Solar Eclipse Economy is Booming & CA Fast-Food Minimum Wages Rise

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0:27Good Morning Brew Daily Show. I'm Neil Freiman. And I'm Toby Howell. Today, California is bumping the minimum wage for fast food workers up to$20 an hour and businesses are none too pleased. And the solar eclipse is just one week away. Have you made your travel plans yet? It's Monday, April 1st. Let's ride.

0:52Well, that was our version of an April Fool's prank. If you're listening to the show for the first time, the joke is that I am Neil Fryman and he is Toby Howell. Toby has been wanting to say, good morning, Brew Daily Show, forever. So I'm glad April Fool's gave him the opportunity. I really have. And also I have to compliment your let's ride. You brought a different flair to it, but I still appreciate it. In other non-related April Fool's news, I would like to remind everyone that we are still running our greatest invention of all time bracket over on Morning Brew's social accounts. To coincide with March Madness, we seeded 64 inventions and pitted them against each other to crown the Geote, the greatest invention of all time.

1:34We've reached the Sweet 16 And Neil, take us through some matchups to watch. All right. Well, there are no Cinderella stories like NC State. The bracket is dominated by the heavy hitters. Really intrigued by the matchups in the North region. We have wheel versus beer, and these two do not mix well together. So I'm expecting a very chippy game. And then democracy versus air conditioning to see what people value more, their freedom or not sweating. Over in the South, I've got my eye on fire versus refrigerator. Fire going up against ice. It does not get any more elemental than that. That's been dubbed the Game of Thrones game.

2:08And then finally in the West, this is a true pick-em according to Vegas. Indoor plumbing versus agriculture. You just can't imagine life without either of them. That was a heck of a breakdown, Neil. It's so chalked this year, but hey, you never know what happens next year. Head to at Morning Brew on Twitter or Instagram to vote in the next round. We'll be running the polls all day on both platforms to see who makes it to the Elite Eight. Now let's hear a word from our friends over at Robinhood. Oh yeah, you heard that right. New sponsor alert, Robinhood is the app for investing in stocks, ETFs, options for qualified traders, and much more.

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3:14Robinhood Financial LLC, member SIPC.

3:20When did making plans get this complicated? It's time to streamline with WhatsApp, the secure messaging app that brings the whole group together. Use polls to settle dinner plans. Send event invites and pin messages so no one forgets mom's 60th. And never miss a meme or milestone. All protected with end-to-end encryption. It's time for WhatsApp. Message privately with everyone. Learn more at whatsapp.com. Fast food workers in California are getting a raise. A law passed last year is scheduled to kick in today, bringing most fast food workers' wages to at least$20 an hour. As long as you work for a restaurant with limited or no table surface that is part of a national chain with at least 60 establishments nationwide, then congrats on the extra cash.

4:07If you work for a restaurant operating inside a grocery store or a restaurant selling bread as a standalone item, then unfortunately your establishment is exempt from the new law. Business owners and franchisees have already begun to sound the alarm as to what it might mean for their restaurants. Jack in the Box, Starbucks, McDonald's, and Chipotle have all warned that price hikes are incoming for Cali customers, while other chains have said that the amount of hours employees work will also likely fall. On the other side of the coin, though, California has doubled its minimum wages for most workers over the last decade.

4:40And according to a labor economics professor at Berkeley, employment did not fall despite wages going up. Neil, minimum wage laws are always an interesting case study in economic cause and effect. What stands out to you about this new Cali law? What stands out to me is just how big this raises. I mean, it's going from$16 an hour to$20 an hour. That's a 25 % bump. Usually when local jurisdictions increase the minimum wage, it's anywhere from 12 % to 15%. and the fact that they're going 25 % to$20 an hour, which is the second highest minimum wage of anywhere in the United States in a state that already is a very high cost of living and high costs in general.

5:19It's a huge bump, and I think it's gonna have really massive effects across, you know, people are gonna get paid more. It's a huge pay bump for, it's a huge raise for a lot of workers, and it's also gonna saddle businesses with a ton of extra costs that they're not gonna be able to absorb. Yeah, there is a lot of differing opinions on what this actually does whenever you increase minimum wage. A good case study is to look at Seattle. More than a decade ago, they passed a law that would gradually increase their minimum wage to$15 an hour and now actually higher. It was that famous fight for 15 campaign that eventually got the results they were looking for.

5:52As for what actually happened, it's a little nuanced. Some businesses did okay while some did not. One 2017 University of Washington study found that while wages went up, hours worked decline, resulting in less play for low-wage workers. But then a follow-up published a few years later by the same authors found that this wasn't the case for everyone. Experienced workers in low-wage jobs saw their earnings rise. So again, it's not just a black and white thing. There are different nuanced cases depending on the industry, the seniority of the worker, and kind of the part of the country you're in as well.

6:25Really, it's very, very complex. But one thing that we do think is going to happen, or at least restaurants have warned about is that they're going to cut jobs because they just can't afford to pay workers$20 an hour. This is already happening. Pizza Hut franchisee cut more than 1 ,200 delivery drivers, citing the new minimum wage law. McDonald's franchisees are saying in the state that they're going to be having to add$250 ,000 annually per restaurant to their labor costs, and that's going to lead to higher prices for consumers. And fast food prices have been at the forefront of the inflation debate.

7:01I mean, talk about the Big Mac meal that got to$18 somewhere in Connecticut. You know, so this is just very much a flashpoint in the country right now. I think one thing you're definitely going to see is more automation. I mean, Burger King, McDonald's, they've already rolled out all of these kiosks. I think you're going to only see more of these rolled out as you try to order. You're not going to order from a person. You're going to go to a big board and a big screen. Chipotle, we made fun of the autocado, which is this guacamole making robot, but it's not something to make fun of anymore because you can see that restaurants will probably accelerate their automation.

7:33So they don't have to pay workers anymore. I do just want to provide a quick follow-up because we did speak about the bread exemption on this show prior to this, that random feeling exemption that restaurants producing and selling bread as a standalone menu item are exempt. A lot of people thought that that was a carve out specifically for Panera bread, but it actually turns out that Panera bread isn't even exempt because they do not make their bread on premises. and also the big franchisee who was also a big donor to Gavin Newsom's campaign. He has come out and said that he's going to pay his workers$20 an hour in line with this new law as well.

8:08So that's just one follow up to that bread cut out that caused a lot of stir when it first hit the news. All right, moving on. The total solar eclipse is just one week away and the hype is building for an event that will be bigger than the Ares Tour, Super Bowl and New Year's at Times Square combined. And by hype, I mean cities are scrambling to prepare for what will be one of the largest ever mass travel events in the country's history. So where are people going? To the path of totality, the sliver of North America that will be able to see the eclipse in its full glory. The moon completely obscuring the sun for about four minutes next Monday afternoon, turning day into night.

8:47The path of totality will slice through 15 U.S. states and hit major cities like Austin, Dallas, Indianapolis, Cleveland, Buffalo, Rochester, and Montreal. About 32 million people already live within the path of totality, but millions more are expected to travel to inside the path for a once-in-a-lifetime experience. These areas are bracing for megacrowds. Over the weekend, Canada's Niagara region preemptively declared a state of emergency to help handle the eclipse hordes. Niagara Falls is expecting 1 million visitors next Monday, and it typically gets 14 million tourists all year. If we want to get a little philosophical about it all, as a whole, we kind of emerged from the pandemic ready to spend money, especially on these memorable experiences.

9:32Spending on international travel, live entertainment, those jumped 30 % last year, five times the rate of overall spending growth. And what is more memorable than this once in a lifetime, not quite once in a lifetime. It is. The next one's not till 2044. All right. Once in a lifetime. Well, again, hopefully we're still around for 2044. Everyone is as young as us. That is so true. What's more memorable than that? Yeah, the next one is two decades away. So I do think that this is something that, of course, people are going to come out for. And, of course, we're seeing one of the largest mass travel events ever.

10:06You and I are both very excited for it as well. Oh, I think everyone is. I mean, just look at these numbers. Indiana, which is part of it, is in the path of totality. Indianapolis, it's expecting 500 ,000 visitors, which is seven times the attendance of the Super Bowl that Indianapolis held in 2012. Arkansas says it's going to see the single biggest tourism event they've ever had. And it's a very interesting juxtaposition because there are these big cities that are holding events in baseball stadiums and huge convention centers. And, you know, Indianapolis has held huge events like the Indy 500 for many, many years.

10:41And then you have these really small towns also in the path of totality, ranging from Texas to Maine, that are going to see their populations triple. So they are like, we need to prepare the logistics. This is going to be absolutely insane. We don't have enough porter potties around to get to service all the people who are coming into town. So it is going to be a logistical nightmare for a lot of them. And it will probably give them a ton of money as well. But it's just kind of this, you know, positive and negative effect. Right. That's been the two big infrastructure issues. are one, cell service, because there's just going to be a lot of demand on cell towers.

11:13But then two, porta-potties. It's like you can't, porta-potties are sold out across the country right now. I do love all the small town stories that we're hearing. There's a ski mountain in Vermont that a Pink Floyd cover band is going to play Dark Side of the Moon right when the eclipse begins. But then there's also a 50-person wedding happening on the mountains peak at the same time. That's a good idea. When did they book that wedding? That's got to be the most expensive wedding in Vermont history. Yeah, I would say that people are shelling out for these once in a lifetime experiences. People have, I mean, we didn't see the last one.

11:43It was seven years ago, but - We did see it. Well, personally, I did not lay eyes upon it, but a lot of people have said it is a life-changing experience. Like being in the path of totality, you can't quite wrap your mind around what's happening. So I'm sure that you'll hear us discussing this again, because as we lead up into the big day, the hype is only gonna grow. And speaking of laying eyes on it, don't actually lay eyes on it. You need special eclipse glasses or your retinas will burn. Let's move on. For this next story, let's head down to the coastal waters of Guyana. It's a small nation, just 800 ,000 people, but it's been the fastest growing economy the past two years, thanks to an insanely rich oil field recently found just off its coast.

12:25This was the discovery of a lifetime. Estimates think that there could be $150 billion of oil and gas extracted off its coast in the next decade, but it's created a perfect storm of contrasting forces within the country. which have led to some existential questions. Guyana isn't going to produce anywhere close to the amount of carbon emissions bigger and wealthier countries around the world do. So should they forgo the material gains, this oil will provide in the name of protecting against climate change. There was this big New York Times article that dove into these difficult questions facing the country now.

12:59Neil, what do you make of Guyana's new reality and the sudden pressures it is dealing with? Yeah, well, this really came to the forefront this weekend when a clip of a BBC journalist interviewing the president went mega viral. I'm talking 50 ,000 retweets. And so the BBC journalist asked the president of Guyana about climate change and what their oil discovery means for that. And he just interrupts the journalist and goes, I'm going to stop you right there. And then goes on a three minute lecture slash rant talking about how Guyana has one of the most abundant rainforests in the world. They are actually a carbon sink, which means that they produce less carbon than they take in because of all of their trees.

13:40They have the lowest rate of deforestation rate in the world. And I think the reason that touched a nerve is because Guyana is a very small country. It's not very wealthy. And they just have this basically ticket to economic freedom with these massive oil fields. And they feel like the Western world, who has reaped the benefits of fossil fuels for centuries now, is lecturing them on how to go about climate change, which is one of the biggest breaks they've ever gotten this oil field. And it is completely transforming their economy. It grew 67 percent in 2022. So you really see the tensions playing out between a small country that finally got its ticket to economic freedom and the West that they feel like is lecturing them on climate change that they brought about.

14:21Yeah, there's a paradox kind of everywhere you look in Guyana because ecotourism used to be its biggest industry. It sold these carbon credits worth$250 million back in 2009. That was heralded as a very good step for the country. Then six years later, ExxonMobil discovered oil near its coast, and it's just been off to the races so far. And this is definitely expected to be a moneymaker. I mean, I said$150 billion of potential revenue stored in this oil field. The find is projected to become ExxonMobil's biggest revenue source by the decade's end. So a lot of people are going to get rich off of this.

14:56And so you're right. Guyana's president came out and said, why not us? We deserve the same amount of opportunity that the Western world did to kind of monetize on the backs of fossil fuels, especially because we have this really bountiful and plentiful rainforest. Up next, the new Godzilla and King Kong movie has people coming out to theaters in droves. Plus, you'll never guess what the hottest car brand in the U.S. is right now.

15:47credit for the next one. Get started today at linkedin.com slash campaign. Terms and conditions apply. I'm Christian McCaffrey, pro running back, and Abercrombie is an official fashion partner of the NFL. I'm not kidding when I say NFL by Abercrombie broke the internet last year, and I think this season's lineup is even cooler. And so does my wife, who keeps stealing all my hoodies. Stay fit for the season and Abercrombie's newest arrivals. Shop NFL by Abercrombie in the app, online, and in store.

16:23Welcome back to winners of the weekend, the segment where Toby and I share two things that cut down the nets. Toby, you won the pre-show underwater basket weaving contest. So you get to go first. My winner of the weekend is the monster verse. It's kind of like the Marvel cinematic universe, but there's a lot more claws and paws involved. Godzilla and King Kong are the monster verse version of Captain American and Iron Man, and the two teamed up to bring in$80 million at the domestic box office this weekend, well ahead of the$45 to$55 million that Godzilla X Kong, the new empire, was supposed to bring in.

16:58The MonsterVerse is something that Warner Bros. and Legendary Pictures have been trying to cook up for over five movies now, gave Godzilla and Kong their own standalone movies, but then decided it was best to put them in the same timeline and have them alternate between fighting each other and teaming up as they do in the latest film. In terms of the cinematic universes, MonsterVerse has done pretty well, bringing in over$2 billion at the box office so far. The MonsterVerse is cooking, Neil. Yeah, I know you're a big MonsterVerse fan. Honestly, it just goes over my head. But I do find a pattern with the two biggest movies of the year, which is Dune Part II and this MonsterVerse, Godzilla vs.

17:35Kong, or Godzilla and Kong. And it's a huge cinematic experience. You have to experience it on the big screen. There's a lot of loud noises, a lot of CGI. There's a lot of just spectacle involved. Same with Oppenheimer last year, which grossed over a billion dollars. So maybe you're seeing a pattern where people are shelling out in IMAX in these large premium screen formats for these larger than life cinema spectacles. So I guess this is not the end of the Monsterverse at all if they make a lot of money on this one. Yeah, it is not at all. The first Godzilla movie from Legendary Pictures came out 10 years ago, brought in$93 million.

18:09dollars so for a fifth quill as what i was speaking it seeing it be being called it's pretty remarkable that it still has the legs to kind of stand on i do think it just goes to show how valuable this ip is i also think people just like seeing how different monsters stack up against each other it does have that same marvel cinematic universe where everyone to see how strong is spider-man can compare to captain america people want to know what would happen if king kong fought Godzilla. So, and I think it just kind of transcends cultures as well, because people know Godzilla, people know King Kong and who wouldn't want to see them punch each other.

18:44Yeah. It's huge in, in international markets as well, especially in China. Like if they had to add another monster in, who would it be? Well, there's two monsters in this film. I don't want to spoil it for anyone, but there's like, again, they're teaming up in this one. So there's the scar King and I don't know. You got to go deep into the monster verse Lord to really get a, get a hold on it. But I'm excited to see this this most recent all right time for my winners which are kia hyundai and genesis three south korean car brands that are just lapping the competition right now the parent company of all three hyundai motor group has climbed up the leaderboard to become the fourth largest automaker in the u.s behind gm toyota and ford and globally it's number three behind toyota and volkswagen the key to its success an expansive lineup of options from suvs to smaller cars and very affordable leasing options.

19:32And they're just relentless with adding new models at a time when rivals are hesitating and reevaluating their strategies. Last week at the New York International Auto Show, the trio introduced a new version of the Hyundai Tucson SUV, a new Kia compact sedan, and a luxury high-performance line from Genesis called Magma. That seems like it could go in the monsterverse. This group is also not phased by the slowdown in electric vehicle market because it's going all in on EVs. There's just no debate. Hyundai and Kia are now Tesla's top rivals in the US. Yeah, Hyundai has always kind of done some risky, risk-taking stuff during the Great Recession in 2009.

20:09They said anyone who bought a Hyundai and later lost a job could return it without affecting their credits. They ran that back during COVID as well. And the idea is to kind of say like, hey, we got your back as consumers. We know what you're going through. So that has always been kind of in their DNA to take some of these risks. It also hasn't all been smooth sailing though, because remember when all the Kias and Hyundais were being stolen in this kind of TikTok infused craze that was happening. Again, in response, they started giving away free steering wheel rocks, offered software and hardware upgrades.

20:40But it does look like there's a judge is expected to finalize$145 million class action settlement against them. So it is kind of this give and take here where, yes, it's making a lot of good strides and its share of the EV market's doing really well. but also it's run into some hurdles. It doesn't feel like that has really affected their bottom line, but they're really taking a bite out of Tesla. Tesla had 65 % market share of the EV in United States in 2022 and 2023. That declined by 10 percentage points to 55 % while Hyundai motor group went up to 7.5%. So they're just like firing on all cylinders right now.

21:17I like that car metaphor there. It's April fools today, which marks 20 years since Google came out with Gmail and also 20 years since my friend Keith got me with a whoopee cushion in social studies class. And as much as I'd like to go over that little incident with Keith, I guess we should talk about the Gmail story. Google co-founders Larry Page and Sergey Brin were big April fools guys. One year they posted a job application for a position on the moon. Another year they said they were planning to roll out a scratch and sniff version of its search engine. So when they announced a free email service boasting a shocking one gigabyte of storage per account.

21:53People thought it was just another prank. At the time, Yahoo and Microsoft were the market leaders and only offered space to store 30 to 60 emails. Gmail had enough storage for 13 ,500. It was a game changer, and two decades later, Gmail is still a behemoth, albeit with a little more storage than one gig. Neil, a pretty fun marketing move to drop a product so good that people assumed it had to have been fake. I mean, it was the talk of the town in the tech world. They only initially had 10 ,000 invites for Gmail. So people were selling invites on eBay that were going for$250 a pop. This is part of the Gmail lore I had no idea about.

22:32Another interesting and revolutionary aspect of Gmail was not only this, you know, reams of free storage, but its search function. And we take it for granted now that you can just search your email for anything that happened in millions of years or several years ago. But that was revolutionary at the time. So Gmail really was a pioneer in email. And a lot of things we take for granted in email came out of this April Fool's announcement 20 years ago. Yeah. Another thing that came out of Gmail is that automatically threading messages together about the same topic. So everything flowed together as it was a single conversation.

23:05What were we doing before that was happening? Was it all just disparate stuff? But that threading function that you come to know and maybe not love so much today is something that came from that Gmail announcement. It also kind of ushered in this era of digital hoarding, too. Because, again, at the time, one gig was so much storage, it felt like that you never had to delete anything. And now if you fast forward today, Gmail allows 15 gigabytes of storage. We still hoard a lot of our online selves, though. And there's been these robust businesses built by Google and Apple about offering paid plans for increased storage.