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The News Fix

The traditional kickoff to the holiday shopping season felt different this year. Rather than waiting in long lines at big-box stores, many shoppers stayed home over the Thanksgiving weekend, scrolling through emails, apps and websites for deals. Black Friday in-store sales dropped 37% from last year, and with even record-breaking online sales on both Black Friday and Cyber Monday, overall sales were down 14%.

The big winner was Amazon. The company had strained to meet its two-day delivery window early on in the pandemic, but over the course of 2020, Amazon responded to increased demand by rapidly expanding its delivery capacity. It boosted its fleet of cargo planes to 80, added 220 packaging facilities and hired hundreds of thousands of new employees. One analysis estimated Amazon could capture 42 cents of every dollar spent this holiday season.

Still, the surging virus, business closures and lack of federal relief are certain to have a dampening effect on the holiday season — in terms of spending and otherwise. Unemployment claims remain elevated and benefits are running out for many.

Smart in a shot

One Spotify user’s “2020 Wrapped” story.

Screenshot via Spotify

It’s the most wonderful time of the year for Spotify users. This week, the music-streaming giant released its annual Wrapped feature, which mines each user’s listening patterns for the past year and presents top songs, artists and podcasts in a shareable “story” in its app. There’s just something special about an algorithm telling you what you like — Wrapped 2020 posts flooded social media.

But the wrap on Spotify’s performance this year is mixed. While the Sweden-based service dominates the global streaming market, it continues to sacrifice profit for growth. The number of Spotify users and subscribers have each risen almost 30% year-over-year, but the company is still posting losses — about $120 million in the most recent quarter. At the same time, artists’ calls for the streamer to boost what it pays haven’t gone away.

The Numbers

New restrictions on bars and eateries are forcing restaurant owners to make difficult decisions. Let’s break it down.

$240 billion

That’s how much the U.S. restaurant industry could lose by the end of 2020, with an estimated 1 in 6 establishments closing and 3 million employees out of work. According to the National Restaurant Association, the food service industry was the second-largest private sector employer in the U.S. before the pandemic.

$120 billion

In October, the U.S. House of Representatives approved a targeted relief program, known as the RESTAURANTS Act, which would have provided funding to keep independent restaurants from closing. But federal lawmakers don’t appear to have included that provision in the latest $900 billion stimulus proposal, unveiled on Capitol Hill this week. Meanwhile, many state and local officials are asking bars and eateries to close down again as virus cases surge.

3

At least three high-profile California politicians dined at restaurants shortly before recommending restrictions on the very kinds of gatherings they’d enjoyed. Gov. Gavin Newsom in particular faced criticism from constituents after attending a party in a partially enclosed dining room at Napa Valley’s French Laundry.

This week on the podcast

Two residents, seen from behind, walk inside a retirement community in Pompano Beach, Florida.

Chandan Khanna / AFP via Getty Images

Episode 331: You can’t really retire with a 401(k) alone

Unless you're a robot, maybe. Here’s how retirement planning went DIY and why it set up millions of Americans for failure. (Listening time, 38:41)

► LISTEN NOW

None of us is as smart as all of us

Tell us what’s making you smarter at smarter@marketplace.org. We'd love to include your recommendation in a future newsletter.

A better economic story

“Make Me Smart” host Molly Wood recommends this opinion piece in The New York Times arguing that higher wages can do more to stoke economic growth than tax cuts. “Consumption drives the American economy, and workers who are paid more can spend more,” the piece states.

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Thinking differently than the majority of people

Listener William S. recommends the YouTube channel “Minority Mindset,” which offers a fresh spin on financial news and education. Says William: “I just love that young man. Give him a listen.”

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Warning for beer lovers

Listener Melissa D. sent in this news item about Shelton Brothers, a popular U.S. importer of European beer, which could close down amid bankruptcy if the current owners can’t find a buyer. Shelton imports suds from more than 150 top global breweries and hosts a prestigious annual event called The Festival.

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One last thing!

The “Make Me Smart” team is always looking for answers to the Make Me Smart question, “What is something you thought you knew, but later found out you were wrong about?” Send us a voice memo with your response and we might play it on the show. (Instructions for sending voice memos are here.)

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