Tuesday's Assorted Links
Grocery chains, new tariffs, Team USA, remote work, and Broadway
Hi y’all! Here are five stories from this week that contained some neat applications of economic principles or are related to teaching:
Grocery chains are bigger than ever. See who runs the stores near you [The Washington Post]
The US proposed new tariffs of at least 10% on 60 trading partners, which together account for nearly all US imports [BBC]
What it would cost to go to every possible Team USA World Cup game [The Wall Street Journal]
A study finds that remote work is a bigger contributor to unemployment rates among young people than AI [New York Federal Reserve]
Broadway’s $1.9 billion season is the latest sign of consumers splurging on experiences [CNBC]
Before the World Cup even kicks off, FIFA promised $80 billion in economic impact and 200,000 permanent jobs. Dig into what GDP actually measures, what it misses entirely, and why host cities from Kansas City to New York are quietly absorbing costs that will never show up in July’s victory lap. If you haven’t read it yet, bookmark it now. You’ll want it when the headlines start rolling in in a few months.
The World Cup Won't Boost the Economy (Don't Let Anyone Tell You Otherwise)
Rehan Alam has been really busy. The owner of The Red Lion soccer bar in downtown New York City has spent the last few weeks hiring extra bartenders, bolting new TVs to the walls, and paying sound engineers to rewire the whole place. Costs for just about everything have been
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Wow! The NY Fed study completely refutes the idea that AI is why recent college graduates have higher unemployment levels than in previous years. Excerpts:
"remote work can explain 64 percent of the increase in unemployment for all young college graduates between 2017−19 and 2022−24."
"the uptick in youth unemployment rates predates the rapid diffusion of AI."
"We show that when people work next to their colleagues, they receive more feedback on their output and more mentorship. When they are separated even by a short distance, that feedback tapers off dramatically. The loss in feedback is more pronounced for younger workers, who miss out on constructive comments that spur their development."
"Overall, the firm’s hiring patterns suggest that it is willing to teach junior workers when proximity is feasible but shies away from employing inexperienced workers if distance creates barriers to training and development. "
Every Econ instructor should make this information available to their students.