Canada’s Hudson’s Bay Company plans to close all brick-and-mortar stores as it struggles with declining foot traffic amidst competition with online retailing.—reuters.com
Category: Economics in the News-Micro
Plastic Shopping Bag Policies Are Actually Working
The extra fee at the grocery store for a plastic shopping bag is reducing the amount of bags being used. Plastic pollution from shoppers not only diminishes the enjoyment of nature but also harms marine animals that ingest plastic bags, often resulting in starvation and death.—cnn.com
Matcha is Having a Moment in Japan
With influencers widely promoting matcha tea and record levels of tourism in Japan, the price of matcha powder is rising. Many farmers lack the resources to upgrade to specialized machines needed for matcha production. In the future, aging matcha farmers note that they have few successors to take over.—cbc.ca
The Pacific Coast Producers
New tariffs on steel are increasing costs for companies like Pacific Coast Producers, which uses steel to package canned fruits and tomatoes for major U.S. grocers, hospitals, and schools. The company is now considering passing these additional costs on to buyers.—reuters.com
BYD Triggers a Price War
On May 23rd BYD caused shockwaves when it slashed the cost of its 22 electric and hybrid models. In response, other carmakers cut their prices. Only a few carmakers are expected to survive in the long run. China’s industry minister said, “there are no winners in the price war”. —economist.com Some Data Source: cleantechnica.com
Should the United States Grow Bananas?
The U.S. Commerce Secretary suggests that the simplest way to avoid tariffs is to produce everything domestically—appropriations.house.gov
Income Inequality in Latin America
Children from high-income families acquire more skills than those from low-income families, which creates half of the current generation’s income inequality. But transfers and large wage increases for low-income workers decreased income inequality in Latin America between 2000 and 2010. Latin America relies more on regressive taxes than on progressive ones. –economist.com
Canada’s Spring Wheat Market
China’s 100% tariff on Canada’s canola meal and oil have supercharged Canadian farmers’ shift to spring wheat. Millers and bakers are benefitting from the production decision of Canadian farmers.—reuters.com
Fishing Rights
The new deal signed between Britain and the EU maintains the same fishing quotas. Mackerel in the north-east Atlantic is being overfished because Britain, the EU, the Faroe Islands, Norway, Iceland and Greenland failed to follow agreed catch quotas.—economist.com
Japan Faces a Rice Crisis as Price Nearly Doubles for Food Staple
The price of rice in Japan has nearly doubled over the past year due to a poor rice harvest, wheat shortages caused by the Russia-Ukraine war leading consumers to substitute rice for wheat, and a booming tourism sector.–aljazeera.com