Why Summer Can't get here Soon Enough

Why Summer Can’t Get Here Soon Enough

Allison Loth

Over the last couple of weeks, we’ve seen some pretty crazy weather patterns take place, especially with the sudden increase in temperature. It was easy to see the obvious benefits like the ability to spend more time outside, wear shorts, and maybe even go swimming. But what many of us don’t realize is the huge economic benefits that warm weather also instigates.

First of all, there is a significantly higher demand for certain goods when the weather is warmer. In a lot of ways their benefits are cancelled out by the goods we use in the winter like heating vs. air conditioning or ski resort trips vs. trips to the beach. However, the profits of summer tend to always outweigh those in the winter. For example, the demand for foods like ice cream, fruit, or meat goes up over 68% in the summer months (Johnnes). Sources say that even a 1% change in temperature causes a 1.2% increase in demand for ice cream and other treats. On the other hand, places like Starbucks that make a lot of money off of their winter seasonal drinks also make a lot of revenue during the summer due to their other signature drinks. Therefore, this past February made businesses selling these kinds of products see a huge increase in their revenue. In addition, people tend to be more willing to go out to eat or participate in activities when the weather is nice. The success of small businesses will allow them to hire more employees and have a higher demand for any good or service needed to produce their own products. Below shows the amount interest and popularity of restaurants in Chicago relative to the temperature outside.

Other positive externalities of the warmer weather include an increase in jobs, not just in small businesses but also for lifeguards or water park employees. When consumers are more likely to participate in activities, more people are required to work and provide these services, which greatly benefits the economy. Also, when the weather is nicer, employees are less likely to get sick or miss work. In addition, studies show that most employees will take vacation days during the winter to escape the cold, which means that companies gain less revenue because less work is being completed. When businesses have less supply of a good, many times they have to increase the price of their good or service, which in the end forces consumers to have less demand for that particular product. The following table shows how the presence of snow and the temperature outside affects the amount of sales that the average business has throughout the year.

While the difficulty of predicting weather patterns can be stressful, many people including the government and businesses throughout the nation can’t complain when the warmth creeps in, even if it’s a little early. The summery weather has more benefits than many of us expect, for it allows businesses to have greater success, more jobs to be created, and consumers to be more active in purchasing goods. Summer truly can’t get here soon enough.

Works Cited

Evans, Meghan. "Weather Costs US Economy Hundreds of Billions Annually." Local Weather

from AccuWeather.com - Superior Accuracy™. AccuWeather, 30 June 2011. Web. 04 Mar. 2017.

Geraint Johnes Professor of Economics, Lancaster University. "Explainer: How Does the Weather Affect the Economy?"The Conversation. The Conversation, 03 Mar. 2017. Web. 04 Mar.

2017

Yglesias, Matthew. "Why the Warm Winter Was Bad for Ski Resorts, but Awesome for the

Economy." Slate Magazine. The Slate Group, 28 Mar. 2012. Web. 04 Mar. 2017.

Share this post