Digest

The podcast begins by discussing the Small Business Administration's (SBA) disaster loan program, which has run out of funds due to increased demand from natural disasters. The program provides low-interest loans to homeowners, renters, and businesses affected by natural disasters, but the SBA has received over 49,000 applications in the past two months alone. The agency expects to be out of funds until after the election when Congress returns from recess. Next, the podcast explores online prediction markets, such as Polymarket and Kalshi, which are showing odds that favor Donald Trump in the upcoming election. These markets allow users to bet on the outcome of events, and the current odds suggest a significant lead for Trump. This contrasts with voter polls, which show a much closer race. Finally, the podcast examines PepsiCo's decision to increase the size of its Tostitos and Ruffles chips by 20% without raising prices. This move comes as the company faces pressure from inflation and shrinking consumer demand. The company is also adding more bags to its multi-pack variety packs.

Outlines

00:01:53

Disaster Relief and Election Predictions

The SBA's disaster loan program has run out of funds due to increased demand from natural disasters. Online prediction markets are showing odds that favor Donald Trump in the upcoming election.

00:07:11

PepsiCo's Chip Strategy

PepsiCo is increasing the size of its Tostitos and Ruffles chips by 20% without raising prices in response to inflation and shrinking consumer demand.

Keywords

Q&A

• Why has the SBA's disaster loan program run out of funds?

  The program has been in high demand due to increased natural disasters, and the agency has received a large number of applications in recent months. The SBA expects to be out of funds until after the election when Congress returns from recess.

• How do prediction markets differ from voter polls?

  Prediction markets use financial incentives to encourage participants to make accurate predictions, while voter polls rely on self-reported data. Prediction markets can be influenced by large bets, while voter polls can be affected by sampling bias and voter sentiment.

• What is shrinkflation, and how is PepsiCo's move different?

  Shrinkflation is a practice where companies reduce the size or quantity of products while maintaining or increasing the price. PepsiCo is increasing the size of its chips without raising prices, which is a reversal of shrinkflation.

• What is price pack architecture, and how does it relate to PepsiCo's decision?

  Price pack architecture is the strategic design and packaging of products to influence consumer purchasing decisions. PepsiCo's decision to increase chip sizes may be part of a broader strategy to optimize pricing and packaging to maximize sales and profitability.

Show Notes