Marketplace Morning Report: How Insecurity Can Worsen Inequality

Release Date: February 17, 2025
Host: David Brancaccio
Published by: Marketplace

Introduction

In the February 17, 2025 episode of Marketplace Morning Report, host David Brancaccio delves into a pressing societal issue: the interplay between insecurity and inequality. Featuring insights from Alyssa Quart, Executive Director at the Economic Hardship Reporting Project, the episode explores how pervasive uncertainty in various facets of American life is not merely a byproduct of economic fluctuations but a catalyst that exacerbates existing inequalities.

The Landscape of Uncertainty in America

Nova Safo opens the discussion by highlighting the current climate of uncertainty affecting Americans across the ideological spectrum. Factors contributing to this sentiment include the rising cost of living, administrative policy shifts, and the impact of natural disasters. According to a recent University of Michigan survey mentioned by Safo, consumer sentiment has dipped significantly, underscoring a national unease that transcends partisan lines.

Notable Quote:
"A key theme in American life right now is uncertainty. Whether that has to do with the rising cost of living, the flurry of actions by the Trump administration, or even costly natural disasters. All of this adds up to uncertainty, and it has Americans on edge."
— Nova Safo [00:31]

Insecurity as a Driver of Inequality

David Brancaccio engages Alyssa Quart in a discussion about how insecurity contributes to widening economic disparities. Quart emphasizes that insecurity doesn't only impact the traditionally disadvantaged but is also permeating the middle class. This dual impact threatens to blur the lines between different socioeconomic groups, leading to a more fragmented society.

Key Points:

• Broader Impact of Insecurity: Quart points out that insecurity affects not just the "haves" and "have-nots" but extends to middle-class individuals who struggle to keep up with inflation and rising prices due to tariffs.

• Middle-Class Precarity: Building on her previous work, including her book Squeezed, Quart introduces the concept of the "middle precariat." This term describes middle-class individuals experiencing job instability and economic uncertainty, similar to the lower-income proletariat.

Notable Quote:
"It's not just a gap between haves and have nots, but it's those who can't absorb the blows of things like the LA fires or the mudslides in Kentucky and so on and so forth. And middle class people who can't keep up with inflation."
— Alyssa Quart [02:37]

Insecurity as an Indicator of Societal Well-being

Brancaccio and Quart discuss the role of insecurity as a reverse indicator of societal well-being. Higher levels of insecurity signal underlying issues within the economy and social structures that can lead to deeper inequalities if left unaddressed.

Key Points:

• Economic Policy Uncertainty Index: Quart references this index to illustrate how spikes in uncertainty can lead to economic disorder, drawing parallels to events like Brexit.

• Solidarity Through Insecurity: Quart suggests that shared experiences of insecurity across different classes could foster solidarity, potentially serving as a foundation for addressing broader societal issues.

Notable Quote:
"Insecurity has become an indicator that scholars now assess societal well being."
— Alyssa Quart [03:18]

The Consequences of Precarity

Quart elaborates on how abrupt precarity, such as that experienced during the COVID-19 pandemic, has long-lasting effects on individuals across the economic spectrum. While policies like the American Rescue Plan temporarily alleviated some hardships, the underlying insecurity persists, leading to sustained economic instability.

Notable Quote:
"We had the American rescue plan, expanded child tax credit that reduced child poverty tremendously. Then you also had this growing middle class precarity."
— Alyssa Quart [03:49]

Potential Paths Forward

Drawing inspiration from Astra Taylor's Age of Insecurity, Quart envisions a future where recognizing shared insecurity can lead to collective action and societal reform. By understanding insecurity as a common experience, there is potential to bridge gaps between different socioeconomic groups and address inequality more effectively.

Notable Quote:
"We could start thinking of ourselves in those terms [insecurity], which is something that was mentioned by Astra Taylor in a great book called Age of Insecurity."
— Alyssa Quart [03:59]

Supporting Data and Market Insights

Beyond the main discussion, the episode provides a snapshot of the current economic landscape:

• Stock Market Performance: Major indexes are up between 3% and 5% for the year, despite Wall Street's closure for President's Day.
• Treasury Yields: The 10-year treasury yield remains around 4.5%, impacting consumer interest rates and the real estate market, where mortgage rates are between 6% and 7%.

Notable Quote:
"The benchmark 10 year treasury yield, which helps set consumer interest rates, is back to where it was at the beginning of the year, hovering around 4.5%."
— Nova Safo [04:49]

Conclusion

The episode "How Insecurity Can Worsen Inequality" offers a comprehensive examination of how uncertainty serves as a fundamental driver of economic disparity in contemporary America. By highlighting the experiences of both lower and middle-class individuals, Alyssa Quart underscores the pervasive nature of insecurity and its potential to deepen societal divides. The conversation calls for a nuanced understanding of precarity and encourages collective efforts to mitigate its impact, fostering a more equitable society.

Additional Segments: While the primary focus was on insecurity and inequality, the episode also touched on other relevant topics, including deep-sea mining for critical minerals and advancements in battery technology, reflecting the interconnectedness of economic policies, environmental concerns, and technological progress.