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Hey there, hope you’ve had a great week. I’m still a little fried from Tuesday night, when I stayed up to watch a stunning series of upsets in the U.S. House and Senate.
In today’s newsletter, we’ll talk about some of the midterm races you might have missed, and the way affordability concerns are playing out in communities around the country. We’ve also got new data about the labor market, but we’ll start in Alaska, where they’re still counting ballots. — Tony Wagner, newsletter editor | |
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Emily Schwing/Marketplace | Fuel or food? Alaskans are facing tough choices |
More than 80% of Alaska communities aren’t connected by road, so residents depend on fuel for travel, heat, and power. In one rural area, gas reached $26 a gallon. Marketplace contributor Emily Schwing reports. |
Americans are having a tough time stretching their dollars to cover soaring energy costs. In Alaska, some people are choosing between buying food and buying fuel to power their vehicles and heat their homes. And as the state descends into winter, residents who live in some of the nation’s most remote communities say they're scared of what may come.
“Gas is so expensive,” said Merle Custer, a Tribal Council member from Shungnak, where gasoline currently costs $26 per gallon. Custer, an elder, who was born and raised in the small Inupiaq village just north of the Arctic Circle, said he’d never seen gas prices as high as they are this year. “Everybody gotta chip in for gas to go out hunting, chip in their gas.”
More than 80% of communities in Alaska are not connected by road, so people use boats, four-wheelers, and snowmachines to get around. They rely heavily on gas for travel and on diesel to heat their homes and keep their lights on. On top of those expenses, everything from their medication to their food gets shipped in. “When we want chicken, it’s almost $50; and a little piece of steak, $57,” said Custer.
Because store-bought food is so expensive in Alaska’s rural communities, most people live a traditional subsistence lifestyle. They use the warmer months to hunt and stock up on moose, caribou, plants, berries, and especially salmon. All of it goes into their freezers, and that’s what they eat during Alaska’s long, cold winter. | |
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| Midterms The labor market
Employers added 165,000 jobs in October, way more than economists expected, and the Bureau of Labor Statistics revised September and August’s hiring numbers up too. Wages are still lagging behind inflation, however.
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Elsa/Getty Images | MLB players' union negotiations hinge on a salary cap |
Major League Baseball is veering toward a lockout in December. Marketplace’s Henry Epp breaks it down. |
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For the first time in the history of the Milwaukee Brewers, the team’s players will be enjoying the baseball offseason as champions after winning the World Series last week.
Owners want a salary cap. Every major team sport in the U.S except baseball puts a limit on how much a team can spend on its payroll. The idea is to prevent any one team from loading up on all of the top talent and skewing the competitive balance of the league.
The MLB players’ union does not want a salary cap. So a lockout seems inevitable, and could drag on into next season. At stake for the players is the ability to tap into a free market for their services after years of paying their dues.
Being a baseball player at the beginning of your major league career is very different from being an established player: There’s nothing free about the labor market when you’re a rookie.
Mike Trombley knows this firsthand. He pitched for three major league teams from 1992 to 2002.
“The very first few years in my career were horribly stressful,” he said. “I didn't know if I was going home tomorrow. I never had a guarantee of anything.”
That’s because in their first six years in the majors, baseball players are entirely under their team’s control. So in his early years, Trombley earned just above the league’s minimum salary pitching for the Minnesota Twins: Roughly $240,000 in today’s dollars. Despite his fairly comfortable pay, it was a precarious existence.
“I remember in 1994, ‘95, [it] felt like every game, this could be my last game,” he said. “Because, hey, they send me to AAA or ship me out or release me, I'm gone.” | |
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Courtesy Austin Independent School District | For lots of kids, free school lunch is no longer on the menu |
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School districts across the U.S. are facing a financial squeeze.
Ryan Mikolaycik is in charge of feeding 66,000 kids as the executive director of food service at the Austin Independent School District in Texas.
“A fruit or a vegetable was about 25 cents a serving; now you're looking at more like 40-50 cents per serving,” he said.
Since the school food programs have to run a balanced budget, at some point, something has to give. Mikolaycik said they’ve had to make cuts in his district.
“Now it's like, OK, instead of having that person there in the kitchen, I'm going to cut a person and you’ve got to do with less,” he said. “Instead of serving bananas twice, we're going to serve it just once.”
The price pressures are compounded by the loss of federal dollars, as fewer students automatically qualify for free lunch with changes to the Supplemental Nutrition Assistance Program and Medicaid. At the same time, school districts face changing regulations from the U.S. Department of Agriculture.
It’s why 95% of school nutrition leaders say they’re worried about their food program’s financial sustainability, according to a survey from the School Nutrition Association.
“Now you know what keeps a lunch lady up at night,” said Donna Hoover, director of nutrition at the Hickman Mills School District, which serves around 5,000 students in Kansas City, Missouri.
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Click to watch on Marketplace’s Instagram! | How social security works — and why it’s running out of money |
Is Social Security running out of money? Well, kinda. Marketplace’s Sabri Ben-Achour explains why Social Security is currently paying out more than it takes in and what it means for the future of the program. If you have questions about the economy, send them to me
or leave us a comment on IG. | |
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SONG OF THE WEEK | “The Gun That Won The West” by Peter Skellern |
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Sony Music UK and WikiMedia Commons |
The vote is nonbinding, and Idaho’s legislature will make the final declaration next year.
The Hill notes 11 other states have named official guns in the past 15 years.
I’ll leave you with more digression: The Trump administration recently allowed the purchase of certain guns and accessories without registering them. We talked with a reporter at The Trace about that move, and other potential regulatory rollback. | |
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