Category: U.S. Economy

Stanley’s “Quencher” Tumbler Becomes Status Symbol

Posted on by scott.hodges

In the ever-evolving world of trendy water bottles, the Stanley brand has taken center stage with its “Quencher” model, with growing popularity amongst a younger and predominantly female audience. The Stanley Quencher features double-wall stainless steel, which is able to keep liquids hot or cold for extended periods of time. With a 64-ounce capacity, the Quencher is heavy. Its tapered bottom is designed to fit into a car’s cup holder, and it is renowned for its durability after a Quencher not only survived a car fire but still contained ice.

The Quencher has become a social media sensation with the #stanleybrand hashtag boasting 65.3 million views on TikTok and #stanleytumbler with 1 billion views. Recently, the “Stanley + Starbucks” collaboration caused people to camp outside Target stores overnight to be first in line to purchase the limited edition. Listed at an average of $45 a tumbler, resellers are seizing the opportunity to list these exclusive items on eBay for hundreds of dollars.

Not limited to functionality, the Quencher is available in various color options and design accessibility. According to Cassandra Gagnon of WGSN, the Quencher is perceived as more than a water bottle; it embodies a lifestyle, wellness, and health item.

While Stanley was originally crafted for outdoorsmen and even used by pilots in WWII, their more recent marketing strategies, and the production of the Quencher with its different color options, enabled them to branch into a new target market, beginning with working mothers. Once Generation Z discovered the tumbler, the brand’s popularity skyrocketed, with projected annual sales exceeding $750 million in 2023.

As the Quencher continues to dominate social media feeds and fly off shelves, the long-term trajectory of Stanley’s success remains to be seen, with questions arising about its sustainability in a rapidly changing digital landscape.

A New Phone Plan for the New Year

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With the new year approaching, consider a more cost-effective cell phone plan. According to the New York Times, a growing trend among wireless plans promises customers significantly lower monthly rates. Budget carriers leasing wireless services from the larger companies offer phone bills at around $25 per month, undercutting the well-known providers whose monthly plans range from $60 to $200 a month.

While a budget carrier may not be able to offer the same network speed performance, download speeds with 5G and 4G technology remain quite fast and users will most likely not notice a difference between the larger versus budget providers. Additionally, with the shift to a hybrid work-week cutting down on commute times, most employees rely more on Wi-Fi connections at home or at the office and less on their cellular network.

Many have reported that the transition to a budget carrier was not always smooth. Customers complained of eSIM activation fees, wireless services that did not activate right away, unhelpful customer service, and failure to send monthly receipts. However, those who have switched over, report savings of 50%, some around $1000 a year, a worthwhile tradeoff for the hiccups they encountered. The discount plans even allow users to buy a physical or eSIM, which can be purchased from their website or app, to test out the service without dropping their current provider. This way, consumers can choose the best option available without any hassle.

If you’re looking to cut your expenses in 2024, switching to a discount phone plan is easy and will not disrupt your lifestyle.

The Future of US – China Relations

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According to CNBC, the recent meeting between U.S. President Joe Biden and Chinese President Xi Jinping has established a clear boundary in their relationship, offering businesses a sense of certainty. Held in San Francisco during the Asia-Pacific Economic Cooperation conference, this meeting signifies a commitment to cooperate under the principles of reciprocity and mutual respect, aiming to define areas where the U.S. and China can work together.

Both nations are seeking a new economic normal based on mutual benefit and adherence to established rules. Although Biden maintained export controls due to national security concerns, discussions emphasized the need to address the risks posed by advanced AI systems. Additionally, both sides agreed to revive military talks after a year-long hiatus.

The meeting signals a desire to avoid a downward spiral in their relationship and demonstrates that complete separation between the two economies is unlikely. However, the Biden administration continues its efforts to limit U.S. investment in Chinese companies involved in military-related technologies.

Despite the positive tone, long-standing challenges in U.S. business operations in China persist. While the meeting didn’t result in immediate significant agreements, it did set a cooperative tone, providing stability in the relationship. Nevertheless, companies are likely to remain cautious, focusing on reducing risks and diversifying supply chains based on the actual ground realities in China. The U.S. presidential election in 2024 and Taiwan’s upcoming elections also loom as potential factors influencing the long-term dynamic between the nations.

Wang Dong, executive director of the Institute for Global Cooperation and Understanding at Peking University, said, “I think there’s a lot of consensus coming out of this summit… What you get from this summit is a very clear signal the two countries, they are committed to what we can call recouple, in a way, on the basis of reciprocity and mutual respect… I think this is very important for both countries and indeed for the global economy as well.”

Apples for Less Makes Farmers Stressed

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If you like apples, you may be in business right now. As reported by CNN, the price of apples has, weirdly, gone way down from September to October. This is particularly unusual since it’s prime apple season at the moment. Apple prices decreased by as much as 7.9%, in contrast to items like butter, flower and sugar which all increased.

Why the decrease? This year the apple-growing weather has been particularly good with mild temperatures and nice soil. Freight costs have been lower and the changes in the export market have led to decreased prices as well. This is all great news for those of you who love apples – but it has farmers worried.

Read the full article to learn more about the apple issues in the American market and what farmers are suggesting should be done to right the situation.

Senators Warren and Graham Release Digital Consumer Protection Commission Act

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Democrats and Republicans are setting aside their differences to impose restrictions on Big Tech platforms. US senators, Elizabeth Warren and Lindsey Graham, released the Digital Consumer Protection Commission Act. The bill calls on Congress to launch a governing body with the ability stop the operation of, or sue, platforms that cause potential harm to consumers. This bill would apply not only to social media platforms, but would extend to respond to new concerns that arise as AI continues to develop.  

Warren said in a statement: “For too long, giant tech companies have exploited consumers’ data, invaded Americans’ privacy, threatened our national security, and stomped out competition in our economy. This bi-partisan bill would create a new tech regulator and it makes clear that reigning in Big Tech platforms is a top priority on both sides of the aisle.”

The Act would establish a regulator to license and police the large tech companies in the US, such as Meta, Google, and Amazon, and set clear rules for tech companies. The bill will also enforce repercussions for companies that violate the law. It would implement safeguards for every customer: families will be able to protect their children from cyberbullying and sexual exploitation by requiring these companies to clamp down on these harmful practices. Families will have the ability to seek compensation should the company fail to do so. The bill will also enable consumers to opt out of targeted advertising in order to protect their privacy.  

According to Graham and Warren’s New York Times op-ed: “No company, no industry and no C.E.O. should be above the law. These reforms will ensure that the next generation of great American tech companies will operate responsibly while remaining on the cutting edge of innovation. It’s time for Congress to act.”

Writers Guild Strike Reaches Tentative Deal

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On June 4, the Writers Guild of America announced that they reached a tentative deal on a three-year contract with the Hollywood studios. 11,500 screenwriters joined the writers’ strike, which began on May 2, 2023, claiming a rise in television production that has led to deterioration of working conditions and stagnation in wages.

The growing popularity of streaming has also affected writers, as streaming shows have 8-12 episodes per season, whereas traditional television seasons feature over 20 episodes. Writers are also fighting for better residual pay, which has been affected by streaming, as well. Writers also voiced concerns over the future use of AI, and how that may threaten their jobs.

As the strike began, Seth Meyers said that the strike would not only affect the writers, but would extend to production support, including drivers, caterers, costume cleaners, and set carpenters. During the 2007 writers’ strike, which lasted 100 days, the LA economy lost an estimated $2.1 billion.

In Light of Recent Bank Collapse, Financial Advisors Offer Recommendations for Small Business Owners

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Following the collapse of Silicon Valley Bank and Signature Bank in March, financial advisors recommend that small business owners reexamine their bank accounts in order to protect their finances. Small business owners must perform their own risk assessment, should their current bank fail.

The Federal Deposit Insurance Corporation insures deposits up to $250,000, and most small business owners have less than that in their accounts. According to a JPMorgan Chase Institute survey of 600,000 of its small business account holders, the median cash balance was $12,100. However, businesses that have employees have higher payroll costs and, thus, higher risk.

A paper published in March 2023 assesses the likelihood of further banks crumbling. Experts advise diversifying one’s holdings in order to have more coverage in the event of a bank collapse. They also point out that holding an account in a separate bank enables the small business owner to wire funds, if one bank seems to suddenly be on the brink of collapse.

Another option is for banks to use the IntraFi Network, which splits a customer’s deposit into smaller amounts of less than $250,000. These smaller lumps are sent to other banks in the system, which grants customers various F.D.I.C-insured accounts.

Ultimately, financial experts and banks advise asking where service providers bank to ensure that there are backups in place.

Uber Reports Increase in Revenue at the end of 2022

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While Uber reported a downturn in revenue during the pandemic, chief executive, Dara Khosrowshahi said that the last 3 months of 2022 was the company’s “strongest quarter ever.” Khosrowshahi added that the company expects even more momentum in 2023.

Uber reported $8.6 billion in revenue from the last quarter of 2022, which is a 49% increase from the previous year due to the Omicron variant of COVID-19 limiting travel options. In 2020, during the lockdown at the start of the pandemic, Uber cut around 7,000 employees. However, according to Khosrowshahi, the pandemic is no longer impacting Uber’s operations. In fact, during the last quarter of 2022, active drivers hit an all-time high.

Khosrowshahi claims that the current economic inflation is working to Uber’s benefit in that 70% of drivers say that it is the reason that they join Uber’s platform. As Uber exceeded Wall Street analysts’ estimates for the end of 2022, their stock rose 5.5% in trading at the beginning of February 2023.

Service 2.0: Congress Passes New Retirement Regulations

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US President Joe Biden is expected to sign on a new spending package, Secure 2.0. This package will both enable Americans to more easily save for retirement and lower the costs of withdrawing retirement savings.

Highlighted below are some of the new provisions of Secure 2.0, as per the breakdown of the Senate Finance Committee:

  1. A provision set to go into effect after December 31, 2024, and requires employers to set a minimum default rate of 3% (maximum 10%) for each employee. In addition, employers will be required to set an automatic yearly contribution of 1% up to a maximum contribution rate of at least 10% and no more than 15%. The provision requires many employers who initiate a new workplace retirement savings plan to enroll their employees in Secure 2.0.
  2. Another provision set to go into effect after December 31, 2023 allows employers to match a contribution to the employee’s retirement plan based on the employee’s qualified student loan payments. This will enable the employee to save for retirement while simultaneously paying down student debt.
  3. A third provision, set to go into effect after December 31, 2024, shortens the service time for part-time workers who work at least 500 hours a year to join a workplace retirement plan. Currently, the required service time is three years, and under Secure 2.0, it will be two years; this will ease part-time workers’ ability to save.

Female-secured Patents Could Boost Economy by $1 trillion

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Small businesses and startup entrepreneurs are known to rely on funding from government agencies like the Small Business Administration; minority-owned businesses might turn to the Minority Business Development Agency. Kathi Vidal is pushing to have entrepreneurs consider applying for patents from the U.S. Patent and Trademark Office alongside their application(s) for funding.

Vidal, who is currently serving as USPTO director, is an experienced intellectual property lawyer. A primary platform of her work in the USPTO, since her appointment by President Biden in April 2022, has been the diversification of those applying for and receiving patents. To date, only 13% of U.S. patents have been issued to women. When offered free legal guidance for the patent-application process, women-led filings increased by 41%. Vidal believes that the inclusion of women in the patenting system at equal rates as men could boost the U.S. economy by as much as $1 trillion.

According to Vidal, legal support is not the only barrier to female inclusion. The patenting system is inherently confusing and excluding. While the government views rejections as an opportunity for re-application, most applicants don’t understand. Vidal is introducing a cover letter to patent decisions, assigning an examiner who will be available for consultations and be the human face of an otherwise amorphous and overwhelming process.

Patents are a tangible way of supporting the economy and expanding business competition, particularly in growing fields like artificial intelligence and technologies. Similarly, Vidal explains that patents facilitate partnership and cooperation. Without patents, companies are resistant to sharing their ideas.