Breitbart Business Digest Weekly Wrap: Wife, Cross, Call Center, Capital Goods
Happy Friday! Here’s the Breitbart Business Digest Weekly Roundup. I feel like I’ve accomplished a lot this week, although it seems a good chunk of the profits around here stem from management rather than the front-line workers.
This week, the government rolled out productivity figures indicating that our investments in capital are really starting to show results, especially in manufacturing. It’s clear that those who feared the negative impact of tariffs on production were, well, quite mistaken. In a rather humorous twist, the Pope discovered that even a figure with the influence of a billion Catholics can’t bypass the headache of dealing with call centers. Interestingly, despite a decrease in the number of workers in production reaching a record low, it might not be as dire for employees as it seems. Moreover, it appears we’re actually generating more job opportunities for married women.
Manufacturing Productivity Boom Continues
The Bureau of Labor Statistics released its first-quarter productivity numbers on Thursday, adding more weight to a narrative we’ve been building since last November: Tariffs, immigration policies, and capital incentives have helped shift American companies away from low-wage, low-output practices towards a model focusing on higher investment and production. Surprisingly, critics who said this transformation was impossible have been proven wrong.
Manufacturing productivity surged by 3.6% in the first quarter, with overall output growing by 3.3%, even as hours worked dipped by 0.4%. Specifically, sectors heavily influenced by President Trump’s tariffs saw productivity soar by 5.3%. Despite a year-on-year rise of 4.2% in hourly wages, nonfarm unit labor costs ticked up only 1.2%, which is a notable indication that productivity helped balance things out. Essentially, while tariffs and immigration enforcement increase costs in old, low-wage business models, capital incentives create a more favorable environment for investment in advanced technologies and methods, leading to higher output per worker and ultimately, lower costs.
The GDP report from last week highlights the source of this investment. Capital expenditures jumped 17.2% on an annualized basis. Meanwhile, investment in intellectual property climbed by 13%, and core capital goods orders saw a monthly increase of 3.3%. The equipment orders we began tracking last January have now made their way through the economy, from initial orders to GDP influences and now to productivity metrics.
Data keeps pouring in. Various analysts had anticipated that tariffs would deal a blow to productivity and manufacturing; they couldn’t have been more wrong. In fact, manufacturing productivity has increased by 2.86% during what’s being dubbed Trump 2.0, compared to a mere 0.36% in the last quarter of the comparable Biden administration. Sectors most exposed to tariffs have recorded the highest profits.
Next week, we’ll dive deeper into this, but for now, the essence is clear: predictions that tariffs would stifle productivity have instead led to significant improvements.
Record Low Worker Share in Production – Is This Good News?
The productivity report revealed some unexpected figures. Labor’s share of total output has dropped to 54.1%, the lowest level since this data collection began in 1947. Feels kind of grim, doesn’t it?
But here’s the twist: this isn’t necessarily bad news for workers. The labor share metrics indicate how much of the total output is allocated to employees versus profits and other non-labor incomes. A decline in labor share doesn’t mean wages are decreasing; rather, it showcases that productivity is increasing at a faster rate than wages. And indeed, real hourly compensation in manufacturing rose by 2.7% over the last year. So yes, workers are getting raises—they’re simply experiencing them in a thriving productivity landscape.
The decrease in labor share corresponds with a boost in profits. And, as Larry Kudlow aptly points out, profits drive the economy. When companies are doing well, they tend to invest more, create more jobs, and pay their workers better. This year’s record corporate profits and stock market heights are a clear result of this dynamic.
This is how the early stages of a capital deepening boom manifest. Profits fuel further investments, which enhance productivity, driving wages up even more. As this investment cycle progresses, labor’s share is likely to rise, intensifying competition for skilled workers.
The Rise of the Working Spouse
We’ve previously discussed elements that slow labor force growth, so it seems fitting to highlight one positive factor: married women. The number of employed married women is nearing record highs. As of April, over 39 million are working, with a rise of 717,000 in the last year. The unemployment rate for married women now sits at a mere 2.5%, which, while not the lowest, is significantly low by historical measures. This trend is indicative of a healthy labor market.
Meanwhile, the number of married men in the workforce has fallen by over 900,000 in the past year. No need for alarm; it’s not a competition between the genders. The unemployment rate for married men is at 2%, another historical low suggesting full employment.
What’s causing this shift? Likely the recent immigration policies. The decline in married men in the labor force, about 1.2 million recently, might correlate with the exit of many undocumented immigrants. This shift has opened up job opportunities for married women, particularly since 813,000 have entered the workforce since May 2025.
But it goes beyond just my anecdote about my wife. The count of working single mothers—coyly labeled by the government as “women who maintain families”—has remained somewhat static this past year, although their unemployment rate has noticeably dropped from 5.2% to 4.2%.
Unmarried men? Though it might raise eyebrows, the government seems less focused on them. Monthly job reports reveal little about employment among single men, which is odd given the changes in labor force participation among middle-aged men. Challenges like the opioid crisis and rising research on “unemployed men” reveal deeper issues plaguing those not captured in typical employment statistics.
A Lesson in Customer Service from the Pope
This week, a curious story emerged about Pope Leo XIV’s experience with an old bank. His friend, Rev. Tom McCarthy, shared that the Pope had to update his contact info, like the rest of us.
He faced the typical security protocol puzzles but, unfortunately, was told he needed to visit the branch personally to finalize it. The Pope, understandably, pointed out he was a bit busy with papal duties.
In trying to resolve the issue, the one-time Robert Prevost jokingly asked if it mattered that he was the Pope, only to be met with a disconnection.
Fortunately, another priest who knew the bank’s president stepped in, ensuring the address update went through. As for the bank representative, no word on whether there was any regret for hanging up on His Holiness, but one can only hope.
The Discovery of the Mississippi River
On May 8, 1541, Spanish conquistador Hernando de Soto found himself on the banks of a river so vast that it stretched beyond his view. The expedition records noted strong currents, and he named it Rio del Espiritu Santo, or River of the Holy Spirit in Spanish—but we know it as the Mississippi.
De Soto spent two years navigating through America. Appointed as Governor of Cuba, he was granted permission to explore La Florida—which really encompassed much of North America north of Mexico. He set foot near Tampa Bay in 1539 with 600 soldiers, 12 priests, and 200 horses.
After crossing into present-day Arkansas, De Soto encountered a local chief suffering from drought. In response to the chief’s request for assistance, the crew’s Italian carpenter was tasked to find the tallest tree to construct a large cross. On July 4, 1541, the cross was erected over a ceremonial mound while Dominican priests held mass—a moment believed to be the first documented Christian ceremony in Arkansas.
The very next day, it rained.
Fast forward to 2016, and a team at Perkin Archaeological State Park in Cross County, Arkansas, unearthed what they believe to be the remnants of that historic cross. Some wood found in the mound dates back between 1515 and 1663, and a unique glass marble connected to the De Soto expedition was also discovered at the site.
