This week, I attended the Robin Hood Foundation annual benefit where the spotlight was on food poverty and how even families with two working parents are struggling to get by. It was a jolting reminder of the importance of our mission.
For the first time in three years, wages are lagging behind inflation. At the same time, retailers and manufacturers are passing the full cost of tariffs through to consumers after absorbing what they could on margin. Households are feeling the squeeze of both at once, evidenced by the fact that consumer borrowing saw its biggest monthly jump in March since 2022. Small business optimism on future business conditions and expansion opportunities has fallen to the lowest level in over two years. In some cases, workplace benefits are being rolled back.
In our polling, year after year, people across the political, economic, and demographic spectrum have told us that paying a fair, living wage is the single most important thing a company can do (even when we layer in critical AI-related issues). More recently, fair pricing has emerged as a top concern in its own right. Both are being put to the test right now.
According to United for ALICE, in 2026 approximately 42% to 49% of American families are living with financial strain, near the poverty line, or in economically vulnerable situations. Not only does this put those families in distress, but it also presents a material business risk. Real wages declining while shelf prices climb obviously curtails consumer demand, weakens workforce stability, and undermines confidence in the future more broadly.
Amid the daily frenzy of the markets, AI and global geopolitics, business leaders would do well to keep the financial health of their employees very much in mind.
Be well,
Martin
The New York Times reports that opposition to AI-driven data center expansion is growing across both liberal and conservative communities, with concerns ranging from environmental impact to energy consumption and local quality of life.
Related, Fortune broke the story on a power company that is dropping 50,000 Lake Tahoe residents to reroute their electricity to data centers.
Fortune examines a Gartner study showing many companies automating jobs with AI are struggling to realize the productivity and financial gains they anticipated.
The Wall Street Journal reports that rising fuel costs are offsetting recent pay increases for many Americans. This matches reports from Kraft Heinz showing growing strain among shoppers, with consumers trading down on meats and veggies and prioritizing value purchases.
At the same time, Axios looks at how student loan debt is preventing many Americans from buying homes, starting families, or building savings.
Inc. reports that LinkedIn is laying off 5% of its workforce.
This chart comes from a recent Gallup poll regarding Gen Z and the job market, which reveals that American youth have the most pessimism over job prospects compared to other countries.
