Podcast Summary
Customer service vs Social media: Credit cards provide exceptional customer service with 24/7 US-based live support, while social media platforms may have negative effects on mental health, particularly for teenagers who spend excessive hours on them.
Discover credit cards offer exceptional customer service with 24/7 US-based live support, setting them apart from other credit card companies. Meanwhile, the US Surgeon General, Dr. Vivek Murthy, is advocating for warning labels on social media due to potential negative effects on mental health, particularly for teenagers who spend extensive hours on these platforms. While the evidence linking social media use and mental health is still debated, Murthy emphasizes the importance of caution, citing studies that suggest potential risks. In the world of business news, Yahoo Finance serves as a comprehensive resource for staying informed, providing access to news, stock information, and earnings reports all in one place.
Social Media Harm to Teens: Despite conflicting research, social media's potential harms to teenagers warrant urgent action, including warning labels, legislation to protect from harmful content, and independent safety audits.
Dr. Nicholas Kardaras is advocating for urgent action against the potential harms of social media on teenagers, drawing parallels with historic consumer safety measures like warning labels on cigarettes. He argues that, despite conflicting research, it's better to act now than wait for definitive evidence due to the clear warning signs of loneliness, depression, and excessive use. Beyond warning labels, he suggests legislation to protect young people from violent or sexual content, ban data collection, restrict addictive features, and force independent safety audits. However, the effectiveness of warning labels is debated, with graphic images being the only proven deterrent. Consumer safety advocates emphasize that warnings are a last resort after ensuring product safety. In other news, the IRS aims to close a tax loophole used by large partnerships to avoid paying taxes, aiming to raise $50 billion over a decade.
IRS audits pass-through businesses, individuals: The IRS, with new funding, is focusing on increasing audits for pass-through businesses and individuals with delinquent taxes, aiming to close tax loopholes and generate more revenue.
The IRS, after receiving $80 billion in new funding, is now focusing on closing tax loopholes and increasing audits, particularly in the area of pass-through businesses. These businesses, which have seen a 70% increase in filings but a decrease in audit rates, have been used as a loophole for tax avoidance. The IRS is now aiming to change this trend, as they believe they have the resources to do so. Additionally, the IRS is also targeting individuals with delinquent back taxes and businesses using personal flights on corporate jets. Meanwhile, Wells Fargo learned a costly lesson when they entered into a partnership with the fintech startup Built to offer a rent-paying credit card. Although the card was popular with consumers, resulting in over 1 million accounts activated, Wells Fargo is reportedly losing up to $10 million per month due to miscalculations regarding revenue drivers. This partnership has significantly boosted Built's valuation to $3.1 billion, making their founder a billionaire.
Wells Fargo-BILT partnership: Despite costing Wells Fargo $10 million a month, the partnership with BILT was a profitable deal for them, providing $200 million upfront and ongoing benefits until 2029. Consumers benefited from the arrangement, and the episode highlights the importance of intergenerational wealth transfer planning and financial conversations.
The partnership between Wells Fargo and BILT, while costing Wells Fargo $10 million a month, was a great deal for BILT as they received $200 million upfront and continue to benefit from the arrangement through 2029. Wells Fargo had hoped to make more revenue from transaction fees and interest on balances carried, but consumers' habits around rent payments didn't align with their expectations. Some argue that this shows Wells Fargo coming across well as they were experimenting with a new market and trying something new, even if it didn't work out as planned. However, others see it as an embarrassing episode due to the significant miscalculation of potential revenue drivers. Regardless, consumers have come out on top in this situation. Another important takeaway is the growing issue of intergenerational wealth transfer, with $84 trillion expected to be transferred from baby boomers to their adult children in the next few decades. Many people aren't having conversations around this topic and feel uncomfortable discussing finances, but planning for both short and long-term goals is crucial. MassMutual can help with retirement and protection planning, including life and disability insurance. Additionally, Sage offers solutions for finance leaders and CFOs to automate manual processes and increase productivity.
Print Industry: Publishers prioritize delivering high-quality content and materials in print format to differentiate themselves and cater to readers' preferences for a more luxurious and engaging experience.
While technology like Sage's automated solutions can streamline routine business tasks and provide real-time insights, some industries and businesses still find value in traditional, tactile experiences. Niche print magazines, for instance, continue to thrive by offering a high-quality, collectible reading experience that sets them apart in a digital landscape. Publishers prioritize delivering top-notch content and quality materials, even if it comes with added costs, to differentiate themselves and cater to readers' preferences for a more luxurious and engaging experience. Even heavy hitters in various industries are recognizing this trend and reintroducing print editions to their offerings.
AI in Fast Food Industry: Despite challenges, AI's potential benefits make it an attractive solution for the fast food industry, offering efficiency gains and freeing up human workers for other tasks.
The integration of AI technology in the fast food industry, specifically for drive-thru ordering, is not without challenges. McDonald's recent partnership with IBM for AI-driven ordering systems faced numerous issues, including misunderstandings of customer orders and frequent failures. These issues led to negative publicity and the removal of the technology from over 100 locations. However, McDonald's isn't giving up on AI entirely. Instead, they may seek partnerships with different vendors to improve the technology. The fast food industry is exploring AI for both consumer-facing and internal processes to increase efficiency and save time. Despite the complications, AI's potential benefits, such as freeing up human workers for other tasks, make it an attractive solution for the industry. The failure of one partnership doesn't signal the end of AI in fast food, but rather an opportunity to learn and improve.
Customer experience ratings decline: Customer experience ratings in the US have reached a record low for the third consecutive year, with an average score of 69.3 out of 100. Brands need to focus more on their customers to prevent angry customers, encourage repeat purchases, and increase sales, as consumers are increasingly concerned with issues like shrinkflation, junk fees, and perceived lack of value.
Customer experience ratings in the US have reached a record low for the third consecutive year, with an average score of 69.3 out of 100. Companies are not investing enough resources to improve customer experiences, leading to increased skepticism from consumers regarding the value they receive. Brands like Chewy, Edward Jones, Etsy, Lincoln, Navy Federal Credit Union, Subaru, Tesla, Zappos, and Heb (HEB or H-E-B) are doing well in this area. The IRS ranks last with a score of 49.6. Interestingly, customer experience is declining in every sector except for airlines. Brands need to focus more on their customers to prevent angry customers, encourage repeat purchases, and increase sales. The report highlights that consumers are increasingly concerned with issues like shrinkflation, junk fees, and perceived lack of value.
Factor Meals discount: New Factor Meals subscribers can get a 50% discount on their first box and an extra 20% off during the next month using the code 'morningbrew50'.
Factor Meals is offering a special discount for new subscribers. To claim this offer, use the code "morningbrew50" when signing up for a subscription at [factormeals.com](http://factormeals.com). This code will grant you a 50% discount on your first box. Additionally, while your subscription remains active, you will receive an extra 20% off during the next month. This is a great opportunity for those who are interested in trying out Factor Meals and saving some money in the process. Remember, the discount codes are only valid for new subscriptions, so don't miss out on this limited-time offer.