|
| EconNews Online is South-Western's service to provide summaries of the latest economics news stories. Review the brief summaries and, for stories of interest, select the full summary. |
| SUPPLY AND DEMAND | |
Title |
Brief Summary |
| World Food Prices Are Rising, But Not For the Reasons We Think
Full Summary |
The prices of foods have risen to new highs globally in the last year, but we do not have a time of scarcity to blame for the high price. Rather, it's coming at a time of great abundance. So what's causing the price increases? (Updated January, 2008) |
| Cheap Chinese Motorcycles good for Southeast Asian economies
Full Summary |
It used to be that in Laos people would need to get to the market on foot, carrying with them whatever they planned to sell. But with the importation of cheap Chinese motorcycles, those long walks are a thing of the past. (Updated January, 2008) |
|
|
Ethanol has been touted by many state governments as a source of significant economic growth, and by the Bush administration as a way of reducing our reliance on foreign oil. So why are some ethanol firms faced with going out of business? (Updated October, 2007) |
|
|
Three years ago, the British government decided to downgrade the legal status of cannabis (marijuana) from a Class B to Class C drug, reflecting attitudes toward the drug. Now the government, in the midst of a "get tough on drugs" campaign, is considering reversing the move. Is it a good idea? (Updated August, 2007) |
|
|
In the wake of the massive recalls of Chinese-made toys that were discovered to have lead paint on them, US-based toy manufacturers are reaping the benefits of painting with lead-free paint. (Updated August, 2007) |
|
|
While much of the country is seeing housing values fall from their recent peaks, the wealthy population is enjoying a very different dynamic: the value of their homes is rising. (Updated July, 2007) |
|
|
Iran subsidizes its citizens' gasoline consumption, such that the price paid by consumers is only 1/5th the actual market price. But now it's considering not only removing the subsidy, but also rationing gasoline consumption. Why? Because while Iran has lots of oil, it's missing that middle step between crude oil and gasoline - refining capacity. (Updated April, 2007) |
|
|
Cuba's dictator Fidel Castro recently wrote an article chastising the US for its emphasis on corn-based ethanol as an alternative fuel. He argued that it was bad for world food production to emphasize this, and he may be correct. (Updated April, 2007) |
|
|
The term for it is strange: Californication. It's the term given to the process by which people leave California in such high numbers that the places where they settle tend to look much like the California they left. And it's not stopping. (Updated March, 2007) |
|
|
Since 2000, the number of travelers to the US (excluding Canada and Mexico) has fallen by one-sixth. Further, despite a weak dollar, travel from Western Europe has fallen by 3% last year. Why? No one wants the hassle of coming here. (Updated February, 2007) |
|
|
Surveys document that 25% of Americans want to feel more "in balance" with their lives. And a 35 year-old is more likely to feel this way than a 65 year-old. Can we say, new industry? Yes, we can. (Updated January, 2007) |
|
|
The warm weather we've been experiencing this season has significant repercussions across the economy, from allowing those with low incomes a little more to spend on other goods, to increasing uncertainty regarding our nation's agricultural production. (Updated January, 2007) |
|
|
Since 2000, the price of a metric ton of iron ore has almost tripled, from about $30 per metric ton to over $80. And there's no relief in sight for steelmakers, the users of the ore. (Updated January, 2007) |
|
|
U.S. citizens are paying an increasing percentage of disposable income for shelter (homes) nationwide. Housing prices are rising in Manhattan, San Francisco, and Olathe, Kansas. Olathe, Kansas?? Isn't housing supposed to be cheaper in the Midwest? (Updated November, 2006) |
|
|
In recent months, oil set a nominal record price of over U.S. $78 per barrel, and nickel passed $26,000 per ton for the first time in history. Copper prices are rising sharply. Even the price of rapeseed oil, corn and other agricultural products are reaching record highs. Are we in the midst of a "super-cycle"? (Updated August, 2006) |
|
|
Drought does terrible things to a cotton crop. In fact, cotton doesn't like rain; it doesn't like dry weather; it doesn't like too much water; it doesn't like too little moisture. American farmers are used to dealing with all of those factors. And if other nations can convince the U.S. to cut its cotton subsidies, American farmers have to deal with lower income and additional weather risk, as they become more susceptible to changes in world cotton prices and in the weather. (Updated August, 2006) |
|
|
In 2005, more than 5.5 million consumers subscribed to internet-based telephone lines-three times as many as subscribed the year before. By 2010, the industry projects that over 1/4 of U.S. phone users will use the Internet to place phone calls. The downside? This year, landline usage fell by 150,000 calls per week. (Updated July 2006) |
|
|
Fly on an airplane, and you can bet that you didn't pay the same airfare as the person sitting next to you. Go to a restaurant before 5:30, and pay an "early bird" reduced dinner price for the exact same meal that someone else will pay triple that price for at 7:30. Why shouldn't the same pricing strategy apply to moviegoers? (Updated March 2006) |
|
|
The last time the Federal government increased the minimum wage was in 1997, from $4.25 an hour to $5.15 an hour; subsequent attempts to increase it have stalled in Congress. Some states are now taking the initiative and raising their state minima instead of waiting for Federal legislation. (Updated February 2006) |
|
|
Responding to soaring gasoline and natural gas prices, the Hawaiian legislature has taken the "preventative" step of setting a cap on gasoline prices, effective 1 September. Over the last year, the price of crude oil has increased 55%, and natural gas prices are up over 80% from last year. (Updated November 2005) |
|
|
Housing prices have been increasing significantly over the last fifteen years as low interest rates made larger and more extravagant homes affordable. Is it getting to the point that no one can afford to enter the housing market anymore? (Updated November 2005) |
|
|
In John Steinbeck's classic novel of the depression called The Grapes of Wrath, Oklahoma residents wiped out by the dustbowl (the Okies) moved to California to earn their daily living picking agricultural products; today, it's the Mexicans. Same story, same conclusion, apparently. (Updated October, 2005) |
|
|
Would you want to work in an industry that requires specialized skills; demands long, sometimes, dangerous hours; requires you to work at remote, often deserted locations, and that suffers from uncertain effects from business cycles? Well, mining companies have jobs for you! (Updated October, 2005) |
|
|
The "Freezerator" refrigerator/freezer from Whirlpool has a tread pattern on the front for just over $1,000. A Ten50 fridge has Harley-Davidson flames and handles that look like motorcycle handles. It costs about $6,000. Who buys these things? Why, men, of course. (Updated September, 2005) |
|
|
When daylight-savings time expands by four weeks beginning in 2007, many electronic devices could give consumers big headaches. DVD recorders and VCRs may be programmed with current daylight-saving time zones, but not for the new, expanded daylight savings zones. Computer calendars won't immediately recognize the change, and some people may miss meetings or may find that their TVs taped the wrong shows. (Updated September, 2005) |
|
|
The cost of installing solar panels on one's house has been slowly falling, and the government's been helping to reduce the price. (Updated August, 2005) |
|
|
Some state governments are considering imposing a tax on a number of cosmetic surgery procedures, from face-lifts to liposuction to Botox injections. This has drawn protests from plastic surgeons who argue that they will be adversely affected by such a tax. (Updated August, 2005) |
|
|
Around 5 years ago, Kodak decided to move away from its core business of working with silver halide film, and enter the world of digital photography. It's learning that these may have been smart steps taken a little too late. (Updated August, 2005) |
|
|
Global oil demand is expected by grow globally by 2 million barrels a day in 2005, but supply will grow by less than half that rate. (Updated July, 2005) |
|
|
The U.S. created 2.5 million jobs in 2004. Forty percent, or fully 1 million, of these jobs were filled by Latinos and Latinas. Eighty-eight percent, or 880,000 of the new jobs were filled by recent U.S. immigrants. (Updated July, 2005) |
|
|
Last year saw 2.5 million jobs created in the US; 40% of those jobs were taken by Latinos. Of those million jobs taken by Latinos, 88% went to recent U.S. immigrants. (Updated July, 2005) |
|
|
Chinese energy officials must rethink their country's reliance on coal as supplies of it begin to run out. (Updated July, 2005) |
|
|
Salaries for general practitioners in Britain have increased to around 90,000 Pounds Sterling, or about US$170,000. This represents a 50% increase over the 2002-03 average salary of £61,000. Why? Thank the British government. (Updated July, 2005) |
|
|
For those who want to purchase a drug to combat the potentially deadly avian flu, wealth and income have become more important than need. (Updated July, 2005) |
|
|
Tungsten prices worldwide have increased by over 100% since the beginning of 2005, rising from $9,000 per ton to about $22,000 per ton. What is tungsten? Why is its price increasing? (Updated June, 2005) |
|
|
Daily newspaper circulation fell by 1.9% in the six months ending March 31, 2004: the largest drop in circulation in a decade. (Updated June, 2005) |
|
|
In the constant struggle between economic interests and national security, American workers are concerned that foreign workers in this country will steal their jobs. However, imposing limits on foreign workers may have additional, unconsidered costs. The limits on H-2B work visas, which allow foreign workers to work in the US, are being reached with repercussions in a variety of non-related industries. (Updated June, 2005) |
|
|
For the top 62 U.S. shopping markets, vacancy rates in America's shopping malls stood at 5.3% for the fourth quarter of 2004, down from 5.5% in the third quarter of last year. (Updated April, 2005) |
|
|
Indonesians are discovering that the laws of supply and demand aren't put on hold, even in the event of catastrophe like the one recently visited upon their country and others in the region. (Updated March, 2005) |
|
|
A shortage of Christmas trees in Hawaii arose this past season, owing mostly to a significant excess supply in 2003. (Updated March, 2005) |
|
|
Donated organs are in short supply, and governments think they have a partial solution to the problem: offer tax breaks to donors." (Updated February, 2005) |
|
|
The US Postal Service will probably be seeking an increase in its postage rates to cover what it calls "inflationary pressures." (Updated January, 2005) |
|
|
As the Christmas buying season gears up, one thing is notably heading down: flat-screen TV prices. Some TV's, such as Sharp 32-inch LCD TVs that debuted at the beginning of the year at $5,000 are now selling for $4,000 or less. Competitors are selling for less than $2,000. (Updated January, 2005) |
|
|
Energizer has come up with a new addition to the flashlight market: a flashlight that will work with any of three different sizes of batteries. (Updated December, 2004) |
|
|
The recent increase in oil prices is creating a surge in a different area: producing plastic from corn. (Updated December, 2004) |
|
|
OPEC has agreed to increase its targeted oil production rate by 1 million barrels a day, and wants other nations outside the cartel to do the same. However, since OPEC already produces more than the "new target" of 27 million barrels, few consider the agreement to be anything more than a symbolic gesture. (Updated November, 2004) |
|
|
Even though the price of oil has increased more than 40% since
last year, U.S. demand for gasoline has not shown any sign of abating. (Updated November, 2004) |
|
|
Across college campuses nationwide, students are increasingly purchasing Apple computers. (Updated November, 2004) |
|
|
U.S. shrimp producers are trying to stop the onslaught of imported foreign shrimp by giving U.S.-caught seafood a personality. Florida shrimp has "a distinctive Florida taste," while imported fish has an "iodine-y aftertaste." (Updated October, 2004) |
|
|
For the first time in 4 years, Starbucks is raising its prices across is menu by 4-5%. The good thing - for Starbucks - is that most people probably won't care about the additional 10-15 cents that their treats will cost. (Updated October, 2004) |
|
|
Our economy has seen oil price increases like this before, but this one may last much longer than any other. (Updated October, 2004) |
|
|
The biggest growth in car rental agencies isn't coming at airports; it's coming instead from the suburbs. Lining up next to coffee shops and bank branches in strip malls in suburban landscapes, rental agencies are quick to take space in the suburbs. (Updated September, 2004) |
|
|
Brazil's ability to produce many agricultural products at low prices is making farmers in other countries stand up, notice, and start to fear the worst. Already the largest exporter of soybeans, Brazil is quickly becoming a world leader in production and export of sugar, coffee, orange juice and cattle products. (Updated September, 2004) |
|
|
The average cost of
a public university education will increase by about 9% next year, compared
to about 14% last year. The average private-university cost will increase
by about 6% for the 2004-05 academic year. (Updated August, 2004) |
|
|
The average cost of
a public university education will increase by about 9% next year, compared
to about 14% last year. The average private-university cost will increase
by about 6% for the 2004-05 academic year. (Updated August, 2004) |
|
|
Business travel has
begun to pick up after a three-year lull, and with increased business travel
comes the end of discounts and travel packages designed to encourage people
to take vacations. (Updated August, 2004) |
|
|
Recent studies demonstrate
that while U.S. citizens spend far more than any other country's citizens
on health care services - about 14% of GDP compared to 8% for other developed
nations - U.S. consumers receive fewer services and lower quality health
care in some health concerns. (Updated August, 2004) |
|
|
Economists have tried
repeatedly to justify or refute politicians' claims that building new sports
stadiums will positively affect jobs, tourism, and local economic growth.
However, they have never been successful. They have, however, found a positive
relationship between sports stadiums and the cost of housing in the area
surrounding such stadiums. (Updated July, 2004) |
|
|
More and more builders
in the Boston area are efficiently using natural resources and energy in
mind. So-called "green" projects have gained encouragement not
only by the public sector, but by private firms and individuals as well. (Updated July, 2004) |
|
|
Apollo Hospital Enterprises
in India now boasts a new service in its 37 hospitals spread across Southeast
Asia: providing cut-rate health services to foreign individuals looking
to save money. (Updated July, 2004) |
|
|
The airline industry
as a whole is anticipating a brutal traveling season this summer, as it
faces increased fuel costs, increased operating costs, and increased competition
from low-cost carriers. (Updated June, 2004) |
|
|
In response to changing
consumer trends toward healthier eating, McDonald's announced that on May
6, 2004, it would roll out Adult Happy Meals, called "Go Active!" meals, in all 13,600 U.S. domestic McDonald's restaurants. (Updated June, 2004) |
|
|
While many politicians
favor a new tax on gasoline to raise revenue and increase fuel standards
at the same time, few have actually introduced measures to do so. Detroit
auto manufacturers are supporting the idea of a $0.50 increase in the gas
tax, however, as a means of instilling greater fuel economy in its automotive
fleets. (Updated June, 2004) |
|
|
As consumers shift
away from air delivery of goods to less-expensive ground delivery, UPS is
negotiating with Airbus to cancel up to US $1.6 billion in A300-600 aircraft
orders. (Updated April, 2004) |
|
|
While many people
support the use of solar power, they don't want their neighbors to use unsightly
solar panels to collect solar energy. (Updated April, 2004) |
|
|
In the last few years,
low mortgage rates and the excess supply of rental housing has helped renters
get bargains from landlords as landlords scramble to induce renters to sign
leases. (Updated April, 2004) |
|
Are So Busy, They Don't Know if They're Coming or Going |
Years of retrenching
in the railroad industry is coming back to haunt it. Reductions in demand
for railroad freight transportation over the last few years caused reductions
in personnel and equipment. This year, as a result of the surge in agriculture
and in the economy overall, the industry is struggling to keep up with increased
demand for transportation of bulk goods. (Updated January, 2004) |
|
|
The price of health
care rose by 13.9% this year, and there are no signs that the increase-or
rate of increases in the future-will be temporary. (Updated November, 2003) |
|
|
The recent economic
slump has caused the advertising industry to shed "tens of thousands" of jobs in the last few years, causing a number of students to conclude
that they are better off in school. (Updated November, 2003) |
|
|
Increased U.S. border
security has created an unusual problem - migrant workers who entered the
country illegally are finding that they can't leave, and so are staying.
This increase is taxing the public sector programs in communities in which
illegal immigrants live. (Updated October 17, 2003) |
|
|
The supply of economists,
as measured by the junior memberships to the American Economic Association,
has increased by 14%, while the number of available jobs for economics Ph.D.'s,
fell by 10% last year. (Updated October 17, 2003) |
|
|
As a result of the recent
blackout that affected 50 million people and seven gasoline refineries in
the US and Canada, prices of gasoline may rise by as much as 10 cents a
gallon. (Updated September 10, 2003) |
|
|
Baseball teams are turning
to "variable pricing," in which ticket prices vary by anticipated
demand. (Updated September 10, 2003) |
|
|
AT&T hopes to become
more efficient and more profitable by continuing to shed its workforce and
cut costs elsewhere. (Updated August 27, 2003) |
|
|
Lumber prices have staged
a rebound of late, increasing as a result of increasing demand and reduced
supply. (Updated August 27, 2003) |
|
|
United Air Lines filed
the largest bankruptcy in aviation history in December of 2002. Now, only
five months into the new year, the company is talking about operating outside
court protection much earlier than expected.. (Updated June 2, 2003) |
|
|
The cost of attending
a New York Yankee game has spiraled to $197.09 for a family of four. Increasingly,
some fans prefer to stay at home or watch the game in sports bars. (Updated October 10, 2002) |
|
|
Computer sales showed
a surge over the holiday season of 2001, stimulated by steep price discounts
for computers and related products, in spite of the recession and the growth
in popularity of home entertainment systems. (Updated January 15, 2002) |
|
|
The market for bio-terrorism
products was insignificant before September 11, 2001. Costs were high and
consumer interest was low. Following the attacks, the government and consumers
are seeking treatments and vaccines. (Updated November 1, 2001) |
|
|
Time-of-day electricity
pricing encourages consumers to use appliances at off-peak times. Utilities
therefore do not need to buy as much power on the expensive spot market
and fewer power plants need to be built. (Updated August 1, 2001) |
|
|
The 2000 Census reveals
that Detroit and some other cities declined in the 1990s due mainly to downsizing
in manufacturing. But other parts of Michigan grew as other industries expanded. (Updated June 1, 2001) |
|
|
Retail sales figures
for February provided further evidence of a weakening economy and decline
in consumer confidence. The weakness in retail sales could provide added
reason for the Federal Reserve to cut interest rates again. (Updated April 1, 2001) |
|
|
Air traffic growth slowed
in October 2000 to just 2 percent over a year before. The causes are stated
to be consumer fears of operational problems and Middle East violence, fewer
discounted tickets, and cuts in travel budgets. (Updated January 1, 2001) |
|
|
Oil production in West
Texas is booming again now that oil prices have risen to the levels of the
early 1980s. It is economic to open new and old wells that were uneconomic
before. However, activity has not rebounded to prior heights due to uncertainty
about the future. (Updated October 1, 2000) |
|
|
Attendance at racetracks
has been slumping for decades due to the popularity of other sports and
alternative forms of gambling. Nevertheless, betting is increasing. Track
owners hope to bring the betting back to the track by turning their facilities
into entertainment centers and by providing shopping plazas. (Updated July 1, 2000) |
|
|
VHS video sales are
relatively flat while DVD sales are increasing fast and will dominate the
market by 2002. This trend is due to a growing number of consumers owning
DVD players, buying more DVDs per person, and responding to falling DVD
prices. (Updated June 1, 2000) |
|
|
The antiques and collectibles
market is growing due to TV shows such as Antiques Roadshow and web sites
such as that of eBay. While large antique shows are prospering, small shows
are not, because large shows are able to charge dealers less and attract
more customers. (Updated May 1, 2000) |
|
|
The plunge in the stock
market has reduced paper wealth. Consumers are spending less, workers may
quit technology firms, and investors are likely to invest less. (Updated May 1, 2000) |
|
|
American dominance of
the luxury car market ended in 1999 as Mercedes-Benz and Lexus overtook
Cadillac and Lincoln. Foreign cars apparently look and drive better, and
more are offered at lower prices. The American companies are responding
by trying to offer similar cars at cheaper prices. (Updated March 1, 2000) |
|
|
House prices are rising
fast, the average now exceeding $200,000. House buyers want more space and
amenities, and can afford to pay for them. The cost of materials and skilled
labor is rising also. (Updated March 1, 2000) |
|
|
Tobacco farmers are
selling less tobacco. Public-health groups emphasize that cigarette manufacturers
are buying more tobacco from overseas. The industry retorts that smoking
restrictions and higher cigarette taxes should share the blame. (Updated February 1, 2000) |
|
|
Lower snowfall is reducing
skiing opportunities. Skiers are canceling or going elsewhere. Resorts are
responding by cutting lift ticket and accommodation prices, and are engaging
in more aggressive marketing. (Updated February 1, 2000) |
|
|
In 1995, the Peruvian
Government shot down planes suspected of trafficking drugs and caused the
price of coca leaf to fall dramatically. However, the emergence of new trafficking
routes, a reduced supply in Bolivia, and a greater demand for cocaine, has
caused the price of coca leaf to rebound. (Updated November 1, 1999) |
|
|
China is experiencing
deflation and authorities have therefore banned new construction of factories
that make consumer goods for the domestic market. It is uncertain how well
the ban will be respected as previous measures - minimum prices and lower
interest rates - have been ineffective. Devaluation may occur in the future. (Updated October 1, 1999) |
|
|
Cell phone usage is
increasing, causing some consumers to give up their home phones. The reasons
are the lower prices of cell phone plans and the growing quality of the
product and its call coverage. (Updated October 1, 1999) |
|
|
Refugees returning to
Kosovo are finding that food prices are double or triple their previous
levels. Staple foods particularly are in short supply. . (Updated August 1, 1999) |
|
|
A decade ago, the growth
of managed care resulted in steady or lower health care costs. Now the price
of health care is rising at a rate of 7 to 11 percent a year for large employers,
more for smaller employers. Many employees are also dissatisfied for reasons
other than price. (Updated July 1, 1999) |
|
|
Wheat and tobacco farmers
are worried because of rising costs and falling prices. In Canada, farmers
are able to grow hemp, a non-intoxicating cousin of marijuana. However,
the drug enforcement authorities will not permit hemp growing in the U.S. (Updated May 1, 1999) |
|
|
Gasoline prices have
risen sharply in recent weeks. Refiners have been able to increase the price
of refined oil because of strong demand. An industry economist claims that
the higher prices reflects the higher price of crude oil, but OPEC has not
yet finalized its plans to cut output. Consumers and businesses are seeing
their costs increase. (Updated May 1, 1999) |
|
|
The heat and floods
of 1998 are threatening the supply of pecans from Texas. However, distributers
are buying nuts from other states and Mexico, while producers are releasing
nuts from 1997 that have been kept in cold storage. (Updated February 1, 2000) |
|
|
Sony and Nintendo have
decreased the prices of their video game systems. Sales have increased significantly.
The trend may be short-lived, however, as new hi-tech products come on to
the market and computer prices fall. (Updated October 15, 1998) |
|
|
Bolivia is attempting
to stop the illegal growth of coca plants by giving grants to communities
and training to farmers in return for the destruction of their coca fields. (Updated August 18, 1998) |
| Return to EconNews Topic Index | Return to Economics Resource Center |
©1998-2008 South-Western. All Rights Reserved.