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🛒 While other tech giants use AI to cut jobs, Costco’s CEO says the technology is actually "elevating" his workers—not replacing them.
In a world where leaders like Elon Musk predict that automation will eventually make work entirely optional, Costco CEO Ron Vachris is charting a completely different path. He insists that technology should be used to support employees, not eliminate them.
🚀 Scaling Up, Not Scaling Down
"We’ve not displaced people because the business is growing at a faster rate," Vachris explained at The Economic Club of Chicago. "Those employees who were doing those tasks before have now elevated to more of a forward-thinking role."
Costco—which employs over 341,000 people globally—isn't hiding from innovation. The retailer actively uses AI to streamline operations across its pharmacies, gas stations, accounting, and IT departments. However, Vachris draws a firm line when it comes to replacing human intuition:
No AI Buyers: "I don't know that we'll ever take that out of the hands of a skilled buyer."
No AI HR: AI won't be conducting employee evaluations.
The Focus: The technology is strictly there to build a more efficient company.
🏆 The Strategy is Paying Off
This people-first philosophy is yielding massive financial dividends. Costco shares are up roughly 17% this year, pushing its market cap past $440 billion. Sitting at No. 12 on the Fortune 500, Costco's 2025 revenue topped $250 billion—outperforming giants like Microsoft, Chevron, and General Motors.
Even as they scale, they are doubling down on the human element—keeping real people at the cash registers alongside their legendary $1.50 hot dogs and $5 rotisserie chickens.
🛡️ The Real Threat: "Losing Our Way."
According to Vachris, Costco’s greatest long-term risk isn't an AI revolution; it's internal complacency. "We can’t become arrogant. We can’t become comfortable," he noted.
Part of staying true to their roots includes holding the line on company culture and workplace stability:
Standing Firm on DEI: While other corporations quietly back away from diversity, equity, and inclusion initiatives under political pressure, Costco has held strong, with shareholders overwhelmingly rejecting a proposal to scale back DEI practices.
Unmatched Retention: More than 55% of U.S. Costco employees have been with the company for over five years, and roughly 23,000 have stayed for more than a quarter-century—a nearly unheard-of statistic in retail.
🤝 A Growing Movement of AI Skeptics
Costco isn't alone in its pro-human stance. Other major CEOs are actively pushing back against the narrative of tech replacement:
Delta Air Lines: CEO Ed Bastian argues that branding technology as "artificial intelligence" unnecessarily scares workers. Delta is focusing on using the tech to evolve job skills rather than slash headcounts.
IBM: CEO Arvind Krishna recently rejected the idea of AI-driven hiring freezes, noting a desire to hire more college graduates. (Though the tension remains real: IBM did announce targeted restructurings to shift focus toward AI software, aiming to keep its overall headcount flat through new hiring).
Ultimately, leaders like Vachris are proving that the future of business doesn't have to choose between cutting-edge technology and a loyal, human workforce.
🏡 Ouch. Another blow for prospective homebuyers: U.S. mortgage rates just hit a 9-month high. 📉
The average 30-year fixed-rate mortgage crept up to 6.53% this week, up from 6.51% last week. While it's still lower than it was this time last year (6.89%), borrowing costs have been on a steady upward march since February, completely putting a damper on the spring homebuying season.
Here is the breakdown of why this is happening and what it means for your wallet:
🛢️ The Global Connection
Why are home loans getting pricier? Look at the pump. The ongoing war with Iran has disrupted global oil tankers, sending energy prices soaring. Because oil drives inflation, it pushes up long-term bond yields (like the 10-year Treasury), which lenders use to price your mortgage.
💸 The Real-World Cost
When mortgage rates tick up like this, it’s not just a statistic—it adds hundreds of dollars a month to a buyer's payment. That extra cost is massively slashing purchasing power and keeping the housing market in a slump that has dragged on since 2022.
📊 By The Numbers:
30-Year Fixed: 6.53% (Highest since August 2025)
15-Year Fixed: 5.87% (Up from 5.85% last week)
The Silver Lining: Bond yields dipped slightly this week on hopes of a deal to reopen the Strait of Hormuz. If oil flows again, rates might finally catch a break.
💬 Are you putting your home-buying plans on hold until rates drop back under 6%, or are you looking for ways to buy anyway?
📢 FINALLY. Is the era of corporate "greedflation" starting to crack?
If your wallet has been crying at the grocery store or the drive-thru, you aren't alone. Companies are finally realizing that half of America literally can’t afford what they’re selling.
To win back inflation-weary shoppers, major brands are shifting gears. Here is what’s changing: 🍔 McDonald’s expanded its $3-and-under menu and $4 breakfast deals. 🥤 Coca-Cola is rolling out skinnier, cheaper bottles. 🍿 PepsiCo is slashing prices by up to 15% on snacks like Cheetos and Doritos. 🎯 Target is stacking its toy aisles with $5 and $10 options. 🚗 Even Stellantis (Jeep/Ram) is planning new car models priced under $30,000 to catch buyers priced out of the current $50K average.
While corporate profits have been at all-time highs, companies are realizing they’ve pushed consumers to the brink. Now, they’re shrinking packages, introducing value meals, and straight-up cutting prices to get you back through the door.
More Americans sought unemployment benefits last week, but layoffs remain low despite economic uncertainty caused by the Iran war.
The Labor Department reported Thursday that jobless claims were up to 215,000, up from 210,000 the week before. The four-week moving average of claims, which smooths out week-to-week volatility, rose by nearly 6,300 to 209,000.
“Initial claims are still impressively low, near historic lows,” Carl Weinberg, chief economist at High Frequency Economics, wrote in a commentary. “The uptick from last week to this week is trivial in a labor market of 159 million workers.″
The number of Americans signing up for unemployment benefits — a proxy for layoffs — has stabilized in a low range of mostly 200,000 to 250,000 a week since the U.S. economy emerged from a brief but nasty pandemic recession in 2020.
The total number of people collecting jobless aid rose by 15,000 to 1.79 million the week that ended May 16.
The persistently low number of claims suggests that most U.S. companies have not resorted to layoffs. But even if they’re not cutting jobs, employers haven’t been adding many either. Last year, companies, nonprofits, and government agencies added fewer than 10,000 jobs a month, the weakest hiring outside recession years since 2002.
But the United States now needs fewer jobs to keep the unemployment rate from rising. President Donald Trump’s immigration crackdown and ongoing Baby Boomer retirements mean that the monthly “break-even rate″ of monthly hiring may be as low as zero. And the unemployment rate — 4.3% in April — has, in fact, remained low by historic standards.
The Iran war has clouded the economic outlook as higher energy prices squeeze consumers and businesses. Iran responded to U.S. and Israeli attacks by turning to economic warfare — closing the Strait of Hormuz, through which a fifth of the world’s oil passes, and causing the biggest disruption of global oil supplies in history. In response, U.S. gasoline prices have surged to an average of $4.43 a gallon from an average of $2.98 a gallon on the eve of the conflict, according to AAA.
Americans are burning through their savings at a rapid pace—and it’s a major warning sign for the economy.
While overall consumer spending looks strong on paper, a deeper look reveals a fragile reality: households are draining their financial cushions just to keep up with everyday costs, largely driven by the energy shock from the Iran war.
Here is what you need to know about what’s happening to your wallet right now:
📉 The Savings Slide
The personal saving rate plummeted to 2.6% in April (down from 3.2% in March and 4.3% in January). That is the lowest level Americans have seen since mid-2022. Before the pandemic, people were saving at roughly double this rate.
💸 Spending Up, Income Down
According to the Commerce Department, consumer spending rose by 0.5% in April, but disposable personal income actually fell by 0.1%. We are spending faster than we are earning, and the biggest culprit isn't luxury shopping—it's gasoline and energy bills.
🛑 What the Experts Are Saying
"Rising prices, sluggish income and economic uncertainty could set the stage for a broader pullback in consumer spending and therefore economic growth." — Elizabeth Renter, NerdWallet Senior Economist
"Inflation is clearly moving in the wrong direction." — Lisa Cook, Federal Reserve Governor
🗳️ Why This Matters Beyond the Wallet
Real per capita disposable income (what you have left after taxes and inflation) has dropped year-over-year for two consecutive months. Historically, this specific metric is a powerful predictor for elections—declines usually favor political challengers over incumbents.
Right now, the economy is being propped up by high earners, making the overall financial backdrop look increasingly uneven and fragile.
💬 How is the current energy shock impacting your household budget? Are you finding it harder to put money into savings right now? Let us know in the comments.