What’s your vice?

Summary

Marketplace Morning Report: “What’s Your Vice?”
Release Date: February 7, 2025

The February 7th episode of Marketplace Morning Report, hosted by Nova Safo, delves into a variety of pressing topics ranging from federal workplace policies to generational spending habits on vices, retail industry challenges, and significant legal debates surrounding executive power. This comprehensive summary captures the episode's key discussions, insights, and conclusions, enriched with notable quotes and structured into clear sections for easy navigation.

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1. Federal Workers’ Buyout Program Under Scrutiny

The episode opens with a report on the Trump administration's federal workers' buyout program, which has recently faced legal challenges. Nova Safo introduces the segment by highlighting the temporary judicial block on the program and the upcoming hearing to deliberate the case.

Nancy Marshall Genzer provides detailed coverage, explaining that federal workers have filed a lawsuit contesting the buyout's legality and the administration's unclear funding plans. She states:

“They say it's illegal and also unclear how the Trump administration would pay for it since, the funds to do so have not been appropriated.” [01:44]

The buyout offer, which promises resigning federal employees continued pay and benefits until September 30th, has had its deadline extended by the Office of Personnel Management (OPM) to comply with the judge’s order. Despite the legal hurdles, the White House continues to advocate for the buyout, with OPM assuring that the government will honor the offer. Nancy emphasizes the administration's stance:

“The White House is continuing to encourage workers to accept the buyout offer and... the government will honor it.” [01:44]

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2. Americans' Vices: A Generational Perspective

A significant portion of the episode explores a new Bankrate study revealing that 84% of Americans engage in common vices, such as alcohol, tobacco, and gambling. The study underscores a generational divide in the types of vices indulged.

Kaylee Wells reports that alcohol remains the most prevalent vice across all generations, particularly among older adults and those with higher incomes. She cites Christine McDaniel, a senior research fellow at George Mason University's Mercatus Center:

“Alcohol is the top choice for every generation, but it's most popular among older generations and folks with a higher income.” [02:41]

Nancy Marshall Genzer adds depth to this observation by linking financial stability and cultural preferences:

“There's a bit of an income effect there. Older people tend to be more financially stable, but also just cultural. They just prefer to relax with a glass of wine or cocktail.” [02:55]

In contrast, sports betting has surged, especially among younger generations. Kaylee highlights that:

“Half of Gen Zers are spending on online sports betting. That's more than double the percentage of Gen Xers and more than triple the boomers.” [03:05]

Ted Rossman, a senior industry analyst with Bankrate, attributes this trend to Gen Z’s greater risk tolerance with money:

“There's a lot of evidence that Gen Zers are bigger risk takers with their money.” [03:18]

Rossman further explains the disparity by contrasting the financial behaviors shaped by different economic climates:

“Older generations are likely more debt averse because they lived through the Great Recession... Gen Zers, on the other hand, came of age at a time when stimulus money was abundant.” [03:30]

The discussion concludes with a cautionary note from Kaylee about the potential dangers of vice spending leading to debt:

“Vice spending can become a problem when people go into debt to pay for it.” [03:44]

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3. Retail Shake-Up: Store Closures Amid Fast Fashion Competition

Nova Safo transitions to the retail sector, reporting on the closure of several iconic stores—Quicksilver, Billabong, and Volcom. The closures are attributed to the relentless competition from fast fashion retailers, which have outpaced traditional brands in the market.

Despite the physical store closures, the brands will continue to maintain an online presence, allowing consumers to access their products digitally. This shift underscores the broader trend of retail moving towards e-commerce platforms to remain competitive and sustain business operations.

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4. Legal Challenges to Unitary Executive Theory

A significant portion of the episode is dedicated to a legal discussion about the unitary executive theory, sparked by the lawsuit filed by Gwen Wilcox, former member of the National Labor Relations Board (NLRB). Wilcox's lawsuit challenges the Trump administration's removal of two Equal Employment Opportunity Commission (EEOC) members, questioning the extent of presidential authority over independent agencies.

Stephen Calabresi, a law professor at Northwestern University and a prominent scholar on the subject, joins Nova Safo to elucidate the theory. Calabresi explains:

“The theory of the unitary executive is the theory that the president is the head of the executive branch. He has all of the executive power, and he has the authority to fire subordinates for policy reasons if they disagree with him and if he wants to do so.” [05:27]

Nova probes the tension between this theory and longstanding legal precedents, particularly referencing the 1935 case Humphrey's Executor. Calabresi responds by advocating for a reinterpretation of this precedent:

“I think the court is ready to overrule Humphrey's executor, and I think it should overrule Humphrey's executor. The statutes that Congress has passed that purport to limit presidential removal power are quite simply unconstitutional.” [05:57]

Facing criticism from legal scholars, Nova raises concerns about the potential for abuse of this expanded executive power, such as the hypothetical firing of the Federal Reserve Chair. Calabresi addresses these concerns by emphasizing restraint and institutional checks:

“I think the fact the president has the theoretical power to fire any anyone in the executive branch doesn't mean that he will exercise that power or choose to exercise that power... President Trump... has not tried to fire the chair of the Federal Reserve Board, probably in part because doing that would rattle the stock exchange and the securities markets.” [07:00]

Calabresi further notes the role of Congress in acting as a counterbalance to any potential overreach:

“Congress will push back against the illegitimate firing of subordinate executive officials.” [07:00]

The interview underscores the ongoing debate about the balance of power within the U.S. government and the implications of altering executive authority.

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Conclusion

The episode of Marketplace Morning Report titled “What’s Your Vice?” offers listeners an insightful exploration into current federal policies, changing consumer behaviors across generations, challenges in the retail industry, and pivotal legal debates shaping executive power. Through expert interviews and detailed reporting, the episode provides a nuanced understanding of these complex issues, making it a valuable resource for anyone seeking to stay informed on the latest developments in business, economics, and governance.

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This summary is based on the transcript provided and aims to encapsulate the episode’s essence while omitting advertisements, introductory, and concluding remarks for clarity and focus.

Transcript

[Adam Grant]

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[Nova Safo]

Workers in Limbo for Marketplace I'm Nova Safo in for David Brancaccio. Federal workers now have a little more time to decide if they want to leave their jobs. A judge has temporarily blocked the Trump administration's buyout program and scheduled a hearing for Monday to consider arguments from the Trump administration and workers unions. Marketplace's Nancy Marshall Genzer has more Unions.

[Nancy Marshall Genzer]

For federal workers filed a lawsuit earlier this week against the buyout program. They say it's illegal and also unclear how the Trump administration would pay for it since, quote, the funds to do so have not been appropriated. The Trump buyout offer promises that federal workers who resign will still get all their pay and benefits until September 30th. The Office of Personnel Management extended the deadline for the offer to Monday just before midnight to comply with the judge's order. But the White House is continuing to encourage workers to accept the buyout offer and in a post on X, OPM insists the buyout is not blocked or canceled, adding that the government will honor it. Nancy I'm Nancy Marshall Genser for Marketplace.

[Nova Safo]

A new bank rate study says 84% of Americans spend money on a common vice, including alcohol, tobacco and gambling. There's a generational divide over which vice you might indulge in. Here's Marketplace's Kaylee Wells.

[Kaylee Wells]

Alcohol is the top choice for every generation, but it's most popular among older generations and folks with a higher income. Senior research fellow Christine McDaniel at George Mason University's Mercatus center says those two stats are related.

[Nancy Marshall Genzer]

There's a bit of an income effect there. Older people tend to be more financially stable, but also just cultural. They just prefer to relax with a glass of wine or cocktail.

[Kaylee Wells]

Sports betting is not nearly as universal. It's particularly big with people under 30. Half of gen zers are spending on online sports betting. That's more than double the percentage of Gen Xers and more than triple the boomers.

[Ted Rossman]

There's a lot of evidence that gen zers are bigger risk takers with their money.

[Kaylee Wells]

Ted Rossman is a senior industry analyst with Bankrate. He says older generations are likely more debt averse because they lived through the Great Recession.

[Ted Rossman]

Gen zers, on the other hand, came of age at a time when stimulus money was abundant. You know, there were a lot of people that were using their stimulus money to gamble on crypto or sports betting or meme stocks.

[Kaylee Wells]

Rossman says that vice spending can become a problem when people go into debt to pay for it. Which, out of all the vices Bankrate studied, is most common for the sports bettors? I'm Kayleigh Wells for Marketplace.

[Nova Safo]

Attention skaters, surfers and snowboarders. Quicksilver, Billabong and Volcom stores are closing. Their operator says it can't compete with fast fashion. You'll still find those brands online. Gwen Wilcox, who was removed from her post on the National Labor Relations Board, is suing the Trump administration over the unprecedented decision. Last week, Trump also removed two members of the Equal Employment Opportunity Commission. Wilcox's lawsuit could test the limits of presidential influence over independent agencies, which oversee everything from stock markets to monetary policy. Some legal experts think that the White House wanted a test case to advance a theory known as the unitary executive. For more, I'm joined by Stephen Calabresi, a professor at law at Northwestern University. He's written a book on the subject. Welcome.

[Stephen Calabresi]

Thank you for having me.

[Nova Safo]

So when you were part of the Reagan White House and the Justice Department, then you helped advance the unitary executive theory and have written extensively about it since. Can you explain what it is and why you support the idea?

[Stephen Calabresi]

The theory of the unitary executive is the theory that the president is the head of the executive branch. He has all of the executive power, and he has the authority to fire subordinates for policy reasons if they disagree with him and if he wants to do so.

[Nova Safo]

Now, this would break, though, with nearly 100 years of legal precedent, as well as laws written by Congress that limit a president's ability to fire. How do you square those two things?

[Stephen Calabresi]

There was a case in 1935, Humphrey's executor, which said that there might be an exception to presidential removal power. In recent years, the U.S. supreme Court under Chief Justice Roberts has construed Humphrey's executor more and more narrowly. And in my view, the court is ready to overrule Humphrey's executor, and I think it should overrule Humphrey's executor. The statutes that Congress has passed that purport to limit presidential removal power are quite simply unconstitutional.

[Nova Safo]

As you know, it's not hard to find legal scholars who strongly disagree with you and the theory you just laid. Now, what do you say to folks who are concerned about really any president being able to, for example, fire the Federal Reserve chair if the chair of the Federal Reserve doesn't do what the president wants him to do? How would you respond to those concerns?

[Stephen Calabresi]

Well, I think the fact the president has the theoretical power to fire any anyone in the executive branch doesn't mean that he will exercise that power or choose to exercise that power. President Trump, for example, has not tried to fire the chair of the Federal Reserve Board, probably in part because doing that would rattle the stock exchange and the securities markets. Congress will push back against the illegitimate firing of subordinate executive officials. And the fact that Congress has not pushed back against the firing of officials that President Trump has done in the last two weeks indicates that he's not abusing the firing power.

[Nova Safo]

Steven Calabrese teaches law at Northwestern University and is a leading scholar of the unitary executive theory. Thank you for coming on our show today.

[Stephen Calabresi]

Thank you for having me.

[Nova Safo]

We also spoke with legal experts critical of unitary executive theory. Find that coverage [e-mail] if you miss it on the air. I'm Novah Safo with the Marketplace Morning Report from apm American Public Media.

[Ted Rossman]

Hi, it's David. We have an exciting offer for you. Now through Valentine's Day, you can show off your love of Marketplace by grabbing an investor T shirt when you donate $5 a month. Invest in the nonprofit journalism you love and and get a shirt to show off your support. Give [e-mail] donate.