Economics in the News – Sept. 1-7, 2025
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o Airline loyalty programs have nearly become synonymous with flying. The programs for some major airlines – at least, in the United States – are the most valuable part of their business. American, Delta and United even used their loyalty programs as collateral to borrow money during the COVID-19 pandemic. In 2023, investors valued Delta Airlines at an estimated $40 billion. Meanwhile, it’s SkyMiles loyalty program – seen as the most valuable in the industry – was valued at $28 billion.
The programs rely abundantly on credit card spending, where airlines work with banks to issue credit cards that allow the user to build up points for the airline’s frequent-flier program. The programs help airlines attract and retain a loyal customer base, even if it means paying more for a ticket. Over time, airlines have learned to incorporate their loyalty programs to better their business. When they were first introduced, flyers would bank miles based on the number of miles they fly. Now, airlines have changed it to reward customers based on the amount they spend, with the value of redeeming points fluctuating based on supply and demand. In addition, airlines have leaned into other perks to entice fliers, such as lounge access, seat upgrades or early boarding. [The New York Times]
o The Powerball jackpot rose to $1.8 billion for Saturday’s drawing, making it the second-largest lottery jackpot in American history. The large amount of potential winnings drew many people to play with dreams of winning the grand prize. Two winning tickets were sold – one in Missouri and one in Texas – with the two winners splitting the jackpot.
Both the rich and poor play the lottery, but lower-income socio-economic groups play at a higher rate. For last week’s drawing there was a 189 percent increase in tickets sold compared to the week prior, according to the Multi-State Lottery Association. Participation rates are also high during periods of crisis, correlating along with other gambling trends. [USA Today]
o The cost to ship from China to the United States has fallen. It’s a sign that the year’s peak shipping season was both earlier and shorter than usual, as rates tumbled 68 percent off their June highs. The drop in price may also hint of American retailers taking a more guarded approach amid concerns over consumer spending.
The rate, as of September 1, is the lowest it has been since June 2023 when Houthi rebel attacks in the Red Sea forced carriers away from Suarez Canal, raising the cost to ship globally. The National Retail Foundation forecasts nearly a 20 percent decline in US September imports compared to last year and between 19 and 21 percent year-over-year declines for the remainder of 2025. [The Wall Street Journal]
o America’s most popular sport – the National Football League (NFL) – opened its season in grand style with games on back-to-back nights before a full slate of games over the weekend. Friday’s game between division rivals Kansas City Chiefs and Los Angeles Chargers in São Paulo was the first in the NFL’s international series this season.
Friday’s game was the first of seven games this season taking place outside the United States, as the NFL seeks to continue its momentum toward building an international fanbase. Teams have been playing overseas since the 2005 season, seeking to build business partnerships. Through the league’s Global Markets Program, teams can apply for international marketing rights in certain countries. The program is designed to build fandom and brand awareness in those territories. Besides fans filling international stadiums, the NFL’s direct-to-consumer service saw a 23 percent increase in paid subscribers and nearly 50 percent in free users last year. [Business Insider]
o The world’s lowest fertility rates have led some South Korean companies to pay for every baby born to employees. The country’s population is projected to shrink by one-third by 2072. That would cripple the country’s workforce, tax revenue, an aging society and more. The South Korean culture has long discouraged parenthood due to long working hours and a competitive office culture. Companies that have been part of the initiative have seen an increase in retaining and recruiting workers, while providing perks.
The South Korean government has already sounded the alarm bells on the problem, offering cash stipends and tax credits. But their incentives have come with little success until now. South Korea has seen its first positive birth rate in decades last year and births are up an estimated seven percent from January to May in 2025. In addition, more South Koreans are getting married. Other countries, mostly in Asia and not yet facing as severe of a crisis as South Korea, have started similar programs to incentivize couples to have babies. [Bloomberg]
