Economics in the News – Sept. 23-29, 2024
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o The death toll has surpassed 100 across six states in the Southeastern United States in the aftermath of Hurricane Helene, while more than 600 people have been reported missing in Buncombe County, N.C., where Asheville, N.C. resides. Early indications are that Hurricane Helene is one of the most damaging and deadly hurricanes to hit the United States in recent years.
Homes and other buildings washed away, as key infrastructure failed. Many roads remain closed, while cell phone service and other utility services remain spotty. The damage to Asheville’s water system was catastrophic and will require extensive repairs, potentially taking weeks before full service resumes. Moody’s Analytics estimates more than $15 billion in property damage. [The Wall Street Journal]
o The world’s purest quartz sand is mined in western North Carolina and is an irreplaceable key for manufacturing components in smartphones and other electronic devices. The town of Spruce Town, N.C., remains vulnerable after damaging floods brought by Hurricane Helene have devastated the region.
Both of the major mine operators in Spruce Pine, N.C., halted operations and do not know when operations will resume. Analysts warn that consumers can expect higher prices for electronics in the coming months, but the mines should recover in due time. [The Washington Post]
o Landlords visiting the Orlando, Fla., area are looking to attract families to their short-term rentals. The area has more than 30,000 Airbnbs and other short-term rentals, which is the most in the United States, according to AirDNA. As domestic travel has slowed since the immediate aftermath of the COVID-19 pandemic, homeowners rushed to purchase rental homes at record low interest rates and rent their homes to guests. Now, those houses are sitting empty, as homeowners are left to cover mortgages.
Delinquencies on vacation and rental homes is rising. Property managers are having to find more creative ways to entice vacationers to their homes. Some homeowners are spending thousands of dollars to make their home standout via the décor, creating themes. [Bloomberg]
o Diners could soon see smaller portion sizes the next time they dine out. A combination of economics, demographics, and climate science could all play a role in restaurants cutting down on their super-sized restaurant portions. Restaurants struggling due to rising food costs are wrestling with how to sell smaller servings without upsetting value-minded customers.
More than 75 percent of customers say they want smaller portions for less money, according to the 2024 National Restaurant Association report. In addition, as much as 40 percent of food served in restaurants never gets eaten, according to a 2020 study on food waste. Some states – such as California and Massachusetts – have restricted how much food can end up in landfills. Changes have already come to some restaurants. Subway introduced a snack-focused menu that includes smaller bites. Burger King shrank its 10-piece nugget order to eight. [The New York Times]
o The Oakland Athletics played their final game in Oakland, the franchise’s home for 57 years. The franchise will turn the page with preparations already underway to build the new home stadium in Las Vegas – a home that the A’s want to be a $1.5 billion dome on the Las Vegas Strip.
The A’s are the last of Oakland’s professional franchise’s to move in the last five years, joining the Las Vegas Raiders, who moved from Oakland to Las Vegas in 2020. The NBA’s Golden State Warriors moved across the bay to San Francisco in 2019, opening a $1.4 billion stadium in a neighborhood full of tech workers. [The New York Times]
