Marketplace: Women Deserve Credit
Episode Release Date: October 21, 2024
Host: Kristen Schwab
1. Corporate Earnings and the Impact of the US Dollar
The episode begins with a comprehensive overview of the bustling corporate earnings calendar. Major players such as 3M, Coca-Cola, Tesla, IBM, and approximately 1,600 other companies are slated to report their latest quarterly performances. A central theme in these earnings reports is consumer spending behavior and the fluctuating value of the US Dollar.
📌 Justin Ho discusses the significance of the dollar's strength:
“Companies care about the dollar's value because when it rises, it affects their sales overseas. Ultimately, a strong dollar makes that weak in terms of revenue.”
[01:06]
Dan Ives from Wedbush Securities adds:
“With all of that, we have…”
[01:56]
As interest rates have begun to decline, the dollar's value has started to stabilize, providing companies with more predictable financial environments. Christopher Vecchio from Tasty Live explains:
“That probably means you're not going to see one currency, the dollar, otherwise gain too much ground versus its peers. Instead, Vecchio says the dollar's value will likely stabilize in the coming year.”
[02:39]
This stabilization offers companies the confidence to project their earnings with greater accuracy amidst economic uncertainties.
2. Boeing's Ongoing Struggles Amidst Strikes and Safety Concerns
A significant focus is placed on Boeing, which is navigating a turbulent period marked by both labor strikes and safety issues. After a five-week strike, Boeing has tentatively agreed to a new contract with the International Association of Machinists and Aerospace Workers. The proposed terms include a 35% pay raise over four years, a one-time $7,000 ratification bonus, and increased retirement contributions. However, it falls short of reinstating pensions, a key demand from the workers. The contract's ratification vote coincides with the company's earnings report.
📌 Samantha Fields highlights the breadth of Boeing's challenges:
“It has been a rough year for Boeing. The first week of January, you might remember, a door plug blew out of an Alaska Airline 737 Max jet mid flight.”
[04:08]
Richard Abulafia from Aerodynamic Advisory succinctly describes Boeing's financial predicament:
“They've just got a real leaky sieve.”
[04:55]
The ongoing strike has reportedly cost Boeing at least a billion dollars, exacerbating the company's already precarious financial situation. This turmoil extends to Boeing’s suppliers, who have been severely impacted by halted productions and quality control issues.
3. The Debate Over Tipped Minimum Wage in the United States
The conversation shifts to labor economics, specifically the federal minimum wage and its exceptions. The federal minimum wage stands at $7.25 per hour, with exceptions for workers in certain states and for employees who receive tips. In 37 states, the tipped minimum wage is below the federal standard, with 13 states adopting the minimum tip wage of $2.13 per hour.
📌 Sebastian Martinez Hickey from the Economic Policy Institute emphasizes the demographic impact:
“Tipped workers are disproportionately likely to be women and people of color.”
[07:00]
Current ballot initiatives in Arizona and Massachusetts seek to eliminate the tipped minimum wage, aiming to ensure workers receive fair compensation. Mike Watley of the National Restaurant Association argues against these changes, citing increased costs that could lead to higher prices for consumers and reduced job opportunities:
“The group argues that eliminating the tipped wage raises prices for patrons and increases labor costs for restaurant owners so that they have to cut hours and jobs.”
[08:07]
In Washington, D.C., since phasing out the tipped minimum wage in 2023, over 1,800 full-service restaurant employees have lost their jobs, contrasting with the addition of 300 jobs in quick-service restaurants. Advocates for maintaining the tipped wage fear that successful ballot initiatives could inspire similar actions in other states, potentially undermining efforts to improve wages for tipped workers nationwide.
4. The Rise of Alaskan Wild Sockeye Salmon in US Markets
Shifting to the agricultural sector, the episode explores the growing demand for wild sockeye salmon from Alaska’s Bristol Bay. Traditionally exported to Japan, fishermen are now increasingly targeting the domestic US market, catering to landlocked food enthusiasts and local restaurants.
📌 Annalee Waterman narrates the journey of a salmon fishing family:
“Kirsten Sterling spends every summer fishing for salmon at the mouth of Bristol Bay in Alaska with her husband and two little kids...”
[10:58]
By selling directly to consumers, these businesses can offer high-quality, ruby-red salmon at more affordable prices, despite natural variability in production costs. Customers, such as Karlyn Hervig, appreciate the freshness and local sourcing:
“It's special to get Alaskan salmon from a local mountain west business.”
[12:26]
This direct-to-consumer model not only supports small producers but also ensures that communities with a strong agricultural focus can access fresh, sustainably sourced seafood.
5. Women Deserve Credit: The Legacy and Ongoing Challenges of the Equal Credit Opportunity Act
The episode's titular segment delves into the Equal Credit Opportunity Act (ECOA) of 1974, a landmark law signed by President Gerald Ford aiming to eliminate gender-based discrimination in credit markets. The conversation highlights the historical barriers women faced in accessing credit and the law's transformative impact over the past five decades.
📌 Savannah Marr recounts personal stories of discrimination faced by women before ECOA:
“I was told I would have to complete an application in my husband's name. It didn't matter that he hadn't worked during our marriage.”
[17:22]
Chloe Thurston, a political science professor at Northwestern, illustrates the pervasive nature of discrimination:
“These stories made their way into the press and helped make the case for the Equal Credit Opportunity Act, or ECOA, which just 50 years ago made it illegal for creditors to discriminate on the basis of sex or marital status...”
[18:44]
Greta Krippner, a sociologist at the University of Michigan, comments on ECOA's broader social impact:
“Economic independence for women is a bedrock for every other form of human flourishing.”
[19:12]
Despite ECOA's achievements, challenges persist. Jennifer Chen from Consumer Reports highlights that modern credit scoring systems still harbor biases rooted in historical practices like redlining. Additionally, emerging technologies, such as AI in financial services, pose new threats of subtle discrimination that current laws do not adequately address.
“There's already evidence of AI amplifying human bias in the financial sector.”
[20:23]
Chloe Thurston underscores the importance of updating legislations like ECOA to counteract these new forms of discrimination.
“In the ideal world, these laws would be updated to also address the negative impact of discrimination in lending.”
[20:36]
The segment concludes by reflecting on ECOA’s enduring legacy and the necessity for continual vigilance to ensure equitable access to credit for all women.
6. The Charm of Custom-Designed Storybook Houses
Exploring the housing market, the episode showcases the enduring appeal of storybook-style cottages. Approximately 18% of homes built last year were custom-designed, often featuring whimsical elements like swooping roofs and stained glass, reminiscent of historical European cottages.
📌 Annalee Waterman provides historical context:
“The earliest storybook style cottage that is considered kind of the start of the movement is Marie Antoinette's Petit Trianon on Versailles…”
[21:56]
The movement gained significant traction in the early 20th century, influenced by returning World War II veterans and the burgeoning film industry. Neighborhoods like Carmel by the Sea exemplify this architectural style, blending nostalgia and whimsy with modern living.
While aesthetically pleasing, these custom homes are often more expensive to build due to unique materials and designs. Nonetheless, their popularity persists among those who cherish individuality and historical charm in their living spaces.
7. Closing Market Updates
The episode wraps up with a brief overview of current market trends:
- Dow Jones Industrial Average: Dropped 344 points (-8.10%), closing at 42,931.
- Nasdaq: Increased 50 points (+3.10%), ending at 18,540.
- S&P 500: Fell 10 points (-2.10%), closing at 58,530.
- Gold: Reached a record high of $2,723 per ounce.
- Walt Disney Company: Announced plans to hire a new CEO in early 2026, leading to a 7.10% drop in its stock.
- Bond Market: Yields on the 10-year Treasury note rose to 4.19%.
These updates provide listeners with a snapshot of the current economic landscape, highlighting the volatility and interconnectedness of global financial markets.
Conclusion
"Women Deserve Credit" navigates a diverse array of economic topics, from corporate earnings and labor disputes to the pivotal role of legislation in shaping women's financial independence. Through insightful interviews and expert analyses, Marketplace delivers a nuanced exploration of how these issues interweave with broader economic trends and societal changes. Notably, the discussion on the Equal Credit Opportunity Act underscores the ongoing journey toward gender equity in financial markets, emphasizing both historic progress and contemporary challenges.
Listeners gain a well-rounded understanding of the complexities in today's economic environment, making the episode both informative and relevant for those seeking to comprehend the forces shaping their personal and professional lives.
For more information and to listen to the full episode, visit Marketplace.