Marketplace Podcast Summary: "Don’t Touch That AM Dial!"
Release Date: November 5, 2024
Host: Kai Ryssdal
1. Economic and Political Climate Amidst the Election
In the episode titled "Don’t Touch That AM Dial!", host Kai Ryssdal delves into the pressing economic and political issues surrounding the impending election. Central to the discourse is the Republican nominee's aggressive stance on American trade policy, particularly the threat to impose tariffs of up to 100% on imports from Mexico—the United States' largest trading partner. These tariffs are not limited to consumer goods but extend significantly to American farmers, raising widespread concern within the agricultural sector.
2. Impact of Proposed Tariffs on US Agriculture
Sabri Benishore from Marketplace introduces listeners to Josh Gackel, a third-generation farmer in North Dakota, highlighting the anxiety among farmers regarding the proposed tariffs (00:02). Gackel, who also serves as the president of the American Soybean Association, emphasizes the devastating effects of previous trade wars. Krista Swanson, lead economist for the National Corn Growers Association, draws parallels to the 2018 tariffs imposed on China, noting a nearly 20% drop in U.S. soybean prices and a significant loss of market share to competitors like Brazil and Argentina (01:37–02:05).
Jeffrey Schott, a senior fellow at the Peterson Institute, underscores the long-term consequences of increased global competition and the potential for future price gluts in U.S. agricultural products due to expanded farming in other countries (02:11). Elizabeth Trovall adds that retaliatory tariffs could lead to a dramatic decrease in corn exports to China—by about 83% annually—if the Republican nominee's proposal extends beyond China to other trading partners (02:30).
Notable Quote:
Krista Swanson (01:43): “We haven't completely seen it come back yet.”
3. OPEC's Production Decisions and the Oil Market
The podcast shifts focus to the global oil market, discussing OPEC's latest decision to postpone its plan to increase oil production by the end of the year. Elizabeth Trovall explains that OPEC finds itself in a challenging position: withholding supply to keep prices stable while facing pressures from non-OPEC producers who are ramping up their output (03:21). Despite OPEC's efforts, demand remains weak in major markets such as China and the United States, leading to concerns about an oversupplied market.
Joe Delora from Rabobank predicts that an influx of supply could drive oil prices down to around $50 per barrel, which would be detrimental, especially for U.S. oil producers in regions like the Permian Basin where production costs are higher (04:31–05:02). Conversely, if OPEC maintains its current supply restrictions, oil prices may remain higher, benefiting consumers but complicating the market dynamics further.
Notable Quote:
Joe Delora (04:15): “If oil drops down to $50 a barrel, they're going to be having some difficult times continuing production and meeting their financial obligations.”
4. Changes in the Dow Jones Industrial Average
Stephanie Hughes reports on notable shifts within the Dow Jones Industrial Average (DJIA). Intel and Dow Inc. are set to be replaced by Nvidia and Sherwin Williams, respectively. Financial expert Jeffrey Schott explains that the DJIA, being a price-weighted index, reflects changes based on stock prices rather than market capitalization. Howard Silverblatt from S&P Dow Jones Indices notes that Nvidia's inclusion strengthens the semiconductor industry's representation within the index, while Sherwin Williams better mirrors the performance of the materials sector (06:59–08:18).
Mike Harrison, an analyst at Seaport Research Partners, highlights Sherwin Williams' impressive growth and its successful penetration into the pro contractor market, which contributed to its rising stock price and subsequent inclusion in the DJIA (08:08). The episode underscores the dynamic nature of the stock market and the continuous evolution of influential companies within major indices.
Notable Quote:
Jeffrey Schott (07:09): “James Angel is a finance professor at Georgetown University. He says the Dow is meant to reflect the US Stock market and how it's doing.”
5. AM Radio in Automobiles: The 'AM for Every Vehicle' Act
A significant portion of the episode is dedicated to the legislative push for the "AM for Every Vehicle" act, which aims to mandate the inclusion of AM radio receivers in all new vehicles manufactured in the United States. Henry Epp reports on the bipartisan support for the bill, which faces opposition primarily from the automotive and tech industries. The rationale behind the bill, as explained by Curtis Legat, president of the National Association of Broadcasters, is the critical role of AM radio in emergency alert systems, especially when other communication infrastructures fail (09:11–12:02).
Joe Delora interviews Michael Stam, a history professor, who provides historical context about the enduring relevance of AM radio despite the advent of FM and digital media. Gary Shapiro, CEO of the Consumer Technology Association, argues against the bill, stating that it represents unnecessary government intervention in the free market and that alternative methods exist for disseminating emergency alerts (12:14–12:33).
Matthew Jordan, a media studies professor, sees the legislation as an opportunity to revitalize public-interest programming on AM stations, urging broadcasters to return to their foundational role of serving the community with valuable information (12:39).
Notable Quote:
Gary Shapiro (12:02): “This is nothing but a bailout for panicked AM radio broadcasters who, seeing their declining audiences as people shift to streaming audio, to other things that they really value.”
6. Climate Change and National Security: Navy SEALs and Scripps Oceanography
In an on-location segment, Kai Ryssdal joins Lucien Perry, a Marine technician, and researchers from the Scripps Institution of Oceanography to explore the impacts of climate change on military operations. The team conducts monthly surveys of the coastline near the Naval Amphibious Spacecraft Coronado base in San Diego to monitor sea level rise and coastal erosion. Using advanced laser mapping technology, they collect detailed data essential for predicting and mitigating the effects of climate change on naval infrastructure (16:07–24:48).
Jim Crane, a professor of oceanography, discusses the long-term projections of sea level rise—predicting an additional foot by 2050—and its implications for the base's sustainability. Krista Swanson from the Navy Region Southwest Fleet emphasizes the Navy's commitment to maintaining its mission near the water despite the challenges posed by environmental changes, highlighting the strategic importance of proactive planning and infrastructure adaptation (19:08–24:48).
The segment vividly illustrates the intersection of environmental science and national security, showcasing the tangible steps being taken to preserve critical military assets in the face of escalating climate threats.
Notable Quote:
Krista Swanson (23:03): “We have to take that data, work with our headquarters, work with DOD and kind of figure out how we look at buildings, how we look at infrastructure, where we look at building.”
7. Rising Age of Homebuyers: Implications for the Housing Market
Concluding the episode, Kai Ryssdal presents concerning data from the National Association of Realtors' annual State of the Market report. The average age of homebuyers in the United States has risen to 56 years old, up from 49 the previous year. This demographic shift suggests that younger individuals are increasingly being priced out of the housing market, raising alarms about affordability and accessibility for future generations (24:48–end).
The report highlights broader economic disparities and the challenges faced by younger demographics in achieving homeownership, a cornerstone of the American Dream. This trend may have long-term implications for economic mobility, urban development, and societal equity.
Notable Quote:
Kai Ryssdal (24:48): “The average age of home buyers in the United states is now 56 years old. That's up from 49 just last year. Reading between the lines here, it means younger homebuyers are just being priced out.”
Conclusion
"Don’t Touch That AM Dial!" offers a comprehensive exploration of critical economic policies, global oil dynamics, stock market fluctuations, legislative debates on media infrastructure, the intersection of climate change with national security, and alarming trends in the housing market. Through insightful interviews and on-the-ground reporting, Marketplace provides listeners with a nuanced understanding of how these diverse issues interconnect and impact the everyday economy.
For more detailed reporting and in-depth analysis, tune into the full episode of Marketplace.