Britain’s dairy farming industry is producing a large quantity of milk, and prices have fallen sharply in recent months. Economic losses have led many dairy farmers to exit the industry. Around 7,000 dairy farmers remain, including Kelly Seaton, a dairy farmer in Cheshire, who continues to operate despite losses.—economist.com Some Data The Questions Who is … Continue reading The Highly Competitive Dairy Farming Market in Britain
Category: Eye On–Micro
California’s $20 Minimum Wage: More Applicants, Fewer Jobs
In April 2024, California implemented the FAST Act, which increased the minimum wage for fast-food workers from $16 to $20 per hour. Firms reduced hours, limited hiring, and substituted capital for labor.—callmatters.org The Questions What is FAST Act and what does it do? How has FAST Act changed the quantity of labor demanded in California’s … Continue reading California’s $20 Minimum Wage: More Applicants, Fewer Jobs
The 25% Tariff on Cars
The 25% Tariff on Cars In a Proclamation, “Adjusting Imports of Automobiles and Automobile Parts into the United States” issued on March 26, 2025, President Donald Trump announced the imposition of a 25 percent tariff on imported cars and auto parts to be effective from April 2, 2025. During a call with the CEOs of … Continue reading The 25% Tariff on Cars
Keir Starmer Considers Crackdown on Dynamic Pricing as Ticket Costs Soar
After ticket prices for Oasis’s reunion tour more than doubled while fans queued, Sir Keir Starmer, the UK prime minister, said “this isn’t just an Oasis problem, this is a problem for tickets for all sorts of events. … we’ll make sure that tickets are available at a price that people can actually afford.”—Source, The … Continue reading Keir Starmer Considers Crackdown on Dynamic Pricing as Ticket Costs Soar
Google Loses Bid to End U.S. Antitrust Case over Digital Advertising
Google must face trial ... that the internet search juggernaut dominates the online advertising technology market. Google argues ... that regulator had not accurately defined the ad tech market.—Reuters, June 14, 2024 Data Does Google dominate the digital advertising market? Figure 1 shows the total revenue shares of the firms that compete in the digital … Continue reading Google Loses Bid to End U.S. Antitrust Case over Digital Advertising
Canada Defends Capital Gains Tax Hike
Finance Minister Chrystia Freeland said a hike in the capital gains tax for the wealthiest will fund an ambitious housing program and other expensive social programs. "The responsible way to pay for those investments is to ask those at the top to contribute a little bit of money."–Reuters, June 10, 2024 What is capital? Capital … Continue reading Canada Defends Capital Gains Tax Hike
Canada Risks Losing Investment to Mexico as Labor Productivity Skids
Canada's low labor productivity level brings the risk of losing investments to Mexico, as the nearshoring boom moves supply chains to North America. Canadian labor productivity fell 1.8% in 2023, its third consecutive year of decline. Reuters, April 30, 2024. What is the nearshoring boom? Nearshoring occurs when a foreign firm decides to locate in … Continue reading Canada Risks Losing Investment to Mexico as Labor Productivity Skids
Will the Soaring Price of Cocoa Turn Chocolate into a Luxury Item?
Hershey expects to offset the pain of record-high cocoa prices as well as higher sugar costs by raising its prices of chocolate and candy.—CBC News, April 2, 2024. SOME DATA The price of cocoa has more than doubled over the past two years and has risen sharply since October 2023. Figure 1 shows the data. … Continue reading Will the Soaring Price of Cocoa Turn Chocolate into a Luxury Item?
Income Inequality in the Global Economy
How unequal are incomes across countries? The answer is very unequal. In 2024, the average income in the 10 highest income countries is $88,000 a year, which is 73 times $1,200 a year, the average in the 10 lowest income countries. Are incomes across countries becoming more unequal? The answer is no: Incomes across the … Continue reading Income Inequality in the Global Economy
New York City’s $15 Congestion Tax Wins Initial Approval
New York City’s Metropolitan Transportation Authority (MTA) will make motorists driving into Manhattan’s central business district pay a congestion tax. Passenger cars will pay $15 and trucks will pay $24 to $36 and the tax will bring in $1 billion annually. —Bloomberg, December 7, 2023. Some Data The MTA’s “Congestion Pricing will unlock a better … Continue reading New York City’s $15 Congestion Tax Wins Initial Approval