Jacob Warren's Economics Blog

The pandemic made many fitness-minded companies very wealthy, but few benfited more than Peloton. But over a month ago, their company's shares lost more than a third of their value after dimishing sales. This led to Peloton slashing nearly $1 billion off its revenue projections. Hordes of Americans setting aside their home-based workout routines and heading back to the gym caused this decline. 1.  How much revenue is Peloton expecting to lose this year? What has happened to their stock price as a result? $1 billion. The stock slumped 35.4%, to $55.64. 2. When sales of Peloton bikes first started to decrease, how did the producer respond to try to increase purchases? Companywide hiring freeze. Cut 20% off the price of its signature bike. 3. How do sales of home fitness equipment in 2021 compare to 2019 sales? What's the main reason for this increase? Home fitness equipment sales in 2021 are 100% more than 2019, because people were in a global pandemic.  4.  Let's predict h...

The extended benefit, which was a part of the Biden administration's American Rescue Plan passed last year, distributed nearly $300 per child every month to millions of American families starting in July. This only lasted six months before it expired in late December. Many critics claimed the expanded credit was not focused enough on families in need. Proponents say it had an immediately positive impact by decreasing child poverty rates by around thirty percent each month. Without this, nearly 10 million children could fall deeper into poverty. 1.  How did the American Rescue Plan help families with children? When were they getting these benefits?  Helped pay for children's necessities. Beginning in July last year and ending six months later 2. What impact did this program have on child poverty? cut the child poverty rate by 30% each month.  3. Why did critics think that this program was bad for the country? Parents could stop working and live off this program. 4. How did...

      The New York Times bought The Athletic. The Times did this because they want more subscribers and The Athletic has that. The Paper has largely ignored sports over the past few years, but The Athletic has signed on 1 million subscribers of sports fans. This move by The Times can give them the ability to offer subscription bundles that include both The New York Times and The Athletic. This could help Athletic subscribers reconsider canceling their subscription when their team isn't playing.  How was the primary way that The New York Times makes profits changed over time?  The Times have transformed themselves from a publisher supported by ads into a publisher supported by paid subscribers. Why is The Athletic an attractive business for the NYT to try to buy?  They bring a new aspect to their company and can offer subscription bundles that include both companies, which could very likely increase subscriptions. Why was The Athletic burning through its ...

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