Pity for Pumpkins

Just in: A Pumpkin Shortage! Will Halloween be ruined?

I read in the USA Today, that due to the destruction caused by Hurricane Irene, the Northeast is facing a dearth of pumpkins. One farmer reported that over 20,000 of his pumpkins washed into Lake Champlain in New York. Pity.

This farming disaster has great ramifications on both the producer and the consumer. The rain damage from  Hurricane Irene causes the supply curve to shift to the left, and with the increased demand for pumpkins during the holiday season, the price of each pumpkin increases. As a result, the consumer surplus shrinks, therefore putting a damper on his holiday.

Furthermore, if the price of pumpkins increases in the Northeast, I speculate that the Midwestern farmers will truck their crops east as northeastern farmers cannot produce enough pumpkins for the region. This could put a damper on the Pumpkin Roll.

This pumpkin shortage will cause inefficiency in my household. My father is a lover of the Heinen’s seasonal Pumpkin Roll dessert. He looks forward to the six weeks in which my mother would normally purchase a weekly roll. However, since he is not the shopper in the family, and my mother is a tightwad, she will NEVER authorize the purchase of a pricier pumpkin roll. Pity.

Meghan Inc.

Over the summer, while friends of mine were lifeguarding and working at local shops, I was cooking pasta, monitoring piano practice, and vacuuming Dorito crumbs from the floor of my car. But, I was making well over the minimum wage, tax free.

My personal experience with babysitting reflects the economic principle of demand. I have found that leaving my phone on during school proves problematic when mothers text me asking for my services on the same days and times. In some cases, demand for my childcare services is so high that mothers now book me weeks, sometimes months in advance at hourly rates almost double minimum wage.

However, this principle not only applies to Chagrin Falls, but apparently nation-wide. For example, during a visit with my cousin in a Central Park playground, I was asked by a New York City mother whether I babysat. Unfortunately, I do not reside in the city. But I wonder how much an excellent babysitter makes in a city with a high cost of living.

Due to the summer’s demand for child care, I made the choice to babysit rather than seeking employment at a local shop or grocery store. I have found that the opportunity cost to vacuuming Doritos, wiping faces, and helping with homework is very low. While over 25% of teenagers were unemployed in August, I do not face this problem (High teen unemployment cuts learning opportunities, USA Today 9/6/11). Due to the demand I have experienced in Chagrin Falls for my services, I have gained insight to the world of business, employers, and customers. Moreover, I have discovered how marketable a teenager can be when there is great demand for a service.  

By the way, Mr. Womack, I can drive. 

Irene, Economics, and Clementine

In the wake of Hurricane Irene, I am noting that many principles of economics are applicable to the aftermath.  

Due to the hurricane, towns will need to be rebuilt, according to the article, “With Help, Towns Rebuild” in the September 1^st Wall Street Journal. This job will require the construction trade (lumber, workers, concrete, etc.). Since these resources will be in demand, I expect that their prices will increase, and the resources will eventually become scarce.    

Government intervention will also play a role in the reconstruction. According to the article, “Relief Crews Tally Damages” in the August 31^st Wall Street Journal, the Federal Emergency Management Agency is providing funds to rebuild many towns and cities. In addition, the Department of Health and Human Services is aiding hospitals and health centers in affected areas. Clearly, government intervention can improve society’s welfare when cities do not achieve efficiency.

Additionally, business is affected by Irene. According to the article, “River, at 100-Year High, Ravages New Jersey City That Once Thrived on It,” in the September 1^st New York Times, the immense flooding has damaged businesses in Patterson, NJ, as well as along the East Coast. In addition, thousands of people have been evacuated from their homes. Flooding and evacuation hurts business because stores and plants are shut down, and people cannot buy their products. Therefore, businesses and individuals are hurt as they are not able to receive income, as one person’s spending is another’s income.

On a personal note, my Grandmother, who resides in Long Beach, New York, was evacuated from her home due to the immense flooding that threated her safety. In Long Beach, the water from the Ocean has flooded streets, as well as my Grandmother’s basement. As a result, she had to evaluate the opportunity cost of fixing her home. She decided to hire workers to pump the sea water out of her basement. She is now in Massachusetts, sipping wine, while visiting her sister.