Marketplace Morning Report: “Fixing the Hemp Loophole”

Date: November 13, 2025
Host: David Brancaccio
Main Story Reporter: Nancy Marshall Genzer

Episode Overview

This episode opens with immediate business and economic headlines before focusing on a significant policy change: new federal restrictions on hemp products, aimed at closing a loophole that previously permitted the sale of intoxicating hemp derivatives nationwide. The story details reactions from industry insiders and policy advocates, followed by economic analysis and grassroots efforts around austerity and wealth inequality. The episode is fast-paced and informative, providing context, expert voices, and direct insights on contemporary business and regulatory issues.

Key Discussion Points & Insights

1. Federal Government Reopens – and Tighter Hemp Rules Arrive

[00:58–03:03]

• Federal Legislation: Besides restarting the government, the new farm bill also introduces tighter regulations on hemp, specifically targeting intoxicating hemp derivatives that were being sold under a legal loophole.
• The Loophole: Previously, hemp products with low THC could be sold freely—even those with psychoactive effects.
• Tighter THC Limits: The farm bill enforces stricter THC content limits, which hemp industry representatives argue are "absurdly low."
• Industry Impact:
  • Jim Higdon (Cornbread Hemp, Louisville, KY): Highlights immediate impact on CBD products for adults, which will become illegal under the new rules.

    • “So CBD products that people that adults are taking for pain, anxiety and sleep issues will become illegal.” (Jim Higdon, [01:49])

  • Higdon also voices willingness for age restrictions but criticizes the new limits as overreaching:

    • “We needed guardrails and what they gave us was a death sentence.” (Jim Higdon, [02:13])

• Policy Justification:
  • Backers claim the loophole enabled the widespread sale of intoxicating hemp products to teens, often with little to no federal age regulations.
• Advocates’ Perspective:
  • Chanel Lindsay (Parabola Center): Argues the hemp sector exploited a loophole to ignore state cannabis regulations, calling for unified national standards.

    • “It’s improper to have two separate systems where people are, you know, one group is subject to regulations, oversight, regulatory oversight, and the other is not.” (Chanel Lindsay, [02:35])

  • Lindsay suggests that hemp and cannabis sellers should unify and push for a single national policy.
• Implementation Timeline: New regulations have a grace period and will come into effect in November 2026.

2. Market & Business Headlines

[03:03–04:09]

• Air Travel: Despite the government reopening, DOT cancels 6% of flights at 40 airports; about 1,000 cancellations, with high numbers in Chicago and Newark.
• Corporate Earnings: Disney reports better-than-expected profits from streaming and theme parks but sees stock drop in pre-market trading. Company increases shareholder dividends.
• Currency Update: The U.S. mints the last one-cent coin, as pennies get phased out due to cost concerns.
• Retail: McDonald’s and other chains train staff for rounding transactions due to the penny’s discontinuation.

3. Economic Pulse: On Austerity, Inequality, and Grassroots Organizing

[05:57–09:37]

• Guest: Clara Matei, Economics Professor (University of Tulsa), President of Forum for Real Economic Emancipation (FREE)
• Core Topic: The realities and rhetoric of austerity in the U.S.
• Matei’s Take on Austerity:

  • “Austerity is… the fact that the poor are getting poorer because governments and state institutions are shifting resources away from working class people.” (Clara Matei, [06:29])

  • States it’s not about budgeting but about resource redistribution favoring the wealthy.
• Modern Policy Paradox:
  • While stimulus and tax cuts are advertised, Matei argues most benefits go to those living off capital rather than wages:

    • “…those who live off of dividends, rent and interest pay far less taxes than those who are actually living off of a wage.” ([07:23])

• On Government Aid:
  • Matei claims government payments (like COVID money) can actually empower workers to organize and resist exploitative work.

    • “[Stimulus] may empower people to a degree by which they might not want to participate in wage labor and exploitation.” ([07:57])

• Grassroots Economic Innovation in Tulsa:
  • FREE hosts monthly meetings exploring alternative systems, focusing next on food sovereignty—who controls the food and how to reduce market dependence.

  • “Hopefully start a pilot program to say let’s see if we can actually break from market dependence and pressure… in favor of need, not of profit.” ([08:47])

Notable Quotes

• Jim Higdon (Cornbread Hemp):
  “So CBD products that people that adults are taking for pain, anxiety and sleep issues will become illegal.” [01:49] <br> “We needed guardrails and what they gave us was a death sentence.” [02:13]

• Chanel Lindsay (Parabola Center):
  “It’s improper to have two separate systems where people are, you know, one group is subject to regulations, oversight, regulatory oversight, and the other is not.” [02:35]

• Clara Matei (University of Tulsa):
  “Austerity is… the fact that the poor are getting poorer because governments and state institutions are shifting resources away from working class people.” [06:29] <br> “…those who live off of dividends, rent and interest pay far less taxes than those who are actually living off of a wage.” [07:23] <br> “[Stimulus] may empower people to a degree by which they might not want to participate in wage labor and exploitation.” [07:57] <br> “Let’s see if we can actually break from market dependence and… switch the logic once more in favor of need, not of profit.” [08:47]

Timeline of Important Segments

• 00:58–03:03: Hemp loophole closure explained; industry and policy advocate responses.
• 03:03–04:09: Quick business headlines (flights, Disney, pennies, retail).
• 05:57–09:37: The Marketplace Economic Pulse – in-depth interview with Clara Matei on austerity, U.S. economic policy, and grassroots movements.

Tone & Style

Marketplace’s tone is brisk, informative, and balanced between advocacy voices and business updates. The episode features frank criticism of policy decisions, but also pragmatic calls for policy unity and grassroots action.

Further Listening

The episode previews the next “How We Survive” podcast series on climate change and food security, emphasizing the interconnected challenges facing the U.S. economy and society.

For anyone who missed the episode, this summary covers the critical regulatory changes in hemp law, the debate between industry and advocacy, fresh economic analysis, and thoughts on how policies shape everyday Americans’ lives.