Economics in the News – July 27 – Aug. 2, 2025
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o For years, opening a 529 college savings plan was seen as a no-brainer decision for parents wanting to start planning for education expenses. The tax-advantaged accounts are primarily used to pay for higher education expenses, as well as a range of other education expenses. If the funds go unused, the account can be transferred to another beneficiary, such as a sibling or grandchild.
However, with growing uncertainty about the value of higher education and risking the funds use, parents are opting for flexible plans that don’t tie their money exclusively to education expenses. Of those parents that have used a 529 savings plan, 19 percent of parents have closed their 529 savings plans early and 22 percent have considered doing so. At a time when tuition keeps climbing, student loan debt continues to burden millions, a degree doesn’t guarantee a job after graduation. More teenagers are exploring pathways besides college, including trade schools or starting a business. [The New York Times]
o Grass fields are increasingly being replaced by synthetic turf. The change is being driven by the turf industry convincing communities that turf fields are better than natural grass, along with the ability to provide year-round spaces for youth teams. Officials point to less management needed to take care of the turf fields, as well as the ability to play even after it rains. But some are skeptical, citing increased temperatures on the playing surface, as well as chemical exposure.
Roughly 1,500 turf fields were installed in the United States in 2023, bringing the total to 19,000 nationwide. The common reasoning behind switching to synthetic is that it’s less expensive to maintain than natural grass, a claim that is disputed. Installing the fields can cost more than $1 million and repair costs can be tens of thousands with many questioning whether it’s truly a better alternative to grass. Some parents and environmentalists have raised concerns of chemicals that can cause cancer, impair reproductive development and cause other health issues. [The New York Times]
o Tourism in Las Vegas is down. After Congress passed the Big, Beautiful Bill and exempted up to $25,000 in tips from personal income tax, workers on the Las Vegas strip are seeing their wages cut due to a lagging tourism. Las Vegas is a city that relies heavily on tourism, bringing a boom or bust economy. President Donald Trump also said that Vegas was the inspiration for dialing back federal income tax on tips.
Visits to Vegas in the first five months of the year are down 6.5 percent compared to the same time period last year, according to the Las Vegas Convention and Visitors Authority. Hotel traffic dropped 14.6 percent in June compared to June 2024, while revenue per available hotel room is down 19.2 percent. Rising prices on tourists has left them strapped for cash, trickling down to less money to tip local workers. [The Wall Street Journal]
o Nearly 10 million American children are living in poverty – the most since 2018 – according to the latest Census Bureau figures. Millions more are on the edge due to changing economic factors, including the expiration of COVID-era relief programs and the impact of inflation on food and housing costs. It will only get worse after cuts to federal spending on aid programs, such as food benefits and Medicaid.
Around 35 million kids live in households that economists define as the bottom level of the middle class. That line for a family of four is a maximum net income of $75,000, including government benefits. While wages have gone up for low-income workers, those poorer households have been hit harder by inflation over the past four years. Low income workers spend a greater portion of their money on housing and food and even a slight increase in pay could severely impact their eligibility for state and federal assistance. [The Wall Street Journal]
o Millions of student borrowers are in jeopardy of having their wages garnished. According to credit bureau TransUnion, roughly three million borrowers could default on their accounts in August because of payments being 270 days past due. That means that loan holders could have 15 percent of their pay deducted by the government, with the money going toward outstanding debt. In addition, another two million accounts are at risk to default in September.
The pandemic-era pause on student loan payments ended in May, forcing borrowers to reassess the state of their loans and budgets. The Department of Education has sent notices to borrowers warning that tax refunds and wages could be withheld beginning this summer if borrowers don’t take steps to restart payments. [Associated Press]
