Weekly Econ Articles
A round-up of interesting economic phenomena
Price System and Market Efficiency: US energy production hits new record high | Sherwood News
While it’s tempting to view dividing up resources as a zero sum game, economics shows that markets and innovation are positive-sum, enabling a multiplication of value from scarce resources. One current example–the US is producing more energy than ever before (and that’s with declining coal production).
Trade and Specialization: Trump says US-China trade deal 'is done' | BBC
Although details are scant, Trump says he and Xi have struck a deal for rare earth minerals for the US, visas for Chinese students to study in the US and tariff rates–55% on Chinese imports into the US and 10% on US goods imported by China.
Trade and Specialization: Peru turns to China as US tariffs squeeze blueberry exports | Reuters
Peru is diversifying its blueberry exports as the 10% tariff on importing the berries to the US has dented demand. More blueberries are going to China via a dedicated port near Lima that cuts the shipping time to China in half.
Elasticity: FanDuel adds 50-cent surcharge on Illinois bets to offset state taxes, DraftKings may follow | CNBC
No matter who is legally assigned to pay the tax, the tax burden will fall on the more inelastic party. In this case, FanDuel is passing on the gambling tax to consumers as a 50 cent transaction fee.
Price Discrimination: How Netflix's ad business could become a $10 billion sleeper hit | Quartz
How do you separate consumers by willingness to pay–tiered subscription models. Netflix has boosted revenue by expanding its reach and bringing in ad revenue with a lower priced option.