☕ $400 billion


Morning Brew <crew@morningbrew.com>
To: news@emailtest.eu

2022-09-27 11:48


The true cost of student loan relief...
September 27, 2022 View Online | Sign Up | Shop

Morning Brew

Revela

Good morning. NASA pulled off a spectacular feat last night, ramming a spacecraft into an asteroid ~7 million miles away in a test to see whether it could successfully redirect a space rock that posed a threat to Earth.

Hope there was some English on it, though. If the spacecraft ricochets and lands in Mars, it would be declared a scratch.

Neal Freyman, Matty Merritt, Max Knoblauch

MARKETS

Nasdaq

10,802.92

S&P

3,655.04

Dow

29,260.81

10-Year

3.925%

Bitcoin

$19,124.57

Oil

$76.89

*Stock data as of market close, cryptocurrency data as of 9:00pm ET. Here's what these numbers mean.

  • Markets: Another day, another wave of bleak milestones for the stock market. The S&P dropped to its lowest close of the year and the Dow slid into bear market territory—a 20% fall from its recent peak. Like stocks, oil is also falling over fears of slowing economic growth, slipping to its lowest close since Jan. 3 (way before Russia invaded Ukraine).

GOVERNMENT

Student loan cancellation finally gets a price tag

Jerry Seinfeld looking at an expensive check Comedians in Cars Getting Coffee/Sony Pictures Television via Giphy

About $400 billion. That’s how much President Biden’s student loan cancellation plan could cost the government over a decade, the nonpartisan Congressional Budget Office (CBO) estimated yesterday. That’s not including an additional $20 billion in costs for extending the freeze on loan repayments one final time.

If the estimates prove correct, student loan cancellation would rank among the Biden administration’s most expensive initiatives. For context, the $420 billion is about on par with the amount spent on Covid stimulus checks from Biden’s American Rescue Plan. And it would more than negate the $238 billion in deficit reduction expected from Democrats’ recent tax and climate plan.

Quick recap

In August, Biden fulfilled a campaign promise by pledging to wipe out $10,000 in student debt for borrowers making less than $125,000 a year, and $20,000 for Pell Grant recipients. Under the plan, more than 40 million Americans would have at least some of their student debt canceled.

While the wipeout made moderate Democrats (and 40 million Americans) quite happy, it was criticized by both the left, who said it didn’t go far enough, and the right, who said it was a misuse of government money and an accelerant for inflation. The new CBO estimates were immediately used by Republicans to hammer home their message that student loan cancellation is fiscally irresponsible.

The numbers got some pushback

First of all, the CBO said its projections were “highly uncertain” because it couldn’t know how much of the debt would be paid back if cancellation never existed. And some economists argue that a lot of the debt would never have been paid back anyway, making the plan less expensive than it appears.

In defending debt relief, Democratic Senators Chuck Schumer and Elizabeth Warren said it was a worthy investment in America’s middle class, as opposed to former President Trump’s heavy tax cuts for corporations.

Looking ahead…now that the price tag’s out, expect student debt relief to become a bigger talking point in the run-up to the midterm elections.—NF

        

TOGETHER WITH REVELA

The newest fall trend: voluminous hair

Revela

Now that you’ve finally put your swimsuits in storage and vacuumed stubborn sand from your car’s crevices, you might think your last summer chore is handled.

But there’s likely some lingering chlorine residue, salt water, and UV exposure weighing down your hair. So as you figure out how to incorporate fall’s biggest trends into your style, don’t forget to give your hair some TLC.

With Revela, you too can have those coveted, healthy, runway-worthy locks.

The company’s Hair Growth Serums contain a powerful molecule called ProCelinyl™, the only one discovered through AI that directly targets hair follicle health. It absorbs quickly into your scalp so that your hair grows in thicker and fuller in 6–8 weeks.

Help your hair look its best this fall. Get 15% off Revela’s Restorative Serums today.

        

WORLD

Tour de headlines

Edward Snowden Piaras Ó Mídheach/Sportsfile for Web Summit via Getty Images

Snowden gets a Russian passport. Edward Snowden, the former US intelligence contractor who leaked files exposing the NSA’s surveillance operations, was granted Russian citizenship yesterday. Snowden was first granted asylum in Russia in 2013, when he blew the whistle, and received permanent residency in 2020. Snowden’s citizenship announcement led some Russians to joke about whether he could join the military, a reference to Russia’s first public mobilization drive since World War II.

Anxiety reigns in Britain over the pounded pound. After the pound crashed to a record low against the dollar, England’s central bank tried to soothe investors by saying it would “not hesitate” to continue hiking interest rates to curb inflation. The market chaos stems from a new tax-cutting plan released by the UK government, which critics have called “reckless.” Even US officials are sounding the alarm—the Atlanta Fed President said yesterday that the British plan raises economic uncertainty and the chances of a global recession.

Ian could be a once-in-a-century hurricane for Florida’s west coast. Hurricane Ian is growing in strength and could hit Florida’s Gulf Coast as soon as Wednesday as a Category 4 hurricane—indicating top winds of 140 mph. If it stays on that track, it would mark the first time in more than 100 years that Tampa and St. Petersburg will be hit by a major hurricane.

TRAVEL

The final Covid holdouts are welcoming back travelers

Canadian Airport sign for Arrivals Yu Ruidong/China News Service/Getty Images

Happy World Tourism Day—the world is (finally) your oyster again. Canada got the party started by announcing yesterday that it’s lifting its vaccine requirement to enter the country, its final Covid-related border restriction, on October 1. But Canada isn’t alone—everywhere you look, pandemic travel barriers are coming down.

  • Japan said last week it would end its 50,000-daily-visitor cap and its ban on individual travelers starting October 11.
  • Hong Kong scrapped its quarantine-at-a-hotel-the-second-you-get-here policy yesterday. (Although arrivals will have to wait three days before they can hit bars and restaurants.)

But while even the most closed-off countries are opening back up to international travelers, Spring Breaking there won’t be the same as before the pandemic.. For example, the Himalayan kingdom of Bhutan welcomed visitors for the first time in two and a half years on Friday while introducing a $200 per person per night “sustainable development” fee to make sure only the big spenders stay for dinner.

Big picture: Tourism isn’t expected to snap back immediately to these regions, but your friend with the “Wanderlust” tattoo is likely already planning their next insta caption. After Hong Kong announced its rule relaxation last week, flights from the city to Osaka, Japan, surged 7,300% compared to the previous weekend.—MM

        

GOVERNMENT

The CIA is coming for Rogan

CIA podcast logo Illustration: Dianna “Mick” McDougall, Photos: The Langley Files: A CIA Podcast, Getty Images

After 75 years of secretive, controversial spy work, the CIA has finally discovered the perfect place to put highly classified material to ensure nobody will ever find it: Apple Podcasts.

The CIA launched its first official pod (apparently Smartless is unaffiliated—we’re shocked too), The Langley Files, in an attempt to demystify its decades of work and restore trust with a skeptical public. And, because it’s the CIA, the hosts go simply by the first names “Dee” and “Walter.”

Coinciding with the launch of its pod, the reclusive agency recently gave select journalists a rare look at its newly expanded museum in Virginia. Featuring models and displays highlighting famous operations like the Bay of Pigs and the raid on bin Laden’s compound, the museum is not—and has no plans to—open to the public. But spy codes found in the museum will be put online for interested parties to crack (opening an escape room seemed like too much work).

Big picture: These rare media efforts made by the CIA have led to accusations of whitewashing and distributing propaganda, since they (unsurprisingly) gloss over things like the agency’s torture program in favor of highlighting successes.—MK

        

GRAB BAG

Key performance indicators

Magnus Carlsen Arun Sankar/Getty Images

Quote: “I believe that Niemann has cheated more—and more recently—than he has publicly admitted.”

World chess champion Magnus Carlsen finally broke his silence on one of the biggest scandals in chess history. Over the past month, Carlsen has abruptly withdrawn from matches against American Grandmaster Hans Niemann, fueling speculation that he believed Niemann was cheating. Carlsen hadn’t officially commented on the fiasco until yesterday, when he explicitly accused Niemann of cheating.

Stat: Alternative meat companies have a lot more problems than their execs allegedly chomping on noses. The once-booming sector has gone into reverse, with sales of refrigerated meat alternatives declining 10.5% in the year leading up to September 4, per IRI data. Among the headwinds: market saturation, exorbitant prices, and the pushback against “woke” culture, according to Deloitte.

Watch: A guide to the terrible terminology of US health insurance. (Brian David Gilbert)

WHAT ELSE IS BREWING

  • Amazon is holding a second Prime Day sale October 11–12.
  • Three men were charged with securities fraud in a scheme that led to a South Jersey deli reaching a valuation of $100 million.
  • Apple will produce its new iPhone 14 in India, signaling a shift away from overwhelmingly manufacturing the product in China.
  • James Earl Jones, the voice of Darth Vader, gave permission for future Star Wars releases to use AI technology to recreate his voice.
  • RIP Pro Bowl: The NFL is canceling its unpopular all-star game and replacing it with a weeklong skills competition and a flag football game.

FROM THE CREW

A creator’s journey

Love turning free Costco samples into dinner? Then you’ll want to join Alex Lieberman for a preview session of his upcoming Strategy for Creators course. On September 28 at 3:30pm, hear how Alex went from Morning Brew co-founder to full-time creator. Register today.

BREW'S BETS

Travel tip: How to keep the seat next to you empty on a train.

The Follower project: One artist matched influencer Instagram photos with surveillance footage. More here.

Stop Googling your real estate investing questions. Head to BiggerPockets.com to find digestible market data, step-by-step guides, and endless resources for aspiring real estate investors. Check it out.

Meet the bots boss: First, Mitch Tolson developed robots for a $500m fast-food robotics startup. Now he’s created a robot arm that’s ready to take on a $114b market. There are 2 days left to invest—learn more.*

Dog food for thought: Feeding healthy meals to your pup should be easy + affordable. Sundays for Dogs air-dries human-grade ingredients so offering fresh food is as simple as serving dry. Try a sample meal for FREE!*

For a moment of zen: Managing your money can be stressful, but these Money Meditations from our partnership with Lincoln Financial should help you relax and make a financial plan. Take a listen here.*

*This is sponsored advertising content.

GAMES

The puzzle section

Brew Mini: Go for gold in today’s Mini. Play it here.

Tourism trivia

On World Tourism Day, we’re giving you an excerpt from a recent Google Review of a famous tourist destination. You have to name it.

  1. “Indescribable the setting and the architecture as well as the love story here.”
  2. “It was bustling, busy, full of people, and I must have heard no less than 10 different languages being spoken within a three block radius.”
  3. “Highly recommended taking the 4 day trek to see this. It was the hardest thing I’ve ever done but the most rewarding thing too.”
  4. “What a magnificent place to visit. Don’t go inside if you are afraid of closed places! Be careful to make a good deal with camel owners for 1 hour ride not just photos!”
  5. “Windy but beautiful! Be prepared to get a foggy day. Drive up along the side for great pictures. The trail is heavy with traffic.”

POV: Your boss is bad at firing people

POV: Your boss is bad at firing people

You thought it couldn’t get any worse...but then your boss said, “Hold my beer.” Are these the worst ways to get fired?

From Jurassic Park to reality: This biotech company is aiming to resurrect a woolly mammoth. Listen or watch here.

🛒 Tune in tomorrow for a discussion on the importance of simple checkout in the digital shopper experience. Sign up here.

ANSWER

1. The Taj Mahal. The love story referred to is that it was built by a Mughal emperor to memorialize his wife, who died during childbirth.

2. Times Square in NYC

3. Machu Picchu

4. The Great Pyramid of Giza

5. The Golden Gate Bridge

✤ A Note From Lincoln Financial

Lincoln Financial is the marketing name for Lincoln National Corporation and insurance company affiliates, including The Lincoln National Life Insurance Company, Fort Wayne, IN, and in New York, Lincoln Life & Annuity Company of New York, Syracuse, NY. Copyright 2022 

LCN-4936139-090622 C

         

Written by Neal Freyman, Matty Merritt, and Max Knoblauch

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