Morning Brew Daily - How Kamala Harris Views the Economy & Delta Still Reeling from IT Outage

Episode Date: July 23, 2024

Episode 371: Neal and Toby discuss how potential Democratic nominee Kamala Harris views the economy and what her policies are. Then, a study on Universal Basic Income backed by Sam Altman wraps up and reveals having some extra cash can really help. Who would’ve thunk it!? Next, Delta is having a hard time recovering from the major IT outage that caused it to cancel hundreds of flights over the weekend. Plus, the FCC is cracking down on phone calls from prisons which have gotten too expensive for inmates. Meanwhile, Toby looks at the uncanny trend of Phillies Outfielder Nick Castellanos hitting a home run every time there’s a major news event. Lastly, the Olympic Village is getting ready for an event that will happen around the clock: feeding all the athletes.  Checkout https://beehiiv.link/morning-brew-daily and get a 30 day free trial and also 20% off 3 months with code BREW Get your Morning Brew Daily T-Shirt HERE: https://shop.morningbrew.com/products/morning-brew-radio-t-shirt?_pos=1&_sid=6b0bc409d&_ss=r&variant=45353879044316  Listen to Morning Brew Daily Here: https://link.chtbl.com/MBD Watch Morning Brew Daily Here: https://www.youtube.com/@MorningBrewDailyShow 00:00 - Intro  03:00 - Kamala Harris Economics  09:30 - UBI Study 12:20 - Delta Woes  17:45 - Prison Phone Calls 18:48 - Toby’s Trends 24:30 - Olympic Food Learn more about your ad choices. Visit megaphone.fm/adchoices

Many employees can't afford a hefty medical bill that pops up out of the blue, but it happens. And employees who are financially stressed are, understandably, more likely to be distracted at work, costing their employers greatly in lost productivity. Luckily, AFLAQ plans help with out-of-pocket expenses not covered by health insurance and can be offered at no direct cost to businesses. Learn more at aflac.com slash morningbrewdaily. That's aflack.com slash morning brewdaily. Good morning, Brew Daily show. I'm Neil Fryman. And I'm Toby Howell.

Today, the global IT outage was resolved four days ago, but Delta didn't get the memo. What is going on in the Sky Club? Then the results are in from the largest universal basic income study in history. It's Tuesday, July 23rd. Let's ride. Well, here is a crazy stat that was making the rounds yesterday. This will be the first presidential election since 1976. that doesn't have a member of a Bush, Clinton, or Biden on the ticket.

1976 was 48 years ago when George Lucas was filming the first Star Wars and the first Apple computer came out. I think we are over-indexing on history a little bit here because you can find plenty of other three-name or three-family dynasties throughout U.S. politics. I mean, you can get a chain running from 1932 to 1972 between Roosevelt, Truman, and Nixon, only one election off. And then a Nixon-Johnson Mondale chain gets you nine of nine elections from 1952 to 1984. It's kind of like saying that there has been a LeBron James on the Lakers for the last eight years between LeBron James and Bronny James. So I don't know. I think we're over-indexing a little bit here. I still think it shows how family dynasties kind of run U.S. politics.

My favorite stat from this also is that the winner of that 1976 election is still alive. That'd be 99-year-old Jimmy Carter. Jimmy Carter. Now a word from our sponsor, Beehive. I want to start today's ad off by talking to a very specific person listening to this, the wannabe writer. The wannabe writer reads a lot of books, subscribes to a lot of newsletters, and has lots of unfinished Google Docs and half-baked ideas floating around in their head.

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that bring it all together. together. Shop spring backyard days for seven days at the Home Depot. Now through May 6th. Exclusion supplies to home depot.com slash price match for details. Yesterday was day number two of the Kamala Harris experience as the VP appears to be steamrolling to replace President Biden at the top of the Democratic ticket. More influential Dems, including Nancy Pelosi, endorsed Harris while she raised $81 million in the first 24 hours since announcing her presidential bid, a sum of the New York Times called one of the greatest gushers of cash of all time. But who is Kamala Harris? What does she stand for? What are her economic policies and how do they differ from Biden's, from Trumps?

Well, Harris comes mostly from a legal background having served as the district attorney of San Francisco, then the Attorney General of California, where she became known for prosecuting big banks and mortgage lenders following the financial crisis. She also focused on consumer protection, threatening Uber with legal action if the company didn't remove its driverless cars from the Roads. In 2016, she was elected to the Senate in California before running for president in 2020 and dropping out before a single vote was cast. Toby, my big takeaway from reading Harris' economic policy proposals is you probably wouldn't notice much of a difference between a Harris administration and a second Biden one. Yeah, you wouldn't believe it, but the president and his

vice president have pretty similar views on a lot of things. A lot of what we know from Kamala's potential policies come from when she was running for president in 20. And also, so take it with a grain of salt because she was looking to stand out from a sea of other candidates. But if you just go down the lift, start with climate change a little bit. Both Biden and Kamala Harris have proposed putting historic sums of money towards fighting climate change. Kamala's plan would have gone even further. She proposed a $10 trillion climate plan. She's also come out and said she'd ban fracking, which Biden has said that he has no moves to do so.

One of Kamala's big initiatives too is student debt relief. as the California Turner General, she pushed for loan relief specifically from people defrauded by for-profit colleges. So if you want to draw a battleground between Trump, who ran Trump University for a while, and then Kamala, who has called him out for doing that, that's one of them. And then she also is big on free college. She was a co-sponsor from Bernie Sanders' plan for free college back in 2017. She's aimed to eliminate tuition and fees for all students attending two-year college, which is something by, Biden has also pushed for specifically on the two-year college front. So there's, as you go down the list, I'm sure you have more as well, but they are dovetailing for the most. They are dovetailing.

They are very much aligned. I think if you just look at both of them, you'd say that Kamala is maybe a little to the left on Biden on certain economic policies, especially taxes. She proposed a tax credit of $3,000 per person for most middle and working class Americans. So taxes are going to be one of the biggest issues of this campaign because in 2025, the 2017 Trump tax cuts are coming up. They're going to expire. So there's going to be a huge debate about what we do with taxes. Are we going to leave them? Are we going to leave the tax cuts? Are we going to implement more? So that is a big issue. Another one is free trade. Harris has said that she is not a protectionist Democrats. This is a time in the world where a lot of companies are raising tariffs to promote

their own industries. Well, she says she's not a protectionist. But actually the two, recent free trade deals. She opposed the U.S.-Mexico-Canada agreement, which was NAFTA's replacement that Trump proposed and enacted. She opposed that. And then she also opposed TPP, the Trans-Pacific Partnership, which she said both times, she cited they didn't have enough environmental regulations, which shows she, that how, at the top of her agenda climate change. And she also said that they didn't protect American jobs, which, again, tends to track with the left because she wants to court the union vote, the blue collar vote. Final big topic issue that we need to talk about is AI. She's been a lot more outspoken than Biden when it comes to regulating AI. Biden has taken

a little bit more of a hands-off approach and letting the companies kind of set the standards for it. She wants to regulate it. She wants to address AI's danger. She wants to kind of, she says she rejects the false choice between promoting innovation and then protect. the public. She says you can do both at the same time. So potentially a, she would take a more hands-on approach to this very pressing issue right now, which is artificial intelligence. And I, and I called it the Kamala Harris experience, because I don't know what's going on, but she is going kind of wild on social media. She's become the latest social media star. If you've gone on TikTok or Instagram for the last 24 hours, it is very likely you've seen at least one,

if not an infinite amount of Kamala Harris memes. People are remixing. some of her more eccentric phrases from the past on the campaign trail. She's also leaned into this brat aesthetic, which has to do with Charlie XX's recent album this summer. Charlie XX says Kamala is brat. And her campaign team has completely leaned into that changing their colors on their social media to reflect the lime green aesthetic of this album. So I don't know what's going on, but she's become the most memeable candidate I think we've ever seen. I would just say be careful if you're the Kamala Harris campaign. This is me putting my social media hat on for a second because these things are only fun if it feels very organic,

if it feels very user driven. If you lean in too hard, you come off a little bit as pandering. Let your supporters do the crazy stuff. Let people post pictures of them climbing up coconut trees. Let people lean into it more. Jules Turpac, who is an internet writer, said, leave the outright unsuriness to everyone else. You have to remain cool. and calm and focused above it. So it is a fine line to walk, but you're right. Something has shifted. The vibe has shifted. I mean, think about it. We went from Biden, who is an 81-year-old candidate to now Kamala Harris, who has more of like that fun ant aesthetic, if you will. So the vibe has totally shifted in the Democratic Party and this election in general. Meanwhile, they're going to focus on Trump

now as the old candidate because he is now the oldest presidential candidate in history. What happens when you give people living below the poverty line cash payments for three years with no strings attached. Well, Sam Altman of Open AI wanted to find out, and the results from the largest study in the U.S. ever on the effects of universal basic income are finally in. The study enrolled 3,000 Texas in Illinois residents who earned less than $28,000 per year. A third of the group was giving $1,000 a month, while the other participants acted as a control and were only given $50. And what the study found was no discernible difference in employment levels between the two groups by the end of the three years,

aka no one was taking the $1,000 and quitting their jobs. What did happen, however, was the 1K a month group was able to increase their spending on basic needs like food, housing, and transportation, and even find a little left over to give to others. Neil, these findings are generally in line with other UBI studies carried out. Recipients spend more to meet their basic needs, offer up a little cash to assist others, and certainly don't drop out of the workforce. But it seems the overall takeaway here is that money provides flexibility.

Money provides flexibility. And cash, just giving cash to people with no strings attached, allows them to make choices that they wouldn't normally be able to make the participants in the study when just interviewed by the experimenter said, yeah, just the main thing here was I had peace of mind. My stress levels went down. I wasn't living on the edge anymore. That was the main vibe.

But look, this universal basic income has been percolating for years. years. It really became, you know, top of mind when Andrew Yang ran for president in 2020, and he proposed this freedom dividend. A bunch of AI guys and Silicon Valley guys, like Mark Benioff, like Elon Musk, like Sam Altman, have said this is important to do, especially as AI and automation perhaps takes people's jobs. We're going to need to provide them with a basic income. So they are heavily invested in learning more about what happens when you just give people a check of $1,000 per month. I guess my takeaway from the study is like, yeah, it's not a huge difference.

It's $1,000 a month. People do spend more on those basic needs. But in terms of health outcomes or the labor market and their relationship with work, doesn't really move the needle in a huge way. Yeah. And one thing that people are pointing out is that the control group ended up working a little bit more than the $1,000 a month group, which critics of UBI say that what would happen if you give people money is that they'll start working less.

So we did see and observe one hour less per week working, but a lot of people said that that was mostly from single parents who suddenly had a little bit more time for child care. They were able to enter more flexible working arrangements. So, again, if you are a critic of UBI and your main critique is that people will take the money and stop working, that was clearly not the case in this study. Well, they stopped working a little bit.

A little bit. One hour less. Yeah, they traded in $125 for five hours of work, which maybe is the point of this. And that's what the AI guys are like, well, we people aren't going to work anymore because of automation. But yeah, we're going to see more research. It will see whether this actually comes to, you know, policy. It's, you know, there's been a lot of experiments, but it's been anathema for politicians to actually enact this.

And I don't know if that's going to move the needle in the future. Many companies return to business as usual on Monday following the worst IT outage in history. Others are named Delta Airlines. Four days after a faulty crowd strike update crashed computers around the world, Delta was still canceling flights en masse despite all of its airline peers operating regular schedules. Delta shelved 800 flights on Monday, about 21% of its scheduled departures, which accounted for six in ten flights canceled by all airlines worldwide. From Friday through Sunday, it canceled 4,500 flights more than any other global airline. It comes as a bit of a surprise since Delta

has marketed itself as a premium airline and is known for running one of the smoothest operations in the industry. But all the passengers stranded at its hub in Atlanta over the past few days would probably disagree. And so does Transportation Secretary Pete Buttigieg, who laid into Delta for its slow recovery, prompting an apology from the CEO. Toby, what went so wrong with Delta? I mean, Delta was just uniquely exposed to this IT outage. One, you actually mentioned, it's usually Delta strengths that their hub is Atlanta. But when things go wrong in Atlanta, it's the busiest airport in the world. Things start to go really, really wrong.

And it just the delicate kind of dance that you need to keep the logistics running started to fall apart. And then also it's just Delta made a decision right when the IT outage happened that kind of put them behind the eight ball. And they started canceling flights. A lot of other airlines just started delaying flights. But the fact that Delta started canceling just started to this cascading effect and they can never get, back on schedule, especially when their IT systems that helped place crew members on airplanes was down. So it's just a really bad look for Delta in something that they usually nail.

Delta usually is looked at as the top of the top, the cream de la creme of premium airlines. So this is a real big black eye on their reputation. Yeah, if they don't turn things around. We could be looking at a Southwest level debacle. I'm not saying it's getting there yet, but we'll see what happens today. Southwest, remember, this was December. 2022. It canceled 17,000 flights, more the third of those scheduled because of that winter storm that basically knocked out its systems. And it was running on old software and it couldn't get crews

to the right place. And that's exactly what we're seeing with Delta. Now everybody scrambled. This crowd strike update hit at the heart of their cruise scheduling software. So Delta says it's working around the clock. And Pete Buttigieg is like, you guys better be compensating passengers. you better be paying for the hotels. You better be giving them refunds if they don't rebook. So he is on their butt. So they need to figure this out because they don't want to be made an example of like Southwest. Up next, we got a healthy dose of Toby's Trends coming your way.

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That's OLLLY.com. Have you ever thought about how much it costs to make a phone call from prison? Well, it's very expensive, but following a year's long push by activists, prices allowing incarcerated people to speak with their families are finally coming down in a big way.

Last Thursday, the Federal Communications Commission voted to dramatically lower the costs of phone calls from prison. The cost of a 15-minute phone call used to be $11.35 in large jails. Now, it's going to be 90 cents. In small jails, the price is dropping from more than $12 to $135. For the first time, the agency is also capping the cost of video calls, which is an increasingly popular method of communication in prisons, dropping those prices to less than a quarter of their current level. The FCC estimates that about 1.4 million people will be impacted and that prisoners, friends,

families and inmates will save nearly $400 million under the change. For prison reform advocates, this step was long overdue to reign in a prison telecoms industry. They accused of using predatory tactics to exploit incarcerated people and their families. The FCC commissioner said, today's actions put an end to these abuses. So why are these calls so pricey? The problem is about 90% of the prison and jail calls are facilitated by just three companies. so there's almost a monopoly over the market. You can also blame these call charge sharing schemes

in which the call providers actually give jails a little kickback on some of the proceeds that has jacked up prices as well. And there is research that more consistent phone calls between incarcerated people and their family members actually does a lot to reducing reoffending rates. So a lot of prison advocates or reform advocates are saying that this is a public safety measure.

This is, we're allowing people to talk to their family members is better for the public good. So that's why there's been this huge groundswell of support for the FCC to finally do something about it. Yeah. And they weren't able to do something about it by law until January 23, which is when President Biden signed the Martha Wright-Reidjust and Reasonable Communications Act into law. And that allowed the FCC the authority to put these caps on calls interest state

before the FCC only had authority over interstate communications where somebody was calling somebody from another state. This gave them the authority to do that. And it's pretty interesting. Martha Wright-Reed was a retired nurse in D.C. who was advocating for this for years because she was calling her incarcerated grandson. And she saw, wow, this is literally one call is basically a monthly bill for a non-incarcerated person, just one call. This is so expensive, and so she lobbied the government for years on this, and so that's why they named this bill after her. Of course, the phone service providers are pushing back against the proposed SEC rules. Some of them are arguing that these rate caps would inhibit competition in the market by pricing out smaller firms, which is very ironic to me, considering they already control 90% of it. And then also they said that these new rules didn't factor in some of the security costs that are associated with these phone calls,

because calls between incarcerated people and the outside world are surveilled. There are some layers of surveillance and data collection on these calls that need to happen. So, of course, you're going to get some pushback from the companies that control 90% of the market. And when you factor in the fact that they're about to lose $500 million in revenue, of course, they're going to be a little upset. When most major league baseball players hit a deep drive to left field, it typically ends up in a home run. it's an exciting but relatively common occurrence last year 5,868 were hit. But a few home runs have a little more weight to them, a little more consequence, if you will.

And those are the home runs that come off the bat of the Philadelphia Phillies right fielder Nick Castiano's. And it's those hits we need to talk about on today's edition of Toby's trends, where I find a trend floating around the internet and explain it to you so you have some small talk to whip out at your leisure. So there is this startling correlation between Nick Cassiano's home runs and major world events. The trend started off smaller in scale with a Cassiano's drive interrupting an on-air apology from an announcer. Then Cassiano's went yard in the middle of an homage to fallen service members on Memorial Day. You'd think announcers would learn by then, but no. On TBS, Cassiano's hit a dinger while the announcer was describing how a former Phillies manager was faring after a stroke.

but Cassiano's influence would only grow more global. Less than an hour after news broke that Willie Mays had passed away, Cassiano's hit a walkoff double. He homered on the 20th anniversary of 9-11. The assassination attempt of Donald Trump, Cassiano's homered earlier that day. And finally, this past Sunday, Biden dropped out of the presidential race, and I'll let you guess what Cassiano's did. Neil, this has graduated from just sports lore to full-on internet lore at this point. this man is warping reality. It's pretty hilarious what has been going on.

I encourage everyone to go to YouTube and just type in Nick Castiano's home runs. And people have put together these 50-minute-long compilations of announcers giving these very somber addresses about people who have died or big major global events. And then all of a sudden, they have to make a call that some guy, Nick Castiano, keeps hitting a home run in the middle of these presentations. And it's just probably, you know, it's a little morbid, but it's also. Also, one of the funniest things in the world. Also, Nick Castiano's home runs during major global events has become a betting sensation.

As soon as anything big happens, people pile into home run bets for Nick Castiano's. This happened this past weekend when Biden dropped out. Everyone was tweeting, okay, like Nick Castiano's guaranteed home run. It was plus 550 going into the game. So a lot of people made money. I do wonder whether Draft Kings or Fandul will start rolling out promotions on Nick Castiana's home runs when certain world events happen. Obviously, it has to be benign. It can't be somebody died or anything that tragic. But if like a big thing happened, like, you know,

Biden's stepping aside, I wonder if they'll start running the Nick Castiano's promotion. I did look into this because obviously there's some sort of cognitive bias going on because obviously he's not causing these world events. And it's called the Bader Meinhoff phenomenon or frequency illusion. This occurs when something you've recently become aware of suddenly seems appear more frequently in your environment. That being said, though, I would be remiss if I didn't mention that Nick Casiano's first professional home run in the minor leagues, and I promise I'm not making this up, came on May 1st, 2011, which is the day Obama announced Osama bin Laden had been killed.

So Cassiano's has been at this for years now, so make sure you pay attention to the Phillies games going forward, because Cassianoos is kind of the Bobavanga, if you will, of major world events. Think about how stressful it is to host a dinner party. So many mouths to feed, so many different preferences, it's a lot. Now multiply that stress by 15,000 and toss in the fact that your guests are the best athletes in the world, and you know what the chefs at the Olympic Village are gearing up for in Paris right now. Feeding that many high-performance mouse is a daunting task, and even more daunting when you consider that you're at least somewhat responsible for how they performed to. So what's the solution? Bananas. The culinary team thinks they'll need three

million bananas over the course of the games, but there are also six restaurants in the Olympic Village that will be open at all hours of the day. This is France after all, so there's a bakery set up in every village cranking out more than 2,000 baguettes, croissants, Panoccalat, and ficasha. Neil, feeding these athletes, is a massive combination of logistics. You need a diversity of options, an emphasis on nutrition, and understanding of the different cultures assembled as well. It's the world's biggest dinner party. That's two weeks long. It's literally the world's biggest restaurant. They converted an electrical power plant at the heart of the Olympic Village, which is 700 feet long into the biggest restaurant in the world.

So who's putting this on? There's a company called Sodexo Live, which just lives for these events. They've done 15 Super Bowls. They've done 36 French Opins. They do Indian Wells, tennis as well. So they are just, they specialize in creating massive restaurants. I don't think they've put together anything on this scale. And you're right, they have to balance showing off the French culinary tradition with, you know, other, other cultural preferences. 18% of all athletes eat halal. So there's going to be a halal restaurant that people need to come in. And they don't want to, you know, don't want their stomach upsets.

I mean, I went to Mexico City and I was, you know, not well for six straight days. And so when people try a new cuisine or anything like that, especially when they have to compete at the highest level, that's also a consideration. They also want this to be super sustainable, so they want to source things from inside France. 80% of all ingredients are going to be sourced from France. They won't even allow avocados because those have to be flown in, which raises the carbon emissions. So there are so many variables to weigh here. You have to coordinate with every nation, too. I mean, the Koreans specifically requested kimchi, the Japanese want miso, but not every request can be filled because of those carbon requirements.

A lot of Caribbean nations ask for passion fruit, but those sustainability regulations said that they couldn't import them. And then you have to go through the different sports, too, because, I mean, if you're a cyclist or a runner, you're eating a very carb-heavy diet. Some people want more lean protein. If you're a wrestler, you need to hit a specific weight. But obviously, a lot of countries bring in their own foods, too,

that they know that their athletes want. And, of course, America's food are, protein shakes, pretzels, popcorn, jerky, energy bars, and of course, peanut butter for their athletes. I also thought a very interesting perspective, too, is that the U.S.'s nutritionists went on record and say that sometimes host countries get too carried away with trying to show off their own cuisines, and, like, she cited Japan specifically as doing that. But then the Irish delegation was like, wait a second, I love the fact that we can expand

our palettes here. So I think every country comes into it with a little different attitude. Maybe you want to be more adventurous, try more of the host cuisine, or maybe you just want to stick to your guns and make sure you don't upset your stomachs. I do love what each country is bringing that they don't think would be provided for, so that the U.S., it was peanut butter for Ireland. Yeah, the guy said, I wanted to experiment, but also they're bringing a ton of oats because the Irish can't live without their porridge, and apparently the French don't do it well.

And Australia, of course, is bringing their own barista and turning their space into a coffee shop because they are obsessed with coffee. So Toby, just take us into the mind of an athlete, like you go into this cafeteria. Are you sticking with what you know? Are you like, wow, baguette, wow, this Gorgonzola? It's definitely stick to what you know before. And then after you're done with your event, you just go wild and you eat everything in front of you. So, and finally, the final issue on this that was so funny is that when they were laying out the design for the dining hall, they thought these are professional athletes. They'll move around the dining hall because like you can walk, of course, but then they said the observed behavior of these Olympic athletes is that they will

only get the food in their direct like five meter wide radius because they don't want to move very much. So like even if something's at the other end of the hall, they won't go get it. So just so many different considerations that you have to take an account when designing the world's largest restaurant for the world's Beth athletes. Opening ceremony just three days away. All right, that is all the time we have. Thanks so much for starting your morning with us and have a wonderful Tuesday for any questions, comments, or feedback, send a note to Morning Brew Daily at Morningbrew.com. Let's roll the credits. Emily Milliron is our executive producer. Raymond Liu is our producer. Olivia Graham is our associate producer. Yucenoa Ogu is our technical director. Billy Minino is on audio, hair and makeup

is brat. Devin Emery is our chief content officer and our show is a production of Morning Brew. Great Saturday, Neil. Let's run it back tomorrow. All. Pay off your home. Travel for life. Drive a Ferrari. In celebration of the world premiere of the Monopoly, Big Board Buckslot Machine by Aristocrat Gaming, Yamava Resort and Casino at San Manuel is giving one person a $1.6 million dream package. The biggest prize in Yamaba's history. Club's Toronto members can earn daily instant prizes and secure a spot in the finale May 29th. Don't pass go and own it all. Only at Yamava. Celebrating its 40th anniversary. You win? Details at Yamava.com must be 21-20. Please gamble responsibly. Monopoly is a trademark of Hasbro. Hasbro is not a sponsor of this promotion.