The dark Big Agriculture

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Hello and happy Sunday! Today we’re diving into the latest economic trends, surprising industry developments, and the influence of powerful industries. Here’s what’s on tap:

• Resilient retail: U.S. consumer spending remains strong, easing recession fears.

• Global debt crisis: A closer look at the staggering rise in global debt.

• Stock market boom: More Americans are investing, with equity holdings at a 20-year high.

• Cava’s success story: The Mediterranean chain is defying economic odds with soaring sales.

• Farming’s dark side: The powerful influence of the agricultural lobby on policy and the environment.

Still Worried About A Recession?

U.S. retail sales in July were stronger than expected, putting to rest worries that consumer demand was slowing down. Sales hit $709.7 billion, up 1.0% from June, which beat economists’ predictions of a 0.3% increase. 🛍️ 🛍️ Despite some companies hinting at weaker demand earlier this month, it’s clear that people are still spending, even with inflation and economic uncertainty in the mix.

What’s interesting is that, with prices only rising 0.2% in July, people actually spent more in real terms than in June. Over the past three years, most of the growth in sales has come from higher prices, with real spending barely budging. But it’s impressive that consumer spending has held steady despite the rising costs.

A Global Issue

This graphic shows global debt as of Q1 2024, and the numbers are staggering. Global debt hit a new record, climbing to 333% of GDP. 🌐🚨 Most of this debt comes from advanced economies, with the U.S. and Japan leading the pack. On the emerging markets side, China, India, and Mexico were the biggest contributors. Over the last decade, global debt has ballooned by more than $100 trillion. 🤯

Incredible News

This graphic shows how much U.S. households and non-profits are putting into stocks as of January 1, 2024. With markets booming, more people are investing in equities, enjoying the strong returns.💰 A recent Gallup survey found that 62% of Americans now own stocks, the highest in 20 years. Among them, 87% of upper-income Americans are in the stock market, along with 65% of middle-income and 25% of lower-income Americans. This is a huge shift from 1982 when only 9.4% of assets were in stocks because Treasury bonds were the big money-makers back then.

Greek Chicken Pitas Sell Like Hotcakes

Cava, the Mediterranean fast casual chain, is on fire right now. After smashing Wall Street’s earnings expectations, Cava's stock shot up over 20% on Friday, even hitting more than $125 a share—the highest since they went public in June 2023. This year, their stock has more than doubled, pushing their market value to around $14.2 billion, or about $42 million per store across their 341 locations. 😳 CEO Brett Schulman pointed out that even with a shaky economy, people are still choosing to dine at Cava. While other restaurants are seeing slower traffic, Cava's foot traffic jumped by 9.5% in the second quarter, boosting same-store sales by 14.4%. Rivals like Chipotle and Sweetgreen also had solid growth, but traditional fast food spots are struggling to keep customers, even with the introduction of cheap value meals. It’s still up in the air if those deals will be enough to turn things around for fast food.

The Dark Side Of Farming

Behind the idyllic image of farming lies a powerful industry that’s incredibly skilled at getting what it wants—whether it’s subsidies or avoiding tough environmental rules. 😼 In the U.S. and Europe, the agricultural lobby is a big player, spending millions each year to influence policy decisions. In fact, in the U.S., they’ve outspent even big oil and gas, and in Brazil, agribusiness has a huge say in shaping laws. Critics argue that this allows big agriculture to dodge important environmental responsibilities, while the interests of small farmers often get pushed aside by the bigger players.

Even though farming is a major contributor to greenhouse gas emissions, it’s still one of the last sectors to face strict carbon limits. Governments keep dishing out hefty subsidies, which often benefit large-scale farms more than the little guys. As the fight over farm bills and EU policies heats up, there’s growing concern that the power of big agriculture is holding back efforts to make farming more sustainable. 🌳