Slate Money – "The Temperature Edition" (May 25, 2019)

Podcast: Slate Money
Hosts: Felix Salmon (Axios), Emily Peck (Huffington Post), Anna Szymanski
Episode Theme:
A lively week-in-review focused on how temperature—literal and metaphorical—relates to business, productivity, climate change, and economic policy. The hosts discuss headline stories including Robert Smith’s Morehouse College donation, the effectiveness of carbon offsets, and how office air conditioning shapes work life and gender dynamics.

1. Overview of Main Theme

This week’s Slate Money is cleverly titled "The Temperature Edition." The episode ties together hot-button issues—student debt cancellation, carbon emissions, global warming policy, and the physical temperature wars of office spaces—highlighting how both social and literal climates affect economics and productivity.

2. Key Discussion Points & Insights

A. Robert Smith’s Morehouse College Debt Payoff (02:15–15:35)

• What Happened:
  Robert Smith, a billionaire private equity CEO, announced during his commencement speech he would pay off all student debt for the Morehouse College Class of 2019 (around 400 students). Smith was reportedly moved by the high attrition rate due to student debt burdens.

• Reactions:

  • Emily notes this as a powerful gesture but says it "showcases sort of the failure of public policy to deal with the ballooning amount of student loan debt we have in this country." (03:26)
  • The hosts discuss the racial wealth gap, pointing out that Black graduates typically owe about $7,400 more than their white counterparts.
  • Felix calls it a “lucky lottery” moment for 2019 graduates but underlines policies targeting student debt primarily benefit those who are already relatively advantaged, i.e., college graduates.

• Policy Debate:

  • Anna is skeptical of student debt forgiveness as a comprehensive solution and questions the efficacy and distribution of free-college proposals, noting, “the disproportionate impact would be on higher income people, so you're spending a lot of money to subsidize wealthier.” (06:55)
  • Felix, drawing from his experience in the UK, pushes back, asserting that free college benefits social mobility and national productivity.

• Broader Takeaways:

  • The conversation touches on cost inflation in higher education and how state disinvestment has played a significant role.
  • They debate whether college should be “free” or just “affordable,” with Anna focused on the importance of marketable skills and Felix arguing broadly for the societal benefits of tertiary education, regardless of direct job training.
  • The segment closes considering Morehouse as a "natural experiment" for economists to study long-term impact of debt forgiveness.

Memorable Quote

• Emily: “It really showcases… the failure of public policy to deal with the ballooning amount of student loan debt we have in this country.” (03:26)
• Felix: “If you do things which are great for college grads… ultimately you are helping the rich and not the poor.” (05:35)

B. Carbon Offsets and "Carbon Neutral" Claims (15:35–27:14)

• Topic Summary:
  The hosts critique the corporate trend of buying carbon offsets as a way to claim “carbon neutrality,” referencing a comprehensive ProPublica investigation revealing most such offsets have failed to deliver promised emission reductions.

• Main Criticisms:

  • Felix satirizes offsets by likening them to “papal indulgences”—companies pay not to atone for actual sins, but for the appearance of virtue. “They go up to the Pope and write him a check… Except it doesn’t actually happen from the Pope, it happens from all these weird nonprofits selling carbon offsets.” (16:29)
  • Most forest-based offsets “would have to get an ‘F’—not one of them has worked” (17:33).
  • Emily references HuffPost’s Alexander Kaufman: “Doing carbon offsets instead of going 100% renewable is bullshit. Even if offsets worked… it’s not going to be enough. It’s enabling pollution.” (20:16)

• Deeper Issues:

  • Problem of "additionality": If projects (e.g., landfill methane capture) would have happened anyway, there’s no true offset.
  • The only robust market mechanisms are cap-and-trade or a carbon tax, not current offset programs.
  • In the developing world, even well-intended offsets can't compete with the higher economic returns from deforestation (e.g., cattle farming in Brazil).

• Policy Implications:

  • Global, governmental solutions needed—“you need to approach this globally,” Felix says, “because the cattle farm is going to generate so much more money than carbon offsets ever would.” (23:06)
  • Anna points out the necessity of developed countries supporting developing ones, not through offsets, but meaningful economic incentives and global climate funding.

Memorable Quote

• Felix: “At some point you have to just say if something has never worked, you have to lose a certain amount of faith that it might work in the future.” (19:06)
• Emily: “Global warming is not something you’re going to solve with a market.” (24:20)

C. Office Temperature Wars, Productivity, and Gender (27:14–36:11)

• Focus:
  The hosts discuss new research indicating that women are more productive in slightly warmer office temperatures, fanning the flames of ongoing debates about over-air-conditioned workplaces.
• Personal Anecdotes:
  • Emily: “It is a truth universally acknowledged that a woman who works in an office is in want of a sweater.” (27:21)
  • Anna and Emily point out the mismatch between office attire expectations and temperature, with men in suits and women often in summer dresses.
• Broader Considerations:
  • Anna highlights that air conditioning, despite climate concerns, has massively improved global productivity and health.
  • Felix points out that the carbon emissions from cooling are actually lower than from heating in most climates.
  • They debate the downsides of open plan offices, both for temperature regulation and productivity—“Open offices are so bad… The only thing they help is sales of headphones.” (32:50)

Memorable Quote

• Emily: “If we raise the temperature in offices to increase productivity of women, we’re also helping solve global warming. What’s not to love?” (28:17)
• Anna (on open offices): “In certain environments, having an open office… can be helpful. Because in a trading environment… it actually is important.” (33:26)
• Felix: “I just… find it super hard to get into that flow state and actually commit… productivity… the felicitous overhearing of conversations is exactly what makes it hard to concentrate.” (34:16)

D. Numbers Round (36:11–40:41)

Anna:

• “310”: Refers to the 3-month/10-year Treasury yield spread, briefly inverted—an omen commonly discussed as a recession indicator. Anna highlights a Financial Times “musical” version of the yield curve from Tim Harford’s statistics podcast. (36:13–37:25)

Emily:

• “$20”: Reference to the continued delay in putting Harriet Tubman on the $20 bill—a plan blocked by the Trump administration, in contrast to the Obama-era initiative. Discussion covers the symbolic importance of representation on US currency. (37:27–39:20)

Felix:

• “303”: The number of seats won by India’s BJP party in the largest democratic exercise globally. This shift marks a decisive turn toward Hindu nationalist politics and away from the secular Congress Party. (39:25–40:28)

3. Notable Quotes & Memorable Moments

• On Policy Gaps:
  "It showcases the failure of public policy to deal with the ballooning amount of student loan debt we have in this country." — Emily Peck (03:26)

• Satirizing Carbon Offsets:
  “You go up to the Pope and write him a check… Except it doesn’t actually happen from the Pope, it happens from all these weird nonprofits selling carbon offsets.” — Felix Salmon (16:29)

• Gender & Office Climate:
  “It is a truth universally acknowledged that a woman who works in an office is in want of a sweater.” — Emily Peck (27:21)

4. Timestamps for Important Segments

• 00:10–02:09: Episode intro, banter, agenda setting
• 02:15–15:35: Robert Smith’s Morehouse debt payoff & student loan policy
• 15:35–27:14: Carbon offsets and problems with “carbon neutral” claims
• 27:14–36:11: Office temperature, productivity, gender, open plan design
• 36:11–40:41: Numbers Round (bond yields, Harriet Tubman, Indian elections)

5. Tone and Style

The hosts employ quick wit and informed skepticism, mixing dry British humor (from Felix), policy wonkery, and relatable workplace anecdotes (largely Emily and Anna). The conversation is brisk, with frequent moments of self-awareness and mutual ribbing, all aimed at making otherwise technical topics accessible and engaging.

6. Conclusion

In “The Temperature Edition,” Slate Money deftly connects issues of climate, both literal and economic, examining how policy failures, personal choices, and corporate practices intersect to shape outcomes in education, climate change, and even the daily grind of office life. The episode stands out for its nuanced skepticism, memorable hosts, and thematic coherence—making it a particularly rich listen for anyone interested in where policy meets real life.

Missed the show?
This summary covers all major points—so you’re caught up on everything except the lemur T-shirt.