Author: Marketplace

In this uncertain economy, employers want to save where they can. That’s likely why Starbucks just joined a growing list of companies to shift from merit-based raises to a flat percentage raise. In this episode, why a flat raise structure tends to be cheaper and less time consuming than merit increases — even though everyone gets ‘em. Plus: China leans into trade with developing nations, President Trump wants to cut funding for flights to rural airports, and homebuilder sentiment stays low.

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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.

Over the past few years, the anime industry has reached new heights on the global stage. Netflix reported that over half of its global viewers watch anime. And, certain anime titles will soon be streaming on Delta flights. On the show today, Anime News Networks’ Egan Loo makes us smart about the rise of the anime and manga industries, the global dynamics of anime production, and how AI could change everything. 

Later, we’ll get some advice on making a career change from a listener. And chess player-turned-economist Kenneth Rogoff answers the Make Me Smart question.

Here’s everything we talked about today:

• "Anime Is Booming. So Why Are Animators Living in Poverty?" from The New York Times
• "From Piracy Problems to Labor Shortages, the Anime Industry Is Facing a Reckoning" from Screen Rant
• "Thousands of Anime Titles Will Soon Be Streamable on Delta Flights" from Timeout
• "Sony’s Crunchyroll Makes Layoffs as It Restructures to Lean Into International Growth Markets" from Variety
• "The Biggest Movie You Haven't Seen Is Finally Coming To US Theaters" from Inverse  

• "How Korean webtoons are changing the comic industry—and the careers of creators" from Fast Company

  
  

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Many garment factories have shuttered amid a decades-long decline in U.S. apparel production, and tariffs won't be enough to bring them back. But higher-end, higher-quality clothing can still be made at a profit stateside. Today, we'll take lessons from one suit factory in New Bedford, Massachusetts. But first: Home Depot reported disappointing profits this morning, and more retailers are having to weigh price costs, dwindling warehouse inventories, and price-conscious consumers.

Experts are still in the early stages of understanding just how much generative AI will disrupt the labor force. A new report by MIT finds that the adoption of AI led some firms to cut back spending on jobs that were often already being outsourced — things like customer support, software engineering, and administrative tasks. We'll learn more. Also: the dollar's role as the world's "reserve currency" and a $2 billion lifeline for Intel.

From the BBC World Service: Japan’s SoftBank has invested $2 billion in U.S. chipmaker Intel, which has been losing ground lately in the booming AI market. It also comes as the U.S. government weighs whether to take a direct stake in the company. And, as historic White House talks spark hopes of a Putin–Zelensky summit, the war in Ukraine grinds on, with Russia turning to North Korea to plug major labor gaps.

Marketplace’s Jennifer Pak recently attended the World Artificial Intelligence Conference in Shanghai. She asked Chinese AI firms what they think about the humans who might lose jobs to their AI products.

New context for the strong-consumer-spending-and-falling-consumer-sentiment combo: According to a Boston Fed report, the proportion of spending done by top-earning U.S. households is growing, and the share spent by lower-income Americans is shrinking. What might that widening gap tells us about the trajectory of this economy? Plus: Strong Q2 corporate earnings are an economic bright spot, U.S. energy exports may not break records again this year, and we investigate who profits from the tripled ICE budget.

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.

Republicans in Congress are attempting to claw back federal funding to replace the U.S. Postal Service’s outdated mail trucks with a mostly electric fleet. We’ll break down the fight. And, parents across the country are facing a slew of economic headwinds. How does a couple with 5 kids and a modest income make it work? Plus, a mysterious comet and a rebrand at MSNBC.

Here’s everything we talked about today:

• "Republicans look to make a U-turn on federal commitment to electric vehicles for the Postal Service" from AP News
• "Senate Republicans cannot force US Postal Service to scrap EVs, parliamentarian says" from Reuters 
• "What It’s Really Like to Support a Big Family on a Modest Income in America" from The Wall Street Journal 
• "MSNBC to change name to MS NOW amid spinoff from NBCUniversal" from NBC News

• "A mysterious comet is shooting through our solar system. Why are scientists so excited about 3I/Atlas?" from The Guardian 

  
  

  We love hearing from you. Leave us a voicemail at 508-U-B-SMART or email makemesmart@marketplace.org.

It’s a big week for Fed watchers. Federal Reserve Chair Jerome Powell is scheduled to speak at a research conference on Friday in Jackson Hole, Wyoming. It comes at a tricky time for the Fed — pressures are weighing on both price stability and maximum employment, and there's ire coming from President Donald Trump. We'll discuss what to expect. Plus, global demand for cassava is growing. Can Nigeria capitalize on the moment and become an export giant?

Consumer spending was up pretty significantly for more expensive items last month — things like cars and furniture. All that big-ticket buying comes despite a softening labor market and broader economic uncertainty. We'll parse the data a bit more. Also on the program: we'll hear what we can expect from homebuilder confidence and learn how the startup world is grappling with tariffs and the cancellation of government grants and contracts.