The problem with Trump’s idea to replace income taxes with tariffs

In the wake of the COVID-19 recession, many economists were describing the United States’ economic recovery as K-shaped. Basically, high-income Americans bounced back quicker than those at the lower end of the income scale. So, did we ever ditch that K shape? The person who coined the phrase “K-shaped recovery” back then, says no. On the show today, Peter Atwater, president of Financial Insyghts and adjunct professor at the College of William & Mary, explains why he believes economic inequality has grown since the pandemic recovery, why considerable wage gains for low-wage workers tell only part of the story and the risks of letting a K-shaped economy run wild. Then, we’ll get into how the fragility of global shipping supply chains could be playing into Federal Reserve decisions on interest rates. And, happy wedding anniversary, Susanna! Here’s everything we talked about today: “The ‘K’ Is Not OK” from LinkedIn “Inflation Is Bringing Back the K-Shaped Economy” from Bloomberg “Behind America’s divided economy: Booming luxury travel and a jump in ‘relief’ loans” from CNBC “A tight labor market and state minimum wage increases boosted low-end wage growth between 2019 and 2023” from the Economic Policy Institute “U.S. Wealth Inequality: Gaps Remain Despite Widespread Wealth Gains” from the St. Louis Federal Reserve “First publicly funded religious charter school in US ruled unconstitutional” from The Hill “Fed’s Bowman Warns of Upside Risks to Inflation, Not Time to Cut” from Bloomberg “Supply Chain Under Strain as Houthis Intensify Red Sea Strikes” from The New York Times Support Make Me Smart: Marketplace.org/givesmart We love to hear from you. Send your questions and comments to [email protected] or leave us a voicemail at 508-U-B-SMART.

Groups aligned with former President Trump are hunting through information to come up with a list of federal employees who might be resistant to a second Trump administration. We’ll discuss the push to reshape government. Plus, is the urban/rural divide a myth? And, a viral voicemail pep talk from a testing center worker makes us smile. Here’s everything we talked about today: “In This Debate, CNN Is the Decider” from The New York Times “Growing rural-urban divide exists only among white Americans” from Cornell Chronicle “The Number of People Primarily Working From Home Tripled Between 2019 and 2021” from the U.S. Census Bureau “Conservative-backed group is creating a list of federal workers it suspects could resist Trump plans” from AP News “A 3-year-old voicemail goes viral, leads to emotional reunion” from The Washington Post “Why Men Are ‘Rawdogging’ Flights” from GQ We love to hear from you. Send your questions and comments to [email protected] or leave us a voicemail at 508-U-B-SMART.

Four years after the Internal Revenue Service created a tax credit to help struggling businesses get through the pandemic, the agency ultimately plans to reject the majority of claims filed under the program. We’ll explain how it became swamped with fraud. And, Major League Baseball legend Reggie Jackson opened up about the racism he and other Black players faced in the ’60s. We’ll get into it. And, we’ll play a round of Half Full / Half Empty! Here’s everything we talked about today: “IRS says it will deny most claims of pandemic tax credit for employers” from The Washington Post “With pardons in Maryland, 2.5 million Americans will have marijuana convictions cleared or forgiven” from The Associated Press MLB Hall of Famer Reggie Jackson remembers Willie Mays from Gary Parrish on X “It’s Time to Stop Inviting Plus-Ones to Weddings” from The Atlantic “First Came ‘Spam.’ Now, With A.I., We’ve Got ‘Slop’” from The New York Times “Netflix House Will Let You Experience Your Favorite Shows, Movies in Real Life” from Netflix Tudum “What’s to become of summer Fridays in the age of hybrid work?” from CNN “Surgeon General: Why I’m Calling for a Warning Label on Social Media Platforms” from The New York Times We love to hear from you. Send your questions and comments to [email protected] or leave us a voicemail at 508-U-B-SMART.

This week, senators grilled Boeing CEO Dave Calhoun about the aviation company’s safety culture and its retaliation against whistleblowers. But these problems are just the tip of the iceberg for Boeing. We’ll explain. Plus, why President Joe Biden’s new immigration plan is a big deal. And, who knew there were this many cricket fans in the U.S.? Here’s everything we talked about today: “Boeing CEO Dave Calhoun testifies before Senate committee on safety issues” from CNBC “‘Why haven’t you resigned?’ Senators torch Boeing CEO as he apologizes for deadly failures” from Politico “Boeing CEO Dave Calhoun Apologizes for Quality and Safety Issues at Senate Hearing” from The New York Times “Boeing’s CEO Search Hits Some Snags” from The Wall Street Journal “President Biden Announces Plan for Undocumented Spouses on DACA Anniversary” from C-SPAN “Biden immigration program offers legal status to 500,000 spouses of U.S. citizens. Here’s how it works.” from CBS News “The economy is roaring. Immigration is a key reason.” from The Washington Post “Supreme Court rejects challenge to tax on foreign corporate investments” from CNBC “The Supreme Court upholds a tax on foreign income over a challenge backed by business interests” from The Associated Press “The Supreme Court leaves a Trump-era offshore tax in place on investors” from NPR “Supreme Court Upholds Trump-Era Tax Provision” from The New York Times “ Rising Popularity of Cricket in US” from Bloomberg “Uber Drivers, Techies Score Wins for Team USA at ICC T20 World Cup 2024” from Bloomberg  “T20 World Cup: The USA cricket team is capturing hearts and minds with historic run” from CNN Join us tomorrow for Economics on Tap! The YouTube livestream starts at 3:30 p.m. Pacific time, 6:30 p.m. Eastern. We’ll have news, drinks and play a round of Half Full/Half Empty!

In honor of Juneteenth, we’re bringing you an episode of a new podcast from APM Studios that’s especially relevant on this holiday. In the podcast, “What Happened in Alabama?” host Lee Hawkins unpacks his family history, confronts cycles of trauma and grapples with an issue many Black families face: how to keep land in the family. This episode is about Black land loss. In 1910, Black farmers collectively owned over 16 million acres of farmland. A century later, over 90% of that land is no longer owned by Black farmers. Lee explores that tumultuous history and what Black families can do to hold on to their property. If you’d like to hear more episodes from the series, you can find “What Happened in Alabama?” wherever you get podcasts.

A recent survey found that almost 15% of Americans have co-bought a home with someone other than a romantic partner, and almost half said they’d consider it. This is part of a larger trend — many Americans are choosing to structure their lives around friends as opposed to a spouse or romantic partner. On the show today, Rhaina Cohen, author of “The Other Significant Others: Reimagining Life with Friendship at the Center,” explains what it really means to build your life around friends and the financial costs and benefits that come with it. Plus, how the LGBTQ+ community has shaped the conversation around the  issue. Then, we’ll unpack what baby boomers’ retirement readiness says about the wealth gap in the United States. And, the endless possibilities for crab emojis and why our intern, Thalia, was wrong about her curly hair. Here’s everything we talked about today: “Why more people are buying houses with their friends” from Axios “What If Friendship, Not Marriage, Was at the Center of Life?” from The Atlantic “Inflation Widens Married Couples’ Money Lead Over Their Single Friends” from The Wall Street Journal “Want financial security in America? Better get married.” from Vox “Two Women Redefine What it Means to Marry Your Best Friend” from The New York Times “If you can’t stay indoors during this US heat wave, here are a few ideas” from AP News “Northeast Heat Wave 2024: This Is a Disaster. Treat It That Way” from Bloomberg “US Retirement Accounts Are Flush for Millions of Older Americans” from Bloomberg We love to hear from you. Send your questions and comments to [email protected] or leave us a voicemail at 508-U-B-SMART.

With the elections for president, the Senate and the House just 4½ months away, misinformation is on the rise. We’ll get into the kind of false narratives to look for on the campaign trail. Plus, how loopholes in medical billing underscore the importance of change at the state and local levels. And, the story of a remote-controlled robot that rescues swimmers in distress. Here’s everything we talked about today: Post about the Republican National Committee from Jay Nordlinger on X “Even Doctors Like Me Are Falling Into This Medical Bill Trap” from The New York Times “Watch a robot race over Lake Michigan waves to help a swimmer” from MLive “Which sentence do you think is grammatically correct?” from YouGov We love to hear from you. Send your questions and comments to [email protected] or leave us a voicemail at 508-U-B-SMART.

A new pitch from former President Donald Trump calls for replacing income tax with tariffs. We’ll get into why the math doesn’t add up. Plus, chemical hair relaxers are making Black women sick, so why are they still being sold? And, we’ll weigh in on Apple entering the AI race, Hollywood studios buying movie theaters, and using speakerphone in public during a round of Half Full/Half Empty! Here’s everything we talked about today: Post about Donald Trump’s “all tariffs policy” from Emily Wilkins on X “The Disturbing Truth About Hair Relaxers” from The New York Times “Alex Jones’ personal assets to be sold to pay $1.5B Sandy Hook debt. Company bankruptcy is dismissed” from The Associated Press “Why decaf coffee is growing in popularity” from Marketplace “Apple announces AI features” from Marketplace “Games Are Proving Their Pull on News and Tech Sites” from The New York Times  “Sony Pictures Acquires Alamo Drafthouse Cinema in Landmark Deal That Puts Studios Back in Theater Game” from The Hollywood Reporter “Living Out Loud, Headphones Nowhere to Be Found” from The New York Times We love to hear from you. Send your questions and comments to [email protected] or leave us a voicemail at 508-U-B-SMART.

About 15 million Americans collectively have $49 million in medical debt on their credit reports, according to the Consumer Financial Protection Bureau. But a new proposed rule might remove these bills from their credit scores. We’ll explain. Plus, the domino effect of local elections being funded by national players. And, how Apple’s new AI features could change the language of emoji. Here’s everything we talked about today: “Vice President Kamala Harris On Sherri” from “Sherri” “CFPB Proposes to Ban Medical Bills from Credit Reports” from the Consumer Financial Protection Bureau “CFPB Finds 15 Million Americans Have Medical Bills on Their Credit Reports” from the Consumer Financial Protection Bureau “Biden Proposes Dropping Medical Debt From Credit Reports” from The New York Times “More parents are cosigning their kids’ mortgages” from Marketplace  “Co-Borrowing Is on the Rise for First-Time Homebuyers” from Freddie Mac  “Campaign donors hope money makes the difference in hotly contested states” from Marketplace “Apple Intelligence in 5 minutes” from Apple “Apple announces AI features” from Marketplace Join us tomorrow for Economics on Tap! The YouTube livestream starts at 3:30 p.m. Pacific time, 6:30 p.m. Eastern. We’ll have news, drinks, a game and more.

It’s a New York edition of “Make Me Smart”! Marketplace’s Kristin Schwab joins Kimberly in the NYC bureau to discuss a growing trend in the city that never sleeps: Nightlife is winding down a lot earlier these days, and that might be good for businesses. But first, why Tornado Alley may be migrating east, and a deeper look into the legal loopholes of campaign finance. Plus, the rescue of an orphaned baby elephant is making us smile. Here’s everything we talked about today: “Tornadoes shifting east in the U.S., study finds, putting more people at risk” from The Washington Post “Everything You Need to Know About the New ‘Twisters’ Movie” from Parade “$800K transfer from billionaire donor to US Chamber raises curtain on dark money” from The Hill “Reservations at 5 p.m.? Why the early bird dinner is cool again” from The Globe and Mail “Forget Partying Till the Wee Hours. Newlyweds Want to End Early.” from The New York Times “This dance party made for elder Millennials ends at 10pm” from Time Out “6 p.m. dinner reservations are losing their stigma” from Marketplace “The Rescue of Toto” from Sheldrick Wildlife Trust “African elephants address one another with individually specific name-like calls” from Nature Ecology & Evolution “Scientists used AI to figure out elephants have names for themselves” from Business Insider We love to hear from you. Send your questions and comments to [email protected] or leave us a voicemail at 508-U-B-SMART.