🤖 AI Summary
Overview
This episode dives into the economic implications of U.S. Treasury bond auctions, the impact of tariffs on inflation, the role of international students in higher education funding, and a unique student-run business at a Utah high school. It also touches on the evolving dynamics of meme stocks and their cultural significance.
Notable Quotes
- The auction is a test of investor interest... 30 years is an awfully long time to lend anybody money, even the U.S. government.
– Sabri Benashore, on the significance of the upcoming Treasury bond auction.
- If those pens get more expensive, parents have to reallocate something in their budget... spend more and get less stuff.
– Leah Brooks, on how tariffs influence consumer behavior.
- I just know that I want to run something big. Let me manage it, you come up with the idea.
– Josefa, a high school student, on her entrepreneurial aspirations.
📈 U.S. Treasury Bond Auctions and Borrowing Costs
- The U.S. Treasury plans to auction $22 billion in 30-year bonds, a critical test of investor confidence in the face of rising deficits.
- Analysts like Mark Cabana and John Canavan highlight concerns about the sustainability of U.S. deficits, which could push interest rates higher.
- Higher interest rates on government bonds ripple through the economy, affecting consumer loans, mortgages, and business borrowing.
💸 Tariffs and Core Goods Inflation
- Tariffs are beginning to show up in core goods
inflation, which excludes volatile categories like food and energy.
- Economists like Michael Gapen predict rising prices as businesses pass tariff costs onto consumers, though some firms absorb part of the cost to maintain competitiveness.
- Everyday items, such as school supplies, are becoming more expensive, forcing families to adjust their budgets.
🎓 International Students and University Funding
- Public universities rely heavily on international students, who pay higher tuition fees, to subsidize in-state students.
- Restrictions on international student visas could lead to faculty layoffs, program cuts, and even campus closures at less prestigious institutions.
- Elite private universities, while less financially reliant on international students, risk losing global prestige if enrollment declines.
🏫 Student Entrepreneurship in Utah
- Cedar Valley High School students run Jet Fuel Soda Shack,
a business that helps them gain work experience and offset school fees.
- The soda shop integrates various school departments, from business planning to home economics, fostering a collaborative learning environment.
- Principal Courtney Johnson emphasizes the importance of aligning the school’s mission with corporate sponsorships from companies like Meta and Tyson Foods.
🎮 The Meme Stock Phenomenon Lives On
- Despite a 60% drop in GameStop’s stock price since its 2021 peak, retail investors remain loyal, driven by social media-fueled narratives.
- Experts like Dan Egan suggest meme stock culture is here to stay, with future generations likely to create their own market frenzies.
- GameStop’s pivot to ventures like NFTs and Bitcoin reflects its struggle to adapt to a declining retail video game market.
AI-generated content may not be accurate or complete and should not be relied upon as a sole source of truth.
📋 Episode Description
Later this week, the U.S. Treasury will auction off billions of dollars worth of 30-year bonds. While that may seem yawn-worthy to most of us, the outcome of that sale has big ramifications for consumer borrowing costs down the road. We’ll explain. Also in this episode: Targeting of international students hurts public and private universities, “core goods” is where tariff-driven inflation might show up first, and students at a fast-growing high school in Utah run their own soda shop.
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.