Friday, May 19, 2017

How Summer Impacts our Economy

Carla Salisbury
Mr. Reuter

How summer impacts our economy
Carla Salisbury
In the summer the demand for certain products is higher and summer gives the opportunity to all companies to raise revenue on products. People’s spending drastically during the summer. The prices for some products goes up in the summer. Official data on sales of goods show that they tend to be based on annual spending, but the demand for some products tends to be seasonal.
In summer the demand for cold drinks and ice cream goes up. Companies that produce things like ice cream sell more of their products during the second quarter of the year, which is summer. A in the UK based ice cream producer reports that 68% of its revenue is earned during the second third of the year. But other economic factors affect demand too. The change of temperature of 1% increases the demand of around 2.4%.
The demand for meat does not go up in general, but instead the demand for different kinds of meat changes seasonally. In the summer the demand for sirloin is higher than usual, but the demand for roasting joints is low at that time.
The price for gasoline tends to rise during the summer, since people go on more road trips. The demand and price for gasoline goes up since the gas suppliers only produce a fixed amount of gas. It is not uncommon that the demand for gas is higher during hot summers.

Hot summers can also result higher taxes. In the summer of 2015 it was very and very little rain, which led to many forest fires. In an average summer the government spends about $100 million fighting forest fires, even though the annual budgeted amount is at about $63 million. These costs will result higher taxes. The climate change also results lake temperatures to rise which can have devastating results for fish and the things connected to it. It is also expected that there will be more floodings and violent storms, which will damage many properties.
Overall summer has an big impact on our economy, as well as good and bad. Many companies have a higher revenue, especially if there products are for the summer season. But it is important to pay attention and do something about the climate change since it damages the earth and also our economy.

Baldrey, Keith. "BALDREY: Hot, Dry Summer Impacts Our Economy." North Shore News. N.p., 10 July 2015. Web. 14 May 2017.

Geraint Johnes Professor of Economics, Lancaster University. "Explainer: How Does the Weather Affect the Economy?" The Conversation. N.p., 22 July 2015. Web. 15 May 2017.

"New Energy Economics: Why Do Gas Prices Rise in Summer?" New Energy Economics: Why Do Gas Prices Rise in Summer? — Ag News from NDSU. N.p., n.d. Web. 15 May 2017.

Philips, Matthew. "The Oddities of the Summer Economy." Bloomberg, 25 May 2012. Web. 16 May 2017.

@VLuck, Victor Luckerson. "How the Heat Wave’s Affecting Your Wallet, Your Food and Your Holiday Weekend." Time. Time, 03 July 2012. Web. 15 May 2017.


  1. I agree wit the fact the summer essentials increase GDP. The fact that the demand for meat and ice cream increase is expected around fourth of July and the external shocks of the weather and heat. It was interesting and I didn't expect taxes to increase and the money that goes toward natural disasters.

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  2. Also as time goes on, many more harmful effects of gobal climiate change may occur thus hurting the earth and the economy even more so. So it's important that we as consumers find away to help out earth

  3. During the summer month companies may also charge people for their products. Especially water brands and soda brands they find that since it is more essential and in demand in the summer they can charge people more for the product they are selling. This goes the same for many summer items like swimsuits and swim toys since they are more in demand the price will rise during summer.

  4. That's kinda strange that gas prices would increase specifically during the summer, but I guess a lot of people go on roadtrips to nature centers and camp across the country because of the warmer weather...

  5. The summer brings out a lot like vacations and also people do a lot more. That's why the prices go up since they can get more money because people will actually buy it even if its over priced. Its a good idea since you get more money for the same product. And a lot more house get bought and go on the market at the warmer times.

  6. The impact of Summer is interesting because it seems likely the PPC would expand because more teens enter the workforce to work in the summer. And these actions would increase GDP because there'd be increased spending.

  7. One thing I would wonder about summer is if trips and tourism affect our economy during the short term of this time. For example does the US attract enough tourist to increase spending domestically, or do more people leave and reduces spending.

  8. I can see how prices go up in the summer for certain products. It makes sense that gas prices would go up during the summer seeing how kids are out of school and probably driving around a lot doing things during the day. I didn't know that hot summers can also result in higher taxes.

  9. I didn't realize summer was much more than fun but was the season of money. I wonder what the average work time is during the summer months and what the GDP would look like to at the end of the seasons.

  10. A lot of people do different seasonal activities that many people are partaking in because of the change in weather. There are many more times to spend money and be out and about which creates opportunities to go out to eat, or rent a boat, etc. Families are more likely to be spending time together and going more places instead of staying in because it is cold.

  11. During the summer a lot of different products become high in demand. Mostly items to keep you cool or summer shenanigan activities are selling off the shelves rapidly. More money is being spent on items like sunscreen, swimsuits, popsicles, and other summer essentials which then positively effects the economy.


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