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--:-- Host: Georgia Howe: This episode is brought to you by LifeLock. Between two-factor authentication, strong passwords, and a VPN, you try to be in control of how your info is protected. But many other places also have it, and they might not be as careful. That's why LifeLock monitors hundreds of millions of data points a second for threats. If your identity is stolen, they'll fix it. Guaranteed or your money back. Save up to 40% your first year. Visit LifeLock.com slash podcast for 40% off. Terms apply.
--:-- Host: Georgia Howe: Despite inflation easing slightly, many U.S. households are drowning in debt. The average interest rate is 20.4 percent, and that's a jump of two full percentage points from last quarter. What's driving American debt to record highs and what does it mean for the future? I'm Georgia Howe with Daily Wire editor-in-chief John Bickley.
--:-- Host: Georgia Howe: It's Tuesday, January 17th, and this is Morning Wire. Our cities are being undermined. And we don't deserve this. Migrants don't deserve this. And the people who live in the cities don't deserve this. New York City Mayor Eric Adams took a trip to El Paso to survey the conditions at the southern border. Why is the New York mayor now calling for more border security? And one red state governor is reshaping one of the state's more left-leaning universities, and progressive critics are calling it a threat to academic freedom.
--:-- Host: Georgia Howe: This is a public institution, and it is not reflecting, I think, the best interests of the state. Thanks for waking up with Morning Wire. Stay tuned. We have the news you need to know.
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--:-- Host: Georgia Howe: While the rate of inflation may have eased somewhat last month, Americans still have little reason for economic optimism. them as household debt reached an all-time high and personal savings rates approached record lows. Here with more on why Americans are falling into so much debt and what it means for the future is Daily Wire senior editor Cabot Phillips.
--:-- Cabot Phillips: So Cabot, record debt here. What can you tell us?
--:-- Cabot Phillips: Well, over the last few weeks, we've seen some positive headlines on the economy. Inflation came down last month. The jobs report showed steady growth and markets are up about 4% to start the year. But buried in those headlines are some concerning trends that paint a much more ominous picture of where we're heading in 2023. A new report from NerdWallet found the average household owing more than $165,000 in debt. In total, Americans now owe $16.5 trillion. That's a 7.5% increase from the same study last year. And to make matters worse, that same study found 45% of workers say that their pay has not gone up enough over the last year to compensate for the rising cost of living, meaning even more debt could be on the horizon.
--:-- Cabot Phillips: Yeah. What's behind that surge in household debt? There are a number of causes. The biggest one won't be a surprise, inflation. Wages simply have not kept up with the cost of living. Since the start of 2020, the median income has grown 7%, but overall costs have gone up 16%, with groceries leading the way up 20% in that time span. One recent survey found that 49% of Americans now rely on credit cards for essential living expenses.
--:-- Cabot Phillips: Really Now more specifically what type of debt were people falling into last year? Well unsurprisingly the largest debt spike in 2022 came from credit cards. The average U household now has in revolving credit card debt. That's a 28% increase compared to the year before. That's especially concerning when you take into account the fact that interest rates have skyrocketed. They're currently at an all-time high, around 19%. That means the average household carrying credit card debt is expected to pay around $1,380 this year in interest alone. There was also a spike in auto loan debt with the average household now owing $28,975 on that front. We saw similar increases in mortgage debt, though that's a bit different than credit card or auto debt. The only area where total debt per household improved was in the area of student loans. There was actually a 0.64% decrease last year, in large part because there was a pause on student loan repayments. But the average borrower now owes $58,238.
--:-- Cabot Phillips: So shifting gears, there was also a concerning new report on household savings. What's the latest on that front?
--:-- Cabot Phillips: Yeah, according to the U.S. Bureau of Economic Analysis, Americans' personal savings rate, that's the amount of money left over after spending on bills, food, and other expenses, fell to 2.3% last year. That means the average household is saving just $2.30 for every $100 they earn after paying taxes. For context, the year before, that rate was above 7%. That number is also about four times lower than the rate we've seen on average over the last 50 years, and the lowest since 2005. Now, there are some economists who have pushed back on the idea that this is a big problem. They say Americans still have relatively high amounts of cash on hand compared to years past, in large part due to stimulus payments during COVID. But others say this is a clear sign that cost of living increases are eating into monthly budgets and clearly reducing the amount that people can stow away each month.
--:-- Host: Georgia Howe: Well, a lot of numbers here to be concerned about. Cabot, thanks for reporting.
--:-- Host: Georgia Howe: Anytime. That's Daily Wire Senior Editor, Cabot Phillips.
--:-- Host: Georgia Howe: Coming up, New York's mayor travels down to the border to see the crisis firsthand. If you own a small to medium-sized business that kept its employees on payroll through COVID, you may have a big cash refund waiting for you. The employee retention credit is a tax credit of up to $26,000 per employee. Cut through the red tape and qualify for this government program with help from the experts at refundspro.com. Take their free five-minute questionnaire at refundspro.com. That's refunds with an S, pro.com.
--:-- Host: Georgia Howe: New York City Mayor Eric Adams journeyed to the southern border this weekend to survey the conditions that have led to his city being overwhelmed by migrants. Over 40,000 have made the trek to New York over the past year. At first on buses contracted by frustrated border state governors, but now on their own. The city's services are now at a breaking point, and the mayor says he's asking for federal assistance. Here to discuss is columnist David Marcus.
--:-- David Marcus: Good morning. So unlike President Biden, who visited recently without seeing any actual migrants, Adams did visit facilities where they're held and spoke with many. Now, what he heard may not have made him very happy, though, as many expressed the desire to come to Gotham. Having heard about the generous accommodations being made for them there, at least one asked Adams to take him back to New York with him. But at a press conference, his honor made clear that the city is full. So he's kind of stuck between a rock and a hard place of his own making here.
--:-- David Marcus: Now, you hinted at it, but what's drawing all these migrants to New York? And also, what kind of issues is the city having as a result?
--:-- David Marcus: So according to New York law, the city has to provide shelter for all of these people. And with the official system already at capacity the city been renting hotel rooms and propping up new facilities I mean just last week we saw reports of squalor drug use wasted food sex in the hallways of these hotels I mean things are getting less and less sustainable But the migrants, as Adams found out, are well aware that they're entitled to a whole host of benefits in the city. That's why he's begging the federal government now to turn down the spigot and help him pay for the migrants in New York.
--:-- David Marcus: And what exactly is Adams calling on the Biden administration and the federal government to do here? Is he in favor of tighter border security? That's unclear. Like most Democrats, he talks about sweeping immigration reform. But look, that's not coming around the corner anytime soon. He's also talked about a, quote, short term fix, end quote, to make sure this cost isn't falling on cities like New York. But I mean, that probably means more federal dollars rather than stricter border enforcement. This is a poke at Joe Biden, but not a slap in his face. As usual, just like with the crime issue, Adams is trying to paint himself as a pragmatic centrist, but his quiver of actual solutions appears to be pretty barren.
--:-- David Marcus: Now, Adams' visit came just a week after President Biden's visit, which was widely criticized as pretty sanitized. Do you think the timing of this trip was intentional?
--:-- David Marcus: Oh, yeah, 100 percent. I mean, especially during a week when Biden's enveloped in a growing scandal over mishandling classified documents. I mean, it would be weird if other Democrat hopefuls didn't smell some blood in the water. That having been said, the presidency is a bit of a pipe dream for New York mayors. The last three have runs of Giuliani, Bloomberg, laughably even de Blasio. It really hasn't gone well. But broadly speaking, yes, the more the prominent Democrats criticize Biden's handling of the border, the weaker he becomes.
--:-- David Marcus: Now, could this pressure from Adams and some others actually lead to any changes at the border? And if so, what measures do you think Biden could take? I mean, I think it already has to some extent. You know, Biden checked the box with his visit, but he's also announced changes to the parole program and, you know, who's being allowed in that are meant to relieve at least some of the pressure. But it's really small stuff around the edges. Nothing that Biden has proposed or done is going to really stem the flow of migrants into New York, especially if Adams can't change policies in his own town. For now, this is a problem that he and all New Yorkers are just kind of stuck with.
--:-- Host: Georgia Howe: Well, David, thanks so much for joining us.
--:-- Host: Georgia Howe: Thanks for having me.
--:-- Host: Georgia Howe: That was Daily Wire contributor David Marcus.
--:-- Host: Georgia Howe: Florida Governor Ron DeSantis has appointed six conservatives to serve on the board of one of the state's most progressive universities. Critics claim the move represents a wider threat to academic freedom. Here now to tell us about the changes the new board hopes to enact at New College in Florida is Daily Wire culture reporter Megan Basham.
--:-- Megan Basham: So Megan, based on some heated media coverage this story is receiving, I'm thinking of one highly critical New York Times column in particular. It seems like a lot of people see this as just another shot fired in the political fight over higher education.
--:-- Megan Basham: Yeah, you know, I think that's a pretty accurate observation, especially because New College is actually a pretty small liberal arts honors college in Sarasota. It only has 700 students and about 90 full-time faculty members. But as John mentioned, it is known for being very left politically, both in the outlook of its faculty and in the makeup of its student body. In fact, one alum described the campus culture as a queer space where changing your pronouns, name or presentation is a non-event.
--:-- Megan Basham: So the governor told me that New College has routinely failed to meet recruitment goals. And he pointed out that Forbes magazine rated it the worst return on investment of any of the schools in the state's public university system. And so for that reason he said some of the legislators have proposed defunding it in the past Instead last Friday DeSantis announced that he was appointing six new trustees in the hopes that they will help the school reverse course And all six of those appointees are well known in conservative intellectual circles.
--:-- Megan Basham: Now, Rufo's appointment in particular has been sparking a lot of ire, as he's known as something of a firebrand in opposing critical race theory and what's been called gender inclusion efforts. And so the conservatives will now hold a majority on that school's board. And what kind of reforms are they looking into making?
--:-- Megan Basham: Well, DeSantis said he wants to see the school embrace a classical liberal arts tradition rather than the more modern trends that tend to center on social justice and gender theory. So you have modern academia is really this DEI CRT construct. This is more popular fads that kind of come and go. But these are not ideas that are really standing the test of time. It's elevating identity above actual academic rigor. And I think a classical education, which is the direction that I think it could be very successful, is really about the pursuit of truth. It's much more about enduring ideas and principles.
--:-- Megan Basham: Rufo said on Twitter that he and the other new trustees anticipate that their reforms will be met with conflict. Those are his words. And it looks like that's already shaping up. Already, some students have formed a group that they say will challenge DeSantis' plans. And the union organization, United Faculty of Florida, has signaled that they plan to support those efforts. And that group represents around 25,000 faculty members, and it has chapters at all of the state's public universities. So it does bring some muscle with it.
--:-- Megan Basham: And what is their main concern? Well, a lot of the critical op-eds and essays are citing concerns about intellectual indoctrination. and loss of academic freedom. So Georgia, you brought up that New York Times essay. Well, it claimed that the new trustees are on a broader quest to crush any hint of progressivism in public education. Well, I asked DeSantis about that claim, and here's what he said.
--:-- Host: Georgia Howe: Well, that's the thing that really gets me is to criticize the governor for making appointments according to the Florida Constitution that reflect the philosophy, not just that I have, but that I just ran on in an election in which I won by over 1.5 million votes for the largest popular vote margin in the history of the state, specifically running, saying that we were going to get rid of this woke industrial complex, that yes, as an individual, you are free to indulge in woke ideology, but you are not free and you're not entitled to conscript the taxpayer to fund this type of worldview.
--:-- Host: Georgia Howe: So I'm sure we're going to be hearing a lot more about this school as Rufo is promising that changes are going to come swiftly.
--:-- Host: Georgia Howe: Well, I'm reminded of the debacle at Evergreen State College in Washington. Some people might remember that. Hopefully new college can find a way to be successful.
--:-- Host: Georgia Howe: Megan, thanks for reporting.
--:-- Host: Georgia Howe: Anytime. That was Daily Wire culture reporter, Megan Basham.
--:-- Host: Georgia Howe: Another story we're tracking this week, A new report indicates that December migrant encounters at the U.S. southern border will exceed 250,000 for the first time in history. That's now nine months straight of border encounters being more than 200,000. That's all the time we've got this morning. Thanks for waking up with us. We'll be back later this afternoon with more news you need to know.
