It is beginning to feel like we are back in the era of the Tiger King as we once again begin to experience shortages of various consumer goods. The Insider gives us a full list of everything in short supply starting with a very small but important item, computer chips. The chip shortage is a problem for consumers wanting basically anything with a computerized component. However it doesn’t stop there. The list goes on to include gas, houses, coffee, and (you guessed it!) paper products such as toilet paper.
After being cooped up in our homes for over a year, many of us are finally vaccinated and ready to travel. Cities dependent on tourism to boost their economy are just as ready for this as well. The Guardian tells the story of one city in California which has invented a unique solution. Santa Maria Valley, in central California, created a program that offered a $100 Visa gift card to the first 500 visitors who booked at least a two-night stay in one of its hotels. The community, known for BBQ and wineries, sold out in two days, and then saw 2,543 additional people sign up on its waitlist. There are several cities across the US that have followed this trend after seeing Santa Maria’s success.
As restaurants across the country desperately search for employees, Chipotle made a big announcement. The Chief Restaurant Officer, Scott Boatwright went on CNN to discuss their decision to increase the pay of its restaurant workers to an average of $15 per hour. Their hope is to retain current employees while incentivizing new applicants to join the Chipotle brand.
It is a running joke amongst millennials that high school did not properly equip them with relevant life skills such as how to file taxes, purchase a house, or budget correctly. This week, CNBC breaks down the proper way to budget using the 50-30-20 rule. The plan divides your income into three broad categories: necessities, wants, and savings and investments. It is especially helpful to those planning to re-enter the workforce and are unsure of what salary they should be aiming for in order to support their current lifestyle.
While receiving a $1400 check from Uncle Sam is appreciated in the present moment, how well does it affect our economy in the long run? The Foundation for Economic Education shows us the dark underbelly of this free money. In short, the largest component of GDP is consumption spending, meaning that the quickest path to stimulate the GDP is through consumption. However, if consumption falls, it takes a lot of stimulus to the other components to make up that difference.