Thank you to our new members, and to those who continue to purchase the UNFTR Native roasted coffee! And, many thanks to the thousands who helped us cross the monetization threshold on YouTube this past week; every bit of support really helps.
Inflation.
Inflation is cooling off in the real economy, and pundits are lazily crediting the Federal Reserve, instead of the natural elements of a loosening supply chain and public scrutiny of consumer goods manufacturers that have been price gouging since the pandemic began. Will it be enough for Powell to halt further increases after the recent ¼ point hike?
NYT: Inflation Keeps Cooling. Prices Aren't Climbing as Quickly as They Once Were.
That New Car Smell.
In spite of this news, there’s one part of the economy that is getting increasingly out of reach for the average consumer: New cars. WaPo recently reported that even though inflation is easing and supply chain issues are improving shipments of semiconductors (critical for new cars), rising interest rates and manufacturers focusing more on the luxury sector is making it more difficult for consumers to afford new cars. One of our longtime listeners, Dan M., has been making the argument for years that our obsession with car culture has come at the expense of public transportation. This is a dangerous trend that makes Dan’s point all that more salient.
WaPo: New Cars, Once Part of the American Dream, Now Out of Reach for Many
Broadband.
We’ll be following the oversight hearings on broadband expansion into poor communities and rural areas. This was a narrative we pursued in our back-to-back episodes on the FCC (Episodes 75 and 76) and in our popular Economics of Racism episode that spoke to physical and digital redlining.
Energy & Commerce: Chairs Rodgers, Griffith Announce Oversight Hearing on Broadband Deployment.
Debt Ceiling.
The White House released figures from the CBO and Council of Economic Advisers that project the impact of a U.S. default. It’s chilling. Here’s an excerpt:
“The Council of Economic Advisers estimates that a protracted breach of the debt ceiling would cost the United States 8.3 million jobs, reduce real GDP by 6.1%, and cause the stock market to plummet by 45%.”
Yikes. Every time this comes up, we somehow find a way to kick the can down the road. But this is a different Congress, and one that might be willing to sacrifice the economy and livelihoods of millions just to make a point. And, what’s that point? Dunno. As a refresher, servicing our debt means paying for stuff we’ve already committed to. And a lot of those commitments were made by the Republican Party. Why are they pushing this line so hard? (Because they think we’re stupid, and they’re out of ideas.)
The White House | CEA: The Potential Economic Impacts of Various Debt Ceiling Scenarios.
Unf*cker Comment of the Week:
Ben, the surfing hippy diesel mechanic:
“I'm a heavy duty diesel mechanic, and I often worry what my kids, nieces and nephews will think of me as our province sinks into the ocean as it gets pummeled by hurricanes year after year. I struggle with the guilt of never being able to offset the carbon emissions, pollution, oil spills and everything else my work contributes to... but I've taken steps to use my skills for good. I quit my job at a Caterpillar dealership three years ago to take a position with our provincial government repairing snow plow trucks and road building equipment, doing meaningful and necessary work in my community, instead of making assholes above me rich. I've joined the union executive at my new job, and will be fighting for my union brothers and sisters at the negotiating table this fall for the first time. Wish me luck.”