Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o As artificial intelligence (AI) is more widely adopted across the United States, small and midsize cities could see considerable benefit, according to labor economists, Scott Abrahams, an associate professor at LSU, and Frank Levy, a professor emeritus at MIT. The two found that cities in the Midwest, Mid-Atlantic and South are positioned to use AI to become more productive, helping to boost their populations.
Abrahams and Levy found the three regions to have advantages due to an educated work force who are working in occupations and industries that are less likely to be replaced by AI, as well as affordable housing. Many experts predict that AI will displace many workers, including those in call centers, software developers and business analysts. Some experts have likened the AI age to other technological advancements that have disrupted industries, such as the industrial revolution or the Internet which accelerated globalization and factory automation. [The New York Times]
o Disney and FuboTV have agreed to merge their live television streaming services, creating the second-largest online pay-TV provider behind YouTube TV. Under the agreement, Disney would own roughly 70 percent of Fubo, while Fubo would operate the new venture. Hulu + Live TV and Fubo will continue to operate separately with more than 6.2 subscribers across North America.
The deal also ends litigation over the formation of Venu Sports, which is a joint streaming service between Disney’s ESPN, Warner Bros. Discovery, and Fox Corp. The lawsuit alleged that the companies wouldn’t allow Fubo to carry a small number of sports-focused channels that they were looking to include in the Venu Sports. [The Wall Street Journal]
o Jimmy Carter, the 39th President of the United States, died at the age of 100. While Carter’s presidency is not often fondly remembered by historians, his legacy following his exit from the Oval Office is.
The 1970s in the US were tumultuous times due to oil price spikes due to interruptions in Middle East supply. That resulted in a period of high inflation and stagnant economic growth. Carter’s presidency top moment came from a peace deal that was orchestrated between Israel and Egypt during the Camp David Accords. Post presidency, Carter was a leading advocate for human rights through the Carter Center that he founded. He was also a supporter of homebuilding through Habitat for Humanity. In addition, Carter became the first and only president to be awarded the Nobel Peace Prize in 2002 for undertaking peace negotiations, campaigning for human rights, and working for social welfare. [The Wall Street Journal]
o What are some of the top economic headlines to watch in 2025? Many economists believe the economy over the next year hinges on President-elect Donald Trump and how quickly and dramatically he implements new policies, including those related to tariffs and immigration.
The top economic storyline to follow is tariffs, and Trump’s plans to penalize the country’s largest trading partners. Economists warn that if Trump imposes his tariffs plan that could quickly raise consumer prices. Deportation is another economic storyline to follow, as Trump’s plans to deport millions of undocumented migrants and restrain immigration could negatively impact the labor market, specifically in labor-intensive sectors such as construction, hospitality and agriculture. Tax cuts could also be on the agenda, as the tax cuts from Trump’s first term are set to expire at the end of 2025. Inflation continues to be another story worth following. While the Federal Reserve has tamed inflation with aggressive interest rate hikes, Trump’s tariff and immigration policies could lift inflation beyond the Federal Reserve’s two percent target. Finally, the stock market is worth watching in 2025. With all three major indexes at all-time highs in the final weeks of President Joe Biden’s administration, economists warn that government policies hamper growth could limit or reverse the gains that Trump routinely boasted about during his first term in office. [The Washington Post]
o Many adults choose to establish healthy habits at the start of the New Year and that begins by taking part in Dry January – abstaining from alcoholic drinks for the first month of the year. But while data from the National Institute of Alcohol Abuse and Alcoholism indicates alcohol consumption in the United States has risen overall, a 2023 survey from Gallup found that adults under the age of 35 who say they ever drink dropped 10 percentage points, from 72 percent to 62 percent, in the last two decades.
Reasoning is not clear for why Gen Z – the generation born between 1997 to 2012 – and some Millennials – the generation born between 1981 to 1996 – consumes less alcohol. However, experts point toward the raising of the minimum age to purchase or publicly possess alcoholic beverages from 18 to 21 in the 1984 National Minimum Drinking Age Act. Also, the changing social reputation of alcohol may have had an impact, as well as the interests of younger generations to live a healthy lifestyle. As a result, alcohol marketing tactics have shifted to reflect Gen Z’s consumption habits too, with a wave of sober bars across the US. [TIME]
