Economics in the News – June 30 – July 6, 2025
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o Dealerships and car manufacturers are trying to lure American car buyers to buy electric vehicles (EVs) by offering discounts and promotions. Even still, sales of EVs are slumping, declining for the third consecutive month after sales were 6.2 percent lower in June. Tesla, which accounts for nearly half the EV market in the United States, says that its global sales declined 13.5 percent in the second quarter. Meanwhile, the $7,500 tax credit that has been in place to boost sales is being cut.
The three most cited reasons for opting against EVs are vehicle range concerns, the cost of the vehicle, and the charging infrastructure for EVs. In addition, many car buyers are hesitant to pay the additional cost to have a home charger installed. Promotions in recent months cover more than 14 percent of the average transaction price in May, according to Cox Automotive. Leasing has been the primary method that dealers are moving EVs off their lots. [The Wall Street Journal]
o The House passed President Donald Trump’s ‘Big, Beautiful Bill,’ but now taxpayers are curious as to how the bill will impact their taxes. Most of the changes for individuals aren’t radical, making the changes from 2017 permanent as they were set to expire at the end of 2025. And the individual tax brackets from the 2017 tax bill won’t change either.
The legislation in the bill makes the $2,000 tax credit permanent and it will be indexed for inflation going forward. The estate-and-gift tax sets a permanent base of $15 million per person starting in 2026, with inflation adjustments after that. The bill also includes several tax breaks that take effect in 2025 and lapse at the end of 2028. The popular “no tax on tips” provision allows for deductions up to $25,000 for single filers with income up to $150,000 and joint filers up to $300,000. The “no tax on car loan interest” provision allows a deduction of up to $10,000 of interest on loans to purchase passenger vehicles. [The Wall Street Journal]
o While the lure of a four-day workweek has picked up steam in some European countries and some US businesses, Greece has taken the opposite approach. It’s introduced a six-day workweek. The new legislation introduced a six-day workweek for businesses that operate 24 hours with the goal of boosting productivity. Workers have the option of working up to 48 hours per week with those who do receiving a 40 percent bump in overtime pay.
Greece’s government believes that the move will relieve labor shortages, ensure workers get paid for overtime, and address tax evasion issues that arise due to undeclared work. However, worker advocates are skeptical, believing that it will have unintended consequences such as high turnover, burnout, illness and death. [The Washington Post]
o The United States dollar has dipped more than 10 percent this year – its worst decline in the first six months of a year since 1973 when former President Richard Nixon detached the dollar’s value from gold. The declining dollar, along with President Donald Trump’s tariff policies, has rattled worldwide investors who have long held American investments.
In addition, the political turmoil in the US has played a role in the slumping dollar, as well as the ballooning debt – not aided by last week’s ‘Big, Beautiful Bill.’ A survey from Bank of America of global fund managers found that as of mid-June only 23 percent now preferred US stocks over international stocks – something that hasn’t been true in nearly two decades. There are benefits to a weaker dollar even if it makes traveling abroad more expensive. First, they make foreign products more expensive, helping large companies like Apple to capitalize on global markets. [NPR]
o When should new couples first discuss finances with each other? Traditionally, conversations over money were avoided early in relationships, whether the reasoning was due to discomfort, fear of being judged, or simply not knowing how to bring it up. According to Bankrate, Americans feel more comfortable discussing politics or religion than they do their finances.
In recent years, financial professionals agree that it’s better to have the conversation early, before marriage or moving in together. Dating experts also acknowledge the need to discuss the finances early in the relationship, so surprises don’t pop up down the road. [The New York Times]
