The Indicator from Planet Money

Episode•March 14, 2025•9 min

Southwest surprises, tariff guac shock, and fraud flourishes

It's Indicators of the Week! Our weekly look at interesting numbers from the news. On today's show, we have Southwest Airlines changing course on their free checked bag policy, skyrocketing fraud, and Americans' insatiable appetite for avocados. Related episodes: More fraud, higher bond yields, and faster airline boarding (https://www.npr.org/2023/10/20/1197956145/more-fraud-higher-bond-yields-and-faster-airline-boarding) For sponsor-free episodes of The Indicator from Planet Money, subscribe to Planet Money+ via Apple Podcasts or at plus.npr.org (http://plus.npr.org/). Fact-checking by Sierra Juarez (https://www.npr.org/people/g-s1-26724/sierra-juarez). Music by Drop Electric (https://dropelectric.bandcamp.com/). Find us: TikTok (https://www.tiktok.com/@planetmoney), Instagram (https://www.instagram.com/planetmoney/), Facebook (https://www.facebook.com/planetmoney), Newsletter (https://www.npr.org/newsletter/money). To manage podcast ad preferences, review the links below: See pcm.adswizz.com (https://pcm.adswizz.com) for information about our collection and use of personal data for sponsorship and to manage your podcast sponsorship preferences. Learn more about sponsor message choices: podcastchoices.com/adchoices (https://podcastchoices.com/adchoices) NPR Privacy Policy (https://www.npr.org/about-npr/179878450/privacy-policy)

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Transcript

0:01

Npr.

0:12

This is the Indicator from Planet Money. I'm Waylon Wong here with Darian Woods.

0:16

Howdy. And we also have Kenny Malone from Planet Money.

0:19

Kenny.

0:20

Hey, everybody. I'm always happy to be here.

0:22

Happy to have you.

0:24

Now, so I'm gonna say indicators of the week, right?

0:26

Yeah, yeah, yeah.

0:27

Now, I've never gotten to say it. Can I just. Can I do the. Yes. I'm here because it's the indicators of the Week.

0:35

Oh, yes, that's right. It is our weekly look at interesting numbers from the news. And this week, we have a big jump in losses due to fraud. Uh. Oh.

0:46

I am gonna dive into a bowl of guacamole.

0:48

That sounds horrible. Like Scrooge McDuck.

0:51

Awesome and delicious.

0:53

And it's the end of an era. The great unbundling, the paying for bags.

0:58

No.

0:59

After the break. Indicators of the week. Waylon, would you like to begin?

1:09

I would. My indicator is $12.5 billion. That is how much people lost to fraud in 2024, according to data released this week by the Federal Trade Commission. And that's a 25% increase from the previous year. So I don't know. Do you guys think we're in a gold of scamming?

1:29

I just listened to this amazing podcast series that the Economist did on scams. It's called Scam, Inc. And an expert that they interviewed there said that you should actually multiply the numbers because of underreporting. Like, a lot of victims of fraud. Don't file a report with an agency like the ftc.

1:46

And I will say this FTC report is pretty grim throughout. The agency says more people lost a lot more money last year versus the previous year. The median loss for 2024 was around $500.

2:00

And what are we talking about? Like, stolen credit cards? Like, people getting called and handing over shoeboxes full of money in parks. Like, what are we doing here?

2:08

It's closer to the latter.

2:09

Oh, really?

2:10

Yes. The FTC says the most commonly reported category is something called an imposter scam. An example of this is when you get a phone call from someone, they say they've detected suspicious activity with your bank account, and they'll say, we're going to help you. Just transfer your money into this other bank account or into this cryptocurrency account, or go to the AT ATM and get cash out and put it in a shoebox and meet us at the park.

2:35

Very normal.

2:37

Is it possible that some of the federal cuts will impede the FTC's ability to. I don't know, like, track these down, stop these. Like, what do we know about that?

2:46

Yeah, it looks like the FTC is maybe having staffing issues. I read some news reports this week that there's this one case it's pursuing in federal court against a company, and initially it asked the judge to delay the trial because of an extreme shortfall in money and staff. But then consistent with some of the back and forth and back again we're seeing on so many things these days, the FTC later reversed this request. It said, it's fine. So I don't know.

3:11

These are confusing times, man, I am so scared of getting defrauded. I'll be honest.

3:17

Just don't answer your phone. Don't answer your.

3:19

Honestly. I think that's about where I'm at. Yes.

3:21

Well, you know, because actually, the FTC says people lose more money when they interact with scammers over the phone versus text or emails. The median loss for a phone scam is $1500, which is more than the overall median loss.

3:36

Once somebody called me and they said, they're from the Department of Homeland Security. And. And. And I said, really? And the guy said yes, and then hung up.

3:44

Jesus.

3:45

Okay, that's not a very good scammer.

3:48

Extremely convincing liar over here, Kenny. Tell us about bag fees.

3:53

My indicator this week is two, because that is the number of suitcases that you will not get to check for free anymore. And at Southwest Airlines. Now, I flew Southwest with my kids on Monday, literally this week, in part because kids require an annoying amount of luggage. And Southwest has a bags fly free policy. And then literally the next day, on Tuesday, they announce a new policy, actually, not all bags fly free.

4:21

Yeah, that's a less catchy policy name, I will say.

4:25

Well, that is. Those words are mine, I suppose. But the news here is that Southwest was like the last holdout, the last airline letting all passengers check bags for free. But now only passengers with fancy tickets or Southwest credit cards or special status will get free checked bags. And the reason that this is noteworthy is because not doing this kind of stuff was Southwest's identity. They even coined and trademarked a term. Are you ready for it? Transparency.

4:54

Transparency, Yeah. A transparent fare.

4:58

Yes, that's right. Like, basically, they were saying that, like, we're not the other airlines who are breaking apart the flying experience into all its parts and then asking travelers to pay for things like bags or picking better seats or whatever it may be.

5:11

Okay, so this is the unbundling trend that has taken over airlines. And actually a lot of products a Lot of.

5:16

Exactly. Yeah, that is exactly right. But Southwest has been under pressure to increase profits. They announced big layoffs. And last year they even said that they would stop doing their famous open seating policy. And now with the bags not flying free for everyone, I think you can argue that, like, the great unbundling of air travel is complete. We have reached it.

5:37

It's a milestone.

5:38

If you do want to fly for free with a Southwest bag, you do have a chance. Like, the new rules will only apply to flights booked on or after May 28th.

5:48

Get planning, get booking, or I guess get more efficient in your packing or

5:53

get rid of your kids. Don't bring the kids would be the other advice. Yes. For our final indicator. Darian woods, what have you brought us?

6:00

My indicator is £3 billion of avocados.

6:04

Whoa.

6:04

That's how much avocado Americans are eating each year.

6:07

Oh, that's a good amount. What is that? That's like 9 or 10 pounds of avocados per American. Is that right?

6:13

Yeah. How many avocados is that? How much does an avocado weigh? They kind of weigh a lot.

6:16

I'd give it a quarter pound. Half a pound.

6:18

They're half too.

6:19

I actually looked this up. It's about half a pound. And so if you multiply that nine or ten by two, you get maybe a little less than 20 AVOCAD a year per person.

6:30

I'm doing way more than 20 avocados a year.

6:32

Yeah.

6:33

Okay.

6:33

Some people probably don't eat any avocados.

6:34

Who are these people?

6:35

I feel like I didn't eat an avocado until college. It was probably at a Chipotle or something, you know.

6:41

You paid extra for the avocado.

6:42

I paid. Guac is extra. Guac is extra. That's what we call the great bundling

6:46

in you words alone, Waylon. Basically, in the late 1990s and the early 2000s, you had a huge rocketing up of avocado imports into the US that 3 billion pounds of avocado consumption is up from only like 4 or 500 million pounds a year in the 80s and 90s.

7:05

So we are eating more avocados. That is. That's the indicator that you brought us. Or is there a news peg to this? Maybe tariff related, I assume.

7:12

Well, yes, as you may have guessed, it's a tariff related story. We've had all kinds of trade war news this week. The US slapped 25% tariffs on steel and aluminum. There's been retaliatory tariffs from Canada and the European Union and the Trump Administration is still threatening a 25% tariff on everything from Canada and Mexico, including avocados.

7:35

Well, so you're saying that we've become addicted to avocados and now tariffs are going to raise the price of avocados?

7:42

Yeah. I read in the Wall Street Journal this week that the whole reason we had that rise of avocado culture in America was that Mexico was only allowed to export to the US in 1997.

7:53

Oh, well, that makes sense. Why? You know, I don't even remember seeing them at the grocery store so much. You know, I live in the Midwest. We don't grow avocados here locally.

8:01

Not with that attitude you don't. But I also. You will remember there was a huge marketing campaign, too. It was avocados from Mexico. It was like a whole thing.

8:08

Oh, I don't remember that.

8:10

It was a big, huge campaign on the super bowl, et cetera. It was like a big effort to get Americans into avocados because they're awesome.

8:16

Well, it worked.

8:17

Socially engineered.

8:17

It worked like gangbusters. Goodness.

8:19

Yeah, it did work very well. And now it appears we are going to pay the price because, like, 80% of hasa avocados or something come from Mexico. Is that right?

8:28

Yeah, that's correct. And so for now, the widespread tariffs on Mexico are on pause until April 2nd. We will have to see whether the White House and Mexico can make a deal that keeps avocados cheap and plentiful.

8:41

Well, I mean, let me just say there are other avocados. I was in Florida for a long time. Everybody hates the Florida avocado. But maybe it's the moment. Maybe it's the Florida avocado moment. They're gigantic.

8:51

They just need a jingle, I think. What do you think?

8:54

Avocados from Broward County.

8:57

Good, good. Very catchy.

8:58

No, not quite. Avocados from New Jersey.

9:01

Or New Jersey.

9:05

Thank you so much, Kenny. This was indicators of the week.

9:08

Pack your bags full of avocados and check them while you can.

9:12

And don't get scammed.

9:12

And don't get scammed.

9:13

Don't get scammed.

9:15

This episode was produced by Angel Carreras with engineering by Kwesi Lee. It was fact checked by Cyril Juarez. Cake and Cannon edits the show. And the indicator is a production of npr.

Southwest surprises, tariff guac shock, and fraud flourishes

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