Preparing for an AI tax crisis

Prices are rising faster than average wages in this economy, and many Americans have turned to credit to keep up. They are paying it off for now, but what happens if the Fed raises interest rates later this month? Also in this episode: Artificial intelligence appears to be the cause of some job cuts in the finance sector, business owners along Spain’s Camino de Santiago report busier foot traffic — for better and worse — and the Mexican government rolls out a line of small electric cars.Every story has an economic angle. Want some in your inbox? Subscribe to our daily or weekly newsletter.Marketplace is more than a radio show. Check out our original reporting and financial literacy content at marketplace.org — and consider making an investment in our future.Read the stories in today’s episode:Consumers turn to credit as prices riseAs finance and insurance lose jobs, AI gets most (but not all) of the blameThis activewear brand says tariffs are still taking a tollMexico launches its own electric car to show it can do more than build for other countriesA former firefighter reflects on life — and money — as a stay-at-home dadHow a 1,200-year-old pilgrimage is reshaping local economies in Spain

This economy added twice the amount of jobs expected in August, which is good news for the labor market. Still, the latest jobs report showed average hourly earnings were up just 3.1% annually — the slowest growth in more than five years. In this episode, when we can expect wages to start keeping up with inflation. Plus: American tourism to Europe is up, some farmers rely on decades-old machinery as budgets tighten, and one mom goes back to school 15 years after she started.Every story has an economic angle. Want some in your inbox? Subscribe to our daily or weekly newsletter.Marketplace is more than a radio show. Check out our original reporting and financial literacy content at marketplace.org — and consider making an investment in our future.Read the stories in today’s episode:Jobs are steady. Prices are high. What will the Fed do?Wage growth can't compete with inflation right nowSqueezed by a tough economy, many farmers are relying on decades-old machineryMore American tourists are visiting EuropeThis mom of six is rewriting her career by going back to school

American oil giant Chevron plans to funnel $7 billion into its Venezuela operations over the next five years, with a goal of more than doubling its production in the country. In this episode, we explain what Chevron has to gain from the deal and why other oil companies are hesitant to follow. After that: Can zero job growth be part of a healthy labor market? Are diesel prices affecting railroad freighting demand? And, will better-fitted windows turn into energy savings?Every story has an economic angle. Want some in your inbox? Subscribe to our daily or weekly newsletter.Marketplace is more than a radio show. Check out our original reporting and financial literacy content at marketplace.org — and consider making an investment in our future.Read the stories in today’s episode:Chevron's $7 billion bet on Venezuelan oilCan zero job growth really be a sign of a healthy labor market?How the cost of childcare pushed this twin mom out of the labor forceWhy more companies are choosing trains over trucks for shipping"Buy now, pay later" loans creep into essentials for many consumersYour house's windows are probably leaky. Replacing them saves on utility bills

The average cost of a gallon of diesel was $5.68 on Wednesday — just 13 cents shy of a record high. Tariffs and ongoing wars are both to blame. But so is a seasonal upswing that happens every fall. In this episode, why diesel prices are likely going to get even steeper before they cool off. Plus: A computer model helps make the case for fewer mandated parking spots in city construction projects, Uber wants to shrink its middle management, and Alaska families celebrate dipnetting season. Every story has an economic angle. Want some in your inbox? Subscribe to our daily or weekly newsletter.Marketplace is more than a radio show. Check out our original reporting and financial literacy content at marketplace.org — and consider making an investment in our future.Read the stories in today’s episode:Why high diesel prices are coming at a particularly bad timeWhat it takes to reopen 19 months after a wildfireUber lays off 10% of their workforce to make the company "simpler and faster"To spur more housing construction, Denver changed its parking rulesMale loneliness epidemic? Try economic loneliness epidemicIn Alaska, dipnetting for salmon is about more than what’s caught

Bond yields jumped to multi-decade highs in some countries this week, as market anxiety about inflation and the Iran war grows. The U.S. is not exempt from this turmoil. Borrowing rates could balloon, affecting the Fed and your wallet. We’ll explain. Also in this episode: The labor market barely budges in July job openings and labor turnover data, U.S. solar energy storage capacity nearly doubles under President Trump, and Reddit becomes valuable internet real estate in the age of AI.Every story has an economic angle. Want some in your inbox? Subscribe to our daily or weekly newsletter.Marketplace is more than a radio show. Check out our original reporting and financial literacy content at marketplace.org — and consider making an investment in our future.Read the stories in today’s episode:Rising global bond yields will put pressure on U.S. interest rates, tooThe labor market in July showed very little movementFor this Mississippi barge line, labor is more of a concern than tariffsWhy solar energy storage capacity has nearly doubled since Trump took office"The heart of the internet": AI has marketers flocking to RedditFrom medicine to HVAC: one entrepreneur's journey

In Texas oil country, September usually marks the beginning of maintenance season. But with refineries running at near-100% capacity to meet increased demand, this fall might look a bit different. In this episode, can the global oil market weather an even tighter supply squeeze? Plus: Fed watchers expect an interest rate hike in September despite Trump’s opposition, U.S. consumers keep up spending in the face of mediocre jobs data, and ski resorts hoard snow for the warmish winter.Every story has an economic angle. Want some in your inbox? Subscribe to our daily or weekly newsletter.Marketplace is more than a radio show. Check out our original reporting and financial literacy content at marketplace.org — and consider making an investment in our future.Read the stories in today’s episode:Why interest rate expectations are pointing northThe 'meh' job market hasn't slowed consumer spending muchInside the business of selling people their own family photo albumsAfter a disastrous foray into real estate, this first-time buyer didn't let fear hold her backCan U.S. refineries afford to slow down for maintenance season?Ski resorts keep some snow in the bank this summer

It’s been more than a year since the Trump administration intensified ICE raids in immigrant communities across the U.S. Latino entreprenuers say the toll on their businesses has been worse than the pandemic. In this episode, the ongoing economic harm caused by Trump’s relentless deportation agenda. Plus: Small businesses grapple with more tariff uncertainty, Canada posts strong GDP growth, and we break down Fed Chair Kevin Warsh’s first Jackson Hole speech.Every story has an economic angle. Want some in your inbox? Subscribe to our daily or weekly newsletter.Marketplace is more than a radio show. Check out our original reporting and financial literacy content at marketplace.org — and consider making an investment in our future.Read the stories in today’s episode:Was that forward guidance we just heard from the Fed Chair?Canada's economy is growing as it heads to a trade war with the U.S.Tariff uncertainty means halted production for this camping chair companyImmigration enforcement leaves Latino businesses struggling for monthsHow a 21-foot-tall space cowboy has revitalized a strip of Route 66

The NFL is back in a couple weeks, and so is artificial turf. Several NFL stadiums rolled out the green carpet this summer for World Cup matches, which are mandated to be played on grass. For the 92% of NFL players who prefer the real stuff, it’s proof-of-concept — and could become a players union bargaining objective come 2030. Also in this episode: Nvidia announces eye-popping long-term revenue expectations, retail inventories tick up, and we weigh a tax on robot labor.Every story has an economic angle. Want some in your inbox? Subscribe to our daily or weekly newsletter.Marketplace is more than a radio show. Check out our original reporting and financial literacy content at marketplace.org — and consider making an investment in our future.Read the stories in today’s episode:America's shelves are filling upNvidia expects revenue to grow by 70% over the next yearFootball is back. So is the turf — and players aren't happyCould an AI tax disincentivize human layoffs?For specialty food importer, tariffs are still front and centerFor three generations, this family has kept up business along Route 66

Another month, another PCE report that put annual core inflation meaningfully above the Fed’s 2% target. The central bank has been fighting high inflation for more than five years now. At a certain point, you might start to wonder, does the Fed even have the power to fix it? Also in this episode: Consumer confidence falls, transportation durable goods orders tick up, and Arizona’s Great Recession-era bid to save the state budget offers insight into how AI might change our tax structure.Every story has an economic angle. Want some in your inbox? Subscribe to our daily or weekly newsletter.Marketplace is more than a radio show. Check out our original reporting and financial literacy content at marketplace.org — and consider making an investment in our future.Read the stories in today’s episode:Inflation is stuck above 2%. Can the Fed really do anything about it?Consumers are pessimistic about the next six monthsHow Arizona's "Capitol-ism" points to a potential tax fix for the AI ageWhat's driving an increase in orders for transportation equipment?Running a historic motel off Route 66 is no easy pursuitThe Gila River Indian Community "walks the walk" on water conservation

If artificial intelligence really does replace human labor, the U.S. could be in for a tax revenue crisis. That’s because high unemployment shrinks the pool of taxable wages. In this episode, we visit Akron, Ohio — the former tire capital of the world — to learn what happens when lost jobs snowball into lost government funding. Plus: Economists hope for cake but will settle for crumbs in Fed Chair Warsh’s Jackson Hole Symposium speech, and a new plan for Colorado River drought management draws backlash.Every story has an economic angle. Want some in your inbox? Subscribe to our daily or weekly newsletter.Marketplace is more than a radio show. Check out our original reporting and financial literacy content at marketplace.org — and consider making an investment in our future.Read the stories in today’s episode:Will Fed Chair Warsh actually say anything in his big Friday speech?Two years after Hurricane Helene, Asheville Tea Company finds a new homeWhat Akron's rubber bust can teach us about a possible AI tax crisisThe new Colorado River plan is out, and it's already under fire