kind of literally what we're doing right now. We're telling people not to work. And actually they need to be incentivized not to work It's been really striking to me. Just how well the Fed works and how well all of that is kind of figured out in solving this crisis while at the same time there is this building Crisis for everyone else like the jobs numbers this week were terrifying you. All obviously saw the chart of unim- bone unemployment I I wish chart initial claims with the The the vertical line to shooting up like infinitely into the sky because it was three point. Three million clams. I put a call out on twitter. Like have you been laid off and I've never gotten such a big responses because the sample is so big there are so many people now without jobs and I feel like while you know pals doing everything he can like. He can't help all those people without jobs and even set on the today show. You know like I'm doing all I can but we really need congress to kind of kick it into gear and I still feel like the problem in the. Us Isn't just that we have an experienced a pandemic. It's just that like none of our our our government the foundations and values that these people hold do not jibe with what needs to be done and what needs to be done a pretty simple you stop the economy you give everyone money and you contain the virus like it's actually pretty simple like just give everyone the money. That's that's the thing which I was most gratified about if that's the right word in intensive Powell interview was that he was absolutely unambiguous. That the thing that you need to do to get the economy moving again and to help the economy is stop. The virus stand in he. He was our timetable. There's going to be set by the virus and when the virus when new infections go down to zero. When is our then we can start talking about like starting economy but we need to wait and do that fest. It's so great to hear that in plain language from someone like him when you know you're hearing something very different from Donald Trump and you'll see an I keep seeing these people doing opinion polls saying what's more important saving lives or restarting the economy. It's like it's the same thing away you received. The economy is by saving lives. I feel embarrassed for our country for having that debate at all even a little bit. It's like trump is is actually his own. He is a one man virus that's infected the public discourse and is like keeping us from solving the actual crisis of the real virus one last lesson. This is taught us as well maybe to move forward. Is that one. Part of modern monetary theory is that they say that basically. It shouldn't be. You shouldn't use monetary policy to control prices. You should use congress because it's so simple to get congress to just raise taxes or lower taxes. This is also taught as that would be an absolutely horrible idea. Slate money is sponsored this week by door dash which is a delivery service for meals and I can pretty much guarantee that no matter how much you love cooking at some point. You're going to just say I think I don't want to cook right now. And that's where it comes in if you want to treat yourself to meal made by someone else for a change just used all dash to get connected to your favorite restaurants wherever you live..
"big business" Discussed on Slate Money
"Two thousand eighteen. So rich yes introduce yourself and tell us what you've been up to for the past couple of weeks. I'm rich less what I'm CEO BC G. Boston Consulting Group Basiji operates in fifty countries around the world is one of the leading management consulting firms looking across all industries public sector out huge range of topics and the news of the week. Is that your clients. The BIG BUSINESSES IN AMERICA. Four hundred and fifty four billion dollars of the stimulus bill is allocated basically to them. And then that's being leveraged up to something on the order of four trillion dollars by the Fed and we're GonNa talk a little bit about how that leverage works. But can you give us an indication of just? How much money is four trillion dollars? And where's IT? GonNa go and what's IT GONNA do? Tell you if you stack them on top of each other. How many how our planet it can reap I mean I did. I did a little bit of back of the envelope. I was like if you take the median wage. In America forty dollars would pay fifty million workers for like over a year and a half like it. Seems like an astonishing amount of money so the four trillion so I my understanding and again. I don't profess in any way to be an expert on the bill but but my understanding is that money is going to help business as well as to help state and local governments and the four trillion as I understand it is that It's actually about a little over. It's four hundred billion but because that's an equity infusion into treasury. The Fed can lend on top of this. So it's the power of being able to leverage that equity into A higher volume of loans and no one knows exactly how that volume is but the estimates we've seen as well fall into the three to four trillion dollar range. I think right. Now we've got a host of organizations that are facing massive costs and extraordinary losses and the risk of of going out of business or being in bankruptcy and by the way that includes I think state and local municipalities as well as many businesses if you think about some of the Sectors of the economy starting with travel and tourism. But but certainly going far beyond that Take away all the revenue for a very high percentage of it and leave the vast majority of the cost and even well capitalized. Well run Businesses. Don't last very long. And so the challenge is first and foremost help people get help and to support the potentially you know ten million plus unemployed that we're likely to see out of this And second to make sure that we have an economy to return to and frankly the group I worry the most about our small businesses And I'm so pleased that so much of the effort in that package was geared towards smaller businesses No one knows now. If that's enough as I can tell you no one can tell you but at least a lot scared. 'cause they're just facing massive but we need to keep businesses going to and loans should help and and hopefully they'll be able to be around Once we come out the other end of this so just to be very a broad brush about this the the general idea. Correct me if I'm wrong is the if I'm a big business and I'm losing money right now. I'm losing money in much. I'm losing money in April losing money in. May I can just go along to my bank or special purpose vehicle. Somehow I can borrow whatever those losses are could be one hundred million dollars or whatever and then that will cover the losses and then I don't need to pay that I get to pay that back very low interest rate over many many years and I couldn't afford to do that because my fundamental business is strong and so long as there's enough liquidity of you know these special purpose vehicles that are set up in the in the stimulus active sending out these trillions of dollars that should basically that should be fine for business right well except that those losses are real losses and those loans are we alone and it will pay probably a substantial amount of time for these industries to recover and probably some businesses within various sectors of the economy. Won't make it. I think we will still just as we did. In two thousand nine. We will see that. In some cases this leads the consolidation in some cases leads to restructuring in some cases. This leads to really healthy vibrant businesses. As you say it was a sharp drop but once the drop is passed they can reemerge strong and they can be on a path to recovery. my understanding. Is that a lot of this? Is now the treasury to figure out the rules that the big debate and who are the recipients and a lot of the debate that held up the legislation was the degree of transparency around the choices that are made with a fairly high level of transparency being in the final legislative session? And and but I don't think I think in a high level what you described is probably the overall direction but my understanding. Is there still a tunnel to work through? Everybody's been has been running this legislation. You would normally think would be crowded over many months or years at this volume with this complexity. It's been crafted over days. We can bet they haven't had a lot of time to the mechanics of exactly how this is going to play out in the weeks and months ahead and I guess one thing I'm kind of wondering too is even if we are able to kind of put the economy in this medically induced coma for a period of time and then kind of waking up again. It seems like behavior is going to change. It just seems like people are not only are they probably not gonna be buying much but they just might not be spending as much even if they have money coming in like. I'm just curious the effect that can have also on trying to get that economy working again right so I think neither core long-term questions that while we were in the midst of a crisis of shutting places down which by the way still going on in parts of the country and figuring out this legislation have not gotten much attention but are going to rapidly. Get much more attention. The first is your point. Which is how will consumers and other businesses in the B. Two B. World? Adjust their behaviors as this moves along and even when we're officially through it. What behaviors will be different from? We see today I will. They few vacations. How will they? Discretionary purchases how businesses you capital investment than investing to build capacity. That's one the more immediate question. However is how will we sustainably fighting the curve because as you put the medically induced coma when we are at risk of an acceleration that could kill hundreds of thousands or millions of people and completely overwhelmed healthcare system. You do whatever you can to try to arrest that curve. And the whatever you can in our case is socially distancing but we're probably at least a year away from a vaccine and a number of months away from any effective treatments that are proven unscaled and in that world. The big nearer term question is how will we flattened the curb in a way that sustainable for the economy so that we can get some sort of rebound even into the trajectory. We were on back in January and February. I think that's a huge question that businesses and governments are only beginning to wrestle it. Suddenly we saw that in Hong Kong right that they really did a great job of bringing the number of new cases down. But then the minute. They started relaxing of social distancing and some of the really hard core You know come flattening attempts that they were doing the number of cases started going straight back up again so it's not clear you know. I think there's a lot of and a lot of expectation that you might see. Sort of rebound in the economy in the third quarter or fourth quarter is not clear. How you how you can have that rebound with also keeping the number of new cases under control exactly and if you think about it and Hong Kong's a great Australian. There are two kinds of problems from a health standpoint. At least that will need to navigate through. One is if you don't bring the virus levels all the way down to zero and you start to restart the economy where in your local environment. You have small number of cases. Can you put the disciplines into keep that number low to spot issues early with more aggressive testing to use quarantining to use AI and digital tracking and all the technologies that are out there but not scaled yet in the US not even deployed in some cases to try to keep it low and manageable even as you we start the economy a non zero caseload then the second point is the one you refer to suppose yet to zero and I opened back up? My issue is not just my own community. It's all the influx into my community and Hong. Kong's Nice because it's kind of separate or much of the rest of the world and you know you fly in or you come in from mainland China which has done a good job so far of controlling more recently but the US if every community is on its own curve you open up this city or this stake. It's not just in that state it's inputs from other parts of the country that are on different cards and we have no history of doing what China did really segment of Hubei Province and to make that work. So you're exactly right to say that the challenges that we're going to be facing in the months ahead about we starting the economy and still keeping a sustainably flat and curved that will keep the level of infection within the capacity of the healthcare system to manage until we have a vaccine. These are huge unknown challenges. Where there's a ton of work that's going to be required rich? What are you telling businesses now to do to manage through this you know? What do you tell a relatively small business that has no customers right now? What are you advising them to do? Get a big loan. Lay off workers. It seems to me that part of the reason the government spending so much money on these companies so that they continue to employ people. Salat cheaper for us to have businesses employing and paying people than it is for us to just directly pay every worker in the country so keeping that in mind. What are you telling leaders now? What what is B. G.'s? Kind of advice. Show a couple things I is. I mean if you just backtrack and we're talking about backtracking like a month or maybe in some parts of the world two months not ten months. The first steps were about Reacting to the situation in terms of near-term first and foremost protecting workers and customers and second protecting core of the business model and that was the initial focus and there was huge focus on people and near-term actions to protect supply chains and other things. Now I think for many companies. It's somewhere between survival and you know just getting along for some industries. It's literally just about how to survive. Which has both an element of how to restructure the the PNL passed as possible at a time on revenues have dropped by huge double digit percentages. And what to do in terms of expenses and how to do it in a way that recognizes. There's a real chance of a rebound so it's not just. It isn't society's interest to keep those workers employed it is also in businesses interested. Keep relaxing you. Train the workforce you've got a high-performing business a shock as happened. The last thing you WanNa do is break the bond of trust you have with your employees and potentially lose employees. That are critical. So it's it's hard on both of Societal Dimension and the business dimension and the balance sheet challenges partly hopefully address through this legislation and legislative and other parts of the world will help to allow these companies to maintain a viable balance sheet to be able to get through this. The third element is the rebound element. And I would say there are a number of businesses but only in the last week or two. It's going so past. That are starting to turn their attention to what will I do to be able to come out of this strong? Actually if you look at China. That's a better example. Because they're like six weeks eight weeks ahead of us you know leading company started saying what do I need to do in terms of how I engage with customers more online behavior? How do.
"big business" Discussed on Slate Money
"Money or guide to the business and finance news of the week and yet it's been another one of those weeks and it's only been a few days since Wednesday when we lost. Okay you but there's a lot to catch up on I'm Felix Salmond axios. I'm here with breaking views. I'm here with Emily Package. Huffpost hello and we even have a special guest. We have the CEO of BCG so many letters in Rich lesser is GonNa talk to us because he is a management consultant who talks to big business the whole time. So we're GONNA ask him about what on earth big business is thinking about going through right now. We're going to talk about the Fed and the exactly what it's doing in terms of trying to get the economy moving. We're GONNA talk about Amazon. And what they need to do to keep their workers safe because that will be a good example for the rest of us when every other business gets up and running again and we'll even have a slate plus segment on equal because we haven't had one of those new while. It's a mildly gloomy show. I mean it's a mildly gloomy time but I you'll like it. It's all coming up on slate money. This episode of slate money is brought to you by the relentless a new podcast from slate studios and century twenty one real estate hosted by Dr Clinical Psychology Julianna. She talks to leaders about the qualities that set them in how they approach success. And how honestly? They managed to get through the setbacks that all of us are experiencing right. Now you'll hear about what these people have learned from their triumphs how they've grown from rejection and how they continue to.
"big business" Discussed on Marketplace with Kai Ryssdal
"Coming up right. It's like John D. Rockefeller but with more glitter. I mean how do you not love that. The business of cheerleading. Straight ahead. But first let's do the numbers. Yeah not so good down. Industrials plunged six hundred. Three points today to percents twenty-eight thousand to fifty six the Nasdaq down one forty seven in one and a half percent ninety one fifty s and p five hundred fifty eight points one point seven percent thirty two and twenty five for the week the Dow off two and a half percent. The Nasdaq step back. One point seven percent the S. and P. Five hundred sliced off two point one percent talked about airlines cutting traveled to China. Here you go Delta Americans Delta it's an American rather are the two delta down two point three percent today American declined three point one percent Chevron down three point eight percent today bonds rose yield on the treasury notes fell to one point five zero percent. You're listening to marketplace this is marketplace. I'm Kai Rozelle with the acknowledgement that this might be a difficult promise to deliver on. It is not impossible that today is the last day you will hear the word Brexit on this program. That's because tonight it's a done deal. Forty seven years of British membership in the Common Market over over except for the next eleven months transition while the two sides work out the details Staffordshire England was one of the areas that voted most strongly to leave the European Union in two thousand in sixteen in this past. November helped give prime minister. Boris Johnson's Conservative Party. A huge win several cheer as it happens is also home to one of the most historic manufacturing and exporting morning industries pottery. The BBC's Victoria Craig Beta visit. Welcome to the factory floor. That's Alan Smith. Production director at dunoon ceramics. His family has been in the pottery business for more than one hundred years for the last forty thirty six. They've been here in Staffordshire. The ceramics capital of the world making mugs of every conceivable shape size and color. All the major English poultry autry producing companies are based here is not as big an industry that used to be because competition has wiped some of those companies out and that competition from makers and other nations is precisely why Smith is still worried about brexit like many English ceramics makers Dune exports nearly half of the one million mugs. It it makes every year to the European Union. It's the government decided to slash tariffs on imports into the U K. It'll drive the price down have goldfish silence. Great if you're a consumer bought if you make it easy for companies to sell their products into the UK you going to lose your manufactured industries and it's not just fine bone China makers like denude that are preparing for Britain's separation from the EU. Britain's ceramics industry is vast from the iconic table people were to construction materials and bricks roof tiles. Clay drainage pipes toilets wall and floor tiles. Laura Cohen is chief executive of the British Ceramic Confederation on technical ceramics which he used in anything from artificial hips two cars and aeroplanes. Cohen's been lobbying politicians to to make sure her industry's voice is heard when it comes to creating. Britain's new trading relationships is really important government delivers because their challenges just with customs delays at the borders. It's not good for customer confidence for now. It's business as usual just as it has been during the last three. Three years of brexit negotiations employees into nunes. Packing department are still giving mugs final once-over before they're shipped out to the Netherlands. That's good the business in Germany. United States they go into grapevine. Texas shop called the British emporium while things might appear settled under the surface. Tensions around Brexit are beginning to bubble up again. Smith says here the majority of people voted to leave the EU and they were hopeful of positive outcome. But has there been one yet. We're not left out in the cold. In the meantime Smith Smith and his employees will wait out. The uncertainty crafting one mug at a time in Staffordshire England. I'm the BBC's Victoria Craig for marketplace. If you somehow having heard about or seen the Netflix documentary series cheer. I mean one. Where have you been an to borrow? Somebody's password if you have to watch it seriously it's gripping and I. I use that word in all seriousness. It is a gripping look into the world of competitive cheerleading. Grueling does not begin to describe that sport so that's the story story of the documentary acumen. Lots of great characters narrative tension. It's really good. But there is another thread in this show about the business of cheer. Specifically a company named Varsity brands ends that makes almost everything cheerleaders use and wear from sequenced gym bags and the competitions that they use them in med. Solar is a fellow at the open markets institute he also the rights big newsletter about monopolies math. Thanks for coming on. Thanks for having me you say in this piece that you love this varsity brands monopoly. Explain why would you well. There's a number of reasons but one of the main arguments that people make about corporate concentration monopoly is that monopolies are efficient because they have have economies of scale right. It's bigger factories more efficient. A bigger search engine is more efficient. And it's really obvious that cheerleading has no economies economies of scale this monopoly purely result of coercive business arrangements and so. It's this the super easy to explain argument about why we're seeing anymore. Monopoly power across our economy this thing has First of all vertical integration. Right it's got gyms. It's got the competitions. Got The gear. It's got the uniforms. It's got basically basically everything right. It's like John D. Rockefeller but with more glitter imports of glitter. And and hairspray probably Yeah no so you you watched You Watch this thing the last episode where they talked to the guy who runs varsity brands. And then right after that you see this thing on the screen that says versity brands would not let us film the competition. which is the crux of this entire series? And and I guess spoiler alert for those who haven't watched it yet but that's a pretty good illustration of the tight control that this company maintains on its cash cow. That's right so what they do the way they have control over our cheerleading in the US is they they own and control all of the competitions so if you WANNA at basically the ninety percent or so if you want to enter a cheer your competition which is basically it's gymnastics as a kind of gymnastics yet but super hardcore gymnastics. Let's say that about these people right right totally incredibly incredibly dangerous but what they do just to to explain how they make their money so they charge a lot of money for to enter these competitions and also do what their real businesses businesses which is selling clothes and equipment for cheerleading Because they have control over the competition they have arrangements with all of these gyms in in one particular segment of cheerleading. Gyms are where you learn you learn cheer and you learn routines with the rest of your team. And so they signed deals with gyms with with rebates where they say. Hey if you buy varsity apparel a we will give you a kind of a kickback. And so as a result they have a lot of control over the cheer equipment market because of their control over Jim's which stems from their control over competitions. There's a subculture the element to this whole thing. Right until this Netflix documentary broke. I would guess not. You know two people out of ten new What's what's your was? What the money is how hard core it is? and I wonder if that's part of the reason why it has escaped so much notice. Well I mean bring it on was a really important moment. I think from what I understand in in sort of the cheer world right that kind of brought this sport to the attention of everyone right But I think that this is cheer documentary. It actually brought the power of Varsity to people's attention and that was I think what was really different met stoler He's got a book out about monopolies. It's called Goliath. One hundred year war between monopoly power and democracy. We were talking about. Cheer the Netflix Documentary and The company that controls cheerleading. You're leading in this country Matt. Thanks a lot I appreciate. Hey thanks.
"big business" Discussed on EconTalk
"It's just not that large so i think that's an exaggerated issue which now is being used as a weapon against business not a weapon against government government subsidy so sometimes like to argue when i'm in a a a argumentative mood are provocative mood that the parts of our work the worst would be <hes> the housing market the healthcare market and education market college and that those are the places where government is most involved a fair response to that would be well. They have to be involved because otherwise would be even worse but i certainly i am horrified when people will say that the healthcare market shows that capitalism can't run healthcare because look how horrible it as an my answer of course is that is not much capitalism. There's not much free market and that'll be true. Housing as well people will blame actually blamed capitalism recently for the high prices of say housing in san francisco discover new york and <hes> because obviously that shows that greedy landlords exploiting people as opposed to the fact that the regulations are making it hard for other greedy landlords to bring the price down <hes> so react to that argument and in particular your singling out healthcare is the place where things don't work well in the large in big business <hes> would you use the argument that i make somewhat tongue in cheek but somewhat seriously that it's one of the most corrupted argument up one of the most corrupted <hes> parts of of american industry through a government's relentless hand and pricing and in subsidizing through group medicare medicaid and then the substitute employer provided insurance it somehow that interacts with human irrationality and healthcare purchases purchases not.
"big business" Discussed on EconTalk
"Transparent. It's parents there's massive third party payment which by the way doesn't have to be bad but when combined with these other features it's very harmful and the systems of mass yes and we pay huge amounts like eighteen percent of g._d._p. And so often retreated poorly and were heard or crushed or broken and frustrated and something badly lee wrong with american healthcare and i totally agree and recently had a horrific experience with <hes> healthcare approval for or a procedure not so much that they rejected it but that they <hes> the the ability to deal with what came next the lack of transparency the ability who <hes> talked to human being talking about bureaucracy we were talking about earlier was <hes> just something ever experienced anywhere else in your in your interactions with providers <hes> and i'm i'm <hes> i think a lot about the lack of skin in the game feedback loops the things that make the rest of our our economy. I think we're pretty well. <hes> so on one foot what would you do if you could to make that either better or fixed stoned fixed is the wrong way to think about of course but just the challenge here is that fixing one thing doesn't always make things better <hes> it can make them worse because of the perverse incentives that are operating in the rest of the system. Do you have a vision of what healthcare could be in a different world. It depends how many things i'm allowed allowed to change. I am a santa change. You can't change human nature. I'm gonna leave that out but other than that should be pretty free but the singapore system where you have forced savings a lot out of out of pocket expenditure single payer for catastrophic expenditures and full price transparency. I'm all for that. I can't imagine how we would get to that that from where the united states is now so we have to do things. Incrementally there are some movements going on right now for greater price transparency. I'm most of what we've got. We're we're not going to give up. We're gonna make it worse for gonna dig it on it and we just have to hope technology brings us enough good things like a cure for <unk> cancer that will be happy enough with our healthcare system but american big business has manifested through our healthcare system. It does not deserve the defense of other other parts of big business. I give him my book and i say as much in the book. The book is not pro business for say. The book is probably evidence and i think in many but not all cases the evidence suggests businesses doing pretty well by us. One of the issues that comes up is the political influence of business and recently had <hes> mike munger on econ talk who worried as as i do that. I like to say that i'm in favor of capitalism not crony capitalism some of the response to that as well. There's no such thing as capitalism it leads to crony capitalism and you write the basic view that big business is pulling. The strings in washington is one of the big myths of our time. Why do you say that and are are you not worried about the political influence of business especially big business. I'm worried about it but i think in large part the leftist correct that if you have capitalism you will get a fair amount of crony capitalism. There's no way you can write it into the constitution russian that you won't get it most or all of that crony capitalism is bad but i think it's much overrated as a source of problems i think by far the worst examples samples of it come in the healthcare sector where i agree with the critiques of the left and also the right to a large extent but a lot of the other examples <hes> <hes> i think there are a little blown out of proportion you have a lot of libertarians who wanna posture is being very egalitarian in favor of the little guy so they thunder against business but all these bad policies like the farm subsidies which i'm against export import bank. Yes i'm against it animal up again healthcare side and ask what sir did weight loss..
"big business" Discussed on EconTalk
"Not knowing what your lot would be in that case and i thought of you when i was reading that because in your book stubborn attachments that we talked about in a recent episode <hes> econ talk you made the case for growth as as a <hes> welfare of human flourishing recoup not requirement but but advocating for it and you make a very powerful apple case for it. I'm a little bit skeptical of it but you make a great case and i think that mental experiment is <hes> make point because almost no one goes to the. I don't know anyone who would go to the past well. I'd be still okay with being born in one thousand nine hundred sixty two frankly because i know those have been good years. If it's the near future yes op preferred future but i'm not convinced how long civilization will last so fifty uniform distribution across the future. I definitely rather be born in nineteen sixty sixty two yeah. It's <hes> he he talks about that of course kevin kelly because he's smart person he says. If you go too far into the future richard there might have been a nuclear holocaust. You'll be you know. There'll be no earth to to to walk around on it. Reminds me of a cartoon mentioned a long time on the program well the boston globe cartoonist. When i was growing up there was a guy <hes>. I think it was paul. Zap in kazan was a cartoon of a of a person walking in a d a desolate landscape to clearly would had been the aftermath of a nuclear holocaust and he's got a small television under his arm and he's holding the plug out and he's forlorn he searches for a viable <hes> technological solution to his desire to watch t._v..
"big business" Discussed on EconTalk
"His podcast is conversations nations with tyler who writes regular column for bloomberg. This is his eleven th appearance on contact our topic. Today is his latest book big business a love letter to an american anti hero tyler. Welcome back to you contact. Thank you for having me rest always a pleasure now. My list of your skills and activities left talk the word provocateur <hes> and i want to start by asking why you would write a love letter to big business. It strikes me as a really bad idea. I've i've spent much of my career. Fighting people confuse business with capitalism and you've set me back a number of years with this book. Defend your love letter her well. I guess i'm glad i've set you back. I think whether we like it or not. We're living in a world of identity. Politics and markets are to some extent identified identified with big business so if say people complain about amazon getting local subsidies to relocate which would oppose. I suspect you opposed but the upshot shot that is not the people end up being anti-subsidy <hes> quite the contrary they end up being anti-business so i think for people to be more sympathetic toward markets and capitalism <hes> <hes> they need a better understanding of business and big business in particular and i would go further and say on the global stage people identify capitalism with america. That's quite quite unjust in many ways but we're not dealing in his fear where the analytical arguments exist on their own ideas are carried forward in particular in stanchions and in our world. It's big business in america that carry forward the ideals of capitalism whether we like it or not i'm not i'm not sure like it <hes> <hes>. I don't completely like it either. I think at some point one just has to jump into that new battle yeah well. There's certainly new battles here that we weren't fighting any any of us. Were fighting <hes> five years ago ten years ago at one point. You suggest that business is more virtuous than government. <hes> virtuous struck me as strange word. It's certainly a lot more profitable..
"big business" Discussed on EconTalk
"We're gonna make it worse for gonna dig it on it and we just have to hope technology brings us enough good things like a cure for <unk> cancer that will be happy enough with our healthcare system but american big business has manifested through our healthcare system. It does not deserve the defense of other other parts of big business. I give him my book and i say as much in the book. The book is not pro business for say. The book is probably evidence and i think in many but not all cases the evidence suggests businesses doing pretty well by us. One of the issues that comes up is the political influence of business and recently had <hes> mike munger on econ talk who worried as as i do that. I like to say that i'm in favor of capitalism not crony capitalism some of the response to that as well. There's no such thing as capitalism it leads to crony capitalism and you write the basic view that big business is pulling. The strings in washington is one of the big myths of our time. Why do you say that and are are you not worried about the political influence of business especially big business. I'm worried about it but i think in large part the leftist correct that if you have capitalism you will get a fair amount of crony capitalism. There's no way you can write it into the constitution russian that you won't get it most or all of that crony capitalism is bad but i think it's much overrated as a source of problems i think by far the worst examples samples of it come in the healthcare sector where i agree with the critiques of the left and also the right to a large extent but a lot of the other examples <hes> <hes> i think there are a little blown out of proportion you have a lot of libertarians who wanna posture is being very egalitarian in favor of the little guy so they thunder against business but all these bad policies like the farm subsidies which i'm against export import bank. Yes i'm against it animal up again healthcare side and ask what sir did weight loss. It's just not that large so i think that's an exaggerated issue which now is being used as a weapon against business not a weapon against government government subsidy so sometimes like to argue when i'm in a a a argumentative mood are provocative mood that the parts of our work the worst would be <hes> the housing market the healthcare market and education market college and that those are the places where government is most involved a fair response to that would be well. They have to be involved because otherwise would be even worse but i certainly i am horrified when people will say that the healthcare market shows that capitalism can't run healthcare because look how horrible it as an my answer of course is that is not much capitalism. There's not much free market and that'll be true. Housing as well people will blame actually blamed capitalism recently for the high prices of say housing in san francisco discover new york and <hes> because obviously that shows that greedy landlords exploiting people as opposed to the fact that the regulations are making it hard for other greedy landlords to bring the price down <hes> so react to that argument and in particular your singling out healthcare is the place where things don't work well in the large in big business <hes> would you use the argument that i make somewhat tongue in cheek but somewhat seriously that it's one of the most corrupted argument up one of the most corrupted <hes> parts of of american industry through a government's relentless hand and pricing and in subsidizing through group medicare medicaid and then the substitute employer provided insurance it somehow that interacts with human irrationality and healthcare purchases purchases not.