The U.S. legal cannabis industry is expected to reach $75 billion in sales by 2030, according to research firm Cowen & Co. That’s almost as large as the North American soda market in 2017. As the weed industry grows, the alcohol market is slowly shrinking. Binge drinking rates declined in states with legal weed compared with states that allow only medical marijuana and those prohibiting any kind of weed, according to the report.
The Trump administration is pushing to reduce the annual budget food-stamp by 20% per year, over next 10 years. The administration claims this plan is aimed at creating opportunities for low-income Americans to acquire the skills needed to take part more fully in the growing U.S. economy, and foresee people leaving the program as incomes rise, with its lower costs reflecting beneficiaries’ improved economic status. Trade groups representing food retailers, food banks and anti-hunger groups have also expressed grave concern over the proposal.
These potential changes to the food-stamp program (SNAP) could significantly impact sales at grocers and food retailers. According to the USDA data, more than 52% of SNAP dollars, or $33 billion, were redeemed at big-box stores such as Walmart and Target, up from 47% in 2015.
The capital of RV manufacturing, which once had the worst unemployment rate in the U.S., is now facing labor shortages and rising home prices and wages. The jobless rate in the Elkhart region plunged from 20% in March 2009, worst in the U.S., to just over 2% in January, half the national average. The local unemployment rate is actually closer to zero: some 9,500 jobs have no takers. The scarcity of workers has resulted in increased signing bonuses and perks for employees to join and stay at same companies for at least 90 days. This has also fueled inflation elsewhere, median home prices have risen about 6.5% annually over past two years.
Africa’s textile industry may be caught in the crosshairs of US president Donald Trump’s global trade war. In reaction to Rwanda raising tariffs on used clothing and footwear from the US, the Trump administration says it will suspend duty-free privileges on eligible Rwandan clothing. Rwandan merchants says closing the door on second-hand clothes from the US will push business owners to focus more on local markets.
Imposing an official ban on second-hand clothing could severely impact the East-African economy - encouraging smuggling thus evading taxation and tariffs, the potential loss of about 219,000 jobs, and potentially jeopardizing the $230 million income that further supports an estimated 1.4 million people.
However much Spotify resembles Netflix in business approach, the services diverge in a way that makes Spotify’s path to profit significantly trickier. Netflix’s programming expenses don’t rise as it gains more subscribers. But as Spotify gets bigger, its streaming music costs increase, as the business pays the owners of song rights a fee for each paying user or a percentage of company revenue.
Our twice weekly newsletter curates the most impactful news stories across the world of business, finance and technology. Simplified, digestible facts, delivered with humor and relatable to our everyday lives.