Slate Money: "Trans-Pacific Tractor Beams"

Date: January 18, 2020
Host: Felix Salmon with Emily Peck and Anna Szymanski

Episode Overview

In this episode, the Slate Money team unpacks three major stories at the intersection of business and finance:

• The “phase one” US-China trade agreement and its implications
• Visa’s $5.3B acquisition of fintech infrastructure startup Plaid
• The effectiveness of the Rooney Rule on diversity in organizations, especially in the NFL and corporate America

A fast-paced numbers round caps the episode, with the hosts tackling topics from the Equal Rights Amendment to world record bank profits and the surprising decline in human body temperature.

Key Discussion Points & Insights

1. US-China "Phase One" Trade Deal and Global Trade Dynamics

Segment: [01:04–14:57]

• The title "Trans-Pacific Tractor Beams" is a tongue-in-cheek reference to the convoluted nature of recent trade deals, including US agricultural exports to China—especially soybeans and tractors ([01:02]).
• Anna Szymanski: Explains the abnormality of the “phase one” trade deal, which is centered around China’s promise to increase purchases of US goods by $200 billion:

  “It is in fact not a normal trade deal because it’s not really about freeing up trade. It is in fact about managing trade.” ([03:28])

• The panel notes widespread skepticism about the feasibility of hitting these targets without “creative accounting,” referencing the unlikelihood of China buying so many extra soybeans ([04:18]).
• Felix and Anna emphasize the deal’s undermining of market relationships for US farmers, who are now dependent on arbitrary government agreements rather than direct commercial ties ([06:16]).
• Emily Peck likens the policy to unnecessary surgery fixes:

  “It’s like I go to the doctor and... he fixes all the mistakes he made and sews me up and he’s like, I did it, but my appendix is still swollen—like nothing has happened. This deal is dumb.” ([07:08])

• The team frames the deal as a departure from capitalism and multilateralism toward “bilateral mercantilist” strategies, undermining the WTO and stable global trade, and potentially inciting retaliation ([09:24], [10:05]).
• Anna laments:

  “Clearly this activity is showing that this bilateral mercantilist strategy doesn’t work either... There needs to be some other type of movement forward.” ([10:05])

• The TPP (Trans-Pacific Partnership) is described as a lost opportunity for counterbalancing China and supporting a rules-based order ([11:01]).

Notable Quotes:

• “Now Trump is like, no, I don’t want that. I just want to fix the outcome in advance. And that just feels like a deeply not very good idea.” —Felix ([09:24])
• “Even then, what this deal does is it’s one more step in breaking the rules-based trade order...” —Anna ([07:45])

2. Visa Acquires Plaid: What’s at Stake for Fintech Infrastructure?

Segment: [15:00–24:50]

• Plaid is positioned as essential financial “plumbing”—the API layer connecting apps like Venmo to users’ actual bank accounts ([16:34]).

  “The basics is that it’s the kind of API... basically the connecting apps to the banks, right?” —Anna ([16:34])

• Plaid’s value comes from banks’ unease at third-party access but being unable to block consumers’ demands for interoperability ([18:05]).
• Visa’s motivation: Ensuring relevance as card-swiping gives way to app-initiated, contactless, and smartphone-based payments:

  “They definitely can see that the way people are moving money is changing... they want to get out in front of that.” —Anna ([19:03])

• Discussion on “network of networks” strategy—Visa aims to intermediate money movement however consumers desire ([19:40]).
• Panelists discuss the antitrust implications, comparing Visa’s acquisition of Plaid to Facebook’s “buying competitors in utero” ([22:42]).
• Felix’s skepticism:

  “There’s something monopolistic about this. Visa and MasterCard are, of course, a huge duopoly and anything that strengthens that massive duopoly is not a good thing.” ([24:50])

Notable Quotes:

• “Visa is becoming what someone described as a network of networks... They are the company that is going to do that.” —Felix ([19:40])
• “When you have a payments behemoth like Visa buying this kind of company... I just wonder how that’ll look down the line.” —Anna ([22:42])

3. The Rooney Rule: Diversity Policies in Sports & Business

Segment: [24:53–34:50]

• Origin story: Pittsburgh Steelers owner Dan Rooney authored the NFL’s Rooney Rule in 2003, requiring teams to interview at least one minority candidate for head coaching jobs ([25:01–26:09]).
• Emily explains its mixed effectiveness; after initial NFL gains, minority coaching hires stagnated; similarly, corporate adoptions (e.g., Amazon, Airbnb) show limited impact unless supplemented by systemic changes ([26:49–28:55]).
• The conversation tackles skepticism and research:

  “If you just have one minority or female candidate in your pool, statistically their chance of getting hired is essentially zero.” —Emily ([27:18])

• The “pipeline problem” is analyzed: barriers exist at entry and coordinator levels, not just at the top, both in sports and corporate America ([31:39], [32:32]).

  “You would need to have [the Rooney Rule] at every level... so eventually wouldn’t even need the Rooney Rule.” —Anna ([32:08])

• They relate the Rooney Rule’s unfulfilled promise to broader, systemic racism and glass ceilings, echoing in both football and corporate leadership ([33:19]).

Notable Quotes:

• “If you don’t have a minority candidate, you’re pretty much guaranteed not to hire one.” —Felix ([28:24])
• “You have to be like a scientist, like kind of tinkering with all this stuff. You can’t just be like, have one minority person.” —Emily ([31:39])

4. Numbers Round: ERA, Bank Profits, Human Body Temperature

Segment: [34:52–41:38]

• Emily: “38”—the number of states that have now ratified the Equal Rights Amendment, though its constitutional future remains uncertain due to expired deadlines and political dispute ([34:54–37:04]).
• Felix: “36.2 billion”—record annual profit (2019) for JP Morgan, the highest ever for a US bank ([38:28]).
• Anna: “97.5”—the new average human body temperature in Fahrenheit; people are measurably “colder” compared to the traditional 98.6°F benchmark ([40:03]).

Memorable Moments & Quotes

• Emily’s analogy comparing Trump’s trade deal tactics to unnecessary, confusing surgery ([07:08]).
• Anna’s lamentation over the decline of multilateral trade frameworks:

  “There needs to be some other type of movement forward.” ([10:05])

• Felix’s deflation on Visa-Plaid:

  “My heart sank... anything that strengthens that massive duopoly is not a good thing.” ([24:50])

• Emily’s candidness about superficial diversity policies:

  “It’s disingenuous... statistically their chance [of getting hired] is essentially zero.” ([27:18])

Notable Timestamps

• 01:04 — Overview of episode topics
• 03:28 — What makes the “phase one” trade deal abnormal
• 07:08 — Emily’s surgery/Trump trade policy metaphor
• 10:05 — Impact of bilateral trade approach
• 16:34 — What Plaid is and why Visa wants it
• 19:40 — Visa’s “network of networks” ambitions
• 22:42 — Antitrust concerns on fintech acquisitions
• 25:09 — The Rooney Rule is explained
• 27:18 — Why the Rule may not move the needle on its own
• 32:08 — The importance of “the pipeline” in diversity efforts
• 34:54 — Numbers round begins: ERA, JP Morgan, human temperature

Overall Tone & Style

The conversation is breezy yet incisive, mixing sharp analysis, playful banter, and healthy skepticism. Felix’s dry wit is a fixture (“We could call it nafka”), Emily brings relatable analogies and research, while Anna’s policy depth grounds the discussions.

Conclusion

The Slate Money crew tackles the headlines with clarity and humor, drawing substantive connections between policy choices, business strategies, and social dynamics. Listeners are left better informed about the real-world implications of US-China trade, fintech consolidation, and diversity policies—plus a few surprising facts about body temperature and constitutional amendments.

For further reading or to join the Slate Plus bonus episode (not covered in this summary), visit Slate Money Plus.