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Are you prepared for when the power goes out? To prevent massive wildfires in drought-prone, high-wind areas, electrical companies have begun preemptively shutting off electricity. These planned shutdowns are called public safety power shutoffs, abbreviated to PSPS, and theyre increasingly common. So far this year, weve seen them in Texas, New Mexico, and California. Unlike regular power failures, which on average last only about two hours while a piece of broken equipment is repaired, a PSPS lasts until weather conditions improve, which could be days. And these shutoffs come at a steep price. In 2010 alone, they cost California more than $13 billion. A 2019 analysis of shutoffs in Placer County, California, found that they harmed 70% of local businesses. I am a business school professor who studies how people pay for things, including during emergencies. As I point out in my new book The Power of Cash: Why Using Paper Money Is Good for You and Society, many people have abandoned paper money and switched to electronic payments such as credit cards and mobile apps. This can become a big problem during an emergency, since these systems need electricity to operate. The switch to electronic payments is making the world less resilient in the face of increasing numbers of major natural disasters. So if a public safety power shutoff strikes and you dont have any cash, you may be doubly vulnerable. On the other hand, keeping cash can protect youand not just you and your family but also local businesses and your community. After all, keeping the economy moving during shutoffs reduces the financial damage they cause. Why do they keep turning off the power, anyway? Its all about risk. The world has experienced a number of very destructive wildfires recently. In 2025, large parts of Los Angeles burned to the ground, with more than 18,000 buildings destroyed or damaged. In 2023, wildfires in Hawaii killed more than 100 people. Massive wildfires have also occurred recently in South Korea, Portugal, and Australia. Governments, people whose houses burned, and insurance companies are all looking for someone to blame and pay for the damage. Climate change, which is increasing the worlds average temperatures and drying out trees and grass, is setting the conditions. Since Mother Nature cannot be sued, utilities make handy scapegoats with deep pockets. Electrical utilities are sued because their power lines, transformers, and other equipment often start blazes. So to prevent lawsuits as well as fires, power companies are increasingly turning off the power when the conditions are ripe for a catastrophic blaze. Theres no uniform set of standards for when to impose a shutdown, but in general power companies do it when there are hot, dry, and windy conditions. For example, a PSPS is triggered in Hawaii if theres a drought, wind gusts are over 45 mph, and relative humidity is under 45%. Power shutoffs are a relatively new idea. They were proposed in California in 2008 and first allowed in 2012. Since then, power companies across the entire western U.S. from Texas to Hawaii have adopted these plans. Shutoff plans also stretch from southern border states such as Arizona to northern border states such as Idaho and Montana. Shutting off the power is a huge problem, since it causes massive disruption to communities. People depend on power to run medical equipment, work, and keep communities safe. Even people with a desperate need for electricity, such as those on medical life support, are not immune to a safety shutoff. How to prepare for a PSPS As the world warms, the chance of being caught in a preemptive power shutoff increases. What can you do to minimize the impact? Having solar panels wont protect you: Utilities shut off customers with solar panels to block those panels from pushing power onto the grid, since the whole goal is to shut off the grid. The only way for you to still have power is to buy a battery storage system and a transfer switch, which allows you to take your system completely off the grid. But this is very expensive. Getting a portable generator is only a partial solution for a multiday hutoff, since most last only 6 to 18 hours on a single tank of gas. Plus, generators run very hot, which creates its own fire risk. Another way to minimize the impact of both a power shutoff and a wildfire is to create a small disaster relief kit, or go bag. Creating one is relatively inexpensive. It should contain key items such as water, your medicines, some shelf-stable foodand importantly, some cash. Even some government websites forget to mention this. Its also important to use paper money before a shutoff happens. I have all too frequently seen gas station attendants, supermarket checkout clerks, and restaurant servers have no idea how to handle cash. Recently at my local supermarket, for example, I paid with a $20 bill. The cashier had to ask another employee which kinds of coins to use to make change. If people dont know how to handle cash during normal times, it ceases to be useful during emergencies. As the world warms, public safety power shutoffs will occur more frequently. The shutoffs clearly highlight the trade-off between economic and social disruption versus preventing dangerous wildfires. These shutoffs show there are no easy solutions, only hard choices. There are a few sensible and easy steps to take to reduce the impact of these shutoffs. One is to understand that during one of the very moments you might really need to spend money, modern payment systems fail. Holding and frequently using old-fashioned cash is a simple and low-cost way to protect yourself and your family. Jay L. Zagorsky is an associate professor at the Questrom School of Business at Boston University. This article is republished from The Conversation under a Creative Commons license. Read the original article.
Category:
E-Commerce
Chalk it up to bad timing: Some Home Depot customers are furious after a recent April Fools’ Day prank from a tool review website suggested that the home improvement giant would start charging parking fees due to inflation. This was no laughing matter, as anxious Americans awaited President Donald Trump’s tariffs news, expecting higher prices on goods and services. So the April 1 date didn’t register with angry viewers right away. Many took to social media, some creating a Reddit thread about the supposed fees, with one duped X user even proposing #BoycottHomeDepot. Desperate for some damage control, Home Depot responded on its official X account, posting, “this is an April Fools’ post from a tool review website. We do not charge for parking.” So, what exactly happened? On April 1, Pro Tool Reviews, an online product review site, published a fake news article that said Home Depot would start charging for parking to combat inflation and “offset increasing operational costs [to] keep prices competitive,” and that the modest parking fee (“$2 for up to two hours in central Florida, to $5 for a full day of parking in Los Angeles”) would help the company avoid passing those extra costs directly on to customers. Unfortunately for Home Depot, as the target of the joke, American consumers are now particularly sensitive about retailers passing the cost of tariffs on to them. Pro Tool Reviews told USA Today that the article’s high viewership was “truly humbling,” indicating the traction this apparent PR nightmare has received, with editor-in-chief Kenny Koehler adding, “we hope our friends over at Home Depot were able to laugh as well.” (We’re not so sure about that, Kenny.) This isn’t the first time an April Fools’ Day joke has caused trouble. In fact, there is a long list of brands whose pranks have gone awry, from Google to Volkswagen. In 2016, Google announced a new Gmail feature that it claimed would add a GIF of a yellow animated “Minion” character dropping a microphone at the end of an email. Google later apologized. And in 2021, the German carmaker claimed it was changing the name of its American division to “Voltswagen,” causing the stock to rise, as well as a great amount of confusion. The origin of April Fools’ Day dates back to 16th century France, when Charles IX decreed that the new year would no longer begin on Easter, but instead on January 1. Those who refused the change were named, you guessed it, “April fools.”
Category:
E-Commerce
President Donald Trump promised tariffs that would raise U.S. import taxes high enough to mirror what others assess as trade penalties on American goods. What he’s actually imposing is based on far more complicated math. Here’s a look at how the White House got its numbers: Why do the new tariff rates often differ by country? The Trump administration has declared an economic emergency to bypass Congress and impose a 10% tariff on nearly all countries and territories. It has set even higher levies for about 60 nations that it says are the worst” offenders. The 10% global tariffs take effect at 12:01 a.m. Saturday. The higher tariffs set for specific countries are due to kick in at one minute past midnight on April 9. Among the so-called worst offenders is China, which Trump argues protect its producers through malicious trade practices in addition to tariffs. Those efforts include actions such as imposing value added taxes on all goods, dumping overproduced products on markets to artificially deflate prices, or manipulating currency. To determine how much higher those nations’ rates should be, the White House says it calculated the size of each countrys trade imbalance on goods with the United States and divided that by how much America imports from that nation. It then took half that percentage and made it the new tariff rate. Why not just charge reciprocal rates? The White House says its calculations kept new tariffs from going even higher for many countries and demonstrate that Trump is being kind to global trading partners. The administration maintains that creating a baseline levy with few exemptions is necessary to keep China and others from skirting the new tariffs by manufacturing goods and then shipping them to Vietnam, Cambodia, Mexico or elsewhere to then be sent to the U.S. Thats why the White House list of tariffed locations includes obscure places like the Heard and McDonald Islands, which are uninhabited. They are 2,550 miles (4,100 kilometers) from the coast of mainland Australia, which claims them as a territory. Is every country affected? No. Canada and Mexico are excluded because they already are facing 25% taxes on most imported goods that Trump announced last month, in an attempt to force both to crack down on fentanyl smuggling into the U.S. The White House originally said all others would be affected by at least the 10% tariff. But administration officials clarified on Thursday that countries already subject to stiff U.S. sanctions for example, Russia due to its invasion of Ukraine, as well as Iran, North Korea, Cuba, Belarus and Venezuela will not face the new, 10% global base tariff. Official said that is because sanctions and other existing barriers mean the U.S. has so little trade with those places that deficits are minimal. Why is Trump doing this? The president has spent months insisting America was at its wealthiest at the end of the Gilded Age in the late 1800s and early 1900s, when it imposed high tariffs as the key means to generating revenue for the federal government. Trump even suggested Wednesday that the U.S. moving away from higher tariffs and toward a federal income tax in 1913 helped trigger the Great Depression of the 1930s a claim that economists and historians roundly reject. A more contemporary explanation might be found in Project 2025, a comprehensive blueprint compiled by leading conservatives about how to shrink the federal workforce and push Washington further to the right. It spelled out how Trump might impose high tariffs around the globe, giving his administration more room to negotiate lower levies with trading partners in exchange for U.S. priorities. White House officials insist the new tariffs are more about closing trade deficits, stimulating U.S. manufacturing and generating government revenue than eventually negotiating new trading deals. But Trump has shown he is willing to back off on threats of tariffs in exchange for offers of concessions. His administration has said the president is always ready to make deals, a sign the new tariffs may prove to be more bargaining chip than permanent policy. Why do US trade imbalances matter? American trade policy created a U.S. trade imbalance worth $1.2 trillion last year, a gap that some experts believe should be addressed in order to ensure the country’s long-term economic strength. But many economists say the trade imbalances that Trump is looking to correct are based on more than countries just using high tariffs or protectionist trade practices to boost their own exports. Basing the White House’s tariff math solely on trade deficits, for instance, fails to take into account U.S. consumer demand. Americans relish buying BMWs assembled in Germany, as well as French wine and coffee beans from Guatemala, and their spending can fuel trade imbalances regardless of the tax and tariff policies of the countries producing those goods. That means any attempt to close U.S. trade gaps by tariffs will likely mean increasing the cost of imported goods that Americans are buying, which in turn could hurt the economy because of increased inflationary pressures. Will Weissert, Associated Press Associated Press writers Josh Boak and Zeke Miller contributed to this report.
Category:
E-Commerce
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