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Frozonomics

February 14, 2014

Frozonomics

Obviously the cold weather that has gripped large swaths of the country has been uncomfortable, inconvenient, and unwanted by many people. Ice, snow, and frigid temperatures have visited many parts of the country, and even made appearances as far south as Georgia and the Carolinas. One question that is being asked is how much of an economic impact all of this snow, ice, and cold weather is having on the economy.

The answer (according to a CNBC poll) is $50 billion. Yes, that is billion with a “B.”

Obviously, industries that have impacted negatively are retail and travel – the photos of desolate malls and airports full of people sleeping have dominated the media recently. Instead of focusing solely on the negative aspects of this colder-than-average winter, here are a few possibilities of areas/firms that have benefitted.

1) Utilities – customers using more electricity/gas/oil for heating purposes
2) Online shopping – if you are stuck at home and can’t go out to shop you will shop online
3) Social media – stuck at home? Check your newsfeed
4) Netflix – the firm actually considered releasing House of Card early to take advantage of all the people stuck at home

Stay warm, and Happy Reading!

http://money.cnn.com/2014/02/13/technology/innovation/netflix-house-of-cards-snowstorm/
http://www.reuters.com/article/2014/02/13/us-usa-economy-jobs-idUSBREA1C0YP20140213
http://blogs.wsj.com/economics/2014/02/13/cold-calculations-the-economics-of-snow/
http://www.cnbc.com/id/101389853
http://www.cnbc.com/id/101415813

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