As the world pushes toward a greener future, the demand for copper, a crucial component in renewable energy infrastructure, has surged dramatically. This increase in demand, however, has raised concerns about a looming shortage of the metal, threatening to impede progress towards climate goals.
Experts predict that the demand for copper will skyrocket over 75% during the next two years. The metal, essential for manufacturing wind turbines, solar panels, and electric vehicles (EVs), has seen its price climb steadily, reaching a record of $10,730 per ton last year. With the expected surge in demand, prices are projected to climb even higher, potentially hitting $15,000 per ton in 2025, according to Goldman Sachs.
Point phone camera here
Among the primary drivers of this increased demand is the rapid expansion of EV production. These electric vehicles alone accounted for two-thirds of the global increase in copper demand between 2020 and 2022, with each EV requiring 176 pounds of copper to build.
The American Solar Energy Society has emphasized that there is currently “no viable alternative to copper in meeting the requirements of the energy transition” which could put “global decarbonization at risk.”
However, as demand for copper intensifies, there has also been a decrease in its production. China, the world’s leading producer of refined copper, is facing a crisis due to a shortage of copper ore, forcing smelters in the country to cut back on production. Similar challenges have emerged in Latin America, which accounts for 40% of global copper production, where mine closures have exacerbated the dwindling supply of ore.
In the United States, the mining industry is grappling with regulatory hurdles and a slow permitting process. The Biden administration’s push to reform mining laws has left some mining executives frustrated, further complicating efforts to ramp up domestic copper production.
Additionally, the proximity of many copper reserves to Native American reservations has raised environmental and social concerns. Almost 90% of U.S. copper reserves are within 35 miles of tribal lands, many in areas considered sacred by the local indigenous communities.
The copper shortage presents a significant challenge to the clean energy transition, as the metal remains irreplaceable in many critical applications. Without adequate copper supplies, the world risks falling short of its emissions goals for 2050.
[JACK ALYMER]
WAKKO MIGHT BE CRAZY BUT HE WASN’T WRONG ABOUT THE VALUE OF A COPPER HA’PENNY,
BEFORE THE 1860S HA’PENNYS WERE MADE ENTIRELY OF COPPER – BUT THESE DAYS IT’S MORE LIKE 2-PERCENT.
THAT’S BECAUSE OVER TIME – THE PRICE OF COPPER – OUTPACED THE VALUE OF ONE U-S CENT.
IT’S ALSO WHY YOU MAY HEAR HEADLINES LIKE THESE MORE OFTEN
COPPER HAS HAD ITS HIGHS AND LOWS.
AND RIGHT NOW – ITS POISED TO BE ONE OF THE GREAT CATALYSTS OF A CLEAN ENERGY REVOLUTION – IF WE CAN GET OUR HANDS ON ENOUGH OF IT.
THAT’S BECAUSE THE WORLD. IS GOING TO NEED. A LOT.
WE’RE TALKING ABOUT PRODUCING WIND TURBINES, SOLAR PANELS, AND ELECTRIC VEHICLES.
[Morning Report with Ernest Scheyder]
“Globally, the amount of copper we’re going to need to produce in the next 25 years, will be as much as the entire world has produced in history”
[JACK ALYMER]
EXPERTS PREDICT THIS WILL CAUSE THE METAL’S PRICE TO SKYROCKET UP 75 PERCENT OVER THE NEXT TWO YEARS.
LAST YEAR, THE COST OF COPPER BROKE RECORDS BY REACHING CLOSE TO 11,000 DOLLARS PER TON.
THIS LATEST JUMP IN VALUE WILL LIKELY PUSH THE PRICE UP TO 15,000 DOLLARS PER TON.
COPPER IS INTEGRAL FOR THE MANUFACTURING A VARIETY OF CLEAN ENERGY TECH
IN THE CASE OF EVS, 176 POUNDS OF COPPER is NEEDED TO MAKE JUST ONE
ACCORDING TO GOLDMAN SACHS, e-vs ALONE ACCOUNTED FOR TWO THIRDS OF THE JUMP IN THE GLOBAL NEED FOR COPPER DURING 20-22.
[Hardika Singh – WSJ]
“So copper is actually used in great quantity for these electric vehicles and other renewable energies, much more so than what you would use in a traditional fossil fuel power plant or traditional cars.”
[JACK ALYMER]
AND THERE’S NO WAY AROUND IT EITHER, WE’RE GOING TO NEED COPPER TO GET MORE EVS ON THE ROAD AND OTHER GREEN ENERGY TECH RUNNING.
THE AMERICAN SOLAR ENERGY SOCIETY HAS SAID THERE IS NO VIABLE ALTERNATIVE TO COPPER IN MEETING THE REQUIREMENTS OF THE ENERGY TRANSITION.BUT, AS DEMAND FOR COPPER GROWS, THERE’S ALSO BEEN A RECENT DECREASE IN ITS PRODUCTION.
IN CHINA, THE WORLD LEADER IN REFINED COPPER OUTPUT, THE INDUSTRY IS FACING A CRISIS.
A SHORTAGE OF COPPER ORE IS FORCING SMELTERS IN THE COUNTRY TO CUT OFF IN PRODUCTION. NOW INDUSTRY EXECUTIVES ARE SCRAMBLING TO FIX the problem but it may take time.
SEE, SMELTERS MAKE MONEY BY TAKING IMPORTED COPPER ORE FROM MINERS, PROCESSING IT INTO A USABLE MATERIAL.
HIGHER PROCESSING FEES MEAN A HIGHER ORE SUPPLY.
BUT, MINE CLOSURES IN LATIN AMERICA, WHICH ACCOUNTS FOR 40 PERCENT OF GLOBAL COPPER PRODUCTION, HAVE EXACERBATED THE DWINDLING SUPPLY OF ORE.
IN THE U.S., COPPER OUTPUT HAS BEEN SLOWED BY AN ONGOING DEBATE OVER AMERICAN MINING LAWS.
THE BIDEN ADMINISTRATION WANTS TO REFORM THE LEGISLATION, SOME OF WHICH WAS FIRST PASSED ALL THE WAY BACK IN THE 19TH CENTURY.
THIS PERIOD OF CHANGE HAS LEFT MINING EXECUTIVES FRUSTRATED AND CONFUSED OVER WHY MANY OF THEIR PROPOSED MINING PERMITS ARE BEING DENIED.
SOME, LIKE THE CEO OF COPPER GIANT FREEPORT-MCMORAN, SAY THEY DON’T NECESSARILY WANT AN EASING OF ENVIRONMENTAL STANDARDS, JUST MORE CLARITY ON THE PERMITTING PROCESS.
[Richard Adkerson]
“Developing new copper mines are really challenging wherever you are for a variety of reasons. And so that is delaying the decisions to make major new investments in mines for companies like ours, and others in the industry is delaying that. And that is simply boasting, what I’m very confident is going to be a coming shortage in copper.”
[JACK ALYMER]
IN THE STATES, THERE’S ALSO THE ADDED PROBLEM OF MANY COPPER RESERVES BEING LOCATED ON OR AROUND NATIVE AMERICAN RESERVATIONS.
ALMOST 90 PERCENT OF THESE RESERVES ARE WITHIN 35 MILES OF TRIBAL LANDS.
[Wendsler Nosie Sr.]
“We have our lawsuits in and everything. This is a holy place. It’s gonna be murder to be killed. It’s not over yet. We’re still praying for those miracles that America would just stand up and do the right thing.”
[JACK ALYMER]
ULTIMATELY, THE COPPER CRISIS BOILS DOWN TO THIS:
ITS ESSENTIAL FOR THE CLEAN ENERGY TRANSITION, NOTHING WE’VE FOUND found SO FAR CAN REPLACE IT, AND THERE’S NOT ENOUGH OF THE METAL TO GO AROUND.
THIS NOT ONLY THREATENS TO HAMPER THE CONVERSION TO CLEANER TECH, BUT COULD ALSO PREVENT THE WORLD FROM HITTING ITS 20-50 EMISSIONS GOALS.
[Richard Adkerson]
“With this movement towards carbon reduction investments, every one of those investments requires more copper.”
[JACK ALYMER]
WHILE MINING INITIATIVES HAVE BEEN SEEN AS A MAJOR CONTRIBUTOR TO CLIMATE CHANGE, THEY’RE ALSO ESSENTIAL TO PROCURING MUCH NEEDED COPPER.
And currently are only responsible for about point-3 percent of global emissions.
THOUGH THAT NUMBER IS EXPECTED TO GROW AS COPPER DEMAND CONTINUES TO CLIMB.
Straight to your inbox.
By entering your email, you agree to the Terms & Conditions and acknowledge the Privacy Policy.
People ask Google about 8.5 billion questions every day, so Straight Arrow News is here to help the search engine out by taking a few of those searches off its hands. You might have seen autocomplete interviews like this before, but in this one, Energy Correspondent Jack Aylmer is going to break down some of the internet’s most burning questions about electric vehicles (EV).
Point phone camera here
Are electric vehicles better for the environment?
The short answer here is yes, but not right away. That is because making an EV requires minerals and rare earth elements, materials that must be mined from the Earth and then refined — both carbon-intensive processes — all before they can be used.
This results in the process of creating an EV generating up to 80% more emissions than what it would take to build a gas-powered car, according to MIT researchers. It is only after an electric vehicle has been driven for about 15,000 miles that it will become responsible for less emissions than conventional vehicles. In other words, an EV has to drive more than halfway around the entire circumference of the planet before it becomes eco-friendly.
However, once that hurdle is cleared, an electric vehicle will ultimately be much better for the environment. Once a typical EV battery reaches the end of its lifespan at around 200,000 miles, it will be responsible for only about half of the total emissions created by a gas-powered car.
Is an electric vehicle more expensive to insure?
EVs can cost more than your typical vehicle — on average running people about $5,000 more on the sticker price — but buying insurance for a new electric car will also come at a premium.
Typically drivers of gas-powered vehicles will pay about $165 every month to insure their car, while most EV drivers will have to fork over more than twice that much at a rate of $337 per month. Collision repair and insurance data provided by Mitchell gives some insight into why this is the case.
Electric vehicles consist of more expensive parts, which, when damaged in an accident, will also cost more to fix. Mitchell found that crash repair costs for an electric vehicle usually were almost $1,000 higher than a gas car, insurance providers will charge more for EV premiums to offset the larger maintenance costs.
Are electric vehicles worth it?
This is a little less black and white, but let’s break it down. We have already covered how EVs are more expensive, from upfront costs and insurance premiums, to maintenance and home charger installation fees, these cars absolutely cost more in the short term.
Yahoo Finance estimates that when factoring in all these different hidden expenses, there’s about a $13,000 price difference in owning an electric vehicle versus a typical car. However, there is a catch.
Similar to an EV becoming more environmentally friendly over time, its affordability also improves. After about five to six years, depending on the model, an EV will eventually break even and prove less expensive than a gas car. That comes from less money spent on trips to the gas station, with EV drivers saving as much as $1,000 every year by powering their car up with electricity.
Vehicles that qualify for federal tax credits also become more affordable much quicker than those that do not. A tax credit eligible vehicle can expect to see savings in that previously mentioned five- to six-year window, while a non-eligible EV may not see the break even point until a whole decade later.
Will electric vehicles solve the climate crisis?
No, they will not, at least not by themselves. Fatih Birol, executive director of the International Energy Agency, has said so himself, telling Norwegian online newspaper Nettavisen that “electric cars will not save the climate,” and the idea that they could “is completely wrong.”
According to data from the Union of Concerned Scientists, about 60% of the cars on American roads in 2050 will be electric. However, studies done at the University of Toronto indicate that in order for the U.S. to hit its climate goals, 90% of cars will have to be EVs by then.
Vijay Subramanian, director of global CO2 compliance, cost and powertrain forecasting at S&P Global Mobility believes that “even if millions of people buy battery-electric vehicles, automakers could still fall short of hitting goals set under the Paris Agreement on climate change.”
To reach net zero emissions by 2050, the U.S. and other nations will not only have to decarbonize the transportation sector, but a number of others as well.
Can electric vehicles explode?
The chances are fairly slim, but they are also not zero. This occurs when a thermal runway forms inside an EV battery, creating a chain reaction that causes it to overheat, catch fire and then explode.
EV Firesafe is a company that has compiled extensive data on this phenomenon. It found the odds of it actually happening are really only about 0.1%. Although, when this does occur, the fire it creates can take hours and thousands of gallons of water to put out.
An electric vehicle fire burns with twice the energy of a normal car fire and takes 10 times more water to extinguish. The total amount of water needed to extinguish one of these fires is equal to about half of the average U.S. swimming pool. However, research reviewed by the University of California Berkeley indicates that gas powered cars are actually 30 times more likely to catch fire than EVs.
Tags: carbon emissions, Climate Change, Electric Vehicle Batteries, Electric vehicles, EV charger, EV tax credit, Google, zero-emissions
[JACK AYLMER]
HI, I’M JACK AYLMER, THE SAN ENERGY CORRESPONDENT.
AND WE’RE ABOUT TO DO AN AUTOFILL INTERVIEW.
YOU MIGHT SEEN THESE BEFORE ON WIRED, JUST WITH SOME SIGNIFICANTLY MORE FAMOUS PEOPLE.
SO, WHILE YOU MIGHT CARE LESS ABOUT WHAT I HAVE TO SAY THAN SOME LIKE MAYBE DANNY DEVITO.
[DEVITO WIRED]
“Oh I pulled the wrong, I didn’t pull the thing”
[JACK AYLMER]
WHICH FAIR, I GET IT.
I’VE STILL GOT ANSWERS TO SOME OF THE MOST SEARCHED QUESTIONS ON THE WEB.
ONE’S THAT YOU MAY HAVE HAD YOURSELF, WITH INFORMATION WHICH COULD ACTUALLY HELP YOU OUT IN REAL LIFE TOO.
TODAY, WE’RE GOING TO BE ANSWERING A FEW OF THE INTERNET’S MOST BURNING QUESTIONS ABOUT EVS.
FIRST OFF.
[KARAH RUCKER]
“ARE ELECTRIC VEHICLES BETTER FOR THE ENVIRONMENT?”
[JACK AYLMER]
WELL, THE SHORT ANSWER HERE IS YES, BUT NOT RIGHT AWAY.
THAT’S BECAUSE MAKING AN EV REQUIRES MINERALS AND RARE EARTH ELEMENTS.
MATERIALS THAT MUST BE MINED FROM THE EARTH AND THEN REFINED BEFORE THEY CAN BE USED.
THIS RESULTS IN THE PROCESS OF CREATING AN EV GENERATING UP TO 80 PERCENT MORE EMISSIONS THAN WHAT IT WOULD TAKE TO BUILD A GAS POWERED CAR.
IT’S ONLY AFTER AN EV HAS BEEN DRIVEN FOR ABOUT 15,000 MILES THAT IT WILL BECOME RESPONSIBLE FOR LESS EMISSIONS THAN CONVENTIONAL VEHICLES.
IN OTHER WORDS, AN EV HAS TO DRIVE MORE THAN HALFWAY AROUND THE ENTIRE PLANET BEFORE IT BECOMES ECO FRIENDLY.
BUT, ONCE THAT HURDLE IS CLEARED, AN EV WILL ULTIMATELY BE MUCH BETTER FOR THE ENVIRONMENT.
ONCE A TYPICAL EV BATTERY REACHES THE END OF ITS LIFESPAN AT AROUND 200,000 MILES, IT WILL BE RESPONSIBLE FOR ONLY ABOUT HALF OF THE TOTAL EMISSIONS CREATED BY A GAS POWERED CAR.
IF YOU’RE LOOKING FOR A DEEPER DIVE ON THE ANSWER TO THIS QUESTION, CHECK OUT ONE OF THESE STORIES ON SAN.COM WHERE WE BREAK IT DOWN FURTHER.
NEXT UP.
[KARAH RUCKER]
“ARE ELECTRIC VEHICLES MORE EXPENSIVE TO INSURE?”
[JACK AYLMER]
WE KNOW EVS CAN COST MORE THAN YOUR TYPICAL VEHICLE, ON AVERAGE RUNNING PEOPLE ABOUT 5,000 DOLLARS MORE ON THE STICKER PRICE.
BUT BUYING INSURANCE FOR YOUR NEW EV WILL ALSO COME AT A PREMIUM.
TYPICALLY DRIVERS OF GAS POWERED VEHICLES WILL PAY ABOUT 165 DOLLARS A MONTH TO INSURE THEIR CAR.
MOST EV DRIVERS WILL HAVE TO FORK OVER MORE THAN TWICE THAT MUCH.
COLLISION REPAIR AND INSURANCE DATA PROVIDED MITCHELL GIVES SOME INSIGHT INTO WHY THIS IS.
SEE, ELECTRIC VEHICLES CONSIST OF MORE EXPENSIVE PARTS, WHICH WHEN DAMAGED IN AN ACCIDENT, WILL ALSO COST MORE TO FIX.
MITCHELL FOUND THAT CRASH REPAIR COSTS FOR AN EV USUALLY WERE ALMOST 1,000 DOLLARS HIGHER THAN A GAS CAR.
SO, INSURANCE PROVIDERS WILL CHARGE MORE FOR EV PREMIUMS TO OFFSET THE LARGER MAINTENANCE COSTS.
AND, FINALLY.
[KARAH RUCKER]
“ARE ELECTRIC VEHICLES WORTH IT?”
[JACK AYLMER]
WELL, THIS IS A LITTLE LESS BLACK AND WHITE, BUT LET’S BREAK IT DOWN.
WE’VE ALREADY COVERED HOW EVS ARE MORE EXPENSIVE.
FROM UPFRONT COSTS AND INSURANCE PREMIUMS, TO MAINTENANCE AND HOME CHARGER INSTALLATION FEES, THESE CARS ABSOLUTELY COST MORE IN THE SHORT TERM.
YAHOO FINANCE ESTIMATES THAT WHEN FACTORING IN ALL THESE DIFFERENT HIDDEN EXPENSES, THERE’S ABOUT A 13,000 PRICE DIFFERENCE IN OWNING AN EV VERSUS A TYPICAL CAR.
BUT, THERE IS A CATCH.
SIMILAR TO AN EV BECOMING MORE ENVIRONMENTALLY FRIENDLY OVER TIME, ITS AFFORDABILITY ALSO IMPROVES.
AFTER ABOUT FIVE TO SIX YEARS, DEPENDING ON THE MODEL, AN EV WILL EVENTUALLY BREAK EVEN AND PROVE LESS EXPENSIVE THAN A GAS CAR.
THAT COMES FROM SAVING ON TRIPS TO THE GAS STATION, WITH EV DRIVERS SAVING MORE THAN A THOUSAND DOLLARS EVERY YEAR BY POWERING THEIR CAR UP WITH ELECTRICITY.
VEHICLES THAT QUALIFY FOR FEDERAL TAX CREDITS ALSO BECOME MORE AFFORDABLE MUCH QUICKER THAN THOSE THAT DON’T.
A TAX CREDIT ELIGIBLE VEHICLE CAN EXPECT TO SEE SAVINGS IN THAT PREVIOUSLY MENTIONED 5 TO 6 YEAR WINDOW.
BUT A NON-ELIGIBLE EV MAY NOT SEE THE BREAK EVEN POINT UNTIL A WHOLE DECADE LATER.
JUST SOMETHING TO KEEP IN MIND IN CASE YOU’RE WONDERING IF THOSE TAX CREDITS REALLY ARE WORTH IT.
THAT’LL BRING US TO THE END OF OUR AUTOFILL INTERVIEW TODAY.
IF I MISSED A QUESTION YOU HAD ABOUT EVS OR YOU’VE GOT OTHER ENERGY RELATED TOPICS YOU WANT TO ASK ABOUT, DROP THEM IN THE COMMENTS BELOW AND WE MIGHT ANSWER THEM IN OUR NEXT VIDEO.
Straight to your inbox.
By entering your email, you agree to the Terms & Conditions and acknowledge the Privacy Policy.
Indianapolis, Indiana, is known for many things: the Indy 500, being the birthplace of actor Brendan Fraser and talk show host David Letterman, and the home of the Peyton Manning-led Super Bowl XVI champion Colts. But now the town whose nicknames include Circle City and the Crossroads of America is seeking a new title: the Eclipse Capital of the Midwest.
For an entire weekend in April, Indiana’s capital will host a series of events all centered around one extraordinary show taking place millions of miles up. That’s right, America — a total solar eclipse is headed our way.
Well, total, only for people in Indiana or 14 other states.
Point phone camera here
“If you look at the path, [it] starts down in Austin, goes up through Dallas and all the way through Buffalo, but if you think about true mid-western cities, Cleveland is in the path but Indianapolis is smack dab in the crossroads of America and we are expecting 100,000 visitors at minimum to our city,” Clare Clark with Visit Indy told Straight Arrow News, speaking on the tourism the eclipse is expected to bring to the city.
Explaining the total solar eclipse
On April 8, thousands will converge on Indy to join millions across the country looking up and gazing at the sky, as the sun, moon and Earth align in what’s called syzygy.
Dr. Kelly Korreck, the NASA program manager for the solar eclipse, said viewers will see the moon completely cover the sun, but that’s not all. Korreck said people will also see the sun’s outer corona — or atmosphere — which is “where our origins of space weather come from.”
A total solar eclipse is a rare event. It will be only the second time in seven years that the continental U.S. will experience one.
“There are 31.5 million people who are in that path and around 200 million who live within a few hours’ drive of that path,” Korreck said. “And the entire continental United States, as well as parts of Alaska and Hawaii, will be seeing a partial eclipse. So that’s over 300 million people will experience a part of this celestial event.”
Staying safe while viewing the eclipse
The same rules from the 2017 total solar eclipse apply here. Don’t look directly at the sun, at least for most of the eclipse. People will need solar viewing glasses or a handheld solar viewer to safely witness the eclipse and prevent eye damage. To view it using a camera, telescope or binoculars, people will need solar filters.
However, there is a time when it’s safe to look directly at the sun without any eye protection. People can take those shades off during the brief total phase.
“Now, during the totality itself, which can last up to four minutes in different parts of the U.S., you don’t need the glasses,” Dr. Alex Lockwood, NASA’s Eclipse Engagement lead, said. “You can actually look at the sun for the only time during the daytime. However, before and after, as the moon is eclipsing the sun, in order to witness this event and to see these spectacular Baily’s Beads that happen just as you see the craters of the moon, as the moon is fully covering the sun, in order to appreciate all of that phenomenon you need [to wear the eclipse] glasses.”
Those who don’t live in Indiana or any one of the 15 states in the 115-mile-wide path of totality are not out of luck, because a partial eclipse may still be visible. A partial eclipse happens when the moon covers most but not all of the sun. But even for a partial eclipse, people still need wear special glasses.
Sky’s the limit for eclipse-related offerings
However, if you are determined to see the total solar eclipse, how about viewing it at 30,000 feet?
Delta and Southwest are offering flights that pass through the path of totality. There was so much demand for it, Delta had to add a second path-of-totality flight after the first sold out.
Southwest partnered with Omni Hotels for a “Solarbration” sweepstakes. The lucky winner will fly on a plane predicted to be in the eclipse’s path and then stay in an out-of-this-world custom-designed hotel room inspired by the celestial event.
Businesses of all kinds are bringing the eclipse experience to customers in different ways.
Cleveland’s Market Garden Brewery created a hazy IPA called “The Totality.” The Donut Dude in Ohio is offering an eclipse special: seven donuts that display the different phases as the moon blocks the sun.
Fast-food spots are getting in on the fun, too. Sonic Drive-in released a limited-edition Blackout slush float that comes with a free pair of viewing glasses.
Indy becomes a top destination for total solar eclipse
Businesses and hotels in Indianapolis are buzzing in anticipation over the eclipse.
Clare Clark from Visit Indy touted the city is within a half-day drive to half of the nation’s population. Visit Indy is preparing for eclipse enthusiasts from Cincinnati, St. Louis, Madison, Wisconsin and other big cities to come and partake in the celebrations.
“If you want to take in the eclipse in the art and cultural lens you can go to Newfield which is our 152-acre museum,” Clark told Straight Arrow News.
Astronomy fans who also enjoy sports can camp out at the Indianapolis Motor Speedway, where NASA will be on hand to livestream the eclipse. NASA personnel will be joined by the family of Purdue alumnus Neil Armstrong, the first person to walk on the moon.
“We’re no stranger to hosting large scale events,” Clark said. “The Indianapolis 500 is the single largest sporting day event that brings 300,000 people to the Motor Speedway every May. This is what Indy does best. Our attractions, hotels, restaurants are all-hands-on-deck. We have 50 plus events that we are just monitoring right now in the city and more events are being added daily.”
Indy has company in wooing eclipse tourists
Indy is not alone in turning the eclipse into a memorable experience for tourists. All are hoping to see similar results to South Carolina in 2017, when that eclipse resulted in an economic impact of $269 million.
The Lone Star State, a major viewing hotspot for this eclipse, is hosting multiple events including the four-day Texas Eclipse Festival in Burnet. Morrilton, Arkansas, has an eclipse concert series and rising country music singer Dylan Marlowe is performing a post-eclipse concert in Rochester, New York.
The path of totality is certainly the place to be. Airbnb said it’s seen an increase of 1,000% in stays along the path. Expedia reported top cities are seeing massive spikes in hotel searches, up to 1,100%, and right there in the top 5 is that “Eclipse Capital of the Midwest” — Indianapolis.
“The eclipse won’t be coming through Indianapolis again until 2153, so this is truly is a once in a lifetime opportunity,” Clark said. “And a proximity to all of those larger markets and how people can take a weekend or take a day trip to Indianapolis is what’s making us really hopeful about the influx of visitors we’re going to see on April 8.”
BROCK KOLLER
INDIANAPOLIS, INDIANA.
KNOWN FOR THE INDY 500 –
BEING THE BIRTHPLACE OF BRENDAN FRASER AND DAVID LETTERMAN
AND THE HOME OF THE SUPER BOWL 41 CHAMPION COLTS LED BY QUARTERBACK PEYTON MANNING.
THE TOWN WHOSE NICKNAMES INCLUDE CIRCLE CITY AND THE CROSSROADS OF AMERICA HAS ADDED A NEW MONIKER TO THE LIST.
THE ECLIPSE CAPITAL OF THE MIDWEST.
FOR AN ENTIRE WEEKEND IN APRIL –INDIANA’S CAPITAL WILL HOST A SERIES OF EVENTS ALL CENTERED AROUND ONE EXTRAORDINARY SHOW TAKING PLACE MILLIONS OF MILES UP.
MARK YOUR CALENDARS, AMERICA — A TOTAL SOLAR ECLIPSE IS HEADED OUR WAY.
WELL – TOTAL — IF YOU’RE IN INDIANA OR 14 OTHER STATES.
Clare Clark
“IF YOU LOOK AT THE PATH – STARTS DOWN IN AUSTIN, GOES UP THROUGH DALLAS AND ALL THE WAY THROUGH BUFFALO, BUT IF YOU THINK ABOUT TRUE MID-WESTERN CITIES – CLEVELAND IS IN THE PATH – BUT INDIANAPOLIS IS SMACK DAB IN THE CROSSROADS OF AMERICA AND WE ARE EXPECTING 100,000 VISITORS AT MINIMUM TO OUR CITY.”
YES ON APRIL 8 – THOUSANDS WILL CONVERGE TO INDY AS MILLIONS ACROSS THE COUNTRY WILL BE ABLE TO LOOK UP AND GAZE — AS THE SUN MOON AND EARTH ALIGN IN WHAT’S CALLED SYZYGY.
Dr. Kelly Korreck
“This eclipse is a solar eclipse where the Sun is momentarily blocked by the Moon, and along this path is where you will actually see that. And not just see that action, but then once the Moon is completely covering the Sun, you will see the Sun’s outer corona, or atmosphere, and that’s where our origins of space weather come from.”
BROCK KOLLER
THIS IS A RARE EVENT. IT WILL ONLY BE THE SECOND TIME IN SEVEN YEARS THAT THE CONTINENTAL UNITED STATES WILL EXPERIENCE A TOTAL SOLAR ECLIPSE – WHEN THE MOON WILL COMPLETELY BLOCK THE FACE OF THE SUN – DARKENING THE SKY.
Dr. Kelly Korreck
“So in this path, there are 31.5 million people who live who live in that path and around 200 million who live within a few hours drive of that path. And the entire continental United States, as well as parts of Alaska and Hawaii, will be seeing a partial eclipse. So that’s about 300 – over 300 million people will experience a part of this celestial event.”
BROCK KOLLER
AND IF YOU REMEMBER THE TOTAL SOLAR ECLIPSE FROM 2017 – SAME RULES APPLY HERE – DON’T LOOK DIRECTLY AT IT. AND THOSE RULES APPLY TO EVERYONE.
YOU’LL NEED SOLAR VIEWING GLASSES OR A HANDHELD SOLAR VIEWER TO SAFELY WITNESS THE ECLISPE TO PREVENT EYE DAMAGE.
AND THINKING IT’S OK TO LOOK AT IT VIA YOUR CAMERA, TELESCOPE OR BINOCULARS? THINK AGAIN. YOU’LL NEED SOLAR FILTERS TO USE THOSE DEVICES.
BUT – THERE IS A TIME WHEN IT’S SAFE TO LOOK DIRECTLY AT THE SUN WITHOUT ANY EYE PROTECTION – AND THAT’S DURING THE BRIEF TOTAL PHASE OF THE ECLIPSE.
Dr. Alex Lockwood
“Now, during the totality itself, which can last up to 4 minutes in different parts of the U.S., you don’t need the glasses. You can actually look at the Sun for the only time during the daytime, and you will see that beautiful corona image that Kelly just shared. However, before and after, as the Moon is eclipsing the Sun in order to witness this event and to see these spectacular Baily’s Beads that happen just as you see the craters of the Moon, right, as the Moon is fully covering the Sun, in order to appreciate all of that phenomenon you need these glasses.”
BROCK KOLLER
NOW — IF YOU DON’T LIVE IN INDIANA – TEXAS – OKLAHOMA – KENTUCKY – PENNSYLVANIA – MAINE OR ANY ONE OF THE 15 STATES IN THE 115-MILE-WIDE PATH OF TOTALITY – YOU’RE NOT OUT OF LUCK – BECAUSE YOU MAY STILL BE ABLE TO SEE A PARTIAL ECLIPSE – WHERE THE MOON COVERS MOST BUT NOT ALL OF THE SUN – BUT YOU STILL NEED SPECIAL GLASSES FOR THAT TOO!
HOWEVER IF YOU ARE DETERMINED TO SEE THE TOTAL SOLAR ECLIPSE – HOW ABOUT VIEWING IT AT 30,000 FEET!
DELTA AND SOUTHWEST ARE OFFERING FLIGHTS THAT PASS THROUGH THE PATH OF TOTALITY. IS THERE DEMAND FOR SUCH A THING? YOU BET. DELTA HAD TO ADD A SECOND FLIGHT AFTER ITS FIRST DALLAS TO DETROIT PATH-OF-TOTALITY ONE SOLD OUT!
SOUTHWEST MEANWHILE PARTNERED WITH OMNI HOTELS FOR A SOLARBRATION SWEEPSTAKES – THE LUCKY WINNER FLYING ON A PLANE PREDICTED TO BE IN THE ECLIPSE’S PATH AND THEN STAYING IN A CUSTOM-DESIGNED HOTEL ROOM INSPIRED BY THE CELESTIAL EVENT. OUT OF THIS WORLD!
BUSINESSES OF ALL KINDS ARE HOPING TO BRING THE ECLIPSE EXPERIENCE TO YOU IN OTHER WAYS — CLEVELAND’S MARKET GARDEN BREWERY CREATED A HAZY IPA – CALLED “THE TOTALITY”
THE DONUT DUDE IN OHIO IS OFFERING AN ECLIPSE SPECIAL – 7 DONUTS THAT DISPLAY THE DIFFERENT STAGES OF THE ECLIPSE AS THE MOON BLOCKS THE SUN.
AND FAST FOOD SPOTS ARE GETTING IN ON THE FUN TOO – WITH SONIC DRIVE-IN RELEASING A LIMITED EDITION BLACKOUT SLUSH FLOAT – EVEN BETTER — YOU GET A FREE PAIR OF VIEWING GLASSES WITH PURCHASE.
NOW BACK IN INDIANAPOLIS – CLARE CLARK FROM VISIT INDY TOUTS THE CITY IS WITHIN A HALF DAYS DRIVE TO HALF OF THE NATION’S POPULATION – AND THEY ARE PREPARING FOR ECLIPSE ENTHUSIASTS FROM CINNCINATI, ST LOUIS, MADISON WISCONSIN AND OTHER BIG CITIES TO COME AND PARTAKE IN THEIR CELEBRATIONS.
Clare Clark
“IF YOU WANT TO TAKE IN THE ECLIPSE IN THE ART AND CULTURAL LENSE YOU CAN GO TO NEWFIELD WHICH IS OUR 152-ACRE MUSEUM.”
BROCK KOLLER
ASTRONOMY FANS WHO ALSO ENJOY SPORTS CAN CAMP OUT AT INDY’S MOTOR SPEEDWAY – WHERE NASA WILL BE ON HAND TO LIVESTREAM THE ECLIPSE – ALONG WITH THE FAMILY OF PURDUE ALUMNUS — NEIL ARMSTRONG – THE FIRST PERSON TO WALK ON THE MOON.
Clare Clark
“WE’RE NO STRANGER TO HOSTING LARGE SCALE EVENTS – THE INDIANOPLIS 500 IS THE SINGLE LARGEST SPORTING DAY EVENT THAT BRINGS 300,000 PEOPLE TO THE MOTOR SPEEDWAY EVERY MAY – THIS IS WHAT INDY DOES BEST. OUR ATTRACTIONS, HOTELS, RESTAURANTS ARE ALL HANDS-ON DECK. WE HAVE 50 PLUS EVENTS THAT WE ARE JUST MONITORING RIGHT NOW IN THE CITY AND MORE EVENTS ARE BEING ADDED DAILY.”
BROCK KOLLER
AND INDY IS NOT ALONE IN TURNING THE ECLIPSE INTO A MEMORABLE EXPERIENCE FOR TOURISTS.
THE LONE STAR STATE – A MAJOR HOTSPOT FOR ECLIPSE VIEWING — IS HOSTING MULTIPLE EVENTS INCLUDING THE FOUR-DAY TEXAS ECLIPSE FESTIVAL IN BURNET — MORRILTON ARKANSAS HAS AN ECLIPSE CONCERT SERIES – AND RISING COUNTRY MUSIC SINGER DYLAN MARLOWE IS PERFORMING A POST-ECLIPSE CONCERT IN ROCHESTER, NEW YORK.
THE PATH OF TOTALITY IS THE PLACE TO BE – AIRBNB SAYING IT’S SEEN AN INCREASE OF ONE THOUSAND PERCENT IN STAYS ALONG THE PATH – AND EXPEDIA REPORTS TOP CITIES ARE SEEING MASSIVE SPIKES IN HOTEL SEARCHES UP TO 1,100 PERCENT – AND RIGHT THERE IN THE TOP 5 IS INDIANAPOLIS.
Clare Clark
“THE ECLIPSE WON’T BE COMING THROUGH INDIANAPOLIS AGAIN UNTIL 2153 – SO THIS TRULY IS A ONCE IN A LIFETIME OPPORTUNITY – AND A PROXIMITY TO ALL OF THOSE LARGER MARKETS AND HOW PEOPLE CAN TAKE A WEEKEND OR TAKE A DAY TRIP TO INDIANAPOLIS IS WHAT’S MAKING US REALLY HOPEFUL ABOUT THE INFLUX OF VISITORS WE’RE GOING TO SEE ON APRIL 8.”
Straight to your inbox.
By entering your email, you agree to the Terms & Conditions and acknowledge the Privacy Policy.
Credit card debt in the U.S. hit a record at the end of 2023 while high interest rates continue to push the debt balance even higher this year. The Federal Reserve recently reported U.S. credit card debt reached $1.13 trillion in the fourth quarter of 2023, up $143 billion from the year before. According to WalletHub, the total already topped $1.3 trillion by January.
“Context is important,” Bankrate Chief Financial Analyst Greg McBride said. “We’re at a higher level of population than we’ve ever been before. We’ve also seen tremendous inflation.”
Point phone camera here
When adjusted for inflation, WalletHub calculates total credit card debt is about 10% off its peak, which the country hit in 2008 during the Great Recession. But the CEO said growing balances this year could put the inflation-adjusted record in striking distance.
“We’ve had more people carrying larger balances for a longer period of time, at a time when credit card rates are at a record high,” McBride said. “And oh, by the way, delinquencies are the highest since 2012. So you put that all together, there’s no explaining that away that everything’s fine. Sixty percent of households are living paycheck to paycheck and clearly there everything is not fine.“
There’s typically a lot of shame around credit card debt, but credit card experts say that shame is often misguided.
“There’s definitely this idea that credit card debt is always the result of frivolous spending — you’re shopping, you’re going out, you’re buying stuff you shouldn’t buy that you don’t need,” NerdWallet credit cards expert Sara Rathner said. “The reality for a lot of people is credit cards are what are helping them make it from week to week.”
Higher prices, more debt
A NerdWallet survey revealed that 48% of Americans with revolving credit card debt are charging necessities, like food.
“What’s made this bout of inflation so insidious is that it’s hit hardest on necessities,” McBride said. “Shelter, food, energy costs — even things like automobile insurance.”
Since January 2021, the cost of living has been rising faster than the private sector’s average hourly wage, according to data by the Bureau of Labor Statistics and the Federal Reserve. At the same time, Americans’ personal savings are draining after COVID-19 peaks.
“If you don’t have much of a cushion of savings, you have no buffer between you and credit card debt the next time an unplanned expense arises,” McBride said.
For the second consecutive year, more than a third of Americans say they have more credit card debt than emergency savings. At 36%, Bankrate said it’s the highest percentage since they started asking this question in 2011. Gen Xers and millennials are driving the trend, which McBride said is not surprising.
“Those are the prime years of rising household expenses,” he said. “You’re buying houses, buying cars, raising a family, putting kids through college.”
Gen Z’s credit card debt is growing faster than any other generation. Credit Karma said the average debt balance went up nearly 23% from 2022 to 2023.
“I really feel for the younger generation now that’s just beginning to enter the workforce because it is very hard out there,” Rathner said. “Costs are up, wages are not up as much as costs and interest rates are really high.”
Higher interest rates, more debt
Bankrate reports that 49% of surveyed credit card users carry a balance month to month, up from 39% in 2021. In today’s interest rate environment, getting out from under that debt can seem insurmountable.
“It just becomes another bill that you pay every month,” Rathner said. “That’s really what it looks like for people who are in never-ending credit card debt.”
Take the current average credit card debt of $6,360, according to TransUnion. Without taking on any additional debt, if this person only makes minimum payments of around $174.90 a month, paying the average interest rate of around 21%, they’ll spend more than 25 years paying off the card. And they’ll pay more than $10,000 in interest alone. These calculations come from Bankrate’s minimum payment calculator.
Paying down debt
For those facing crippling credit card debt, experts say a great option to chip away at it is moving that debt to a balance transfer card with a zero-or-low-interest introductory rate. The problem is these cards are hard to come by if the person doesn’t have good or excellent credit.
“Look at contacting a nonprofit credit counseling agency who could really help you with things like budgeting, debt management, those types of things, get you pointed in the right direction,” McBride said.
“It might even mean declaring bankruptcy at some point if you really don’t see a way out of your debt,” Rathner said.
NerdWallet said about a third of Americans who carry a balance month to month believe they’ll be in credit card debt forever.
“Once you get into credit card debt, it is hard to get out,” Rathner said.
Tags: Bankrate, Bureau of Labor Statistics, Consumer Price Index, Credit card, Federal Reserve, Inflation, Interest rates, Minimum wage, U.S. Economy, Wages, WalletHub
Family Guy Clip: I have $30,000 in credit card debt.
Simone Del Rosario: Peter Griffin, you’ve got company.
Social media clip: I ended up racking up $25,000.
Social media clip: I’m over here drowning.
Social media clip: I think I’m $20,000 in credit card debt.
Social media clip: The balance right now is $18,821.53.
Simone Del Rosario: While some people are vulnerable enough to share their debt journeys on social media, there’s typically a lot of shame around credit card debt.
Social media clip: I feel bad enough. Please don’t come in the comments talking about how irrespon- I know. I know.
Simone Del Rosario: And credit card experts say that shame is often misguided.
Sara Rathner: There’s definitely this idea that credit card debt is always the result of frivolous spending, you’re shopping, you’re going out, you’re buying stuff you shouldn’t buy that you don’t need. The reality for a lot of people is credit cards are what are helping them make it from week to week.
Simone Del Rosario: The Federal Reserve reports U.S. credit card debt reached an all-time high at the end of 2023 at $1.13 trillion. That’s up $143 billion from the year before.
Greg McBride: Context is important. We’re at a higher level of population than we’ve ever been before. You know, we’ve also seen tremendous inflation.
Simone Del Rosario: When adjusted for inflation, WalletHub says total credit card debt is about 10% off its peak, which the country hit in 2008 during the Great Recession. But the CEO said growing balances this year could put the inflation-adjusted record in striking distance.
Greg McBride: We’ve had more people carrying larger balances for a longer period of time, at a time when credit card rates are at a record high. And oh, by the way, delinquencies are the highest since 2012. So you put that all together, I mean, there’s there’s no explaining that away that everything’s fine. Sixty percent of households are living paycheck to paycheck and clearly there everything is not fine.
Simone Del Rosario: A NerdWallet survey reveals about half of Americans with revolving credit card debt are charging necessities, like food.
Greg McBride: What’s made this bout of inflation so insidious is that it’s hit hardest on necessities, shelter, food, energy costs, even things like automobile insurance.
Simone Del Rosario: Since January 2021, the cost of living has been rising faster than the private sector’s average hourly wage. At the same time, Americans’ personal savings are draining after COVID-19 peaks.
Greg McBride: If you don’t have much of a cushion of savings, you have no buffer between you and credit card debt the next time an unplanned expense arises.
Simone Del Rosario: For the second consecutive year, more than a third of Americans say they have more credit card debt than emergency savings. It’s the highest percentage since Bankrate started asking this question in 2011. Gen Xers and millennials are driving the trend, which Bankrate’s Greg McBride says makes sense.
Greg McBride: Those are the prime years of rising household expenses, you’re buying houses, buying cars, raising a family, putting kids through college.
Simone Del Rosario: But Gen Z’s credit card debt is growing faster than any other generation. Credit Karma says it went up nearly 23% in one year.
Sara Rathner: I really feel for the younger generation now that’s just beginning to enter the workforce because it is very hard out there. Costs are up, wages are not up as much as costs. And interest rates are really high.
Social media clip: You guys, the interest is what kills me. I get charged like $400 in interest a week.
Simone Del Rosario: Bankrate says about half of credit card users carry a balance month to month, up from 39% in 2021. And in today’s interest rate environment, getting out from under that debt can seem insurmountable.
Tooth Fairy movie clip: It’s like credit card debt, man. They just want to keep you paying forever.
Sara Rathner: It just becomes another bill that you pay every month. That’s really what it looks like for people who are in never ending credit card debt.
Family Guy clip: Credit card debt, credit card debt, credit card debt.
Simone Del Rosario: Take the average credit card debt of $6,360. Without taking on any additional debt, if this person only makes minimum payments with the average interest rate of around 21%, they’ll spend more than 25 years paying off the card. And they’ll pay more than $10,000 in interest.
Family Guy clip: I don’t have as cavalier an attitude toward my debt as the song suggests. I’m actually up most nights with severe panic attacks.
Simone Del Rosario: For those facing crippling credit card debt, experts say a great option to really chip away at it is moving that debt to a balance transfer card with a zero-or-low-interest introductory rate. The problem is these cards are hard to come by if you don’t have good or excellent credit.
Greg McBride: Look at contacting a nonprofit credit counseling agency who could really kind of help you with things like budgeting, debt management, those type of things kind of get you pointed in the right direction.
Sara Rathner: It might even mean declaring bankruptcy at some point, if you really don’t see a way out of your debt.
Simone Del Rosario: NerdWallet says about a third of Americans that carry a balance month to month believe they’ll be in credit card debt forever.
Sara Rathner: Once you get into credit card debt, it is hard to get out.
Simone Del Rosario: Hard, but not hopeless.
Social media clip: I just paid off $31,597 worth of credit card debt.
Social media clip: I paid off $12,400 in credit card debt.
Social media clip: I just paid off two credit cards, baby.
Straight to your inbox.
By entering your email, you agree to the Terms & Conditions and acknowledge the Privacy Policy.
It just got a little bit harder for China to try and take Taiwan or impose its will in the western Pacific. That’s because Japan just moved a battery of its new Type 12 surface-to-ship missiles to Okinawa.
Ryukyu Shimpo, a media outlet in Japan, reported the country’s Self Defense Force, the official name of the Japanese military, moved the components for the Type 12 missile unit to the island in mid-March. It’s the first time there’s been an anti-ship missile unit on Okinawa, and the Type 12 is certainly a great weapon system to mark the occasion.
Point phone camera here
Japan test fired the new missile off Australia’s east coast last year during Talisman Sabre. The upgraded surface-to-ship missile is longer, features a modified shape and boasts increased engine endurance. The Type 12 also got an upgrade to its command link. So, it can get target updates while in flight. That’s handy against ships, which don’t exactly sit still waiting to be sunk.
One of the greatest upgrades on the Type 12 is its new range. Initially Type 12s were only effective to about 100 kilometers. Now, they’re good to about 1,000 kilometers, and that’s why putting them on Okinawa means so much, because it’s a critical chokepoint in what’s known as the first island chain.
So, let’s go ahead and break down that first island chain (FIC) and talk about why it’s so important. It starts up in the northern part of the Japanese archipelago, and then it extends southward to include Taiwan, the Philippines, Malaysia and Indonesia.
Okinawa is right about the middle of the FIC. How far, you might ask yourself, is Okinawa from mainland China? That’s a distance of 723 kilometers. For those who were paying attention earlier, you might remember that the Type 12 missile has a range now of 1,000 kilometers.
So, from Okinawa, the Japanese Self Defense Force could, in theory, hit targets within mainland China. Now, these are anti-ship missiles. So, it is unknown if they have the technology necessarily to target land-based objects. But it should help deter the People’s Liberation Army Navy from trying to attack past the first island chain.
Also, this is a good time to tell you, readers, about the two F-35s that just landed in Brunei. The two jets are assigned to Eielson Air Force Base in Alaska but operated from Brunei’s Rimba air base during a visit from a Pentagon official. The occasion is further proof of the U.S. strengthening alliances in the Indo-Pacific region (INDOPACOM).
So, in addition to the Japanese Type 12s in Okinawa (and probably elsewhere), we have the U.S. Air Force landing F-35s in Brunei, the Air Force and Marines in the Philippines, and we also know that the Marine Corps and the Air Force are going to be populating many of these small little remote islands, littoral locations, with forces. “ACE” is the name of the initiative in the Air Force, or Agile Combat Employment. The Marines used to call it Force Design 2030. Now, they’ve kind of gotten rid of the “2030” part. But all of that is in addition to the 30,000 troops the U.S. already has stationed in Okinawa.
So, what the U.S. has done with the partnerships that it’s created with its allies, is essentially create a steel maritime curtain across this entire region of the first island chain. And they do that to keep the People’s Liberation Army Navy (PLAN) locked in within that first island chain.
The PLAN has the world’s largest navy, but that is only by hull number, not necessarily by mass. And the vast majority of the vessels in the PLAN are not blue water ships. The Chinese navy is not a blue water navy. What does that mean? They can’t sail in the wide-open ocean like the U.S. fleet can.
The world’s foremost fleet in maritime open ocean navigation is, by far, the United States Navy, and the PLAN just doesn’t have the capacity to compete with the U.S. Navy in the open ocean. Which is why so much focus is put on keeping the PLAN locked into that first island chain, to deter it from wanting to become a blue water fleet, and prevent the PLAN from being aggressive on the open ocean, where more maritime assets might be put at risk.
IT JUST GOT A LITTLE BIT HARDER FOR CHINA TO TRY AND TAKE TAIWAN…OR IMPOSE ITS WILL IN THE WESTERN PACIFIC. THAT’S BECAUSE JAPAN JUST MOVED A BATTERY OF ITS NEW TYPE 12 SURFACE TO SHIP MISSILES TO OKINAWA.
MEDIA OUTLETS IN JAPAN SAY THE COUNTRY’S SELF DEFENSE FORCE, THE OFFICIAL NAME OF THE JAPANESE MILITARY, MOVED THE COMPONENTS FOR THE TYPE-12 MISSILE UNIT TO THE ISLAND IN MID MARCH. IT’S THE FIRST TIME THERE’S BEEN AN ANTI-SHIP MISSILE UNIT ON OKINAWA, AND THE TYPE 12 IS CERTAINLY A GREAT WEAPON SYSTEM TO MARK THE OCCASION.
JAPAN TEST FIRED THE NEW TYPE-12 OFF AUSTRALIA’S EAST COAST LAST YEAR DURING TALISMAN SABRE. THE UPGRADED SURFACE-TO-SHIP MISSILE IS LONGER, FEATURES A MODIFIED SHAPE AND BOASTS INCREASED ENGINE ENDURANCE. THE TYPE 12 ALSO GOT AN UPGRADE TO ITS COMMAND LINK–SO IT CAN GET TARGET UPDATES WHILE IN FLIGHT. THAT’S HANDY AGAINST SHIPS, WHICH DON’T EXACTLY SIT STILL WAITING TO BE SUNK.
AND ONE OF THE GREATEST UPGRADES ON THE TYPE 12 IS ITS NEW RANGE. INITIALLY TYPE 12S WERE ONLY EFFECTIVE TO ABOUT 100 KILOMETERS…NOW THEY’RE GOOD TO ABOUT 1000 KILOMETERS…AND THAT’S WHY PUTTING THEM ON OKINAWA MEANS SO MUCH, BECAUSE IT’S A CRITICAL CHOKE-POINT IN WHAT’S KNOWN AS THE FIRST ISLAND CHAIN.
ALRIGHT, SO LET’S GO AHEAD AND BREAK DOWN THAT FIRST ISLAND CHAIN AND TALK ABOUT WHY IT’S SO IMPORTANT. IT STARTS UP HERE IN THE NORTHERN PART OF THE JAPANESE ARCHIPELAGO, AND THEN IT EXTENDS DOWN THROUGH AND INCLUDES TAIWAN, THE PHILIPPINES, INDONESIA, DOWN INTO MALAYSIA. SO BASICALLY, THIS AREA RIGHT HERE IS CONSIDERED THE FIRST ISLAND CHAIN.
WHERE IS OKINAWA IN ALL OF THIS? IT IS RIGHT HERE. RIGHT ABOUT THE MIDDLE. AND HOW FAR, YOU MIGHT ASK YOURSELF, IS OKINAWA FROM MAINLAND CHINA? THAT’S A DISTANCE OF 723 KILOMETERS. 723 KILOMETERS. FOR THOSE OF YOU THAT WERE LISTENING ACUTELY, YOU MIGHT REMEMBER THAT THE TYPE 12 MISSILE HAS A RANGE NOW OF 1,000 KILOMETERS. 1,000 IS MORE THAN 723.
SO, FROM OKINAWA, THE JAPANESE SELF DEFENSE FORCE COULD, IN THEORY, HIT TARGETS WITHIN MAINLAND CHINA. NOW, THESE ARE ANTI SHIP MISSILES. SO, WE DON’T KNOW IF THEY HAVE THE TECHNOLOGY NECESSARILY TO TARGET LAND-BASED OBJECTS. BUT ESSENTIALLY, IT SHOULD HELP DETER THE CHINESE NAVY, THE PEOPLE’S LIBERATION ARMY NAVY, FROM TRYING TO INCUR PAST THE FIRST ISLAND CHAIN.
ALSO, THIS IS A GOOD TIME TO TELL VIEWERS OUT THERE THAT THESE TWO BEAUTIES ARE F35s. THEY JUST LANDED IN BRUNEI, WHICH IS FURTHER PROOF OF THE U.S. STRENGTHENING ALLIANCES IN THE INDO-PACIFIC REGION, INDOPACOM AS IT’S KNOWN, AND SOLIDIFYING ALL OF THE PARTNERSHIPS, MILITARY PARTNERSHIPS, THAT EXIST IN THIS REGION OF THE WORLD. WHERE IS BRUNEI ON THIS MAP? YES. WHERE’S BRUNEI? OH, THANK YOU.
IT IS RIGHT. RIGHT ABOUT THERE. OKAY. SO, IN ADDITION TO THE JAPANESE TYPE 12, WE HAVE THE U.S. AIR FORCE LANDING F-35s IN BRUNEI, WE HAVE THE AIR FORCE AND MARINES IN THE PHILIPPINES. WE HAVE THE JAPANESE PUTTING TYPE 12s ANYWHERE AND EVERYWHERE THEY CAN, WHICH WILL BE OVER THE LENGTH AND BREADTH OF ITS LAND, I’M SURE. AND WE ALSO KNOW THAT THE U.S. MARINE CORPS AND THE AIR FORCE IS GOING TO BE POPULATING MANY OF THESE SMALL LITTLE REMOTE ISLANDS, LITTORAL LOCATIONS, WITH FORCES. “ACE” IS WHAT IT’S CALLED FOR THE AIR FORCE, AGILE COMBAT EMPLOYMENT. THE MARINES USED TO CALL IT FORCE DESIGN 2030. NOW, THEY’VE KIND OF GOTTEN RID OF THE 2030 PART OF IT. BUT ALL OF THAT IS IN ADDITION TO THE 30,000 TROOPS THAT THE U.S. ALREADY HAS STATIONED IN OKINAWA. SO, WHAT THE U.S. HAS DONE WITH THE PARTNERSHIPS THAT IT’S CREATED WITH ITS ALLIES, IS ESSENTIALLY CREATE A STEEL MARITIME CURTAIN ACROSS THIS ENTIRE REGION OF THE FIRST ISLAND CHAIN. AND THEY DO THAT TO KEEP THE PEOPLE’S LIBERATION ARMY NAVY, THAT’S THE OFFICIAL NAME OF THE CHINESE NAVY, LOCKED IN WITHIN THAT FIRST ISLAND CHAIN.
NOW, THE CHINESE NAVY, THE PLAN, HAS THE WORLD’S LARGEST NAVY YES, BUT THAT IS ONLY BY HULL NUMBER. IT IS NOT NECESSARILY BY MASS. AND THE VAST MAJORITY OF THE VESSELS IN THE PLAN ARE NOT BLUEWATER SHIPS. THE CHINESE NAVY IS NOT A BLUEWATER NAVY. WHAT DOES THAT MEAN? THEY CAN’T SAIL IN THE WIDE-OPEN OCEAN LIKE THE U.S. FLEET CAN. LIKE SOME RUSSIAN SHIPS CAN. LIKE SOME IN THE UK, FRANCE, AND INDIA. THEY ALL HAVE SOME BLUE WATER, OPEN OCEAN VESSELS. BUT THE WORLD’S FOREMOST FLEET IN MARITIME OPEN OCEAN NAVIGATION IS, BY FAR AND AWAY, THE UNITED STATES NAVY. AND THE CHINESE NAVY JUST DOESN’T HAVE THE CAPACITY TO COMPETE WITH THE U.S. NAVY OUT HERE. WHICH IS WHY SO MUCH FOCUS IS PUT ON KEEPING THE PLAN LOCKED INTO THAT FIRST ISLAND CHAIN.
ALSO, LET’S TALK ABOUT F-35s A LITTLE BIT MORE. THE F-35 WAS JUST RECENTLY CERTIFIED TO BE ABLE TO CARRY NUCLEAR ARMAMENTS. WE MENTIONED THAT THEY CAN LAND IN BRUNEI, AND LOCKHEED MARTIN AND THE U.S. AIR FORCE JUST GOT DONE TESTING THE ADVANCED RAPID RESPONSE WEAPON. IT’S LOCKHEED MARTIN’S VERSION OF A HYPERSONIC MISSILE. IT WAS PROBABLY THE LAST TEST OF THE WEAPON. IT WAS SUCCESSFUL. THAT’S ABOUT ALL THE DETAILS THAT LOCKHEED MARTIN AND THE AIR FORCE ARE GIVING US ABOUT IT. BUT WHEN YOU PUT ALL OF THIS TOGETHER, THE TYPE 12 MISSILES, THE F-35 LANDING IN BRUNEI, THE SUCCESSFUL TEST OF THE ARRW MISSILE FROM LOCKHEED MARTIN, IT’S ALL BACKING UP THE U.S. STRATEGY OF LOCKING IN THE CHINESE MILITARY INTO THAT FIRST ISLAND CHAIN TO PREVENT IT FROM BEING AGGRESSIVE ON THE OPEN OCEAN, WHERE MORE MARITIME ASSETS MIGHT BE PUT AT RISK.
Straight to your inbox.
By entering your email, you agree to the Terms & Conditions and acknowledge the Privacy Policy.
Former President Donald Trump’s prediction of President Joe Biden’s intentions to “destroy the oil industry” during the 2020 presidential campaign has not materialized as expected. In fact, the United States has witnessed unprecedented levels of oil production, outputting more of it than any other nation has in human history.
New data released by the Energy Information Administration (EIA) confirms this trend, revealing that the U.S. produced a record-breaking 12.9 million barrels of oil per day in 2023. This figure exceeds the previous worldwide high of 12.3 million barrels set in 2019 during the Trump administration.
Point phone camera here
These statistics defy the narratives pushed by some on the political right regarding the fate of the oil industry under Biden. However, they also challenge the notion that Biden’s policies aimed at transitioning away from oil have taken significant effect.
The Biden administration’s commitment to shift away from fossil fuels has included imposing moratoriums on new oil and gas leases on federal lands and waters, where nearly a quarter of the nation’s domestic oil supply still originated from prior to these measures. The White House has also introduced initiatives that impose new fees and emissions fines on the industry to incentivize a transition to alternative energy sources.
Nevertheless, American oil production accounted for almost one-fifth of the world’s total supply in the 2023, solidifying its position as the global leader. Not only that, but the U.S. is actually projected to surpass its 2023 oil production record multiple times in the coming years.
The surge in U.S. oil production can be attributed in part to geopolitical developments, particularly Russia’s invasion of Ukraine, which prompted European nations to seek alternative oil suppliers due to sanctions imposed on Moscow. Consequently, the U.S. emerged as the top crude oil supplier to Europe.
Advancements in drilling technology — notably horizontal drilling and hydraulic fracturing — have also played a pivotal role in increasing oil productivity. These innovations have enabled energy companies to extract more oil from existing sites, contributing to the surge in production.
[TRUMP]
“Basically what he’s saying is he is going to destroy the oil industry.”
[JACK AYLMER]
THAT PREDICTION FROM FORMER PRESIDENT TRUMP BACK IN 2020 – HASN’T EXACTLY PLAYED OUT.
IN FACT, RIGHT NOW, THE U.S. IS PRODUCING MORE OIL THAN ANY OTHER NATION HAS EVER BEFORE – IN HUMAN HISTORY.
THE ENERGY INFORMATION ADMINISTRATION RELEASED NEW DATA TO BACK THIS UP.
ACCORDING TO THE EIA, THE U.S. PRODUCED A RECORD BREAKING 12.9 MILLION BARRELS OF OIL EVERY DAY IN 2023.
THAT BEAT OUT THE PREVIOUS HIGH MARK OF 12.3 MILLION BARRELS, WHICH WAS SET BY THE U.S. IN 2019 UNDER THE TRUMP ADMINISTRATION.
THOSE FIGURES DON’T EXACTLY LINE UP WITH WHAT SOME ON THE RIGHT HAVE SAID ABOUT THE OIL INDUSTRY UNDER PRESIDENT BIDEN.
Steven Palazzo
“I rise today to address President Biden’s attack on American energy independence.”
Tom McClintock
“I mean, look at this war on fossil fuels. Fossil fuels produce 80% of electricity in our economy, they produce it far more cheaply than wind and solar.”
[Lauren Boebert]
“He has made it clear that he cares more about appeasing the radical climate change activists than protecting the millions of oil and gas workers and producers in America.”
[JACK AYLMER]
BUT, THE DATA ALSO DOESN’T REALLY ALIGN WITH BIDEN’S PLAN TO TRANSITION AWAY FROM OIL EITHER.
[Biden]
Unlike previous administrations, I don’t think the federal government should give handouts to big oil
[JACK AYLMER]
AND BIDEN HAS KEPT THAT PROMISE – EVEN GOING SO FAR AS TO PLACE MORATORIUMS ON NEW OIL AND GAS LEASES ON FEDERAL LANDS AND WATERS.
PRIOR TO THAT, NEARLY A QUARTER OF THE NATION’S DOMESTIC SUPPLY CAME FROM LEASES ON FEDERALLY OWNED AREAS.
BUT, THE ADMINISTRATION HAS PUSHED AHEAD WITH MULTIPLE PIECES OF LEGISLATION THAT AIM TO FURTHER REDUCE WHAT IS AVAILABLE FOR OIL COMPANIES.
ON TOP OF THAT, THE WHITE HOUSE HAS IMPOSED NEW DRILLING FEES AND EMISSIONS FINES ON THE INDUSTRY TO FURTHER INFLUENCE A TRANSITION AWAY FROM THIS ENERGY SOURCE.
YET, DESPITE ALL OF THIS, AMERICAN OIL STILL ACCOUNTED FOR ALMOST A FIFTH OF THE PLANET’S TOTAL SUPPLY LAST YEAR, MAKING IT THE WORLDWIDE LEADER.
NOT ONLY THAT, THE U.S. IS ACTUALLY EXPECTED TO BEAT OUT ITS 2023 OIL RECORD AGAIN DURING THE COMING YEARS.
SO, HOW IS THAT POSSIBLE?
WELL, RUSSIA’S INVASION OF UKRAINE INCENTIVIZED COMPANIES TO PULL EVERY LAST DROP OF OIL FROM THEIR EXISTING WELLS.
MANY EUROPEAN nations RELIED HEAVILY ON RUSSIA FOR THEIR OIL NEEDS.
WHEN THAT SUDDENLY STOPPED BEING A POSSIBILITY DUE TO INTERNATIONAL SANCTIONS AGAINST MOSCOW OVER THEIR AGGRESSION IN UKRAINE, IT POSED A MAJOR PROBLEM FOR EUROPE’S ENERGY NEEDS.
SO, MANY COUNTRIES WITHIN THE CONTINENT HAVE SINCE BEEN USING AMERICAN OIL AS A REPLACEMENT.
MAKING THE U.S. NOW THE TOP SUPPLIER OF CRUDE OIL TO EUROPE.
ADVANCEMENTS IN DRILLING TECHNOLOGY HELPED U.S. COMPANIES PROCURE ALL THAT EXTRA OIL.
THAT’S BECAUSE HORIZONTAL DRILLING AND HYDRAULIC FRACTURING INNOVATIONS HAVE INCREASED THE PRODUCTIVITY OF OIL WELLS.
THIS HAS ALLOWED ENERGY COMPANIES TO ACCESS MORE OIL FROM EXISTING SITES THAT WAS PREVIOUSLY UNATTAINABLE WITHOUT SIGNIFICANTLY MORE DRILLING.
AS BIDEN’S GREEN ENERGY PUSH CONTINUES, OIL IS STILL POISED TO BE A CONTINUED PART OF THAT TRANSITION.
ITS SOMETHING THE PRESIDENT HAS EVEN ACKNOWLEDGED HIMSELF.
[Biden]
“We’re still gonna need oil and gas for a while.”
[JACK AYLMER]
WITH THOSE ANTICIPATED U.S. OIL PRODUCTION INCREASES ON THE HORIZON, THOSE OIL PIPELINES PROBABLY WON’T STOP FLOWING ANYTIME SOON.
Straight to your inbox.
By entering your email, you agree to the Terms & Conditions and acknowledge the Privacy Policy.
Lawmakers in almost a dozen states have introduced legislation to prop up coal plants that are facing closures. With U.S. power demand surging to record heights in coming years due to increased usage of emerging electricity-reliant technologies, some officials believe the Biden administration’s clean energy transition will not happen fast enough to meet the nation’s growing needs.
“People were concerned that power plants were being taken offline before the new power plants were ready to go,” Joe Trotter, the American Legislative Exchange Council’s energy, environment and agriculture task force director, told Politico. “When you marry that with basically the increase in electrification and electric cars — essentially the increased demand for electricity — it just creates a problem.”
Point phone camera here
These proposals vary in their methods from state to state, with some granting regulators more authority to intervene in plant retirements, and others compelling utility companies to shoulder transition costs or seek alternative power sources. A bill in Utah even proposed the use of taxpayer funds to purchase closing coal plants.
The North American Electric Reliability Corp emphasized the need for continued energy production from coal, warning of increased risks of electricity shortages during extreme weather events across most regions of the country in the coming decade. This challenge is further compounded by U.S. electricity demand now being anticipated to jump 80% higher than what had been expected over the next five years, driven by the proliferation of technologies like cryptocurrency mining, artificial intelligence and electric vehicles.
However, critics argue that prolonging the life of coal plants merely postpones the inevitable and exacerbates environmental harm. A report by Energy Innovation reveals that almost all of the nation’s 210 remaining coal plants would be more costly to operate than replacing them with renewable energy sources.
“Coal’s decline has really sunk in,” said Michelle Solomon, a senior policy analyst at the Energy Innovation. “With the price of batteries coming down quite rapidly, it makes it a no-brainer to install renewables and storage instead of relying on a coal plant that’s going to be more expensive.”
The size of the investment this would require can be demonstrated in the case of a coal plant in Utah targeted for potential preservation. Even if the state were to purchase it as proposed legislation would allow, the expenses associated with updating the plant and retrofitting it with carbon capture technology could amount to approximately $5 billion.
Environmental concerns are another factor in the pushback against the continued use of this energy production method. Coal remains the largest source of greenhouse gasses in the U.S. energy sector, responsible for over half of the emissions generated and contributing to global pollution that claims half a million lives worldwide every year.
The Environmental Protection Agency has proposed regulations that could effectively mandate the closure of all coal plants by 2040 unless they adopt costly emissions capture technology that would have to curtail at least 90% of the pollution they create before 2030.
Ultimately, the debate over the future of coal plants in America is a race against time. While eliminating them presents a clear environmental benefit, meeting the nation’s escalating energy demands poses a significant challenge as well.
Tags: Artificial Intelligence, Coal, Cryptocurrency, Electric vehicles, Environmental Protection Agency, greenhouse gas emissions, Joe Biden, Utah
[JACK ALYMER]
AMERICA’S DEMAND FOR POWER – IS GETTING GREATER BY THE DAY.
FROM CRYPTO-MINING, TO ARTIFICIAL INTELLIGENCE, THE GRID IS STRAINING TO MEET THE NEED.
THE FEDERAL GOVERNMENT WANTS THAT NEED TO BE MET WITH RENEWABLE ENERGY – BUT THAT TRANSITION ISN’T KEEPING PACE.
ENTER – AN OLD ALTERNATIVE – COAL.
DESPITE IT’S ‘DIRTY’ REPUTATION – A FIFTH OF THE POWER GENERATED IN THE U-S STILL COMES FROM COAL PLANTS.
HOWEVER THAT NUMBER HAS BEEN DWINDLING IN RECENT YEARS.
CLOSE TO HALF OF THE NATION’S POWER CAPACITY FROM COAL PLANTS IS ON TRACK TO BE GONE BY 20-26.
NOW – SOME LAWMAKERS ARE CALLING TO KEEP THESE FACILITIES RUNNING BY PROPPING THEM UP
NO, NOT LIKE THAT.
IN ALMOST A DOZEN STATES, LEGISLATION HAS BEEN INTRODUCED TO SAVE COAL PLANTS FACING IMPENDING CLOSURES.
HOW THEY’RE TRYING TO DO THAT VARIES FROM STATE TO STATE.
SOME PROPOSALS WOULD GIVE STATE REGULATORS MORE POWER TO INTERVENE IN COAL PLANT RETIREMENTS.
OTHERS WOULD REQUIRE UTILITY COMPANIES TO COVER TRANSITION COSTS OR FIND ALTERNATIVE SOURCES OF POWER.
ONE BILL IN UTAH EVEN ALLOWS THE STATE TO USE TAXPAYER DOLLARS TOWARD THE PURCHASE OF CLOSING COAL PLANTS.
WHILE THE METHODS DIFFER, THE GOAL REMAINS THE SAME.
KEEP PLANTS OPEN SO RENEWABLE ENERGY INFRASTRUCTURE CAN CATCH UP.
THE NORTH AMERICAN ELECTRIC RELIABILITY CORP PUTS IT IN NO UNCERTAIN TERMS. THEY SAY THAT OVER THE NEXT DECADE MOST REGIONS OF THE COUNTRY ARE FACING INCREASED RISKS OF INADEQUATE ELECTRICITY SUPPLIES DURING PERIODS OF EXTREME WEATHER.
THIS IS COMPOUNDED BY THE FACT THE NATION’S ELECTRICITY LOAD IS EXPECTED TO JUMP MORE THAN 80 PERCENT HIGHER THAN WHAT HAD BEEN EXPECTED OVER THE NEXT FIVE YEARS.
THAT’S A RESULT OF A VARIETY OF NEW TECHNOLOGIES WHICH MORE AND MORE PEOPLE ARE BEGINNING TO USE, LIKE CRYPTO, AI, AND EVEN ELECTRIC VEHICLES.
THEY’RE ALL PUTTING A STRAIN ON U.S. ELECTRICITY SUPPLY.
GREEN ENERGY ADVOCATES ARGUE DELAYING THE INEVITABLE BY KEEPING COAL PLANTS OPEN WILL ONLY CAUSE MORE HARM THAN GOOD.
A REPORT BY ENERGY INNOVATION FOUND ALL BUT ONE OF THE COUNTRY’S 210 REMAINING COAL PLANTS WOULD COST MORE TO RUN THAN IF THEY WERE REPLACED BY RENEWABLE ENERGY SOURCES.
MEANWHILE, THE EPA HAS PROPOSED RULES THAT WOULD ESSENTIALLY REQUIRE ALL COAL PLANTS TO CLOSE BY 20-40 ANYWAY.
THE ONLY WAY THEY COULD STAY OPEN UNDER THIS POTENTIAL MANDATE IS IF PLANTS START CAPTURING 90 PERCENT OF THEIR EMISSIONS BY 20-30.
THIS WOULD FURTHER ADD TO OPERATING COSTS WHICH ALREADY RUN MUCH HIGHER THAN THEIR CLEAN ENERGY REPLACEMENTS.
TAKE ONE OF THE COAL PLANTS THAT UTAH BILL IS LOOKING TO KEEP ALIVE FOR EXAMPLE.
EVEN IF THE STATE DID BUY IT, THE COST OF UPDATING THE PLANT AND RETROFITTING IT WITH CARBON CAPTURE TECH WOULD TOTAL ABOUT 5 BILLION DOLLARS.
AND THERE’S THE ENVIRONMENTAL DOWNSIDE AS WELL.
NO OTHER SOURCE OF ELECTRICITY IN THE U.S. PRODUCES MORE GREENHOUSE GAS EMISSIONS THAN COAL.
IT’S RESPONSIBLE FOR OVER HALF OF WHAT THE COUNTRY’S ENERGY SECTOR EMITS.
GLOBALLY, POLLUTION FROM COALS KILLS HALF A MILLION PEOPLE EVERY YEAR.
ELIMINATING THEM IS AN EASY SOLUTION FROM AN ENVIRONMENTAL STANDPOINT, BUT A DIFFICULT ONE WHEN IT COMES TO MEETING AMERICA’S GROWING ENERGY NEEDS.
EITHER WAY, IT’S A DEBATE WITH A TICKING CLOCK.
Straight to your inbox.
By entering your email, you agree to the Terms & Conditions and acknowledge the Privacy Policy.
Projects are being canceled and studios shuttered amid a wave of layoffs in the video game industry that has put thousands out of jobs. But many are wondering what’s driving these deep cuts after video game revenue hit another record in 2023.
Point phone camera here
The new year is off to a rough start for those working in gaming. In January and February alone, Kotaku reports that more than 8,100 people have or will be laid off. This is headlined by EA cutting 5% of its workforce, Sony letting go of 900 employees from its PlayStation division, and Microsoft laying off 1,900 Activision-Blizzard and Xbox employees.
The global video game market reached a record $217 billion in 2023, according to estimates from video game data firm Aldora. For context, the music industry generated $28.9 billion last year, according to Barclays, while the global box office brought in $33.9 billion.
“It’s both the best year and the worst year for the games industry,” Aldora co-founder and CEO Joost van Dreunen told Straight Arrow News.
“The expectation for 2024 is a flat year. 2023 was such a blowout year in terms of these big releases that we’re now seeing,” he said. “Everybody kind of took a step back and said, ‘Let’s take it easy because 2024 doesn’t look like it’s going to be amazing.'”
Behind the company curtain
While software sales have been massive, lagging hardware sales could be to blame for some of the cuts.
“Sony probably assumed that the PlayStation 5 would trend the same way that PS2, 3 and 4 did,” said Michael Pachter, managing director at Wedbush Securities. “And it’s not selling as many, period. They’re three full years into the cycle and they sold 54 million units. They typically sell north of 20 million a year.”
Meanwhile, Pachter chalks up Microsoft’s layoffs to its massive acquisition of Activision-Blizzard, which was finalized last year despite objections from the Federal Trade Commission. Shortly after the cuts became public, a lawyer for the government regulator took issue with the job loss.
“Microsoft, I think, is largely a function of their combination with Activision,” Pachter said. “So it’s probably about 20% of the Activision workforce that they laid off. So there was certainly a lot of redundancy. You don’t need two CFOs or as many HR people or as many legal people.”
Joining forces
Consolidation is a huge part of the current gaming industry. Microsoft’s $69 billion deal to purchase Activision-Blizzard was the Windows-maker’s largest in its history. It also acquired ZeniMax Media for $7.5 billion in 2020, adding the Doom, Fallout and Elder Scrolls series to their stable.
Well before it gobbled up some of the biggest publishers in the business, Microsoft spent $2.5 billion to buy Mojang, the studio behind Minecraft, in 2014.
Sony, for its part, has taken a different approach, picking up smaller studios before they become multibillion-dollar behemoths. Its biggest acquisition was in 2022 when it spent $3.7 billion on Destiny-maker Bungie.
“Either you invest a lot of money internally and develop it yourself or you acquire and hope it works,” van Dreunen said of the push to acquire studios.
Subscription surge
Microsoft’s recent string of acquisitions is an attempt to draw gamers to its subscription service, Game Pass, which offers a rotating list of games. It’s similar to Netflix and Hulu for video games.
“If you spend enough time in Game Pass, you never have to leave,” Pachter said. “If you spend enough time on Netflix, you never have to leave. Do you miss out on Oppenheimer? Yes, you do. But can you live without seeing Oppenheimer?”
“They rely upon scale to bring down the cost of the components… We’re not seeing component costs coming down as rapidly.”
Michael Pachter
In today’s landscape, subscription offerings are seen as a necessary part of the game. Sony has several tiers of PlayStation Plus, while Nintendo has retro offerings for Nintendo Switch Online subscribers.
Subscriptions help to subsidize the business as console makers often take a loss on hardware sales.
“When somebody goes and they buy an Xbox at their local retailer, we’re subsidizing that purchase somewhere between $100 and $200, with the expectation that we will recoup that investment over time through accessory sales and storefront,” Microsoft Gaming CEO Phil Spencer told The Wall Street Journal in 2022.
“They rely upon scale to bring down the cost of the components,” Pachter added. “But that’s not happening anymore. We’re not seeing component costs coming down as rapidly.”
How live games changed the game
The business behind video games was once a simple proposition: Develop games in the most cost-effective way possible, sell a lot of copies of the game, and come up with a new idea to do it again.
Today, juggernaut live games boast big player counts and screen time on the platform of the player’s choosing.
“We’ve sort of seen this inversion over the last five years, where it used to be that the platform was the biggest thing and the games would sort of tuck in within the platform,” Microsoft President of Gaming Content Matt Booty said during an episode of “The Official Xbox Podcast” in February. “Today, big games like Roblox or Fortnite could actually be bigger than any one platform. And that really has changed the way that we think about things.”
More and more, companies are looking to games as a service, which offers studios a continuing revenue model rather than relying on the initial purchase.
“You could also sort of shape the experience according to the likes of the audience.”
Joost van Dreunen
This can be done in various ways. Some of the most popular include subscriptions for playtime, a feature seen in many large-scale, multiplayer online role-playing games like World of Warcraft.
Microtransactions, low-cost purchases that can include cosmetic items or power-ups, appear in a good portion of games these days and are most prevalent in mobile games.
See SAN’s piece on Kim Kardashian: Hollywood shutting down for more insight into this model.
Then there are season passes, where users pay to have access to a progression tree that features in-game items that could be worth double or triple the player’s initial investment.
“The real rationale for season pass is not to collect the $10 for the pass, it’s to keep the player engaged with daily tasks,” Pachter said. “Because the player who comes back every day to make sure he gets his money’s worth and earns his little thing tends to stay an extra 10 or 20 or 30 minutes. And more engagement just necessarily translates to higher in-app purchases.”
“The idea is to convert monthly active users into daily active users and that conversion goes up with a season pass,” he added.
A constant stream of revenue is just part of the benefit of live service games.
“It’s much better to have live services and ongoing engagements where we build the game to 40% completion and then we just iterate on the model as we go,” van Dreunen said. “This gives you two benefits. One of them is you sidestep the issues traditionally associated with demand uncertainty.”
“But at the same time you could also sort of shape the experience according to the likes of the audience,” he continued. “So it’s much more of a back and forth rather than, ‘We develop this pristine experience right here. It’s secret and now we hope that it works.'”
“Some people like to watch movies in a theater, be entertained for two hours and go home and talk about the movie for a week,” Pachter said of the difference in models. “And others like to watch reality TV shows and watch dating shows and guess who the bachelorette is going to pick. So those are completely different experiences. Live services is far more analogous to reality TV than it is to a self-contained film.”
Exclusive game viability
Since the dawn of modern video games, console-exclusive titles have driven sales for any specific platform.
“They’ve built their fan base very strongly around these exclusives,” van Dreunen said. “Sony and Microsoft have really put together a marketing plan for the devices that have a particular personality. And so people identify very closely with.”
In February, rumors swirled that Xbox would be offering its exclusive titles to competitors PlayStation and Nintendo. In response, the gaming media painted the situation as the end of the brand.
“The gaming press plays to that stupid, infantile approach by saying, ‘Oh no, no, Microsoft, our understanding as gaming press is all console-first party titles should be exclusive. And you’re violating our preconceived notion of how it should be,'” Pachter said of the reaction.
The perceived drama culminated with a special episode of “The Official Xbox Podcast” featuring Spencer.
“So we’ve made the decision that we’re going to take four games to the other consoles, just four games, not a change to our kind of fundamental exclusive strategy,” Spencer said.
Those games are Pirate-sim Sea of Thieves, Grounded, Hi-Fi Rush and Pentiment, a far cry from Halo and Gears of War leaving Xbox.
“I actually think Microsoft’s overarching goal is to sell Game Pass subscriptions,” Pachter said. “And their strategy is to hook the consumer. And I think that they’re acknowledging right now that they don’t have everybody.”
“What makes Fortnite so successful, makes Minecraft so successful, is that they’re available on any platform,” van Dreunen said. “And increasingly, we’ll be moving in that direction. And then we become much more platform agnostic.”
But even with these changes in the gaming industry, decades-long console wars are not heading for a peace treaty.
“I just think sales get cut in half next cycle, not to zero,” Pachter said of the next console generation. “And then they get cut in half again the next cycle, and they get cut in half again the next cycle.”
“It’s a little bit the equivalent of having really, really expensive headphones or really, really, really high-definition televisions and there’s always going to be an audience for that,” van Dreunen said. “And then there’s everybody else.”
While this year’s gaming layoffs are on track to far outpace 2023’s numbers, it doesn’t appear to be a warning sign for the industry that has seen significant growth in recent years.
“I would expect all these companies in 18 months to be rehiring a lot of the people that they just laid off,” van Dreunen said.
“Layoffs at Microsoft’s gaming division. 1900 employees at Activision Blizzard and Xbox are losing their jobs.”
“Sony is laying off 900 employees at its playstation division. The cuts include the closure of an entire studio.”
“EA has announced plans to layoff 5 percent of its staff, continuing its initiative to never appear in positive news coverage.”
SIMONE DEL ROSARIO:
It certainly sounds like the gaming industry is in trouble.
JOOST VAN DREUNEN:
“It’s both the best year and the worst year for the games industry. Right?”
“So last year, we saw, you know, a total of 10,500 announced layoffs in the industry. It’s now the end of February, we’re already up to 7100, or something like that.”
SIMONE DEL ROSARIO:
But the global games market reached an estimated record $217 billion in 2023, according to video game data firm Aldora.
“New High score? Is that bad? What’s that mean? Did I break it?”
SIMONE DEL ROSARIO:
So what’s with all the layoffs?
MICHAEL PACHTER:
“I think that Sony probably assumed that the PlayStation five would trend the same way that PS two, three and four did. And it’s not selling as many, you know, period. I mean, they’re, they’re three full years into the cycle, and they sold 54 million units, they typically sell north of 20 million a year.”
SIMONE DEL ROSARIO:
Meanwhile, Microsoft’s layoffs came following its huge acquisition of Activision-Blizzard, and the FTC isn’t too happy about it after it failed to block the deal.
MICHAEL PACHTER:
“So there was certainly a lot of redundancy, you don’t need two CFOs or as many HR people or as many legal people.”
SIMONE DEL ROSARIO:
The torrent of job cuts, then, seem to point to a transition in the industry, not necessarily turmoil.
Microsoft’s $69 billion Activision-Blizzard acquisition is an exclamation mark on a trend seen for years from console heavyweights. They’ve been gobbling up studios and publishers to strengthen their stable in competition to be a gamer’s top hardware choice.
Before its blockbuster Activision deal, Microsoft bought ZeniMax Media for $7.5 billion in 2020, adding the Doom, Fallout and Elder Scroll series to its catalog. And back when these big deals were just a pipedream in 2014, Microsoft still spent $2.5 billion to buy the studio behind Minecraft.
Sony’s feeling the pressure to up the acquisition game. They dropped $3.7 billion on Destiny-maker Bungie in 2022, but most of their meals are smaller studios.
JOOST VAN DREUNEN:
“Either you invest lots of money internally and develop it yourself, or you acquire and hope it works.”
SIMONE DEL ROSARIO:
Microsoft’s recent acquisitions are an attempt to attract gamers to its subscription service Game Pass, which offers a plethora of first party, Triple A and indie games that rotate in and out. Like Netflix or Hulu for the gaming world.
MICHAEL PACHTER:
“If you spend enough time in Game Pass, you never have to leave. If you spend enough time on Netflix, you never have to leave. Do you miss out on you know, Oppenheimer? Yes, you do. But can you live without seeing Oppenheimer?”
SIMONE DEL ROSARIO:
Strong subscription offerings are crucial to the bottom line, considering making money off consoles is like trying to squeeze blood from a turnip.
“It’s no secret that Sony and Microsoft are willing to sell their hardware at a loss to lock you into their ecosystem of accessories, subscription services and software.”
PHIL SPENCER:
“So when somebody goes and they buy an XBox at their local retailer, we’re subsidizing that purchase somewhere between a hundred and 2 hundred dollars. With the expectation that we will recoup that investment over time through accessory sales and storefront.”
MICHAEL PACHTER:
“They rely upon scale to bring down the cost of the components. So, you know, years ago, I mean, 2005, flash memory was super expensive. And by 2013, it was cheap.”
“But that’s not happening anymore. We’re not seeing component costs coming down as rapidly.”
SIMONE DEL ROSARIO:
Before every console was connected to the internet, the business model was simple.
Develop a game in the most cost-effective way, sell as many copies as possible, and try to come up with another idea to do it all over again.
MATT BOOTY:
“We’ve sort of seen this inversion over the last five years where it used to be that the platform was the biggest thing. And the games would sort of tuck in. Within the platform today, big games, like a Roblox or fortnight could actually be bigger than any one platform. And that really has changed the way that we think about things.”
SIMONE DEL ROSARIO:
Now, games as a service, known as “live games,” are king. These are games that have a continuing revenue model rather than just the initial purchase.
This can be done in lots of ways.
“For the Horde!”
SIMONE DEL ROSARIO:
There are monthly subscriptions for playtime, something you’ll see in World of Warcraft.
Then there are microtransactions, low-cost purchases that include cosmetic items or power ups. While these appear in all kinds of games, they are most prevalent in mobile games. We did a whole piece on Kim Kardashian: Hollywood, that really breaks this down.
Then there’s the season pass…
MICHAEL PACHTER:
“The guys who invented Season Pass were the Epic guys with Fortnite. And, you know, it’s brilliant.”
SIMONE DEL ROSARIO:
For a season pass, you might spend 10 bucks and get 20 bucks worth of stuff. But the boost only lasts for a short period of time.
MICHAEL PACHTER:
“the real rationale for Season Pass is not to collect the 10 bucks for the pass, it’s to keep the player engaged with daily tasks. Because the player who comes back every day to make sure he gets his money’s worth and earns his little thing tends to stay an extra 10 or 20 or 30 minutes. And more engagement just necessarily translates to higher in-app purchases.”
“You know the idea is convert MAUs into DAUs and that conversion goes up with a season pass.”
SIMONE DEL ROSARIO:
Along with constant revenue streams, live games give developers the chance to keep building out the game as they go, instead of presenting a finished product up front without knowing what demand for it might be.
JOOST VAN DREUNEN:
“But at the same time, you know, you could also then sort of shape the experience according to the, like, likes of the audience, right. So it’s much more of a back and forth rather than we develop this pristine experience right here. It’s secret and and now we hope that it works.”
MICHAEL PACHTER:
“Some people like to watch movies in a theater, be entertained for two hours and go home and talk about the movie for a week. And others like to watch reality TV shows, and watch dating shows and guess who the bachelorette is going to pick. So those are completely different experiences. Live services is far more analogous to reality TV than it is to, you know, a self contained film.”
SIMONE DEL ROSARIO:
But let’s talk about those self-contained films.
Since the dawn of the modern video game industry, it’s been console-exclusive video games driving sales to a specific platform.
“It’s Me Mario!”
JOOST VAN DREUNEN:
“they’ve built their fan base, very strongly around these exclusives.”
“Sony and Microsoft have really put together a marketing plan for the devices that has a particular personality. And so people identify very closely with.”
SIMONE DEL ROSARIO:
But, in February, as rumors swirled that Xbox may be offering some of its exclusive wares to its competitors, the gaming media acted like it was the end of the brand as we know it.
MICHAEL PACHTER:
“The gaming press plays to that stupid, infantile approach by saying, Oh no, no, like our understanding as gaming press is all console first party titles should be exclusive. And you’re violating our preconceived notion that you know that of how it should be.
SIMONE DEL ROSARIO:
All that drama culminated with a “special edition” of the XBOX podcast featuring Microsoft Gaming CEO Phil Spencer.
PHIL SPENCER:
“So we’ve made the decision that we’re going to take four games to the other consoles, just four games, not a change to our kind of fundamental exclusive strategy.”
SIMONE DEL ROSARIO:
Those games include Pirate-sim Sea of Thieves, Grounded, Hi-Fi Rush and Pentiment…a far cry from Halo and Gears of War leaving XBOX.
MICHAEL PACHTER:
“So I actually think Microsoft’s overarching goal is to sell Game Pass subscriptions. And their strategy is to hook the consumer. And I think that they’re acknowledging right now that they don’t have everybody.”
JOOST VAN DREUNEN:
“What makes Fortnite so successful, makes Minecraft so successful, is that they’re available on any platform. And so increasingly, we’ll be moving in that direction. And then we become much more platform agnostic.”
SIMONE DEL ROSARIO:
Despite these notable changes to the gaming industry, don’t expect the traditional console war to end in a peace treaty.
JOOST VAN DREUNEN:
People have been questioning the continuity and the the extent of the console that it’s going to be around, circumscribe, for much longer, the death of the console is sort of the new year is not a new conversation.
MICHAEL PACHTER:
“I just think sales get cut in half next cycle not to zero. And then they get cut in half again, the next cycle, and they get cut in half again, the next cycle. “
JOOST VAN DREUNEN:
‘
“It’s a little bit the equivalent of have a really, really expensive headphones are really, really, really high definition televisions and you’re like, there’s always going to be an audience for that. And then there’s everybody else.”
SIMONE DEL ROSARIO:
The reasons behind the job cuts vary. This year’s gaming layoffs are on track to far outpace last year’s. But it doesn’t appear to be the canary in the coalmine for an industry that has seen substantial growth in recent years.
JOOST VAN DREUNEN:
“I would expect all these companies in 18 months to be rehiring a lot of the people that just laid off.
Straight to your inbox.
By entering your email, you agree to the Terms & Conditions and acknowledge the Privacy Policy.
With the planet generating more than 2 billion tons of trash every year, a significant portion of it ends up in landfills or open dumpsites that create environmentally harmful methane gas as they decompose. The emissions generated in this process are comparable to those of the coal mining industry, pollution from which at least is ultimately needed for energy creation, unlike with waste.
Point phone camera here
However, recent developments in waste-to-energy technology offer a potential solution to mitigate environmental impacts while generating electricity.
On the Isle of Wight, a small island off the coast of southern England, a waste-to-energy plant has been undergoing testing, demonstrating its capacity to produce enough energy to power 7,000 homes for a week by incinerating materials like paper, plastic and wood.
Developers believe this method presents a greener approach to waste disposal by harnessing the heat generated from burning trash to warm water, which then produces steam to turn turbine blades and generate power. This process also significantly reduces the physical space occupied by waste, converting 2,000 pounds of garbage into as little as 300 pounds of ash.
“The Newport plant will allow the Isle of Wight to become even more self-sufficient in terms of waste,” Steve Boswell, operational manager for the Isle of Wight Council’s Environment and Waste division said. “This project will deliver significant environmental benefits to Isle of Wight residents. It is also a localized solution because the energy will be used on the island, and there will be little wastage during the transmission phase.”
While waste-to-energy technology shows promise, it has sparked controversy due to concerns about its environmental impact.
Environmental advocacy groups have accused this energy production method of greenwashing, pointing to the release of toxic chemicals and pollutants during incineration.
Studies indicate that pollution from burning waste can infiltrate local air, water and food supplies, posing health risks to nearby communities.
“Solid waste incineration is often presented as a ‘quick-fix’ solution to reduce rapidly growing waste volumes while producing energy,” the C40 Cities Climate Leadership Group said. “However, incineration is among the worst approaches cities can take to achieve both waste reduction and energy goals. It is expensive, inefficient and creates environmental risks.”
Despite these concerns, some researchers argue that waste-to-energy processes, while not entirely green, are comparatively cleaner than obtaining power from coal or oil. However, climate experts caution against investing in infrastructure that produces pollution, emphasizing the importance of prioritizing truly sustainable energy solutions to address climate change effectively.
As testing continues in England to ensure the waste-to-energy facility meets operational standards, similar advancements are underway elsewhere. Developers in Denmark are pioneering systems with emissions primarily composed of water vapor and carbon dioxide, indicating potential improvements in waste-to-energy technology.
[JACK ALYMER]
EVERY YEAR WE THROW AWAY A TON OF TRASH.
MORE LIKE TWO BILLION TONS – GLOBALLY.
THE MAJORITY ENDS UP IN LANDFILLS OR OPEN DUMP SITES.
THERE IT SLOWLY DECOMPOSES.
IN SOME CASES TAKING CENTURIES TO BREAK DOWN.
AND WHILE IT SITS – IT SPITS OUT METHANE AND OTHER GASSES.
ON PAR WITH WHAT THE WORLD’S COAL MINING INDUSTRY GENERATES EACH YEAR.
BUT AT LEAST WITH COAL, WE GET ENERGY OUT OF THE POLLUTION IT CREATES.
WITH TRASH, NOT SO MUCH. ALTHOUGH, THAT COULD BE CHANGING.
A SMALL ISLAND OFF THE COAST OF SOUTHERN ENGLAND IS HOME TO A NEW WASTE-TO-ENERGY PLANT.
SO FAR IN TESTING, ITS SHOWN THE ABILITY TO PRODUCE ENOUGH ENERGY TO POWER 7,000 HOMES FOR A WEEK.
BY BURNING TRASH LIKE PAPER, PLASTIC, AND WOOD, THE PLANT’S DEVELOPERS BELIEVE THEY’RE CREATING A GREENER METHOD OF WASTE DISPOSAL.
[IT’S ALWAYS SUNNY]
“How is burning trash green?”
[JACK ALYMER]
FOR THOSE WHO MIGHT THINK THIS IS A DUMPSTER FIRE OF AN IDEA- LET’S BREAK IT DOWN.
THE HEAT PRODUCED FROM BURNING TRASH IS THEN USED TO WARM UP WATER UNTIL IT BECOMES STEAM.
THAT STEAM IS THEN USED TO TURN TURBINE BLADES, GENERATING POWER.
THE PROCESS WOULD ALSO HELP REDUCE THE AMOUNT OF PHYSICAL SPACE TRASH TAKES UP.
CONVERTING A TON OF GARBAGE INTO ENERGY REDUCES IT TO AS LITTLE AS JUST 300 POUNDS OF ASH.
BUT, THE WASTE TO ENERGY PROCESS ISN’T JUST GENERATING POWER, ITS PRODUCING SOME CONTROVERSY AS WELL.
[Silicon Valley]
“No, we don’t burn trash in this country.”
[JACK ALYMER]
INCINERATING TRASH RELEASES TOXIC CHEMICALS AND POLLUTANTS –
WHICH IS WHY MULTIPLE ENVIRONMENTAL GROUPS HAVE ACCUSED THIS ENERGY PRODUCTION METHOD OF GREENWASHING.
IN FACT, STUDIES HAVE SHOWN THAT POLLUTION FROM BURNING WASTE CAN MAKE ITS WAY INTO THE AIR, WATER, AND FOOD SUPPLY OF LOCAL COMMUNITIES. YOU CAN PROBABLY GUESS THE NEGATIVE HEALTH IMPLICATIONS.
OTHER RESEARCH HAS FOUND THAT, WHILE, SURE, THE WASTE TO ENERGY PROCESS IS RESPONSIBLE FOR SOME HARMFUL EMISSIONS, IT’S STILL CLEANER THAN GETTING POWER FROM COAL OR OIL.
CLIMATE EXPERTS ARGUE INVESTING IN ANY INFRASTRUCTURE THAT PRODUCES POLLUTION IS LIKE PUTTING A BANDAID ON A BULLET WOUND AND CAN BE COUNTERPRODUCTIVE FOR THE GREEN ENERGY TRANSITION.
[IT’S ALWAYS SUNNY]
“That’s the exact opposite of green, Charlie.”
“Oh, I’m sorry. I can put the trash into a landfill where it’s gonna stay for millions of years.”
[JACK ALYMER]
WHILE TESTING CONTINUES IN ENGLAND TO ENSURE THE WASTE TO ENERGY FACILITY THERE MEETS OPERATIONAL STANDARDS, THIS TECHNOLOGY IS STILL GENERATING TRACTION ELSEWHERE.
DEVELOPERS IN DENMARK ARE DEVELOPING A SYSTEM WITH EMISSIONS THAT ARE ALMOST ENTIRELY WATER VAPOR AND CARBON DIOXIDE.
WASTE TO ENERGY IMPROVEMENTS LIKE THESE COULD HELP THE INDUSTRY GROW.
Straight to your inbox.
By entering your email, you agree to the Terms & Conditions and acknowledge the Privacy Policy.
For a team that loses more than it wins, Dartmouth College basketball players racked up two victories on March 5. They bested Harvard in the season finale and voted to be the first college athletes to unionize.
Voting 13-2, Big Green’s basketball players elected to join Service Employees International Union Local 560, which already represents other Dartmouth employees. The same day, Dartmouth College appealed the National Labor Relations Board (NLRB) decision that Dartmouth players are employees.
Point phone camera here
“Classifying these students as employees simply because they play basketball is as unprecedented as it is inaccurate,” Dartmouth said in a statement.
Dartmouth College argued unionization is not appropriate in part because, unlike other universities where athletics generate millions of dollars, the costs of Dartmouth’s athletics program far exceed any revenue.
“Those arguments, I think, are phony arguments,” said Michael Hsu, a former University of Minnesota regent and co-founder of the College Basketball Players Association. “If you have unionized secretaries or even factory workers, you can’t make the argument that they don’t make money for the company, or they lose money for the company. So I think it’s a ridiculous proposition that they would use that argument. It doesn’t even have a meaningful example in the corporate world.”
Hsu has filed two charges with the NLRB against the NCAA and Northwestern’s use of the term, “student-athlete.”
The sordid past of ‘student-athlete’
“These boys are student-athletes. Student comes first,” Samuel L. Jackson said in the film, “Coach Carter,” portraying high school basketball coach Ken Carter, who famously locked out his players for performing poorly in academics.
But unlike the well-meaning characterization of the character Carter, the term student-athlete was not crafted to prioritize education.
“The term was created by Walter Byers, the first executive director of the NCAA in the 1950s,” Hsu said. “And they created the term to try and escape liability, legal liability.”
In 1955, Fort Lewis A&M football player Ray Dennison crushed his skull during a game and later died. His widow filed a claim for death benefits under workers’ compensation. The case made it to the Colorado Supreme Court, where the justices ruled the compensation fund did not extend to student-athletes.
Byers — who made sure the term “student-athlete” was embedded throughout college sports — later renounced its use in his memoir, “Unsportsmanlike Conduct: Exploiting College Athletes.” The NCAA continues to use the term.
NLRB General Counsel Jennifer Abruzzo warned in 2021 that where appropriate, she will allege that calling players student-athletes is a violation of the National Labor Relations Act.
NCAA’s plea to ‘save’ college sports
On the losing side of multiple lawsuits regarding college athletes’ amateur status, NCAA President Charlie Baker is asking Congress to take action to preserve college sports.
“He’s basically admitting that they’re violating the law by saying that, but he’s saying, ‘Oh, we need a new law to make this okay and make it legal,'” Hsu said.
Baker claimed 95% of athletes’ opportunities would be endangered if athletes were considered school employees. Like Dartmouth, he’s arguing the vast majority of schools lose money on athletic programs and can’t afford to pay their players. This extends from small programs like those within the Ivy League Conference to Division II and Division III schools.
The NCAA continues to push Congress for a limited antitrust exemption to give it a break from the onslaught of lawsuits it now faces. As for Dartmouth and the fight against its basketball-playing employees, Hsu says that case will likely be appealed to the Supreme Court.
Simone Del Rosario: For a team that loses more than they win, Dartmouth College basketball players racked up two victories on March 5. Their season finale against Harvard. And the vote to be the first college athletes to unionize.
Voting 13-2, Big Green’s basketball players voted to join Service Employees International Union Local 560, which already represents other Dartmouth employees.
The same day, Dartmouth College appealed the National Labor Relations Board decision that Dartmouth players are employees.
In a statement, Dartmouth said, “Classifying these students as employees simply because they play basketball is as unprecedented as it is inaccurate.”
Dartmouth College has argued unionization is not appropriate in part because unlike other universities where athletics generate millions of dollars, the costs of Dartmouth’s athletics program far exceed any revenue.
Michael Hsu: Those arguments, I think, are phony arguments.
Simone Del Rosario: Michael Hsu is a former University of Minnesota Regent and co-founder of the College Basketball Players Association.
Michael Hsu: If you have unionized secretaries, or even factory workers, you can’t make the argument that they don’t make money for the company, or they lose money for the company. So I think it’s a ridiculous proposition that they would use that argument. It doesn’t even have a meaningful example in the corporate world.
Simone Del Rosario: Hsu has filed two charges with the NLRB against NCAA and Northwestern’s use of the term, “student-athlete.”
Movie clip: We’re student athletes, bro.
Movie clip: A wonderful student athlete.
Movie clip: These boys are student athletes. Student comes first.
Simone Del Rosario: But unlike the well-meaning characterization by Coach Carter, the term student-athlete was not crafted to prioritize education.
Michael Hsu: The term was created by Walter Byers, the first executive director of the NCAA in the 1950s. And they created the term to try and escape liability, legal liability.
Simone Del Rosario: In 1955, Fort Lewis A&M football player Ray Dennison crushed his skull during a game and later died. His widow filed a claim for death benefits under workers’ compensation. The case made it to the Colorado Supreme Court, where the justices ruled the compensation fund did not extend to student athletes.
Byers, who made sure the term “student-athlete” was embedded throughout college sports, later renounced its use in his memoir. The NCAA continues to use the term.
NLRB General Counsel Jennifer Abruzzo warned in 2021 that where appropriate, she will allege that calling players student-athletes is a violation of the National Labor Relations Act.
On the losing side of multiple lawsuits regarding college athletes’ amateur status, NCAA President Charlie Baker is asking Congress to take action to preserve college sports.
Michael Hsu: He’s basically admitting that they’re violating the law, right, by saying that, but he’s saying, oh, we need a new law to make this okay and make it legal.
Simone Del Rosario: Baker claimed 95% of athletes’ opportunities would be endangered if athletes were considered school employees. Like Dartmouth, he’s arguing the vast majority of schools lose money on athletic programs and can’t afford to pay their players.
The NCAA continues to push Congress for a limited antitrust exemption to give it a break from the onslaught of lawsuits it now faces.
As for Dartmouth and the fight against its basketball-playing employees, Hsu says that case will likely be appealed all the way to the Supreme Court.
Straight to your inbox.
By entering your email, you agree to the Terms & Conditions and acknowledge the Privacy Policy.
