Out of Scope Issue 77: Everybody's Talking About Inflation
Plus: Serena's retirement and new Depp v. Heard developments.
This was a big news week for the economy—the U.S. Jobs Report for July new inflation numbers came out, and the Biden administration logged its biggest legislative achievement to date, the Inflation Reduction Act. It’s a lot to take in. The team at Hirsch Leatherwood has been absorbing it all, along with news of Serena Williams’s retirement, updates from TikTok and Spotify, and new drama from the Depp v. Heard saga. Read more below.
💡ON OUR MINDS: Inflation and the Inflation Reduction Act
Across all industries, American employers hired over half a million people last month according to data from the Bureau of Labor Statistics. Inflation is still high, with prices rising 8.5%, but that rate is down from June, when prices rose 9.1%.
The jobs report is undeniably good news—but it’s running against the economic mood of the day. GDP adjusted for inflation is down and the general public has unfavorable sentiments about the economy. It’s a bit of a paradox, one that economists have been trying to crack for a few months now. It also embodies a comms challenge—how do you convince the public that things are getting better (or not)?
Though inflation may be slowing, it’s a long, long way from the Fed’s target rate of 2%. There’s also reason to think that the reduced rate won’t be felt by consumers for some time.
Then there’s the Biden administration’s major legislative win, the Inflation Reduction Act. Still trying to figure out exactly what’s in it? You’re not alone. You can check out details here via the Committee for a Responsible Federal Budget. And over in the Wall Street Journal , Karl Rove documented what he calls “the delusions” of the legislation.
What exactly will the Inflation Reduction Act mean for Americans? This will be the subject of a lot of debate in the coming months. Let’s look at one issue as an example: electric vehicles. The bill contains a $7,500 tax credit for EVs, but many are already criticizing this feature as detrimental to both consumers and manufacturers—the standards for EVs may be hard to meet, and EVs remain too expensive for many Americans.
🏆 BRAND WIN OF THE WEEK: Serena Williams
Don’t call it a retirement. Tennis legend Serena Williams announced plans to “evolve” away from the game she has long dominated and toward growing her family and business endeavors. Hailed for her 23 Grand Slam titles and explosive play, she’s had an outsized impact off the court, too.
Williams’s announcement is notable for its polish. From sports to music, A-list retirements are plagued by false starts and messy rollouts. In contrast, Williams’s as-told-to essay for Vogue places her in full command of her message and raises the profile of Serena Ventures, her venture capital firm focused on backing underrepresented founders.
The in-depth reveal allows her to stake her claim as an icon bigger than her sport. The lesson: sometimes, careful planning and traditional media make for a winning combo. Though she says she doesn’t like to reflect on her legacy, Williams has delivered a master class in how to control it.
📡 ON OUR RADAR
More and more companies are rolling back pandemic-era perks to encourage people to return to the office. Most recently, TikTok eliminated their food stipend. The challenge is that not every office is prepared to welcome back employees en-masse or provide the kind of comfortable work environment that you can find at home.
An investigation from U.S. cybersecurity firm, Mandiant Inc., reports that a PR agency has been spreading “pro-Beijing propaganda” by creating fake websites and social media posts. The propaganda is allegedly meant to discredit a German anthropologist, Adrian Zenz, who’s looking into how China treats Muslims in Xinjiang. But did their campaign work? Though Zenz has had to protect his reputation from false claims, experts say that the public hasn’t engaged significantly with the posts.
In another sign of the times, many brands are preaching low prices and value to parents in their back-to-school ads. Whether it's Old Navy vowing to freeze prices of denim or Amazon's campaign empathizing with parents about the cost of raising kids (while praising its own low-priced inventory) - the message is clear. Brands want parents to know they understand their (economic) pain.
Ezra Klein revisited the work of the influential media theorist Marshall McLuhan, noting that that form is just as important as content in our media-dominated culture. Or, as McLuhan famously put it, the medium is the message.
Second Gentleman of the United States Doug Emhoff has gotten some buzz this week for work on his unofficial platform. First and Second ladies (and now Gentlemen!) often focus on a specific, soft policy during their terms, like healthy eating, literacy, and mental heath. For this historic figure’s unique position, it makes sense, then, his focus would be on gender equity. We expect to see more from Mr. Emhoff as he continues to shake up the rhetoric and tradition of his storied spot in the White House.
Previously sealed court documents from the Depp v. Heard case were released to the public this week. Since then, dozens of celebrities have unliked Depp’s post-verdict Instagram post. This post was the most liked post of all time (19.4 million likes), while Heard’s post-verdict post received only 480K. What gives? The documents add nuances to the case that are not so Depp-friendly, and because they were sealed, were not discussed at length on social media. Perhaps these celebs haven’t changed their minds or associations… but social media sleuths don’t rest.
Spotify may have botched their first foray into the language of Gen Z (for those who forgot, revisit their 2021 Wrapped campaign), but their internal creative agency In-house is doubling down. Adweek reports that the brand is focusing on gamifying their interface with interactive features to appeal to younger generations.
The White House delivered a masterclass in committing to the joke by officially endorsing the Dark Brandon meme this week. The meme has a long history, spun out of the deepest recesses of the web and repurposed by the left to valorize Joe Biden. We usually would not advise villainy as a good PR tactic, but hey, it seems to be working for Dark Brandon just fine.
🥊QUICK HITS:
In case you missed these stories this week.
This retrospective on Sheryl Sandberg’s tenure at Facebook is our long read of the week.
According to the New York Times, New York’s Hottest Club is the Catholic Church.
We’ll see you here next week! 👋
HL
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The fine print: This week’s newsletter is brought to you by Lea Michele trying to get off book for her lead role in Funny Girl.