Trump’s Big Bet on Immigration Isn’t Paying Off for Most Workers

The episode covers the latest in business news, including Tesla's quarterly profit increase of 17%, with sales reaching $22.4 billion, as the company shifts focus towards autonomous vehicles and humanoid robots. Boeing is experiencing improved production rates for its 737 Max jets, reducing losses and addressing past quality concerns, with CEO Kelly Ortberg optimistic about future production increases. The U.S. government is nearing a deal to potentially save Spirit Airlines with a loan of up to $500 million, in exchange for warrants, marking a rare government intervention in a single airline. Additionally, Best Buy's CEO is stepping down, and new leadership is expected to attempt revitalization of the retailer amidst stagnant sales. The stock market responded positively to President Trump's extension of the Iran ceasefire, with NASDAQ rising 1.6%, while oil prices crossed $100 a barrel. A new Memory ETF launched with rapid success, driven by demand in AI and tech sectors, especially among overseas investors, highlighting the booming memory chip industry led by major Korean and U.S. firms.

Google has developed a new AI chip designed specifically for inference, the process of answering user queries, making AI more efficient as AI agents become more autonomous. This development intensifies Google's rivalry with Nvidia in AI hardware, as Google considers options for externalizing access to its chips. The focus on inference highlights the shift towards AI applications capable of large-scale, independent decision-making. Katherine Blunt from WSJ discusses the significance of this innovation and its implications for AI infrastructure.

Iran has attacked three ships in the Strait of Hormuz and escorted two into Iranian waters, raising regional tensions. President Trump is giving Iran a few days to propose a peace plan, hinting that the current ceasefire extension might be temporary. Diplomatic efforts are ongoing to facilitate a potential meeting between Iran and the U.S., signaling efforts to de-escalate conflicts. Meanwhile, the EU has agreed to loan Ukraine over $100 billion to support its ongoing conflict with Russia after Hungary dropped its veto, resolving a significant diplomatic standoff.

The episode investigates the effects of President Trump's immigration crackdown after a year in implementation. Contrary to political claims that reduced immigration would boost wages and job prospects for American-born workers, data analysis shows little evidence of such benefits or disruptions. Wage growth for U.S. workers has not increased significantly, and sectors reliant on lower-skilled immigrant labor, like food services and meatpacking, show only modest wage increases. The White House highlights some sector-specific wage growth and maintains that overall labor force participation remains strong, challenging the narrative that immigration policies impact American workers negatively.