The Snuggie

Follow the link in the title to a USA Today article on the Snuggie. The Snuggie is the latest product to make the jump to pop culture icon. Why has this product become so popular. There are a host of other blankets-with-sleeves (a.k.a. “robes”) on the market, from the “original” Freedom Blanket to the socially conscious but awkwardly named Slanket. One upscale version, the Nuddle, even includes a pocket in front for your hands and another at the bottom for your feet (the Nuddle is so upscale that it doesn’t have sleeves, it has slats).

Niche-marketed blankets didn’t catch on last winter, when home heating costs skyrocketed with rising fuel prices.

So why now?

According to their ads, 4 million Snuggies have been sold in the past 3 months. Could the downturn in the economy have anything to do with the increase in infomercials and sales of these products?

Have you ever fallen victim to one of these must have products? Think "Shamwow", "Chia Pet", "Loud and Clear", etc.

Are Newspapers a Thing of the Past?

Precious News
by Kevin Zhang

News of Barack Obama's historic election on November 4 dramatically increased demand for newspapers on November 5. Tall, bold headlines announcing the nation's new president transformed copies of the daily paper into collector's items. Though many publishers printed thousands of extra copies in anticipation of higher demand for their post-election issue, at newsstand prices, supply simply couldn't keep up with the surge in demand. On Wednesday morning, many looking to own a piece of history found only empty news boxes and long lines in front of newsstands.

Not surprisingly, copies of major newspapers' November 5, 2008 issue began selling for as much as $200 on eBay and Craigslist.

This is a classic example of how a market responds to an increase in demand. The market equilibrium on a normal day for newspapers is at point A with price P1 and quantity Q1. As the demand curve for newspapers shifts rightward from D1 to D2 (people want more newspapers at any given price level), both equilibrium quantity and equilibrium price of newspapers increase as a result—from P1 to P2, and Q1 to Q2. On November 5, the quantity of newspapers supplied increased in part because publishers anticipated higher demand and in part because they scrambled to reprint when demand was even higher than expected. In the end, more newspapers appeared in the market, and at higher prices. The new market equilibrium for newspapers on November 5 is now at point B.

Though the consequences of the sudden shock in demand for November 5 newspapers are pretty much as expected, the reasons behind this shock are not so clear.

Though newspapers received renewed attention after the election, newspaper circulation has fallen steadily across the country for years. The ease of instant access to up-to-date information and the accessibility of free content have turned many readers to the Internet for news. The spike in demand for newspapers after the election raises interesting questions about the value of the daily newspaper in a digital world.

With the prominence of the Internet, why do you think people still wanted physical copies of newspapers with news they probably already knew? What factors do you think drove up the value of newspapers after the election? What do paper newspapers have that websites do not?

Are Women About to Become a Majority of the U.S. Work force?

Check out this NY Times article about a truly historic economic event. Women are about to make up the majority of the U.S. labor force. Read the article and see what you think. Is it time for a little role reversal. Is it time to redefine our beliefs about gender responsibilities?