Note: we recorded this podcast in early April, just after the opening of the Paycheck Protection Program and the passage of the CARES Act, so you may hear references to dates that have already come and gone. As of this writing, though, we’re still following the roll out of the second round of the PPP, continued disbursement of EIDL loans and economic impact payments, and like everyone else, trying to be as prepared as we can for what comes next.
Most of the economic news these days is not great: high unemployment, a drop in GDP that brought the US economy’s longest period of expansion to a screeching halt, and of course, the neverending ups and downs of the stock market. Though media sources have already started reporting on “the coronavirus recession” and we’re all feeling the effects of business closures and supply chain disruptions, we’re not technically in a recession. The reason comes down to how we measure economic performance. On today’s episode, we’ll be talking about economic indicators, what a recession is, and why official definitions don’t always match up with our lived experience. We’ll also be discussing some ways to weather an economic downturn, recession declaration or no. We can’t promise to alleviate any concerns you may have about the economy or tell you what to expect in the coming months or years, but we’ll try to provide some actions that you can take in the present.
Check under the cut for show notes and bonus content:
Today we’re giving you a peek behind the scenes with an episode about one of our favorite pre-show topics: college sports [note: we’re both dyed-in-the-wool Duke fans. What can we say? The idea of your college as “the mother of your soul” definitely holds for us when it comes to sports loyalties]. This is perhaps the best and the worst time for a discussion about the economics of college sports: on the one hand, basketball and football seasons are underway; on the other, things are moving so fast that we had to include an update in this post.
In a move that will likely not surprise you once you’ve listened to the podcast, the NCAA Board of Governors made a unanimous decision to extend the right to receive compensation for the use of their names, images, and likenesses to all college athletes, an about-face from its earlier promise to contest California’s Fair Pay to Play Act. Of course, the NCAA is still a (non-profit) business, so this decision isn’t necessarily an indication of its newfound “wokeness.” They’re still obsessed with “student-athletes,” recruitment outcomes, and using amateurism as a barrier to further discussions about paying athletes, but the NCAA is at least paying lip service to a desire to move with the tide of history. More importantly, college athletes will get to reap some of the financial benefits of the enormous amount of time, energy, and effort they’ve put into playing the sports of their choosing. We definitely plan to keep an eye on this story as the NCAA rolls out its plan.
Now that that’s out of the way, we hope you’ll enjoy listening to this episode as much as we enjoyed recording it. In addition to the fallout from the Fair Pay to Play Act, we discuss revenue sharing, Zion Williamson’s impact on the stock market, the history of NCAA vs. athlete lawsuits, position stacking, and what happens when a city hosts a college sports tournament. Oh, and James pours one out for EA Sports’s NCAA Basketball and Football franchises. There’s also a sports-related update from our Black Capitalism episode.
Finally, we’ve got a question and an announcement: Will knowing that players are receiving some compensation change how or whether you watch college sports? How? Why or why not?
In addition to sharing your thoughts with us via social media (@financeflipside on Twitter, Facebook, or Instagram), you can keep the conversation going with us and each other in our new Facebook Group, the Financial Flipside Group Chat. The group is private, but if you head over to our Facebook page and leave us a message or find us by searching for the group name, we’ll gladly let you in. Here’s to more real money talk!
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Show notes and bonus content are, as always, below the cut.
“Gentrify your own ‘hood before these people do it/Claim eminent domain and have your people move in/ That’s a small glimpse into what Nipsey was doing/ For anybody still confused as to what he was doing /The neighborhood designed to keep us trapped. /They red-lined it so property declines if you live by blacks /They depress the asset then take the property back. /It’s a ruthless but a genius plan, in fact….”-Jay-Z, performing at Webster Hall, NYC on 26 July 2019
We’re starting this post with Jay-Z not just because of his deal with the NFL, in which Roc Nation partners with the league on matters of “entertainment and social justice,” or because he claimed that we’ve “moved past kneeling” and “…need actionable items.” The lyrics above and the first glimpses of the Roc Nation/NFL partnership (Inspire Change apparel, Roc Nation’s artists having their songs strategically placed during NFL broadcasts, and a Chicago-centric pair of charity donations, including one to a group that posts photos of young black people having their dreadlocks cut as part of the road to a “better” post-gang life on Twitter) are a great jumping off point for a discussion of black capitalism that we’ve been meaning to have for a long time.
This is a long one, and we have a lot of… thoughts, and feelings. So many feelings. Listen in as we talk about Reconstruction, economic anxiety, Booker T. Washington, shadow economies, entrepreneurship, space travel, Kamala Harris’s student loan proposal, self-sufficiency vs. self determination, and much more. Capitalism alone is a complex topic, as is Black people’s relationship with it. Consider this episode as a way of laying the groundwork for discussions that we will likely return to off and on in future episodes.
Show notes and related links are as always, below the cut. To listen to previous episodes, check out our website, or subscribe on Apple Podcasts, Google Play, Stitcher, Spotify, or wherever you get your podcasts.
[Read more…] about The Financial Flipside Podcast, Episode 20: Black Capitalism or, I’m a Business, Man
As of May 2019, the average price of a new house in the US was $377,200, a price that will buy you, on average, an apartment’s worth of space for every member of your household. Alongside expanding house sizes and the proliferation of luxury condos is a stark reality: the United States, like many other places in the world, is in the throes of a housing crisis. While there is plenty of physical housing to be had, very little of it is affordable , especially when one takes into account that most people’s wages have remained relatively flat. For example, as of June 2019, there is not a single place in the US or Puerto Rico where a minimum wage job would allow a person to afford to rent a two-bedroom apartment.
Despite what looks like a bleak housing picture, people, especially in the United States, remain invested in home ownership, even if staying in their homes means stretching their salaries or spending hours commuting each week. Why are Americans obsessed with home ownership? Does the idea of one’s house as a source of wealth hold up? Is HGTV ruining the way we think about real estate? What are the ways out of our current mess? We take on these questions and more in this episode.
Lots of interesting links below the cut