(KRON) — On today’s installment of Winners & Losers, financial expert Rob Black talks about the S&P’s rebound, President Joe Biden’s calls for Congress to suspend federal gas taxes and how Beyoncé’s new single reflects the great exodus of workers from their jobs in 2021 and 2022.
Winner: S&P 500 rebounds into the green
The S&P 500 rose, continuing gains from the previous session as stocks attempted a comeback from the lows of the bear market.
This was encouraging price action, as the market was quick to recoup opening losses.
Those moves come as markets shake off growing fears of an economic recession.
Fed Chairman Jerome Powell told Congress this morning that the central bank had the “resolve” it takes to bring inflation down, further fanning concerns that aggressive monetary tightening would tip the U.S. economy into a recession.
Oil slumps over 6% as Biden is set to cut fuel costs for drivers.
The demand for adjustable-rate mortgages surges as interest rates make biggest jump in 13 years.
100 million adults have health-care debt — and 12% of them owe $10,000 or more.
Loser: Biden to call for 3-month suspension of gas and diesel taxes
President Joe Biden will call on Congress to suspend federal gasoline and diesel taxes for three months — a move meant to ease financial pressures at the pump.
There is a 18.4 cents-a-gallon federal tax on gas. There is a 24.4 cents-a-gallon federal tax on diesel fuel.
Biden will also call on states to suspend their own gas taxes or provide similar relief.
If the gas savings were fully passed along to consumers, people would save roughly 3.6% at the pump when prices are averaging about $5 a gallon nationwide.
In 2008, Barack Obama called the idea a “gimmick” that allowed politicians to “say that they did something.” Obama also cautioned that the tax break could be offset by oil companies increasing their prices.
The president can do remarkably little to fix prices that are set by global markets, profit-driven companies, consumer demand and Russia’s invasion of Ukraine. The underlying problem is a shortage of oil and a lack of pipelines and refineries, challenges a tax holiday cannot necessarily fix.
The majority of inflation comes from higher commodity prices due to Russia’s invasion and continued disruptions from the coronavirus.
Winner: Beyoncé’s ‘Break My Soul’ is about the Great Resignation
The Great Resignation is part of the zeitgeist.
Beyoncé’s new #1 single, “Break My Soul,” taps into the worker malaise that has helped lead to a 47 million record number of Americans quitting their jobs in 2021. The pace has continued into 2022.
Beyoncé’s ode to leaving your job is the latest cultural reference to the Great Resignation labor trend that began in spring 2021, around the time the economy was reopening more broadly after its pandemic-era lull.
Since then, Americans have used TikTok to quit their jobs publicly, in so-called “Quit-Toks.”
In the song’s first verse, Queen Bey riffs on employee burnout over a driving house beat:
“And I just quit my job / I’m gonna find new drive / Damn they work me so damn hard / Work by nine / Then off past five / And they work my nerves / That’s why I cannot sleep at night.”
Widespread burnout among workers is one of four pandemic-related factors driving elevated levels of quitting.
More time at home gave workers an opportunity to reevaluate their priorities and values, and employees are reluctant to give up remote work.
One tweet from Fiverr: “Beyonce wants us to quit our jobs and make a living on our own terms. You heard the woman.”