Economics in the News – Oct. 6-12, 2025
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o What is the cost to drive an electric vehicle (EV) compared to a gas car? Obviously, EVs don’t require filling up a gas tank and that the cost to re-charge is less than that to fill up. In a home paying the average electricity rate, the cost is roughly $5 per 100 miles. That compares to an average of $13 per 100 miles in a gas car in a vehicle that gets 25 miles per gallon.
However, when comparing electric vehicles to gas vehicles, it must be considered where the electric vehicle is being charged. In a home that uses a gas pump, it can become expensive quickly and consumers are likely better off with efficient gas cars. In addition, where you live is another factor, as places such as California and Hawaii are notorious for being expensive states to charge. States such as Washington offers EV drivers the biggest break with less expensive than average electricity, but more expensive gas. [The New York Times]
o Taylor Swift’s “The Official Release Party of a Showgirl,” a film promoting her latest album, scored $33 million in ticket sales across the United States and Canada, according to box office data collector Comscore. The promo was played the weekend of Oct. 3-5 in more than 3,500 theaters across the country.
It marked the second time Swift has had a promotional documentary hit theaters, as “The Eras Tour,” highlighting her same-named world tour, was a popular ticket in 2023. Swift’s latest documentary coincided with her latest album. It provided a boost for theaters that are struggling to recover from the COVID-19 pandemic, amid the popularity and convenience of streaming options at home. [The New York Times]
o Businesses are already feeling the impact of the US government shutdown. From being unable to pursue regulatory approvals for a medical device company, to a stop work order on a federal contract leading to layoffs for a marketing firm, to a stalled government contract has delayed work for an electrical company. Many small businesses rely on small-business lending and government contracts for their work, and those are on hold due to the ongoing shutdown. Even companies that don’t depend on the government are affected. As uncertainty can cause consumers to purchase less, while many companies rely on strong fourth-quarter sales.
Economists warn that the broader economy will be impacted as the shutdown lingers. Oxford Economics estimates that for every week the shutdown goes on, it cuts annual economic growth by as much as 0.2 percent. While a brief shutdown can be difficult for companies to find substitute jobs, a longer shutdown would cause companies to make hard decisions such as layoffs or taking on less profitable jobs. [The Wall Street Journal]
o Three economists won the Nobel Memorial Prize in Economic Sciences for their work to help explain how innovation drives economic growth. Joel Mokyr of Northwestern University; Philippe Aghion of Collège de France, INSEAD, and the London School of Economics; and Peter Howitt of Brown University.
Mokyr made key contributions to identify how technology leads to sustained growth. Meanwhile, Aghion and Howitt created a mathematical model that aided the logic of new and better products replacing old ones, spurring innovation. [The Washington Post]
o According to Aspen Research, parents in the United States spent more than $40 billion on kids’ sports last year. That’s an increase of 46 percent since 2019. Of that amount, parents with at least one child spend $1,500 per year on equipment and necessities for sports. Sports equipment retailer Dick’s Sporting Goods has flourished as a brick-and-mortar retailer in an era where online shopping is increasingly popular. Much of their selection caters to kids who are playing travel sports, with high-priced gear and big ambitions. The typical Dick’s shopper are those that shop at other high-end retailers and whose parents earn six-figure incomes.
The cooperation has added more than 80 stores across the United States since 2015, while doubling its annual revenue to $13 billion. While Dick’s flourished with consumers buying sporting equipment during the pandemic, it has also been able to continue its growth trajectory since then. Even as two of its competitors – Sports Authority and Modell’s – have gone out of business. [Bloomberg]
