🗞️ 🍎 The H-1B Debate, Dating Apps Dilemma, the Future of 'Sesame Street,' and How To Rethink NYE Resolutions

Good morning. It’s Monday, December 30.

Today, we’re covering the H-1B debate within Trump’s world, challenges facing the dating app industry, ‘Sesame Street’ at a crossroads, how to rethink your 2025 resolutions, and more.

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I wanted to dedicate this week’s newsletter to Dick Parsons, who passed away last week at the age of 76. Known as "The Fixer," he was celebrated for his ability to turn around struggling companies, including Time Warner, CBS, and Citigroup. As condolences poured in from across corporate America and beyond, I was reminded of my own Richard Parsons story.

When I was in high school, there were only three Black CEOs in the Fortune 500: Ken Chenault, Stanley O’Neal, and Dick Parsons. While Ken Chenault and Stanley O’Neal had inspiring stories, Dick Parsons was the most relatable to me. He was a product of Bed-Stuy, Brooklyn, and a non-Ivy League law school, and I needed to know how he achieved what he did. So, I cold-emailed him.

Long story short, he encouraged me to apply for the Time Warner STARS program, a paid internship designed for college students who couldn’t afford unpaid or credit-only internships. I was accepted, and during my first week, his assistant reached out and asked if I wanted to shadow him for a day. That day changed my life. As an 18-year-old Black kid from Queens, watching a Black man from Brooklyn navigate a space like that was truly life-altering. Dick Parsons was a real one—someone who never forgot who he was or where he came from. Thank you and Rest in Peace, Mr. Parsons.

Best,

Rashad Drakeford

Co-Founder & Publisher, Good Diet

H1-B Visa Debate Divides Trump’s Coalition

As President-elect Donald Trump prepares to take office, the contentious debate over H-1B visas has revealed a deep rift within his coalition. Tech industry leaders, many of whom supported Trump’s campaign, are clashing with immigration hardliners over the role of skilled foreign workers in the U.S. economy. This tension underscores the challenges ahead for Trump’s administration as it balances competing priorities.

• Tech Industry Advocacy: Figures like Elon Musk and David Sacks strongly support the H-1B program, citing a lack of homegrown talent to meet the needs of U.S. tech companies. Musk, who once held an H-1B visa, argues that skilled immigration is critical for maintaining America’s global competitiveness.

• Immigration Hardliners Push Back: Activists like Laura Loomer and former Trump adviser Steve Bannon criticize the tech sector for relying on foreign workers, claiming it undermines American jobs and wages. They view the H-1B program as incompatible with Trump’s “America First” agenda.

• Policy Quandary for Trump: While Trump has expressed openness to skilled immigration, his broader promises to curb immigration and prioritize American workers create a challenging balancing act. His administration’s decisions could shape future U.S. labor markets and its relationship with the tech industry.

• Free Speech Controversy: The debate has stirred up tensions around online speech, with Musk’s platform X temporarily restricting Loomer after her anti-H-1B comments. Musk defended the move, even endorsing a post that said, “Play stupid games, win stupid prizes,” which complicates his image as both a free speech advocate and a Trump ally. The incident underscores the tricky balancing act Musk faces between moderating his platform and standing by his commitment to free expression.

OECD Projects 2025 Global Economic Growth

The OECD (Organization for Economic Cooperation and Development) forecasts steady global growth in its latest Economic Outlook, projecting GDP to expand by 2.7% annually in 2025 and 2026. While the report highlights resilience, it also warns of significant risks, including geopolitical tensions, inflationary pressures, and uneven recovery in emerging markets.

• Global Growth Projections: Advanced economies are expected to grow by 1.9% annually, while emerging markets are projected to expand by 4.1%, driven largely by China and India. The disparity underscores the uneven pace of recovery, with Africa and parts of South America lagging behind due to higher debt burdens and weaker policy frameworks.

• Inflationary Challenges: While inflation is forecasted to decline in 2025 to an average of 4.3% globally, core inflation in advanced economies remains elevated, particularly in the Eurozone and the U.S. Central banks are likely to maintain tight monetary policies, increasing the risk of suppressed private investment.

• Geopolitical and Energy Risks: The report identifies persistent geopolitical tensions, including the Russia-Ukraine conflict and instability in the Middle East, as key risks to energy markets. Volatility in oil prices could amplify inflationary pressures and disrupt trade flows.

• Emerging Markets’ Recovery: Higher borrowing costs and currency depreciation in emerging economies are expected to hinder investment and growth. Countries reliant on external financing, like Argentina and Turkey, face heightened vulnerabilities, with debt servicing accounting for over 30% of GDP in some cases.

• Policy Recommendations: The OECD emphasizes the need for structural reforms, including investments in green technologies and labor market optimization. Advanced economies are urged to focus on reducing fiscal deficits while emerging markets should prioritize debt restructuring and trade diversification.

Dating Apps Surge, But Satisfaction Stalls

Dating apps like Tinder, Bumble, and Hinge experienced record growth in 2023 and 2024, with millions of new users and increased revenue. Yet, despite the boom, user satisfaction remains low, with frustrations mounting over algorithms, monetization strategies, and the deeper emotional impact of modern online dating.

• Monetization and Inequity: Subscription models like Tinder Platinum and Bumble Boost have turned dating apps into tiered experiences where paying users often receive preferential treatment, creating an uneven playing field. Analysts estimate premium users account for 30-40% of app revenue, but many feel this pay-to-play model prioritizes profit over connection, leaving non-paying users with diminishing returns.

• Opaque Algorithms Fuel Frustration: Algorithms designed to increase engagement often prioritize swipe volume over compatibility, pushing users toward profiles that encourage more interactions but not necessarily meaningful matches. This leads to a cycle where users spend more time on the apps but report lower satisfaction.

• Mental Health Impacts and Emotional Costs: Studies have linked excessive app usage to higher rates of loneliness, anxiety, and decision fatigue, with users often feeling commodified in a transactional dating landscape. The unique challenges faced by Black daters, including biases and micro-aggressions, add to the emotional toll, creating barriers to authentic connections.

• Innovation or Exploitation: Companies are turning to AI and machine learning to address criticism, experimenting with features like compatibility scores, voice prompts, and video profiles to foster deeper engagement. However, skeptics argue these tools may be more about keeping users engaged rather than solving fundamental issues, as the apps’ business models rely on prolonged user activity rather than successful off-app relationships.

Saudi Arabia at a Crossroads

Saudi Arabia stands at a defining moment, striving to reshape its domestic and global identity amidst the collapse of Syria’s Assad regime and ongoing regional tensions. Crown Prince Mohammed bin Salman’s (MBS) Vision 2030 agenda aims to modernize the kingdom’s economy and society, but this bold transformation is shadowed by geopolitical challenges and economic vulnerabilities.

• Modernization Amid Regional Instability: Saudi Arabia’s transformation includes landmark projects like hosting the 2034 FIFA World Cup, the development of cutting-edge infrastructure such as the world’s longest driverless metro, and high-profile cultural events like the Red Sea Film Festival. These efforts aim to position Saudi Arabia as a global hub, but instability in Syria, Gaza, and tensions with Iran risk undermining these ambitions. Riyadh’s focus remains on insulating its domestic progress from external upheavals.

• Geopolitical Calculations and U.S. Relations: The kingdom is leveraging its regional influence to pursue a U.S. security guarantee, a critical component of its strategy to counter Iran’s nuclear threat and regional aggression. While normalization talks with Israel are paused, Saudi Arabia’s cautious diplomacy signals a willingness to reengage under favorable conditions. The kingdom’s approach reflects a shift from reactionary geopolitics to calculated, strategic engagement with global powers.

• Youth and Economic Imperatives: With 70% of Saudis under 35, the “youth bulge” drives both urgency and opportunity for MBS’s reforms. Vision 2030 prioritizes diversifying the economy away from oil, expanding employment opportunities, and integrating women into the workforce. While the demographic profile offers a unique advantage, it also underscores the high stakes of meeting the economic and social expectations of a rapidly evolving young population.

• From Geopolitics to Geoeconomics: Saudi Arabia’s shift toward economic modernization mirrors a broader Gulf focus on resilience over traditional power plays. Navigating volatile oil markets and regional instability will test the kingdom’s ability to align ambitious domestic reforms with external pressures, making this pivot critical to its future success.

Sesame Street’s HBO Exit and Big Transition

As Sesame Street nears its 55th season, Warner Bros. Discovery’s decision not to renew its streaming contract with Max has left Sesame Workshop searching for a new home for the iconic children’s program. Simultaneously, the show is undergoing a creative overhaul to address modern challenges in a fragmented children’s entertainment landscape.

• HBO's Departure and Financial Impact: Warner Bros. Discovery will stop airing new episodes of "Sesame Street" in January 2024, though older episodes will remain on Max until 2027. The end of this lucrative deal significantly impacts Sesame Workshop’s revenue, which doubled to $45 million annually when the partnership began in 2015. Negotiations with other platforms like Apple TV+, Netflix, and Amazon are ongoing, but no replacement deal has been announced.

• Shifting Creative Direction: Facing competition from younger, faster-paced shows, Sesame Workshop is revamping its format for 2026. Episodes will focus on longer, character-driven storylines and emphasize emotional well-being. Core characters have been reduced to Elmo, Cookie Monster, Abby Cadabby, and Grover to deepen audience connection, while legacy characters like Big Bird, Bert, and Ernie will take on supporting roles.

• Declining Engagement Among Children: Internal reviews show "Sesame Street" ranks 14th among children’s programs on streaming platforms, with declining appeal among 3-to-5-year-olds who increasingly see it as a "baby show." This fragmentation of the children’s media landscape, compounded by stiff competition from "Paw Patrol" and "Daniel Tiger’s Neighborhood," highlights the challenges of maintaining relevance.

• Innovations in Emotional Education: The upcoming season will focus on themes such as managing frustration, anxiety, and conflict resolution, brought to life through Muppet-led storylines. This research-driven content is designed to help children navigate big emotions, addressing a growing need heightened by the pandemic’s impact on mental health.

Capehart: Richard Parsons Pushes to Make Asset Management More Equitable (Rest in Peace, Mr. Parsons)

“In this conversation recorded for Washington Post Live on March 23, Richard Parsons, former CEO of Time Warner, discusses his work as chair of Equity Alliance, the collapse of Silicon Valley Bank, accusations of “woke capitalism” and the actions taken by the federal government.” (Listen - Recorded 03/23/23)

Pod Save America: What Really Happens During a Presidential Transition

“Dan Pfeiffer, Alyssa Mastromonaco, and Caroline Reston dive deep into the history and drama of presidential transitions, break down the latest moves from President-Elect Trump’s transition team, and share some behind-the-scenes stories from their early days as fresh-faced staffers in the 2008 Obama White House.” (Listen)

The Indicator: What Indicators Will 2025 Bring?

“2024 is over (phew!). We had weird consumer sentiment vibes, Bitcoin went to the moon, and the economy might have achieved a soft landing. And that's just a few 2024 indicators! As we enter 2025, what indicators should we keep an eye on? Planet Money co-hosts Kenny Malone and Jeff Guo look ahead with Adrian Ma for Indicators of the Year ... Ahead!” (Listen)

Wall Street Journal: What the New U.S. Administration Could Mean for Crypto Industry

“In the wake of Donald Trump’s election, the crypto industry is feeling jubilant. But what are crypto fans and executives hoping for from the next president’s administration? WSJ crypto and retail investing reporter Vicky Huang and consumer protection and corporate law enforcement reporter Dave Michaels look into possible financial futures for crypto and what it will take to get there. Charlotte Gartenberg hosts.” (Listen)

Consider This: For a Happier New Year, Rethink Your Resolutions

“It can be hard to resist jumping on the whole "New Year, New You" bandwagon. But if you've decided 2025 is your year to make some changes, we have tips to help you succeed. "Life Kit" host Marielle Segarra joins us to share the best ways to approach New Year's resolutions.” (Listen)