Economics in the News – Aug. 17-24, 2025
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o College football season kicked off this past weekend in Ireland with a Week Zero, Big 12 rivalry clash between Iowa State and Kansas State. As the football season and new athletics season gets underway, athletic directors are faced with the task to find new ways to create revenue in the wake of the new rules that allow schools to pay $20.5 million directly to athletes across all sports throughout the 2025-26 calendar year.
The massive distribution that schools receive in media rights, as well as raising ticket prices cover most of the cost. But many schools are getting creative about finding new revenue sources. Over the last few years, many schools have added alcohol sales inside their venues, adding millions in revenue. Others are turning to donors or sponsors in exchange for everything ranging from the stadium’s naming rights and a logo on the field to a head coach’s job title to being the official sponsor of their direct payment method to players. Some schools are looking to increase the number of events held in their massive football stadiums per year, from concerts to weddings. Conferences, such as the Big 10 and Big 12, have explored teaming up with private equity firms as an possibility to access additional capital. [The Athletic]
o A study from The Journal of Marriage and Family found that single individuals ages 25 to 35 with higher incomes were more prepared and more likely to end up in a relationship. The study focused on finding someone to go on a date with, not marriage.
Dating, especially for men, can be difficult because of perceptions that men are expected to pay and provide, even at the beginning of the relationship. That can add a lot of pressure to single men that make a lower income and be a reason that they choose not to date. [The New York Times]
o Southwest Airlines announced a policy change going into effect in Jan. 2027 that will require plus-sized passengers to purchase an additional ticket. That is a change from their current policy that allows passengers to either pay up front for an additional seat or request an additional seat at no charge.
The newest policy change is the latest change the discount airline has made in recent months that has perplexed its customer base. It has gone away from its roots to end its open seating policy and began charging for checked bags. [The New York Times]
o Cracker Barrel drew the ire of many of its longtime diners after replacing its logo with a modern, clean look featuring just the company’s name. Diners have accused the chain of going away from its roots as a country store. The company insists that it conducted extensive market research before making the change.
Some of the restaurant’s customer base has threatened to boycott it and that threat meant that investors sold Cracker Barrel stock, causing the stock to plummet nine percent since the logo change. However, it is noteworthy that Cracker Barrel’s stock has climbed more than 30 percent over the last 12 months. Under the leadership of current chief executive Julie Felss Masino, Cracker Barrel has looked to transform its brand with remodels and upgrades to the menu. [The Wall Street Journal]
o Beef and veal prices increased 11.3 percent in July year-over-year, according to the latest consumer price index report. By comparison, that is nearly four times more than the increase in the cost of food overall. Drought has been a major factor for the rising prices, as cattle volumes have shrunken to their lowest recorded levels since 1951. In addition, President Donald Trump has issued tariffs on major suppliers, such as Brazil.
A severe 2022 drought in Texas, Oklahoma and Nebraska caused ranchers to slaughter cattle early. While that boosted supply of beef in the short term, it was known that it would weaken supply in the medium and long term. Heifer population was down three percent in July compared to 2023, according to the USDA. [The Washington Post]
