Tuesday's Assorted Links
Domestic travel, US stock market, saving accounts, ramen flavors, and migration
Hi y’all! Here are five stories from this week that contained some neat applications of economic principles or are related to teaching:
Delta, American Airlines, and Southwest lowered their revenue forecasts as domestic travel slows among a worried economy [Axios]
Visualizing every day of the US stock market for the last 10 years [Sherwood News]
Across all income groups over the past year, wage growth plunged and checking and savings account balances declined [Bank of America Institute]
General Mills’ new ramen products tap two of its brands: Old El Paso with fajita and beef birria flavors, and Totino’s with cheese and buffalo chicken pizza flavors [Food Dive]
Population growth in metro areas from 2023 to 2024 was faster than America as a whole, increasing by 1.1% [U.S. Census Bureau]
While egg prices have recently started declining, many people are still curious about the reasons behind their earlier spike. I explored this topic in a conversation with NPR and provided a detailed analysis for the HerMoney Podcast with Jean Chatzky. Check out both discussions to learn more about the economic factors influencing egg prices.
Southwest Airlines is ending its “Bags Fly Free” policy after decades of setting itself apart from competitors. Travelers are furious. Wall Street is thrilled. But here’s the thing: checked bags were never free—you just didn’t see the cost. Why is Southwest making this change? And why does losing a “free” perk feel so much worse than paying more upfront? Behavioral economics has the answer.
There’s No Such Thing as Free Checked Bags
For decades, Southwest Airlines had a magic trick. It convinced millions of travelers that their checked bags were free. Two bags, no charge—no small thing in an era when most airlines nickel-and-dimed passengers for everything from seat selection to carry-ons
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I'm having trouble reconciling the third bullet point ("wage growth plunged") with what the linked report says: "For the consumer, 2024 has been a year of resilience, with solid growth in card spending backed up by robust after-tax wage
and salary growth."