Revenge spending on concerts is so last year

Summary

Marketplace Morning Report: "Revenge Spending on Concerts Is So Last Year" – April 28, 2025

In the April 28, 2025 episode of Marketplace Morning Report, host David Brancaccio delves into three pivotal economic and social issues: the impact of steep tariffs on US-China shipping, the cooling trend in live event spending, and the financial struggles faced by retirees navigating credit card debt. Through insightful interviews and real-life stories, the episode paints a comprehensive picture of current economic challenges and their effects on everyday Americans.

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1. The Toll of 145% Tariffs on US-China Shipping

The episode opens with Sabri Beneshore discussing the severe repercussions of a 145% tariff imposed on Chinese goods. These exorbitant tariffs have led to a significant decline in cargo shipments from China to the United States, particularly affecting the flow of furniture, toys, and other consumer goods.

Key Points:

• Sharp Decline in Shipments: The high tariffs have caused a notable drop in the number of cargo ships traveling from China to the US. Sabri Beneshore explains, “There has been a sharp drop in the number of cargo ships coming from China to the US...” (00:01).

• Reduced Container Bookings: With the increased costs, bookings for shipping containers have dwindled, leading to underutilized vessels. Ben ashore notes, “Bookings for the containers that go on those ships also way down...” (00:01).

• Supply Chain Disruptions: Trade Flex Group’s President, Porfirio Waters, highlights how clients are avoiding China, resulting in ships returning almost empty. “So right now the steamship companies are basically almost sending empty vessels from Asia to the United States,” Waters states (00:49).

• Economic Timing: This disruption arrives at a critical period when US importers typically place orders for back-to-school and holiday shopping seasons, exacerbating supply chain challenges (01:00).

Nancy Marshall Genser further elaborates on the situation, citing data from the ship tracking system Port Optimizer, which forecasts a 50% drop in shipments to Southern California in early May (00:31).

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2. Decline in Live Event Spending Post-Pandemic

Transitioning from international trade, the report examines the waning enthusiasm for live events, particularly concerts, following the post-pandemic boom in "revenge spending."

Key Points:

• Concert Ticket Dynamics: Sabri Beneshore introduces the topic by comparing the current ease of obtaining Beyoncé's tickets to the overwhelming demand during her 2023 Renaissance tour. “Revenge spending on live events like concerts is slowing down,” he remarks (01:23).

• Personal Anecdote: Through the story of Carrie Simonelli’s daughter, Stephanie Tully illustrates the shift in consumer behavior. Simonelli recounts, “Old, she actually asked to stay home from school so she could get their ticket presale” (01:52), highlighting the previous frenzy around ticket purchases.

• Rising Costs and Reduced Spending: The conversation reveals that while tickets are now more available, their prices have doubled, forcing consumers like Simonelli to forgo attending concerts despite their interest (02:09).

• Expert Insight: Marketing Professor Stephanie Tully of USC analyzes the trend, suggesting that financial constraints are leading people to prioritize essential purchases over experiences. “What gets hit when people feel financially constrained are experiences,” Tully explains (02:24).

• Shift to Practicality: Instead of spending on events, individuals are investing in tangible goods deemed useful for an uncertain future. Tully observes, “We stock up on stuff that might be useful in an uncertain future,” indicating a strategic shift in consumer priorities (02:39).

This segment underscores a broader economic sentiment where discretionary spending on entertainment is making way for more practical financial decisions amid economic uncertainties.

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3. Retirement Woes: Battling Debt in Golden Years

The episode then shifts focus to the financial struggles faced by retirees, emphasizing how unexpected expenses and reliance on credit can undermine economic security in later life.

Key Points:

• Real-Life Story: Senior economics contributor Chris Farrell narrates the story of Norman and Patricia Kaitzer, an elderly couple grappling with credit card debt. Farrell introduces Norman, an 81-year-old former magazine editor, highlighting his long-standing contributions to the professional wrestling industry (03:34).

• Economic Hardships: Despite a debt-free home and no mortgage, the Kaitzers find themselves burdened by credit card debt after taking in their grandson unexpectedly. Norman explains, “We were doing okay up until that time. But now we're just got too much on our credit cards” (05:13).

• Impact of Health Issues: The couple faces additional financial strain due to health problems, including a knee replacement and prostate cancer, forcing them to live off Social Security (05:13).

• Support Systems: Farrell highlights their reliance on nonprofit organizations for assistance in making their home safer and their participation in a debt repayment plan through Lutheran Social Services (06:17).

• Long-Term Consequences: The Kaitzers’ story illustrates the precarious nature of retirement finances, where unforeseen expenses can lead to debt accumulation, ultimately resulting in the loss of assets like a car. Patricia shares, “I could still drive, but I can’t afford a car. My transmission went out” (06:13).

This poignant narrative sheds light on the broader issue of financial instability among retirees, emphasizing the need for better support systems and financial planning to ensure economic independence in later years.

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Conclusion

The April 28 episode of Marketplace Morning Report offers a multifaceted exploration of current economic challenges, from international trade disruptions due to high tariffs and shifting consumer spending patterns to the intimate financial struggles of retirees. By presenting these stories with detailed reporting and expert insights, the episode provides listeners with a nuanced understanding of how macroeconomic policies and personal financial decisions intersect to shape everyday life.

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Transcript Reference:

• The timestamps provided correspond to specific segments and quotes within the transcript, ensuring accurate attribution and facilitating further exploration of the discussed topics.

Transcript

[Sabri Beneshore]

145% tariffs means ships aren't Shipping from Marketplace I'm Sabri Ben ashore in for David Brancaccio. There has been a sharp drop in the number of cargo ships coming from China to the US Loaded with furniture, toys and other goods. Bookings for the containers that go on those ships also way down. That is what happens when tariffs on the products that would normally fill those containers is raised to our raised to 145%. Marketplace's Nancy Marshall Genser has more.

[Nancy Marshall Genser]

The ship tracking system port optimizer says shipments from China to Southern California will drop by around 50% in early May. Porfirio Waters is president of the supply chain management company Trade Flex Group. He says his clients are avoiding China right now.

[Porfirio Waters]

They froze their orders. They froze bringing in anything for China right now. So right now the steamship companies are basically almost sending empty vessels from Asia to the United States.

[Nancy Marshall Genser]

Waters says this kind of disruption can snarl supply chains with too many vessels and shipping containers in one port and not enough in others. This all comes at an especially sensitive time for US Importers. This is when they normally start ordering shipments of products for the back to school and holiday shopping seasons. I'm Nancy Marshall Genser for Marketplace.

[Sabri Beneshore]

Beyonce's Cowboy Carter Tour kicks off tonight in Los Angeles, and so far at least, fans are finding it cheaper and easier to get their hands on tickets than during Beyonce's sold out Renaissance tour in 2023. That is probably less a reflection on Beyonce and more that post pandemic revenge. Spending on live events like concerts is slowing down, Marketplace's Savannah Peters reports.

[Savannah Peters]

When pop star Gracie Abrams performed in Boston last year, Carrie Simonelli's 16 year.

[Stephanie Tully]

Old, she actually asked to stay home from school so she could get their ticket presale. But I didn't let her.

[Savannah Peters]

The concert sold out fast. Simonelli spent $200 a piece on two tickets from a reseller, more than she.

[Stephanie Tully]

Wanted to, and she had a great time.

[Savannah Peters]

Simonelli says her daughter would like to see Abrams again this summer and this time there are plenty of tickets, but they're twice as expensive.

[Stephanie Tully]

So I think this year the answer is just going to have to be no.

[Savannah Peters]

Wait for it.

[Stephanie Tully]

No.

[Savannah Peters]

The YOLO energy that fueled the boom in live event spending is starting to fizzle out, according to Stephanie Tully, a marketing professor at usc.

[Stephanie Tully]

In particular, what gets hit when people feel financially constrained are experiences.

[Savannah Peters]

And instead, Tully says, we stock up on stuff that might be useful in an uncertain future. In other words, people who dropped big money on the Renaissance Tour two years ago are now panic buying a washing machine. I'm Savannah Peters for Marketplace.

[Sabri Beneshore]

When you think about retirement, you hope that it comes with financial freedom, economic independence. The reality is that older folks can be saddled with credit car debt after they've stopped working. And the data show it often comes just from paying for necessities or unexpected expenses. In our latest installment of our series, Buy Now, Pay Later, Marketplace's senior economics contributor Chris Farrell brings us the story of one couple's battle with debt in their golden years.

[Chris Farrell]

I should go upstairs. With his wife Patricia's encouragement, 81 year old Norman Kaitzer takes me to his small home office up a narrow staircase with a railing on each side for support. A framed Star Tribune column about him is on one wall. It says, meet the Mankato man who helped change professional wrestling.

[Norman Kaitzer]

I was a magazine editor for Wrestling Review and Ring Wrestling.

[Chris Farrell]

Norman's career spanned more than 40 years. He got his start in the professional wrestling business when he was a student at Mankato State University in Minnesota, about an hour and a half from the Twin Cities. A promoter asked if Norman wanted to earn money helping to set up the wrestling ring at the local armory, which led to more opportunities and a move.

[Norman Kaitzer]

Well, I started sending stories about the different wrestlers to the magazines in New York and that's how I ended up working in New York later on, you know. For a while.

[Chris Farrell]

He and his wife Patricia returned to Mankato in the 1980s. He continued to write, edit, publish and promote wrestling until the 2000s. They also owned a local karaoke store.

[Norman Kaitzer]

That was our last thing and we're Both in our 80s now, so when we sold the store, Basically I was 70 something and I was in the early 70s and we got enough money to buy this house without a mortgage and to pay off the mortgage we had on our store building.

[Chris Farrell]

Nonprofit organizations help make their homes safer to age in place. Norman also dealt with health issues. His knee was replaced and he also had prostate cancer.

[Norman Kaitzer]

I'm basically living off Social Security now.

[Chris Farrell]

And like many people in their cohort, they're under financial strain, mainly due to taking in their grandson who said he needed a temporary place to stay.

[Norman Kaitzer]

He claimed he was going in the army and he was going to, but he wanted to stay with us for a couple weeks. It ended up he was here for eight months. He quit his job and didn't work and he ate more than the two of us and everything and we were doing okay up until that time. But now we're just got too much on our credit cards.

[Chris Farrell]

They currently have balances on two credit cards. The snowball effect of this debt means they no longer have a car.

[Patricia Kaitzer]

Oh, I could still drive, but I can't afford a car. My transmission went out.

[Chris Farrell]

Their grandson is back on his feet with a job he loves and is living on his own.

[Norman Kaitzer]

We got to the point where we wanted to pay off some of these things.

[Chris Farrell]

They took action. They're in a debt repayment plan through Lutheran Social Services. I'm Chris Farrell from Marketplace.

[Sabri Beneshore]

Our Buy Now, Pay later project is in partnership with Next Avenue, a nonprofit news platform for older adults. Produced by Twin Cities PBS in New York. I'm Sabri Benishore with the Marketplace Morning.

[Chris Farrell]

Report.

[Sabri Beneshore]

From APM American Public Media.

[Patricia Kaitzer]

If there's one thing we know about social media, it's that misinformation is everywhere, especially when it comes to personal finance. Financially Inclined from Marketplace is a podcast you can trust to help you get serious about your money so you can build a life you've always dreamed of. I'm the host, Janelie Espinal, and each week I ask experts important money questions, like how to negotiate job offers, how to choose a college that you can afford, and how to talk about money with friends and family. Listen to Financially Inclined wherever you get your podcasts.