Turns out, customers like when things are cheaper

Summary

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Marketplace Morning Report: "Turns out, customers like when things are cheaper"

Date: February 12, 2026
Host: Sabri Benishore (in for David Brancaccio)
Podcast: Marketplace Morning Report

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Episode Overview

This episode spotlights the impact of price cuts at major consumer brands like McDonald’s, explores the significant revisions to US job numbers, and examines how changes in US immigration policy are shifting the global talent competition—especially with Germany enticing Indian IT workers. All stories are delivered with trademark Marketplace analysis, real voices, and a quick, informative tone to give you an economic snapshot before the markets open.

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1. Lower Prices Attract More Customers

Segment: 00:54 – 01:57

• Main Story:

  • Companies such as PepsiCo and McDonald's are cutting prices, and "consumers like that."
  • McDonald’s reported stronger-than-expected results for late 2025 after launching new value meals and lowering some combo meal prices.
  • Targeted value initiatives, like extra value meals and seasonal promotions (e.g. the Grinch meal), are bringing in customers with annual incomes of $45,000 or less.

• Key Data:

  • McDonald’s US same-store sales: Up nearly 7% in the last quarter of 2025.
  • Part of this boost is attributed to recovery from a 2024 E. Coli outbreak, but the chain credits aggressive price cuts and appeals to value-seeking diners.

• Notable Quote:

  "McDonald's attracted more consumers with incomes of $45,000 a year or less. The company says same store sales were up almost 7% in the US over the last three months of 2025. That is partly because sales were bouncing back from a 2024 E. Coli outbreak. But McDonald's also credits the lower prices and promotions like its Grinch meal."
  — Nancy Marshall Genser, [01:19–01:57]

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2. US Labor Market Revisions—What Changed?

Segment: 01:57 – 03:53

• Main Story:

  • The Bureau of Labor Statistics issued a major revision: the US gained about 900,000 fewer jobs in the previous year than originally reported.
  • January 2026 showed a stable gain of 130,000 jobs.

• Expert Analysis:

  • Diane Swonk (Chief Economist, KPMG) explains why such large data revisions happen:
    • It's a persistent balance between timely reporting and accurate, granular census data.
    • Rapid economic changes often escape early official counts, only to be reflected in subsequent corrections.

• Key Trends:

  • The "tariff tantrum" of April 2025 marked a sharp slowdown in job gains, particularly outside healthcare/social assistance.
  • Looking forward, companies are beginning to transfer the cost increases from tariffs to consumers as pre-tariff inventories run out. Uncertainty about AI’s impact on jobs also looms.

• Notable Quotes:

  "The problem is the balance between the accuracy of the data and the timeliness of the data and the rush to get out good data. Initially we don't have as much granular detail and in fact, if the economy is changing rapidly...that doesn't really get caught in the census data until well after the fact."
  — Diane Swonk, [02:25–02:50]

  "We're now seeing different changes affect everything from uncertainty about how AI will affect jobs. We're seeing margin compression go from firms absorbing tariffs to now passing those price hikes on..."
  — Diane Swonk, [03:23–03:48]

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3. Immigration: From US to Germany—A New Race for IT Talent

Segment: 05:04 – 08:11

• Main Story:

  • As US immigration policies become tougher and H1B visa fees rise, Germany is positioning itself as a prime destination for Indian IT talent.
  • Germany is facing demographic challenges—an aging workforce—and needs skilled immigrants to drive economic growth.

• On the Ground:

  • Indian IT professionals are being courted by Germany, often after finding the US path too difficult or unpredictable.
  • Example: Nambirajan Vanamalai, originally choosing the US, finds work-life balance and stability instead in Berlin, despite language barriers.

• Key Context:

  • Germany's ambassador to India actively promotes Germany’s “predictable” and reliable immigration system.
  • Quarter of German workers are within a decade of retirement, boosting urgency for skilled immigrants.
  • There are fears among newcomers about job prospects and acceptance, reflecting the complexity of economic and social integration.

• Expert Perspective:

  "Without immigration, we can't have economic growth. And then it's very problematic to finance Social Security systems when we have more and more elderly people."
  — Axel Planika, German Economic Institute, [05:56–06:10]

  "The idea is that these workers will exactly, almost like a puzzle piece, fit the gaps in the German economy. The question for people like von Amomolai is whether Germany fits them."
  — Sarita Amrute, Professor at The New School, [07:51–08:02]

  "Here, it's about time. You'll get time for yourself, you'll get time for your hobbies, you'll get time to relax."
  — Nambirajan Vanamalai on the German lifestyle, [06:57–07:04]

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Memorable Moments & Quotes

• On Price Cuts:

  "More and more businesses are discovering that if they lower prices, consumers like that."
  — Sabri Benishore, [00:54]

• On Data Integrity:

  "The problem is the balance between the accuracy of the data and the timeliness of the data..."
  — Diane Swonk, [02:25]

• On the Migration Choice:

  "Germany's immigration policy is like its cars—modern, reliable, predictable, and you don't have to fear a full break at a top speed."
  — Germany’s ambassador to India (voiceover), [05:39–05:46]

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Key Takeaways

• Lowering prices is a surefire way to bring customers back, particularly in fast food and consumer goods.
• Labor market data can swing significantly after revisions, especially in turbulent times; policymakers and the public must stay flexible and skeptical.
• The tightening of US immigration policy is opening doors for other global economies—especially Germany—to attract skilled foreign workers.
• Work-life balance and predictability are becoming key draws for global talent, not just salary considerations.

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Timestamps for Major Segments

• Impact of price cuts (McDonald's and PepsiCo): 00:54–01:57
• US job numbers and economic revisions with Diane Swonk: 01:57–03:53
• Global competition for tech workers—US vs Germany: 05:04–08:11

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This summary distills Marketplace Morning Report’s key news and analysis, capturing the voices, context, and impact for listeners seeking a quick yet thorough grasp of today’s economic headlines.

Transcript

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[Sabri Benishore]

More and more businesses are discovering that if they lower prices, consumers like that From Marketplace, I'm Sabri Benisure in for David Brancaccio. PepsiCo last month cut prices on its snacks McDonald's has been cutting prices too, and says it's paying off. Yesterday, the company released better than expected results for the tail end of 2025. Marketplace's Nancy Marshall Ganza reports McDonald's started.

[Nancy Marshall Genser]

Offering extra value meals last September, which include a sandwich, medium fries and a drink. The CH chain also lowered the prices of some of its combo meals last fall. CEO Chris Kamchinski says McDonald's attracted more consumers with incomes of $45,000 a year or less. The company says same store sales were up almost 7% in the US over the last three months of 2025. That is partly because sales were bouncing back from a 2024 E. Coli outbreak. But McDonald's also credits the lower prices and promotions like its Grinch meal. I'm Nancy Marshall Genser for for Marketplace.

[Sabri Benishore]

The Bureau of Labor Statistics Yesterday said the US gained about 900,000 fewer jobs last year than it initially thought. It also reported that In January the US gained 130,000 jobs, which is solid. Let's get into it with Diane Swonk. She's chief economist at the audit, tax and advisory firm kpmg. Good morning, Diane.

[Diane Swonk]

Good morning.

[Sabri Benishore]

The revisions to last year's data were huge. Have they fixed whatever made them so.

[Diane Swonk]

Off it could get revised later? The problem is the balance between the accuracy of the data and the timeliness of the data and the rush to get out good data. Initially we don't have as much granular detail and in fact, if the economy is changing rapidly, which we've seen a lot over the last couple of years. That doesn't really get caught in the census data until well after the fact.

[Sabri Benishore]

That big revisions are kind of common when the economy is undergoing great change. Are we still undergoing great change in 2026?

[Diane Swonk]

I think we are. We're moving from one great change, which was the biggest marker was April 2025 and the tariff tantrum. And after that, job gains basically hit a wall. They didn't pick up until later in the year and even then only in one major sector, healthcare and social assistance sector carrying economy. In terms of new job gains, what's important is that we're now seeing different changes affect everything from uncertainty about how AI will affect jobs. We're seeing margin compression go from firms absorbing tariffs to now passing those price hikes on in the months to come as inventories that were ordered in advance of tariffs are depleted.

[Sabri Benishore]

Diane Swonk, chief economist at kpmg. Thank you so much.

[Diane Swonk]

Thank you.

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[Sabri Benishore]

For decades, the US has been a top choice for IT workers from India who want to work abroad. But recent immigration crackdowns and changes to visa rules are are making it a less attractive destination. Germany sees that as a chance to cash in. Elisa Roth reports from Berlin.

[Elisa Roth]

Just days after the US announced new fees for H1B visas, Germany's ambassador to India posted a video on social media reminding people that his country is a good alternative. He says Germany's immigration policy is like its cars modern, reliable, predictable, and you.

[Voiceover/Advertiser]

Don'T have to fear a full break at a top speed. We do not change our rules fundamentally overnight.

[Elisa Roth]

Germany has been trying to attract skilled workers from abroad for years because companies here can't find enough. Axel Planika follows immigration at the German Economic Institute.

[Voiceover/Advertiser]

Without immigration, we can't have economic growth. And then it's very problematic to finance Social Security systems when we have more and more elderly people.

[Elisa Roth]

Germany has been slowly raising its retirement age, but almost a quarter of all working people here are within a decade or so of retiring. It's the highest percentage in the eu. So Germany has been trying to make it easier for some immigrants to work here. I'm with Nambirajan Vanamalai in a coffee shop in Berlin. He and his family moved here from India in 2022. Germany was not his first choice.

[Voiceover/Advertiser]

For most people in India, the first choice is us because it is one of the well paid. There is no language barrier.

[Elisa Roth]

But he couldn't find a job in the US or in Canada, and he did find one here, designing digital products for a car company. He says the American dream is about money, but Germany is different.

[Voiceover/Advertiser]

Here, it's about time. You'll get time for yourself, you'll get time for your hobbies, you'll get time to relax.

[Elisa Roth]

Vana Mamalai works in English, and he wonders if not speaking German well is limiting his career opportunities. Many of his Indian friends here also worry about there being enough jobs in the future. Vanamalai says he does feel safe here, even as a foreigner. But Germany hasn't always been the most welcoming place, and there have been reports of threats against foreigners even in big cities. It's also competing against other countries that need skilled immigrants. Sarita Amrute is a professor at the New School who has studied Indian tech workers here. She says Germany's recent charm offensive is like a version of the old guest worker programs that brought thousands of workers here from Southern Europe to rebuild after World War II. The idea is that these workers will exactly, almost like a puzzle piece, fit the gaps in the German economy. The question for people like von Amomolai is whether Germany fits them. He says he wouldn't move to the US now because the situation is too unpredictable and. And besides, he and his family are finally getting settled here in Berlin, I'm Elisa Roth for Marketplace.

[Sabri Benishore]

And in New York, I'm Sabri Benishore with the Marketplace Morning Report from APM American Public Media. Ready to make the most of your money? Sign up to receive weekly tips from Marketplace designed to help you make smarter financial decisions. Plus, you'll also be the first to know about exclusive Marketplace merchandise and local events. Text Marketplace place to 80568 to sign up.