Slate Money: "MrBeast and The Chocolate Factory"

Date: March 15, 2025
Host: Felix Salmon (Axios)
Co-hosts: Elizabeth Spiers (New York Times, various), Emily Peck (Axios)

Episode Overview

This week's Slate Money unpacks major business and finance stories with a lively, skeptical eye. Key topics include the recent correction in the US stock market (and how much, if at all, it matters for everyday life and politics), fresh headlines about crypto giant Binance and the Trump family's rumored involvement, and the business strategy behind YouTube megastar MrBeast's wildly popular chocolate bar. The team rounds out the show with "Egg Watch," their signature numbers round, and plenty of sharp, meme-worthy banter.

Stock Market Corrections and Political Chaos

(00:35–19:32)

Key Discussion Points

• What is a "correction"?
  • When the S&P 500 drops 10% from its high, it's a "correction." If it drops 20%, it's called a "bear market." (01:05)
• History of Market Drops:
  • Financial crises (Great Depression, Black Monday) and politically-driven events (Pearl Harbor, 9/11, COVID) often cause short-term market dips, but stocks commonly rebound within six months. Felix notes, "Stocks fell and then that created news rather than news happened and that caused stocks to fall." (03:18)
• Dot-com Bubble as Outlier:
  • The dot-com crash caused a multi-year sideways market, ("a decade of stocks going sideways"), but it wasn’t precipitated by headline political news. (04:32)
• Is the Trump Era a True Market Shock?
  • Uncertainty over tariffs, policy whiplash, and executive chaos may stress the market more than usual, but there's debate as to whether these will cause long-term structural damage. Elizabeth: "If he manages to keep doing this for four years, I think there's probably going to be a lot of lasting damage...we're looking at something that's a little bit unprecedented." (09:17)
• Policy Impacts Beyond Stock Prices:
  • Concerns around funding for higher education and scientific research, which are foundational to America's corporate and tech leadership.
  • Elizabeth: "Once you tear some of that infrastructure out, it's very difficult to rebuild...You're not going to be able to just put the toothpaste back in the tube." (10:12)
• "Vibes" and Political Blame Game:
  • Many interpret market moves according to who's in office, though this can be irrational. Elizabeth: "People look at the stock market as an economic indicator even though it's not." (12:01)
• Is the stock market 'the economy'?
  • Consensus: No. Most Americans aren't heavily invested, and short-term moves don’t reflect broader economic health.
  • Emily: "It's just a bad look for everyone...when they hook onto whatever argument they can to sort of make the case that the guy is bad." (15:17)
• On Selling Stocks:
  • Felix: "Don't be selling your stocks because you're worried about Trump. Trump is not a reason to be bearish for the stock market in particular..." (18:47)
  • Disclaimer: "We're not giving stock advice on this show." (19:25)

Notable Quote

"The first thing any investor learns is don’t react to headlines because you will overreact."
— Felix Salmon (19:41)

Binance, Trump, and Crypto’s Comeback

(19:41–32:50)

Key Discussion Points

• Binance after Legal Woes:
  • Despite massive fines and its founder’s imprisonment, Binance continues to dominate the crypto landscape, especially outside the US. (22:13)
• Rumor Mill: Trump Family & Binance US
  • Wall Street Journal reports possible Trump family investment in Binance US as a quid pro quo for favorable White House policy or pardons. Binance and the Trump camp deny it.
  • Emily: "This is batshit." (22:54); Elizabeth: "If there's a way to do something...ethically and cleanly, Trump intentionally picks the crazy, wildly unethical way to do it." (24:21)
• How Reliable is the Reporting?
  • The team weighs the Wall Street Journal’s credibility against a lack of named sources and on-the-record quotes; Emily and Elizabeth note that off-the-record sources may sometimes mislead.
• The Global Crypto Divide:
  • US regulators (and crypto lobbyists) strive to 'Americanize' major crypto firms, but the most dominant—Binance and Tether—remain firmly off-shore.
  • Felix: "These super, super successful companies, Tether and Binance, don't have any operations in the United States and yet they are way more successful than all of the companies that do." (29:22)
• Crypto in Politics:
  • Many Trump cabinet members hold significant crypto assets; crypto investment now commonplace even in traditional settings (like Manhattan co-ops). (32:07–32:33)

Notable Quote

"Binance has become the dominant crypto company on the planet ... and it has done that in the face of a very concerted effort by the crypto world... to make crypto as American a thing as possible."
— Felix Salmon (28:41)

MrBeast and the Feastables Chocolate Bar

(32:50–41:55)

Key Discussion Points

• Is MrBeast Selling Chocolate or Hype?
  • MrBeast (Jimmy Donaldson) leverages YouTube stunts and giveaways to drive massive engagement and hype for his "Feastables" chocolate bars.
  • Elizabeth: “His whole vibe is like, I’m the Internet’s Willy Wonka.” (36:44)
• Behind the Bar:
  • The chocolate bar generates $20 million in profit on $250 million in sales—solid, but less than some celebrity DTC brands.
  • The bars are marketed with QR codes implying a lottery or prize element, but the actual sweepstakes seem generic.
• Taste Test Live:
  • Elizabeth: "It tastes like a Nestle Crunch bar. Like almost identical." (38:10)
• Influencer Brands and Fleeting Fame:
  • These direct-to-consumer goods depend on celebrity influence—few last beyond the star's own popularity.
  • Felix: “No one has really been able to turn this into a lasting business that lasts forever, because fame is a fleeting thing.” (41:01)
• Controversy:
  • Reports of exploitative conditions on MrBeast’s competition show, contrasting with his giving philanthropic persona. (40:04)
• The Big Takeaway:
  • Emily: “If you create a really good product branded to you, a good product can outlast the fame of the person... but it seems like in this case it’s just an overpriced product.” (41:45)
  • Felix: "The only one that springs to mind is Paul Newman’s spaghetti sauce." (41:55)

Notable Quote

“It tastes like a Nestle Crunch bar. Like almost identical.”
— Elizabeth Spiers, during live chocolate bar taste test (38:10)

Egg Watch: Good News for Breakfast

(42:24–44:21)

• Emily reports:
  • "The wholesale price of eggs fell by $20 to $6.85 per dozen. Yes. Eggs are getting cheaper. Brace yourselves." (42:55)
• Team Reaction:
  • Celebratory mood as previously inflated prices start to correct.
  • Emily warns the price drop may be temporary and may not yet appear on store shelves (44:05), and recommends free range eggs for price stability.
• Comic Relief:
  • Elizabeth: “I was flipping a fried egg yesterday and I accidentally missed the pan...How much was that worth?” (44:05)

Numbers Round

(44:26–48:31)

1. Elizabeth: 25%
   • "The number of programming jobs that have vanished in the last two years... fewer programmers than in any period since 1980." AI and automation cited as key drivers. (44:29–45:16)
2. Felix: 42
   • "42-mile conveyor belt moving sand to fracking wells in the Permian Basin." Highlights corporate infrastructure trivia. (45:33–46:29)
3. Emily: $72,398
   • "How much Starbucks spent flying CEO Brian Nicholl between California and Seattle in September." This extravagance accompanies news of layoffs and menu cuts. (46:39–47:31)
   • Elizabeth: “This is definitely the kind of thing that makes the leftists talk about guillotines.” (47:34)

Tone and Style

• Conversational, irreverent, and skeptical, often taking digs at political figures and media narratives.
• Extensive personal anecdotes and live reactions (e.g., Elizabeth’s chocolate taste test, Emily’s Egg Watch updates).
• Strong critical thinking applied to media and market stories—willing to call out hype and hypocrisy.

Memorable Quotes & Timestamps

• "Stocks fell and then that created news rather than news happened and that caused stocks to fall." — Felix Salmon (03:18)
• "If he manages to keep doing this for four years, I think there's probably going to be a lot of lasting damage..." — Elizabeth Spiers (09:17)
• "Once you tear some of that infrastructure out, it's very difficult to rebuild..." — Elizabeth Spiers (10:12)
• "People look at the stock market as an economic indicator even though it's not." — Elizabeth Spiers (12:01)
• "Don't be selling your stocks because you're worried about Trump." — Felix Salmon (18:47)
• "This is batshit." — Emily Peck, on Trump/Binance news (22:54)
• "His whole vibe is like, I'm the Internet’s Willy Wonka." — Elizabeth Spiers (36:44)
• "It tastes like a Nestle Crunch bar. Like almost identical." — Elizabeth Spiers (38:10)
• "The wholesale price of eggs fell by $20 to $6.85 per dozen. Yes. Eggs are getting cheaper. Brace yourselves." — Emily Peck (42:55)

Quick Reference Timeline

• 00:35 — Stock market corrections and politics
• 19:41 — Crypto, Binance, and Trump family rumors
• 32:50 — MrBeast & Feastables: Influencer product analysis
• 42:24 — Egg Watch: Good news!
• 44:26 — Numbers round

In summary:
Slate Money's "MrBeast and The Chocolate Factory" episode delivers a trademark blend of financial savvy, pop-culture analysis, and skeptical humor. The episode is a must-listen for anyone interested in the intersection of money, politics, and media hype—with plenty of practical wisdom and memorable soundbites.