Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o Popular all-day breakfast chain Waffle House is temporarily adding a 50-cent surcharge for each egg in their omelet or scrambled eggs. The surcharge is being added to address the rising cost of eggs due to a supply shortage from the bird flu. Grocery stores and restaurants are paying around $7.79 for a dozen Midwest large eggs, more than double the industry standard of $3.33. Waffle House serves more than 272 million eggs per year in its 1,900 locations across 25 states.
The bird flu has infected or killed nearly 150 million birds. In addition, more than 30 million chickens have been killed in recent months to prevent the spread of disease. Experts warn that it could take months before the supply of egg-laying chickens stabilizes. [The New York Times]
o President Donald Trump reached a last-second deal with leaders of Mexico and Canada to delay tariffs for a month. Tariffs of 10 percent on China have gone into effect. Mexico averted Trump’s threatened tariffs by pledging to send 10,000 members of its national guard to the border, while Canada pledged to take additional steps to secure the US-Canada border.
China, Canada and Mexico are the top three trade partners for the United States, accounting for more than one-third of the products that are imported and $1 trillion in goods. Economists warn that Trump’s tariffs and anticipated retaliatory measures invoked could cause an increase in inflation and disrupt global supply chains. [The New York Times]
o As big as the Super Bowl is in the United States, it is not the most watched event in the world. That title belongs to the men’s FIFA World Cup Final. With American brands willing to pay lucratively to advertise during the Super Bowl, will advertising for the 2026 World Cup – being hosted by the United States, Canada and Mexico – exceed the Super Bowl?
The 2024 Super Bowl between the Kansas City Chiefs and San Francisco 49ers was the second most watch televised event in American history, behind only the 1969 Apollo moon landing. Companies pay a $8 million or more premium for an advertisement. While the worldwide audience is much larger for the FIFA World Cup Final, the broadcast rights are sold in more than 140 territories with each broadcaster selling advertising space. Experts suggest that the power of American marketing and the fact that the 2026 World Cup Final could help bring in elevated advertising dollars. However, due to the lack of advertisement’s of a soccer match compared to a football game, will the amount of revenue is likely to remain less than the Super Bowl. [The Athletic]
o Tesla electric vehicle competitor BYD is making advances in artificial intelligence (AI) powered driving software. BYD is using the system in its new cars at an affordable price. BYD plans to implement the system into all of their cars, including a $9,600 electric compact hatchback. BYD has plans to invest $14 billion in AI and automotive intelligence technology.
BYD has a leg up on Tesla in China – the world’s largest EV market – due to Tesla’s inability to release its latest driver-assistance software in China. Roughly half of passenger cars sold in China are either full EV or a plug-in hybrid and driving assistance technology has become a key factor for consumers. However, experts caution of safety challenges for driver assistance technology due to certain driving situations that aren’t reflected in the AI models’ training. [The Wall Street Journal]
o Consumer debt in the United States spiked in December with sizable increases in credit-card debt and non-revolving credit. Total credit increased to $40.8 billion, following a revised $5.4 billion decrease a month earlier, according to the Federal Reserve.
Outstanding credit-card debt and other revolving debt increased $22.9 billion in December. Non-revolving debt, such as car loans and student loans, climbed $18 billion – the most in two years. In 2024, total consumer credit outstanding rose 2.4 percent after a similar increase in 2023. The delinquency rate has also more than doubled the post-pandemic lows in 2021, with 3.5 percent of credit balances past due by 30 or more days and 1.8 percent of accounts delinquent. [Bloomberg]
