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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. |
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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) |
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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) |
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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) |
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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) |
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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) |
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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) |
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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) |
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A shortage of Christmas trees in Hawaii arose this past season, owing mostly to a significant excess supply in 2003. (Updated March, 2005) |
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The recent increase in oil prices is creating a surge in a different area: producing plastic from corn. (Updated December, 2004) |
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Chinese-style capitalism takes a distinctly socialistic perspective, especially when the government thinks that market-based prices are wrong. It sets them itself. (Updated October, 2004) |
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Our economy has seen oil price increases like this before, but this one may last much longer than any other. (Updated October, 2004) |
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New York City is raising
city revenues by selling more "taxi medallions," the little tokens
(literally) that are required of all owners of taxicabs that serve the city. (Updated June, 2004) |
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Pharmaceutical giant
Abbott Laboratories has decided to increase the price of its drug Norvir,
a critical component in AIDS drug "cocktails," from $1500 annually
to $7800. Consumer and AIDS advocates argue that this is price gouging at
its most extreme. (Updated June, 2004) |
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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) |
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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) |
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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) |
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Tuition at four-year
universities is increasing due to reduced state funding. Enrollment increases
offset some of the shortfall, but cuts in programs and faculty are still
being made. Universities are giving students incentives to complete their
studies quickly. (Updated October 10, 2002) |
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At an International AIDS
Conference, former President Bill Clinton advised developing countries to
negotiate lower AIDS drug prices with the drug producers and then ask rich
nations for funding for prevention and some of the remaining drug costs. (Updated October 10, 2002) |
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The home improvement
market is booming due to the record number of homes changing hands, the
growth in new homes, favorable financial conditions, warm weather, and an
increasingly home-centered national mood. (Updated June 15, 2002) |
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Afghan farmers are being
paid to destroy their opium poppy crop so that the illicit opium and heroin
trade is restricted. It is doubtful whether the incentives are adequate.
(Updated June 15, 2002) |
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Cell phones are becoming
the primary or only telephone for some. The price of cell phone service
has decreased, and plans are more appealing. A potential problem is that
the airwave spectrum is limited and additional cell towers are needed. (Updated May 1, 2002) |
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The Mexican government
has reduced subsidies on electricity and has increased taxes on various
luxury items. Inflation is expected to rise. (Updated April 1, 2002) |
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The prospects for the
travel industry are uncertain. However, industry gurus have made predictions
for the air travel, cruising, and lodging markets. (Updated January 15, 2002) |
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Gasoline prices are collapsing.
OPEC has failed to convince non-OPEC producers to join them in curbing oil
output. Local retailers are competing for sales. However, large regional
differences in prices remain. (Updated December 1, 2001) |
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Many Maine fishermen
have diverted their attention over the last 15 years from lobsters and scallops
to diving for sea urchins and fishing for eels to satisfy the demand from
Japan. However, as stocks dwindle, fishermen try to interest the Japanese
in other sea creatures, such as periwinkles and whelks. (Updated August 1, 2001) |
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The White House has proposed
a plan to increase the supply of energy over the next twenty years. However,
it is dependent on support from Congress, action by government departments,
and the cooperation of the private sector. (Updated July 1, 2001) |
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Saturday night viewing
of broadcast television is declining. Many young adults prefer to dine out,
go to the movies, watch cable, or rent a video. Some say the problem is
the networks opting to offer less attractive programming. (Updated June 1, 2001) |
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The weakening economy
is causing many producers to reduce prices, give incentives, offer free
gifts, and introduce innovative products, in an attempt to restore sales
levels and retain market share. (Updated June 1, 2001) |
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Horse stealing is increasing
as the price of horsemeat rises. Consumers are buying more horsemeat due
to mad cow disease and foot-and-mouth disease in Europe. Hi-tech devices
are being used to trace stolen horses before they are slaughtered. (Updated June 1, 2001) |
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In Britain, the prices
of drugs are at a historical low, although there is wide variation. It is
suggested that the war on drugs is failing because choking off supply should
increase prices. Secret greenhouses inside Britain may be the cause of the
apparent policy failure. (Updated June 1, 2001) |
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Real-time pricing, which
involves fluctuations in price through the day according to demand levels,
may hold the key to California's energy shortage. Georgia's experience shows
that large consumers of electricity reduce their consumption when demand
is high and the price increases, reducing the probability of blackouts. (Updated April 1, 2001) |
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Phoenix is the latest
jurisdiction to approve a tax increase on rental cars to fund a new football
stadium. Car rental companies and the Travel Industry Association are not
in favor. However, the Phoenix Travel and Sports Authority states that visitors
will benefit from the stadium and that the tax will not be noticed by consumers. (Updated April 1, 2001) |
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Health care costs are
out of control again due to new medical technology, legislation about minimum
hospital stays, consumer resistance, and greater doctor and hospital bargaining
power. The costs are likely to be passed on to the employee, and preventive
care may be emphasized more. (Updated April 1, 2001) |
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Mad cow disease has
now been discovered in Germany. Consumers are deserting beef and replacing
it with other meats or beef from other sources. Prices are falling. The
German government is taking several steps to reassure consumers. (Updated March 1, 2001) |
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Falling gold prices
have led the World Gold Council to sponsor a marketing campaign designed
to "re-brand" gold as a fashionable metal for jewelry. Council members are
doubling their membership fees to fund the campaign. (Updated March 1, 2001) |
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Increasing oil, gas,
and electricity prices are stimulating consumers to conserve energy. Some
are changing their source of heat and power, while others are using energy-saving
thermostats, weather-stripping, and household appliances. (Updated February 1, 2001) |
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A federal advisory has
concluded that Medicare health care costs will rise faster than assumed.
The reason is advances in technology. Managed care is unlikely to curb the
adoption of new technology. (Updated January 1, 2001) |
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In Shanghai, bamboo,
the staple food of pandas, is hard to find and is expensive. Government
subsidies to zoos have been reduced. Zoos are trying to raise money in other
ways and are accepting donations of bamboo. (Updated November 1, 2000) |
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The high-tech expansion
requires new buildings and allows workers to buy fashionable homes. Lower-
and middle-income groups and small businesses are being displaced. In the
political backlash, some cities are placing moratoria on new commercial
development. (Updated November 1, 2000) |
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New York City has a
very high hotel occupancy rate. This is resulting in more hotels being built.
The room rates will vary according to the comforts provided. A glut is doubtful
because the number of visitors continues to grow. (Updated November 1, 2000) |
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Cruise prices are falling
and are at historically low levels. The reason is a rapid growth in industry
capacity. Cruise lines hope that the low prices will attract first-time
passengers who will then return in the future. (Updated October 1, 2000) |
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PC prices had been falling,
but are now rising slightly. The reasons are increased component prices,
less competition between suppliers, and consumers' desire for additional
features such as DVD drives. (Updated September 1, 2000) |
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Oil prices have risen
threefold over the past few years. Inflation and growth are threatened.
Western governments are pressuring OPEC to increase oil production. OPEC
says that the blame is misplaced - taxes and government regulations are
also behind the high oil prices. (Updated August 1, 2000) |
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New York City restaurant
meal prices are shooting up due to better ingredients, more expensive rents,
and more experienced staff and chefs. The growing income and wealth of New
Yorkers means that restaurants are still full, although that may not last. (Updated July 1, 2000) |
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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) |
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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) |
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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) |
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Three Dog Bakery sells
gourmet dog treats. Its business has expanded rapidly due to the strong
economy and adoring dog lovers, combined with inexpensive equipment and
use of the Internet. (Updated April 1, 2000) |
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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) |
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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) |
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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) |
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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) |
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There is a debate over
whether there is a teacher shortage. One side argues that teachers exceed
vacancies in most areas, while the other states that over the coming decade
the growth in enrollments and teacher retirements will cause a shortage,
especially in some subjects. (Updated November 1, 1999) |
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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) |
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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) |
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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) |
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Car leasing reached a
peak in 1998, but is now decreasing as buying and financing car purchases
regain popularity. The reasons include the strong economy and the diminished
availability of cheap lease arrangements. (Updated October 1, 1999) |
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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) |
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Kuwait is suffering
due to a reduction in oil prices and revenues. Government deficits are necessitating
new charges for driver's and business licenses. There are long waiting lists
for housing. Businesses are closing or laying off workers. (Updated June 1, 1999) |
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Long lines for attractions
at theme parks are a major headache for visitors. Disney is experimenting
with timed tickets. Other ideas include higher park admission fees and VIP
package with queue-jumping privileges. Now, visitors can avoid lines by
staying at an on-property hotel and gaining early entry. (Updated June 1, 1999) |
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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) |
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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) |
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Cruise prices are soft due to an
increase in the number of ships and lower costs. Demand is increasing as
a result, but also due to cruise loans, improved marketing, and the unbundling
of the cruise, air connections, and extras. The downside is that cruise
companies are charging more for drinks, tours, and other extras. (Updated April 1, 1999) |
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In 1998, airlines' yields were reduced
due to customer resistance and the Northwest pilots' strike. Only cost-cutting
enabled net income to increase. Continued soft domestic demand and an increase
in the number of jets are likely to restrain airfares in 1999. (Updated March 1, 1999) |
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The basketball lockout is not disrupting
the sports card business as it might have done in past years. Heeding the
lessons of oversupply in 1991 and 1994, producers have reduced card shipments,
and increased interest in baseball cards is helping maintain revenues. (Updated February 1, 2000) |
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Auto sales in 1998 were the second-highest
ever. Unlike the 1950s, when the growth in demand outstripped the supply,
the current golden age is characterized by an abundent supply, prompted
in part by new technology and lower costs. (Updated February 1, 2000) |
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The Swiss are voting on a constituional
amendment to legalize drugs, which may reduce illegal street drug trade,
but may prompt more traffickers and users to visit Switzerland. Passage
is doubtful die to the magnitude of the drug problem and worries over legalizing
hard drugs. (Updated January 1, 1999) |
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Bakery prices are rising because
butter prices are increasing. The increase is caused by a decline in milk
production along with a long-term and seasonal increase in tastes for butter. (Updated December 1, 1998) |
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China is seeking to
change its energy mix to rely less on coal and more on natural gas. However,
pipelines are operating at less than full capacity because most homes are
not hooked up for gas use. There are also concerns about the size of China's
gas reserves. (Updated October 15, 1998) |
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Butter prices are rising
due to a smaller supply of milk, subsidies for butter exports, and a growing
appetite for sweet products, resulting in higher prices for products like
ice cream and cheese. (Updated August 12, 1998) |
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