How robots damaged the American dream
The populist earthquake that has rocked the United States over the past decade can be linked to automation, the kind that transformed the manufacturing sector and negatively affected millions of workers, research suggests.
As automation accelerated in the new millennium, Americans’ ability to move into better jobs declined, leading to changes in spending and voting patterns, the study indicates. Read the full story |
R&D pays off. Innovation is the key to export resilience
Whether you are building a more energy efficient e-bike or designing the world’s warmest winter jacket, investing in research and development (R&D) is key to developing the next big thing. But investing in R&D doesn’t just help you develop innovative products. It can also help make a business more resilient during turbulent economic times -- the kind we are living through right now.
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Tech acquisitions lower engineer earning power
In the tech sector, competition for top talent is fierce. The most highly specialized software engineers can make well over $1 million per year — and in a truly open market, they might earn even more than that. But competition for engineering talent can be limited by consolidation in the tech sector, according to recent research by Heski Bar-Isaac, a professor of economics and finance at Rotman.
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How taxes and tariffs influence consumer choice
As much as Americans like their soda, they dislike paying an unwanted tax even more. When the state of Washington implemented a tax on soda, people who opposed the tax were more likely to reduce their soda consumption than those who supported it. This ironic twist could be good news for policy makers seeking to curb unhealthy behaviours, but also undercuts the revenue generating potential of this type of tax.
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Information overload can cause panic buying
We live in an age of uncertainty — where global crises like pandemics, wars and natural disasters disrupt daily life.
Yet, even in turbulent times, people must make choices about essentials — food, finances, health, shelter, etc. How do they determine the best course of action when the future is unclear? Read the full story |
Would a carbon tax work for the beef market?
Cattle are significant emitters of the greenhouse gas methane, and in South America, ranchers often destroy vast swaths of carbon-dense Amazon rainforest to raise them, making the industry even more emissions intensive.
While a carbon tax is a textbook solution to such a problem, it’s difficult to implement one efficiently in the beef market because of some challenges that are unique to agriculture. Read the full story |
Lack of labour protections is fuelling the college wage premium in United States
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Stockpiling goods when they're on sale is an effective investment strategy
As anyone who has visited a Walmart Supercenter on Black Friday can tell you, just about everyone loves a deal. Those carts stacked with discounted cleaning supplies and bulk toilet paper are more than just obstacles in a crowded parking lot. Stockpiling household goods is a strategy that shoppers can use to keep their overall spending low. For households that stock up on goods at the right price, gains can add up quickly. Recent research by Stephanie Johnson shows that sales, coupons and bulk purchases allow households to achieve returns exceeding 30%.
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Decisions about mortgage refinancing are influenced by nearest neighbours
Taking out a mortgage stands is monumental financial decision, often the most significant one in a person's life. A higher interest rate over the mortgage's lifespan can substantially inflate overall costs by tens of thousands of dollars. Refinancing at the right time can lead to significant savings, especially for mortgages with extended terms, the norm in the United States. But with so much on the line, who do you turn to for advice? Turns out, it's largely influenced by neighbours who live nearby.
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Companies headquartered in tax havens are less charitable
Walgreens is one of America’s most powerful brands. Founded in 1901, the midwestern pharmacy chain even claims to be the birthplace of an American classic, the malted milkshake. Today, over 9,000 Walgreens pharmacies fill over 1 billion prescriptions each month—and bring in nearly $130 billion in annual revenue.
But, in 2014, the company considered stashing these profits beyond the reach of the IRS. By acquiring Boots Alliance—a British pharmacy chain that is headquartered in Switzerland for tax purposes—Walgreens reached the threshold of 20 percent foreign ownership, qualifying the company to move its headquarters out of the United States. Click here for full text |
In tough economic times, private label brand prices increase more
Buying private-label brands can be a good way to save a few bucks. In the U.S., Costco and Walmart house brands offer similar quality to national brands but for far less—25% off or more. In 2020, private-label goods generated more than $158 billion of sales, about a fifth of the sector.
The category expanded during the pandemic, likely because in tough economic times, more consumers tend to buy private-label goods, but greater demand can drive up private-label prices faster than national-brand prices, reducing the key benefit of affordability. When the Great Recession started in 2007, for instance, house-brand prices rose 31 percent more than national brands, research has found. Click here for full text |
Wage Garnishment in U.S. more common than previously known
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