Thoughts on DEI from a Costco parking lot

Summary

Marketplace Morning Report: Thoughts on DEI from a Costco Parking Lot Release Date: May 22, 2025

Host: David Brancaccio

---

GOP Tax and Spending Bill Passes the House

Overview: The episode begins with a crucial update on the political landscape as the GOP tax and spending bill narrowly passes the House by a single vote. This legislation extends the 2017 tax cuts, introduces significant deficit increases, and imposes new work requirements for most adults enrolled in Medicaid.

Key Points:

• Legislation Details:

  • Extension of Tax Cuts: The bill prolongs the tax provisions established in 2017.
  • Deficit Impact: Projected to increase federal deficits.
  • Medicaid Work Requirements: Adults under 65 must now engage in work, volunteering, schooling, or training for at least 80 hours monthly to qualify for Medicaid, with exceptions for pregnant individuals, those with disabilities, and caregivers.

• Financial Implications:

  • Cost Savings: The Congressional Budget Office estimates a $280 billion saving over the next decade.
  • Impact on Coverage: Approximately 5 million low-income individuals could lose their Medicaid coverage due to the new requirements.

Notable Quotes:

• Ryan Levy, Tradeoffs:
  "This policy would save the federal government $280 billion over the next decade and nearly 5 million people would lose their health insurance as a result."
  (Timestamp: 02:17)

• David Brancaccio:
  "It's really hard to craft a work requirements policy in Medicaid that's going to move the needle substantially on employment without catching a lot of people up in red tape because so many folks are already doing what you want them to do."
  (Timestamp: 03:01)

Discussion Insights:

Ryan Levy from Tradeoffs elaborates on the practical challenges of implementing work requirements, highlighting that bureaucratic hurdles and lack of awareness have historically led to eligible individuals losing coverage despite meeting the criteria. The proposal aims to streamline the process by reducing reporting frequency and utilizing existing data like payroll taxes, potentially mitigating some of the issues faced in states like Arkansas.

---

Costco's Commitment to Diversity, Equity, and Inclusion (DEI)

Overview: Shifting focus to corporate social responsibility, the episode delves into how major U.S. corporations are handling their DEI commitments post the George Floyd protests. Costco emerges as a standout example, reinforcing its dedication to diversity amidst pressures to retract DEI initiatives.

Key Points:

• Shareholder Influence:

  • Early 2025, Costco successfully countered a conservative-backed shareholder proposal aimed at scrutinizing its DEI efforts.
  • Leadership argued that diversity fosters creativity and enhances the shopping experience by offering unique products.

• Consumer and Employee Perspectives:

  • Diverse workforce contributes to Costco's reputation for a "treasure hunt" shopping experience.
  • Shoppers express comfort and positive sentiments towards Costco's diverse environment, influencing their loyalty and spending preferences.

• Financial Performance:

  • Costco reported a 7% increase in net sales for April compared to the previous year.
  • Approximately 90% of Costco’s global customers renewed their memberships, underscoring the effectiveness of its DEI strategy.

Notable Quotes:

• Nancy Marshall Genzer, Marketplace Reporter:
  "High diversity helps stock shelves with unique products that make shopping there a treasure hunt."
  (Timestamp: 05:33)

• David Marcotte, Kantar Retail:
  "You walk in for two or three things and come out with 12. His family canceled their membership after too much bulk buying."
  (Timestamp: 05:38)

• Renford Bailey, Costco Shopper:
  "When I walk into a Costco and see the diversity of its employees, I feel right at home. If they support diversity, I'm with it."
  (Timestamp: 07:10)

• Dan Driver, Retired Pharmacist and Costco Shopper:
  "I have a better feeling walking into Costco this morning than I would have had two years ago, just because they've taken a stand on something that's important."
  (Timestamp: 07:15)

Discussion Insights:

Despite facing opposition from certain conservative groups advocating boycotts over DEI initiatives, Costco has maintained its stance, emphasizing that diversity is integral to its business model and customer satisfaction. Interviews with shoppers reveal strong support for Costco’s DEI efforts, with many appreciating the inclusive environment it fosters. Costco's leadership underscores that DEI is not just a moral imperative but also a strategic advantage that drives sales and membership renewals.

---

Listener Segment: Financial Therapy with Newlyweds

Overview: Concluding the episode, a personal segment titled "Is Uncomfortable" explores the financial tensions between newlyweds Chantal and Travis Lipsak. The segment highlights the importance of financial compatibility and communication in relationships.

Key Points:

• Conflict Source:
  The couple faces disagreements over financial priorities and decision-making, particularly in the context of purchasing a dream home.

• Financial Therapy:
  A financial therapist facilitates discussions to help the couple navigate their differences and establish common ground.

Notable Quotes:

• Chantal Lipsak:
  "I was so deeply irritated because his reasonings just did not feel valid."
  (Timestamp: 08:30)

• Travis Lipsak:
  "I felt a little bit stuck."
  (Timestamp: 08:41)

---

Conclusion

This episode of Marketplace Morning Report adeptly balances high-level economic policy discussions with insightful corporate analysis and personal human-interest stories. From the intricate implications of the GOP's recent tax and Medicaid reforms to Costco's unwavering commitment to DEI, listeners gain a comprehensive understanding of current economic and social dynamics. Additionally, the inclusion of personal narratives underscores the podcast's dedication to exploring how broader issues intersect with individual lives.

---

For more detailed insights and updates, tune into the next episode of Marketplace Morning Report.

Transcript

[Grainger Representative]

If you work in quality control at a candy factory, you know strict safety regulations come with the job. It's why you partner with Grainger. Grainger helps you find the high quality and compliant products your business needs to inspect, detect and help correct issues. And the sweetest part is everyone gets a product that's as safe to eat as it is delicious. Call 1-800-GRAINGER clickgrainger.com or just stop by Grainger for the ones who get it done.

[Marketplace Host]

This is it, folks. Our May fundraiser ends this Friday and it's your last chance to help us reach an important goal. With federal funding for public media, shall we say on shaky ground, we're preparing for a future where we rely even more on you, our listeners. Your support powers trusted independent journalism about the economy and makes it accessible to millions of listeners. Let's hit our goal before Memorial Day weekend. Give [e-mail] donate that's Marketplace.

[Sabree Ben]

The GOP tax bill has passed the House. From Marketplace, I'm Sabree Ben, ashore in for David Brancaccio. The GOP tax and spending bill passed the House this morning by one vote. It extends the 2017 tax cuts and would increase deficits. It would also start forcing most adults enrolled in Medicaid to work. Marketplace's David Brancaccio spoke with Ryan Levy about this. Levy is with the nonprofit health policy news organization Tradeoffs.

[Marketplace Host]

So you have to work in exchange for the health care plan. What would be some of the rules?

[Ryan Levy]

So the GOP plan says that in order to qualify for Medicaid, adults under 65 must either work, volunteer, go to school, or be in a work training program for at least 80 hours every month. Now, there are exceptions if you're pregnant for folks who are disabled or caregivers. And the latest analysis, which is still preliminary from the nonpartisan Congressional Budget Office, says that this policy would save the federal government $280 billion over the next decade and nearly 5 million people would lose their health insurance as a result.

[Marketplace Host]

Big cost savings envision, but also 5 million low income people losing health coverage. But I don't get it. I've seen research showing 90% of people on Medicaid now are either working already or would qualify for one of those exemptions you listed. Given that, why would this policy kick so many people off of Medicaid?

[Ryan Levy]

Two words, red tape. Back in 2018, Arkansas became the first state to impose work requirements in Medicaid. And Ben Summers, who's a Medicaid researcher at Harvard, he told me that studies suggest Most of the 18,000 people who lost coverage under that policy were still eligible. People just didn't know about the work requirements or they struggled to figure out how to report their hours.

[David Brancaccio]

It's really hard to craft a work requirements policy in Medicaid that's going to move the needle substantially on employment without catching a lot of people up in red tape because so many folks are already doing what you want them to do.

[Marketplace Host]

So, Ryan, would Republicans in Congress take a more streamlined approach, less hoops than the Arkansas model studied there?

[Ryan Levy]

So it depends who you ask. This proposal would only make people report their work hours twice a year instead of every month like Arkansas did. It also directs states to use data they already have, like payroll taxes, to limit the paperwork that people have to send in. That's going to be an easier lift for some states than others. One thing that's not in this proposal are any provisions about actually helping people find jobs before kicking them off Medicaid. That's something that several former Medicaid directors from red states told me is really important. If the goal of this is to actually help people break the cycle of poverty, get a leg up in life as opposed to just reducing costs by shrinking Medicaid.

[Marketplace Host]

Ryan Levy is with the nonprofit health policy news organization called Trade Offs. Ryan, thank you.

[Ryan Levy]

Thank you, David.

[Grainger Representative]

If your job at a healthcare facility includes disinfecting against viruses, you know prevention is the best medicine. And maintaining healthy spaces starts with a healthy cleaning routine. Grainger's world class supply chain helps ensure you have the quality products you need when you need them, from disinfectants and cleaning supplies to personal protective equipment so you can help deliver a clean bill of health. Call 1-800-GRAINGER clickgranger.com or just stop by Granger for the ones who get it done.

[Sabree Ben]

It's been five years since George Floyd's death at the hands of police officers in Minneapolis. In the wake of resulting protests across the country, major U.S. corp. Made big promises on diversity, equity and inclusion. Now some are backing away from their DEI commitments. Others are not, including Costco. The warehouse chain where customers pay a membership fee to buy in bulk is doubling down on diversity. Here's Marketplace's Nancy Marshall Genzer.

[Nancy Marshall Genzer]

Early this year, Costco shareholders defeated a proposal from a conservative think tank. It would have forced the company to report on the risks of its support for dei. Costco asked shareholders to vote against it.

[David Brancaccio]

Whenever they get told they need to change their business model. They don't react very well, and they shouldn't.

[Nancy Marshall Genzer]

David Marcotte is senior vice president at Kantar Retail. He says Costco told shareholders the originality and creativity of its diverse workforce helps it stock its shelves with the unique products that make shopping there a, quote treasure hunt. Marcotte says you walk in for two or three things and come out with 12. His family canceled their membership after too much bulk buying.

[David Brancaccio]

My wife came home one too many times with a 12 pack of jumbo muffins, and I need a jumbo muffin like I need a hole in the head.

[Nancy Marshall Genzer]

Some conservative groups want consumers to resist buying jumbo muffins or anything else from Costco. They've threatened to boycott the company because of its commitment to dei, but if.

[Rima Reyes]

They are, it's not working.

[Nancy Marshall Genzer]

Atinuque Adeduran teaches law at Fordham University and studies corporate governance and racial diversity. Because Costco is doing way better than.

[Rima Reyes]

The companies that also consumer facing.

[Nancy Marshall Genzer]

Indeed, Costco reported that net sales for April were up 7% from last year. I did ask Costco for comment on all this. It didn't respond by deadline. So I headed to a Costco warehouse in Wheaton, Maryland, to interview shoppers there as they struggled to stuff bulk buys of toilet paper and jumbo packs of eggs into their cars. Renford Bailey is originally from Jamaica. He says when he walks into a Costco and sees the diversity of its employees, he feels right at home. If they support diversity, I'm with it.

[David Brancaccio]

So I would feel more comfortable to spend my money in places where it's diverse.

[Nancy Marshall Genzer]

That's one of the arguments Costco makes, that its shoppers like to look around and see people who look like them. As he walked into Costco, retired pharmacist Dan Driver told me he agrees with the company's values.

[David Brancaccio]

I have a better feeling walking into Costco this morning than I would have had two years ago, just because they've taken a stand on something that's important.

[Nancy Marshall Genzer]

Nobody I talked to had negative things to say about Costco's diversity policies, although one shopper, Avisag Manjibar, told me, she's just here for the deals. I don't really care. I don't really care. Just I come in for what I needed and I go home and that's it. Bottom line. Costco's formula mixing deals on giant boxes of cereal with unexpected treasures you really didn't know you needed works and Costco says DEI is key to its success, pointing out that at the end of last year, about 90% of its customers worldwide had renewed their memberships. I'm Nancy Marshall Genser for Marketplace, and.

[Sabree Ben]

In New York, I'm Sabri Benishore with the Marketplace Morning Report from apm American Public Media.

[Rima Reyes]

When newlyweds Chantal and Travis Lipsak started searching for their dream home, it became clear they were not on the same page. I was so deeply irritated because his reasonings just did not feel valid.

[Ryan Levy]

I felt a little bit stuck.

[Rima Reyes]

I'm Rima Reyes, and this week on this Is Uncomfortable. A financial therapist sits there down with this Seattle couple to talk through their money differences and the tensions that can arise when making big life decisions together. Listen to this Is Uncomfortable. Wherever you get your podcasts.