Economic power as a cudgel

Summary

Marketplace Morning Report — “Economic power as a cudgel”

Date: January 23, 2026
Host: Sabri Benishour (in for David Brancaccio)
Guests/Featured Experts: Nova Safo, Cal Raustiala, Liliana Rojas Suarez, Shige Oishi, Wendy De la Rosa, New Yorkers on the street, Rima Reis

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Episode Overview

This episode spotlights how global economic power is increasingly wielded as a weapon in international relations, especially in the context of U.S. policy shifts and evolving alliances. It recaps the major outcomes of the World Economic Forum in Davos, touching on mounting tensions between the U.S. and its allies, and provides updates on TikTok’s ongoing drama and the state of inflation and financial security for everyday Americans.

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Key Discussion Points & Insights

1. Davos, U.S.-Europe Tensions, and the “Greenland” Incident

[01:31 – 02:48]

• Opening: The Davos summit closes amid heightened transatlantic tensions, ignited by President Trump’s confrontational stance on Greenland.
  • Sabri Benishour: “…Davos settled something else: that they [European allies] can no longer see the US as a reliable partner and that they need to look elsewhere.” [01:31]
• Prime Minister Mark Carney’s speech:
  • Urged middle powers (like Canada) to band together amidst the global rupture of old alliances.
  • Called out the use of economic integration as a weapon:

    “Great powers have begun using economic integration as weapons, tariffs as leverage, financial infrastructure as coercion, supply chains as vulnerabilities to be exploited.” — Mark Carney [02:23]

  • Received a rare standing ovation at Davos — highlighting the seriousness of the moment.
• Analysis from Experts:
  • Cal Raustiala: Carney’s remarks tap into wide frustration with “erratic policies from the Trump administration.”
  • Greenland dispute is “more than just tariffs”; it’s about using economic power to demand territory from an ally — a new level of economic-cum-political pressure. [02:59 – 03:06]
  • Liliana Rojas Suarez (Center for Global Development): U.S. economic power showing signs of waning.

    “Holdings of gold by central banks around the world is now larger than holdings of US Dollar. That is something that has not happened in many, many years…” — Liliana Rojas Suarez [03:23]

  • Canada and other U.S. allies are pivoting, as seen in Canada’s new trade deal with China, cutting certain tariffs without U.S. participation.

2. TikTok’s Fate in the U.S.

[03:53 – 04:41]

• TikTok’s U.S. operations:
  • Chinese owner ByteDance creates a U.S.-run joint venture, majority-owned by Americans, securing U.S. data and taking control of content moderation.
  • Legislative background: Congress threatened a U.S. ban unless TikTok became U.S.-owned; deadline extensions allowed a deal.
  • Over 200 million Americans use TikTok.
  • Implication: Even in tech, the U.S. is pushing for economic control as national security — further example of economic leverage as policy.

3. U.S. Inflation Snapshot and Shifting Financial Security

[05:42 – 09:17]

• Inflation Update:
  • Prices up 2.8% year-on-year (November data).
  • Consumer savings down through 2025, spending propping up the economy — but mostly among higher-income households. Middle and lower-income Americans are cutting back. [05:42]
• “This is Uncomfortable” Segment: How much is enough to feel secure?
  • Rima Reis interviews New Yorkers: answers range from “over 100 grand” to “$400,000 a year” to simply “enough to reduce my anxiety.” [06:27 – 07:06]
  • Notable Street Quotes:
    • “I could make somewhere over 100 grand. That’d be good.” — Nico [06:35]
    • “Half a million dollars enough would be 400,000 a year. Shoot, enough is like my wife not to be working as much. I base it off of my anxiety.” — New Yorker, various [06:38]
  • Expert insights:
    • “If you ask ordinary people, right, they always say, well, if I had maybe 10% more, 15% more, 20% more, I would be really, really happy. But… when they actually start making that 10% more or 15% more, then their happiness… hasn’t changed.” — Shige Oishi, psychology professor [07:06]
      • The “hedonic treadmill”: more income doesn’t necessarily mean more happiness, because desires expand just as fast. [07:29]
    • “How you feel is more indicative and predictive of your financial behaviors than where you are.” — Wendy De la Rosa, Wharton [07:56]
    • When people feel financially insecure, they spend and save less; subjective experience can be as important as objective reality.
    • Financial self-worth is tied up with personal value in American culture:
      • “We have made so much of our self-worth be our financial worth… which we know is not true, but we internalize that.” — Wendy De la Rosa [08:48]
  • Key takeaway: Perceptions of financial sufficiency are both personal and cultural — fueling broader economic trends.

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Notable Quotes & Memorable Moments

• Mark Carney at Davos:

  “Great powers have begun using economic integration as weapons, tariffs as leverage, financial infrastructure as coercion, supply chains as vulnerabilities to be exploited.” [02:23]

• Liliana Rojas Suarez on Gold and Dollar:

  “Holdings of gold by central banks around the world is now larger than holdings of US Dollar. That is… a sign of the degradation of US credibility.” [03:23]

• On Financial Security and Happiness:

  “…when they actually start making that 10% more or 15% more, then their happiness… hasn’t changed.” — Shige Oishi [07:06]

  “How you feel is more indicative and predictive of your financial behaviors than where you are.” — Wendy De la Rosa [07:56]

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Timestamps for Key Segments

• Davos & Economic Power as a Weapon: 01:31 – 03:53
• TikTok’s Joint Venture Solution: 03:53 – 04:41
• Inflation Update and Consumer Behavior: 05:42 – 06:27
• Americans on “How Much Is Enough”: 06:27 – 07:29
• Expert Insight (“Hedonic Treadmill,” Financial Perception): 07:29 – 09:07

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Summary

In this brisk but insightful episode, Marketplace explores the evolving landscape of economic power, from high-level diplomacy at Davos to personal financial anxieties on American streets. The episode illustrates how both world leaders and ordinary citizens are re-evaluating traditional alliances, economic strategies, and the meaning of security — whether national, international, or personal. The tone is urgent yet human, reflecting both the geopolitical stakes and economic realities underpinning the stories of the day.

Transcript

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[Sabri Benishour]

Dispute over Greenland might be smoothed over Transatlantic relations are not From Marketplace I'm Sabri Benishour in for David Brancaccio. The World Economic Forum in Davos, Switzerland, wraps up today. What is usually a pretty quiet event started under a cloud President Trump's increasingly threatening language over wanting to acquire Greenland. The summit has ended with what the president said is a framework deal that would avoid a new trade war with European allies. But for some of those allies, Davos settled something else that they can no longer see the US As a reliable partner and that they need to look elsewhere. Marketplaces NovaSafo one of the defining moments.

[Mark Carney / Cal Raustiala / Liliana Rojas Suarez (various experts)]

Of the World Economic Forum this year was a speech by Canada's Prime Minister Mark Carney.

[Sabri Benishour]

Great powers have begun using economic integration as weapons, tariffs as leverage, financial infrastructure as coercion, supply chains as vulnerabilities to be exploited.

[Mark Carney / Cal Raustiala / Liliana Rojas Suarez (various experts)]

Carney went on to say, the world is in the midst of a rupture of old alliances and middle powers like Canada need to band together.

[Sabri Benishour]

He received a standing ovation, which really doesn't happen. Davos is a very buttoned down place.

[Mark Carney / Cal Raustiala / Liliana Rojas Suarez (various experts)]

Cal Raustiala is director of the UCLA Burkel center for International Relations. He says Carney's comments echoed frustrations over a year of erratic policies from the Trump administration.

[Sabri Benishour]

I think Greenland was sort of the straw that broke the camel's back because it was more than just tariffs.

[Mark Carney / Cal Raustiala / Liliana Rojas Suarez (various experts)]

It was, he says, using economic power as a cudgel to demand territory from an ally. Liliana Rojas Suarez of the center for Global Development says American economic power is waning, as witnessed by the US Dollar, still the world's reserved currency but showing signs of weakness.

[Liliana Rojas Suarez / Shige Oishi]

Holdings of gold by central banks around the world is now larger than holdings of US Dollar. That is something that has not happened in many, many years, a sign, she.

[Mark Carney / Cal Raustiala / Liliana Rojas Suarez (various experts)]

Says, of the degradation of US Credibility that's already had ripple effects. Ahead of Davos, Canada inked a trade deal with China, in part easing tariffs on Chinese electric vehicles, tariffs that had been imposed in partnership with the US I'm NovaSafu for Marketplace after years of.

[Sabri Benishour]

Fighting for its life in the U.S. tikTok looks to be here to stay. The social media platform's Chinese owner, ByteDance, said Thursday it has worked out a deal to create a joint venture to run its US Operations that is majority American owned by Dance, said the joint venture would secure U.S. data and protect U.S. national security and and would have final say over content moderation. In 2024, Congress passed a law banning TikTok unless it was sold to US entity. President Trump gave it some extensions to figure things out, 200 million people in the US use the app.

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[Sabri Benishour]

Yesterday we got an inflation snapshot of the US Economy from the Bureau of Economic Analysis. It found that prices were up 2.8% in November compared to the year before. The data Also show that consumers saved less and less as 2025 went on, as they spent more and more overall. This spending is propping up the US Economy. Yes, but a lot of it is from higher income households. Middle and lower income households are actually cutting back. That is the Data Marketplaces podcast. This is uncomfortable. Talked to people to get a sense of how financially secure Americans actually feel right now, here's host Rima Grace.

[Rima Reis]

We asked New Yorkers on the street a deceptively simple question. How much money would you need to feel secure right now? What would feel like enough?

[Fundrise Advertiser / Podcast Host]

I could make somewhere over 100 grand. That'd be good.

[Rima Reis]

Half a million dollars enough would be 400,000 a year. Shoot enough. It's like my wife not to be working as much. I base it off of my anxiety. Am I able to feel like there's a safe number in my bank account? That was Nico, Richard, Claude Itzi and Darrell. Researchers who've looked at this question of how much is enough say that we tend to treat it as a moving target. Shige Oishi is a psychology professor at the University of Chicago.

[Liliana Rojas Suarez / Shige Oishi]

If you ask that kind of question to ordinary people, right, they always say, well, if I had maybe 10% more, 15% more, 20% more, I would be really, really happy. But the thing is that the research shows that when they actually start making that 10% more or 15% more, then their happiness, you know, hasn't changed.

[Rima Reis]

Researchers call this the hedonic treadmill.

[Liliana Rojas Suarez / Shige Oishi]

As we achieve more, our desire expands and, you know, increase as well. Therefore, in terms of ratio, it doesn't change.

[Rima Reis]

That's assuming you have basic needs covered. But a lot of people told me, even if financially they're doing okay on paper, day to day, life still feels tight. And as it turns out, it's pretty important how things feel over and above.

[Wendy De la Rosa]

Your objective financial situation. How you feel is more indicative and predictive of your financial behaviors than where you are.

[Rima Reis]

Wendy De la Rosa is an assistant professor at Wharton who studies financial decision making. She says when people feel like they don't have enough, even if technically they do, they tend to pull back.

[Wendy De la Rosa]

When I feel like I don't have enough resources, I not only spend less, but I save less. Because how can I afford to save if I feel like I don't have any money right now? I just want to hoard.

[Rima Reis]

For a lot of people, the constraints are real, but just feeling stretched can lead people to delay things like saving for retirement or putting money away in a savings account. De la Rosa says how we think about our financial security is also deeply tied to how we compare our lives to the people around us and how we measure our own success.

[Wendy De la Rosa]

We have made so much of our self worth be our financial worth. If I'm financially prosperous, then I am a good person and all of my work and my individual work is leading to my financial well being, which we know is not true, but we internalize that, she says.

[Rima Reis]

Our perceptions of ourselves, of our money, don't just reflect the economy, they also help drive it. I'm Rima Reis for Marketplace.

[Sabri Benishour]

Rima hosts Marketplace's podcast this Is Uncomfortable. Our executive producer is Nancy Fargali. Our digital team includes Antoinette Brock, Emily McCune and Dylan Nietinen. Our engineers are Brian Allison, Tessa Block, and David Schreck. In New York, I'm Sabri Benishore with the Marketplace Morning Report from APM American Public Media.

[Rima Reis]

I'm Rima Reis. And this week on this Is Uncomfortable, fellow podcaster and host of Scamfluencers, Sarah Haggie joins me to sort out your work drama. We answer your questions about scammy bosses, managing workplace friendships and co workers who push the boundaries a little too far. I'm going to stay at your place for a bit while I'm breaking up and obviously I'll need a key and that is how you get a squatter. Listen to this Is Uncomfortable on your favorite podcast, Applied.