Charles Edison

"Economics, politics, and personalities are often inseparable." - Charles Edison

Wednesday, November 16, 2011

Death to Keyboards & Monitors: the OmniTouch

Technology drives the economy. OmniTouch is the technology that will not require a keyboard and monitor for a device. Since the touch screen device is all over the place in a short period of time. I believe when OmniTouch is well-developed, and launches in the market, it will be a high popular product. Before Apple announced their new iPhone, one of the rumors is that it will basically have a projection as the keyboard and monitor, but it was a false rumor. The Apple’s fans might hate this, because OmniTouch is projecting by Microsoft. Each of the evolution those technology companies made it to make the device closer to the user. However, OmniTouch is currently not well-develpoed yet. It is projecting to be available as a smaller device in 5 years. I can’t wait to get one once it comes out of market.

Tuesday, November 15, 2011

Birth Control = Prostate Cancer?

Researchers are saying that when a woman takes a birth control pill, and then passes it, that the estrogen released from the pill circulates through the water system and can cause prostate cancer to men through drinking recycled water. This a bit of an extreme and most likely harmless to most, but it may have an economic effect on birth control. More people will not buy birth control if they hear this or people will stop drinking sink water out of paranoia. Altogether I'm not a fan of taking a pill to stop a feeling, or in this case prevent pregnancy, because all of these artificial medicines usually have more harmful side effects or after effects causing more pain and trouble than the original reason you took the medicine. It is best just to eat right, work out every day, and make smart choices rather than rely on medicine to clean up your stupid mistakes. Overall this article almost just makes you more paranoid than really harming you, but could have negative effects on the sale of water and on birth control.

Monday, November 14, 2011

US finally getting the Nano

In 2008 Indian car company, Tata Motors introduced the world to the Tata Nano. Earlier this year it was finally on sale in India and later in Europe. In the coming months it will be released in the US. The significance of the Tata Nano is that it's the world cheapest car when it was first released it was just over $2000 and is now about $3000. It's about the same size as a smart car and can do about 60 mpg. The Nano would dominate the city car market. When it comes to the US it will open up jobs because of dealerships and I assume people that could never afford cars will purchase the Nano because of its tiny price tag so local business will prosper along with gas stations because more people will need gas.

Wednesday, November 2, 2011

Taiwanese directors try to make their mark on Chinese box office

Taiwan has many drama shows that are popular, but not many of them made into the Chinese market. Many Taiwanese directors want their shows or movies to be shown in China because China has much larger market than Taiwan. For Asia, there is no such a place as Hollywood where all the entertainment gathers. Those movies from Hollywood make lots of profit from it, but not so much in Asia country. China doesn’t like the films from different country to influence Chinese people. For films which have high box office means that it has a high popularity. High popularity can help the films spread throughout the Asia country. Audiences can also choice to watch the films on internet. There are not many of Asian films and movies make into Hollywood because of the language and culture difference. However, there are many Hollywood movies take place in Asia which help the improvement for the economy.

Wednesday, October 26, 2011

Gadhafi's death helps clear way for oil exports

A oil producible country have a huge impact toward the world economy. Oil is the basic of transportation and an inelastic demand for global business. Before the Civil War in Libya started, they has the most oil reserved in Africa which producing about 1.6 million barrel of oil per day. Libya ex-leader Gadhafi reduced the export of gas with violence during the civil war which elevated the international gasoline price. Libya was in the command economic system which was leaded by Gadhafi, but now the Libyan has the freedom on their own. After Gadhafi was proved that he was overthrown, the gasoline price was lowered with the thought of increase of oil exports from Libya. But the major problem is that Libya is without a government system and few national institutions left in the country. Without a government, there is no representation for Libyan which won’t guarantee the safety of oil fields workers and the security of the oil export. However, many analysts predict that Libya will soon increase the oil production which will reduce the world fuel price. Oil is valuable, and its demand and supply are easily disturb by a event.

Tuesday, October 25, 2011

FedEx hiring drivers for holiday season

With the holiday season fast approaching FedEx is hiring temporary drivers to meet the increased demand for shipping. Many more packages are going to be delivered requiring more drivers. People will be buying and selling gifts for their family in other states causing more demand for delivery. FedEx is paying very well for these additional workers. These salaries typically around nine to sixteen dollars. This act will not, however, have a substancial impact on the economy lasting only a short time. The increased hiring must last longer and remain constant to help stimulate the economy. Also more companies are required to participate to boost the economy. Though for a short time during the holidays jobs will be plentiful for delivery drivers.

Monday, October 24, 2011

World Series vs. the Olympics

There has been much talk about how the World Series is boosting the economy in both St. Louis and Arlington. Thousands of people are buying merchandise and tickets to the games that are selling at over $1,200. With the 2012 Summer Olympics taking place in London; many people are speculating the same kind of economic boost in Europe. However it is actually proven that the Olympics do quite the opposite. While people do spend a lot of money to attend the events and buy merchandise, the host city is forced to use the taxpayer's money to pay for things like the venues and getting everything prettied up for the visitors when the money could be used for things that would actually help the economy. The reason why the World Series helps cities make money and the Olympics doe the opposite is because MLB teams are privately owned. Arlington and St. Louis only gain money because they don't have to spend any money or at least very little money in hosting these kind of events.

Wednesday, October 19, 2011

Kudzu bug threatens to eat US farmers' lunch

The new pest has entered and spread through many farmland in the United States. Kudzu bugs have no sign of stopping. Farmers grew the plants for living which the plants would also be the human food resource. Food resource will be shortage because the pest is eating the crops. Farmers have to raise the crop price or the government has to enter and give financial support for the lost. Crops are the raw material which could make into some popular food. When the price of raw material goes, it affects many food products. Bread is the major food we eat in America which is made of crops. While bugs kept messing up the crops, farmers are trying to control the bugs spreading. It will be costly to use the pesticides and didn’t quite well as the result. Even if the farmers did successfully control the bugs, the price will still go up to balance with the cost of pesticide.

Monday, October 17, 2011

7 Billion by Halloween

The U.N. has predicted that the global population will hit the 7 billion mark by October 31. The population will only continue to grow as the years pass, straining both elastic and inelastic resources. Sub-Saharan Africa's population is expected to go form 900 million people to over 2 billion by the end of 2025, just 14 years from now. The population has increased exponentially over the past couple of centuries. There were just a billion people in 1804 and we didn't reach 2 billion until 1927. In took just 32 years to reach 3 billion, in 1974 we reached 4 billion, and in 1987 we reached 5 billion people. In 1998 we finally reached 6 billion and just 13 years later 7 billion. It's estimated that in 2025 there will be about 1.8 billion people will be living in water scarce areas. Water is with a doubt the most important inelastic resource for survival. For some reason poverty and big families seem to go hand in hand. Environmental analysts such as Lester Brown say that the best way to slow the loss of our resources is to "accelerate the switch to smaller families."

Thursday, October 13, 2011

Hit Your Shots!!!

Australia is home to some of the most extreme animals and environments in the world. On this Australian golf course the center of the course has a lake with six "man-eating" bull sharks. The sharks were stranded after a nearby river flooded and then receded to its original levels leaving the sharks behind. The sharks are 8 to 10 feet long and are fed meat on a regular basis to encourage them to come to the surface. This golf course is the first of its kind and because of the rarity and large demand to see these sharks the golf course attracts many people each year along with one tournament called the "Shark Lake Challenge." The golf course should have nothing to worry about in terms of a lack of supply as the current sharks are said to be breeding. Also in this lake there are other fishes and plants to keep a complete habitat for the sharks.

This shark course sounds like something that would be in the Bahama's as a tourist attraction. This is why these sharks could be used as a money maker, by attracting a lot of people to the course. This in turn would result in a lot of people spending money and telling others of the course.

Wednesday, October 12, 2011

NBA canclled first two weeks of season

People want the NBA lockout to end before the season starts, like the NFL lockout did. The NBA has already cancelled all its pre-season games. But now, the NBA has also cancelled the first two weeks of the season. Both owners and players will lose more and more money if the lockout never ends. Some people are interested in watching professional basketball games after the NFL season. Even though the season has been shortened, the price of tickets will not drop, but there will be refund plus the interest for those season ticket holders. For those people who also watch other sports will have the substitution before lockout is over. But for those who don’t watch other than NBA will have to find other entertainment to watch. The fans were already upset when the lockout first began, NBA might lose part of its fans as well as their support for the time and not willing to buy tickets anymore. No one wants to see the lockout keep on going and cost the cancellation of whole 2011-2012 season, both owners and players won’t get what they are arguing right now: money. The fans definitely are disappointed the season is having delay.

Tuesday, October 11, 2011

Netflix losing its grip on the DVD rental industry?

CNN reported that earlier today Netflix released that it was cancelling its plan to split its services into to separate companies. This plan, originally released Sept. 18 would have customers use Netflix for instant streaming and Qwikster for mailed movie rentals. This would allow customers to choose between the two businesses or both for their movie needs. Upon releasing the statement however the online community flared with hostility towards the choice as well as Netflix all together. Many customers complained of being happy with the system already in place as well as their still unsubsided anger over the price increase. These many factors led to the online outcry that forced the company to reconsider. It was a very risky idea issued during a very risky time for the company and it backfired substancially. Netflix no doubt lost customers to their faulty timing and business planning.

Monday, October 10, 2011

The "New" iPhone

This Friday Apple will be releasing it's 5th generation iPhone. No, it's not the iPhone 5, but the iPhone 4S. AT&T stated during the release of the iPhone 3GS that the "S" stood for speed. I would assume it would mean the same with this release as it's processor is seven times faster, has twice the memory, surfs the web at "4G" speeds, and has a new technology called, Siri, that completes tasks at your command. Some are saying that the "S" stands for Steve as in iPhone 4Steve alluding to the former cofounder and CEO who was diagnosed a few years ago with pancreatic cancer that forced him to resign in August, and pass away the day after the announcement.
While the iPhone 4S is being trashed by most people, AT&T has reported that they have sold over 200,000 in 12 hours and even calling it the most successful iPhone launch ever. Apple's preorder supply ran out in less than a day. So if so many people are disappointed with this release and the iPhone 5 rumored to be out in just 8 months, I am very surprised at just how well the iPhone 4S is doing. I have preordered one just because iPhone 3GS's battery is messed up and has been dying after using it for only 10-20 minutes. This is not a widespread problem so is the 4S selling so well because of Steve Jobb's death, or that the iPhone 4S is truly the bes smart phone out there? Or could it be that sales will even out as customers are afraid supply might be scarce, or is it because the novelty of the product?

Friday, October 7, 2011

Electric Vehicles: Not Meeting Expectations

Electric Vehicles seem to be the next big thing in the world as gas prices are increasing each year. Unfortunately these electric vehicles have not yet proved themselves on the road, since most of these cars are unable to travel 100 miles within one charging period. Most people need a car that can travel at least 300 miles before needing to be recharged, but the electric vehicles out now are not meeting those expectations. Another problem with these cars that people have is that they take at least eight hours to charge, and most people need them to charge in about an hour or less. So basically electric vehicles are a new and efficient way to save money on gas, but when the car takes eight hours to charge and then can only be driven for a little over an hour on the highway, that is not very efficient. The article says that by next year there will be a Tesla Model S that will be able to go 320 miles and charge in thirty minutes or less. Sounds like a perfect solution to the problem, but we'll see where technology leads us between now and then.

It is exciting to see where technology is leading us to each and every day, and to see all the new possibilities out there in the world. These new electric cars are just waiting to be transformed into something that we might think of as futuristic, and something that will really change the way the United States looks. Each day with any new invention or idea we draw closer to this conclusion.

Wednesday, October 5, 2011

Where is the iPhone 5?

The Apple fans or media were all excited for the Apple announcement on October 4th 2011. Most of the fans are expecting the brand new iPhone 5, but Apple introduced the iPhone 4S. Even for those fans who were disappointed and were looking into the whole new generation technology phone, some people will still buy in to the new iPhone 4s. Technology pushes economy. iPhone 4S features the brand new technology the voice control “Siri”, and upgrades other systems. People like new things or technology, many retail stores have been asking when the new iPhone will come out and placing pre-orders. Despite of the date it’s available in store, it is the most frequent asked question which means it is popular and more people are willing to switch from other brand of phone to Apple’s. Although people who have iPhone 4 are most likely not going to rush in and buy the 4S, it will still be a popular item on sale. iPhone 4s starts at the price of 199 and it will be in store on sale on October 14th, hopefully it won’t cause as much trouble as when iPhone 4 was first on sale. Apple’s stock went down nearly 5% on their new product announcement day, seems many were disappointed.

Tuesday, October 4, 2011

The Benefits of the Post Season

As we all should now know the post season is raging on throughout the U.S. With this momentous occasion comes the possibility of huge profits. The increase of buyers in the selected cities will spark huge spending that businesses will be trying to cash in on. The people coming are there to have a good time and are rarely thinking about spending too much. Supply will be increasing gradually up until the world series when the most amount of merchandise is needed to make the most profits. Though the Super Bowl does also benefit the economy of its host city, I wonder if the post season helps more, due to its extended time. It would be interesting to research and find out if the heightened fame of the Super Bowl is better than the longer post season. None the less this mild economic boom will hopefully help the economy level out.

Monday, October 3, 2011

Starbuck's Stimulus Package

Starbucks has teamed up with Opportunity Finance Network and announced their "Jobs for USA" program. The program will kick off on November 1. All Starbucks locations will collect $5 donations to distribute through the OFN to 180 financial institutions. Those 180 financial institutions supply loans from"charter schools to grocery stores nationwide." In the 27 years of existence the Network has collected over $23 billion and created over 300,000 jobs CEO Howard Schultz has stated that "This is about using Starbuck's scale for good." Starbucks Corp. hopes to have a $5 donation for every person who cannot afford to donate $5.

Thursday, September 29, 2011

Halloween Horror

How much longer will people waste money going to Haunted Houses during October at theme parks? Probably never since it is becoming so much like Christmas, Valentine's Day, and the Super Bowl in terms of supply. Just like on these days businesses take advantage of the people by stocking up on their goods, by raising their prices and by starting to advertise the day, Halloween, when it's over a month away. This article exemplifies how theme parks are already opening up their Halloween attractions to reel in some extra money and it is still September. Pretty soon they will be open in August similar to how Christmas music starts playing in November and sometimes sooner. The whole year will be one big marketed holiday, so that people can justify raising their prices and increasing their supply, but would this be a bad thing since spending does drive the economy? I really don't know but it is something to think about.

In this article it is $42 just to walk around and be scared for thirty minutes or so, that is just a bit ridiculous. But not to the companies hosting the event because they're getting a nice return in taking advantage of people. Overall businesses are increasing their supply in goods from about September or August till the end of the year and raising their prices, knowing that it is that time of the year when people spend their money most.

Wednesday, September 28, 2011

World's Most-Visited Tourist Attractions

United States of America has many popular places tourists love to visit. Those most-visited place for the tourists are having local economy support by huge money from the tourists. When local economy is wealthy, it will give more taxes to the government which can help the whole country. Tourists from another country bringing their money into U.S. which is adding more money into the U.S. economy cycle. Government wants the money from outside of country so the money is not only spending in United States, but also the money is from other country. Most people like to be tourists when they are on vocation, which means they have extra money to spend on and will be spending it in the trip. Vocation could be luxury and the costs of one vocation to those place typically are high. Spending money is the force of the economy. Tourists will want to enjoy their vocations so they spend money, it pushes the economy of the place. And because those places are popular and most-visited by the tourists, more people will want to travel there and spend some money at the place.

Tuesday, September 27, 2011

Housing Market Predictions

In a Fox Business article Thursday January 6, 2011, two top real estate experts gave a forecast of the real estate market for the years to come. One expert predicted not much help will come to the housing market until unemployment is solved. Another believed the market would increase slightly as the economy recovers but nothing too substantial. Many believed the housing market will recover though the time it will take is uncertain. There is a surplus of homes in some areas leading to the possibility of recovery but people have yet to buy them. People are afraid of the dropping prices affecting their purchase of their home. Overall the analysts believe the solution is lower mortgage rates and no foreclosure to help stimulate the housing market. Right now only select portions of the market are doing decent. The rest of the market is being killed by consumer fear and economic downturn. The housing market appears to have more of the same in its future but there is still a light at the end of the tunnel.

Monday, September 26, 2011

Gas Prices are Down, Finally

With economy still in a slump and 9.1% of America unemployed, it's good to see at least one issue has seen improvement. Gas prices have lowered to under three dollars a gallon in parts of Texas, Michigan, and Missouri. In Bridge City, Texas, the price of gas was only $2.62 a gallon. Some analysts believe it might reach as low as $2.50 a gallon in some places by Thanksgiving. Some economists are saying that it is to stimulate the economy. More people will decide to go the movies, or eat out, or go shopping. Also it might just drive down the prices of other things too as the price to transport it from Point A to Point B will be lower.

Thursday, September 22, 2011

Injury Plagued New York Giants

The New York Giants's 2011 season is already looking grim in just the third week of the season. The Giants have suffered injuries to ten players already and most of them season ending. Specialization of labor has back fired on the Giants as they have decent receivers and line backers, but they are hurt with no one of equal value to take there job. The NFL is pretty much the definition of specialization of labor as most guys play just one position, but right now for the Giants it would be helpful if the league was not so specialized. Then they could just move someone from another position to fill in, but since players are not acquainted to playing multiple positions at the pro level it would be a inefficient to the team. So instead of being able to move veterans around to help the team contend, they just put rookies out there in the game to fill the spots and hope for the best. Although this specialization of labor keeps a level of demand in the league for backups and rookies. For example since the Giants have multiple injuries they now have a larger demand for players to come and fill that spot. Therefore sports in a way goes against the Law of Demand in that as the injuries become more costly the demand increases. Overall I think economic principles are a bit different when referring to football or just sports in general.

Wednesday, September 21, 2011

Thousands march against nuclear power in Tokyo

Using nuclear power can provide enough electricity for the whole country but the safety issues of the reactor are considered. After 311 the Japan Fukushima nuclear reactor melt down disaster, many country starting to realize its dangerous and the cost of recover could be. Because of the radiation leak, any item could be infect by the radiation in Japan can’t be sold which is lots of area and costing the economy be tough on people. Now, the Japanese wants to use natural energy resource which won’t cost the damage like nuclear reactor did. But for poor natural resource country like Japan would need to find another way to replace the amount of nuclear electricity which isn’t invented yet. The shortage of electricity costing the sacristy, electricity price won’t necessary go up alot, but the demand would still be the same.When there are not enough electricity for the country, Japan government will have the cut down the power for certain area. Also, for those were evacuated for the radiation around the reactor would have to find a second home for them to stay until the area is clear which will take a lots of time. Lands in Japan are limited, it can be use up as much as it can because Japan is one of the best technology in the world. When lands can’t produce anything to sell or be bought, the land lose it value and cost economy to go down. Because of radiation effect too much in Japan, the protesters of nuclear power in Japan are getting more and more.

Tuesday, September 20, 2011

Chief Economist of European Central Bank Resigns

Juergan Stark, the chief economist of the ECB, resigned on friday, September 9, 2011 over his opposition to the ECBs bond buying program. Apparently Stark opposed the purchasing of many government bonds from ailing economic european countries. He believed it jeopardized the independence of the bank. He did not want the politics of Europe mixing with economics; he believed these decisions would cause a command economic system. Also he feared for the stability of the euro. He believed these purchases would inflate the currency and cause further economic strife. This sudden resignation is yet another blow to the Christian Democratic Union(CDU). This will make the second instance of a prominent economist abandoning their approach to saving the euro. This resignation is a great loss to all European economists. Read more here.

Monday, September 19, 2011

The "Buffett Tax"

Earlier this year, billionaire Warren Buffet stated that many billionaires like himself actually paid less in taxes than many of his employees due to loopholes in the system. On Monday, Obama is expected to officially announce the 'Buffett tax" on millionaires. It would raise taxes on people who make over $1 million a year. The new set of taxes would be part of the plan to save $3 trillion over the next 10 years. Although it sounds like a good plan (at least to me), other than helping out the debt, Obama is suspected of having an ulterior motive. Some suspect the only reason this move is being done is because it would garner more voters for the 2012 election. I believe this is long overdue, although I'm not the biggest fan of his ulterior motive.

Thursday, September 15, 2011

Obesity on the Rise

According to the article below, half of the U.S. will be obese by 2030. The stated solution is to have the government market healthier foods more aggressively and to educate the people more on how to eat. But in our mixed economic system it is difficult for the government to step in and play down foods like McDonald's, Pizza Hut, and Taco Bell when they are at such a high demand. People like to eat good tasting, cheap food, but right now in America the healthier foods have to go through a more rigorous test to get put out on shelves at stores and therefore raising the price of this good. Since healthier foods are not a necessity to Americans they are an elastic good, which also means that the rise of price for these healthier foods will cause the quantity demanded to decrease according to the Law of Demand. So basically the solution is to raise the demand for the goods by lowering the price for the public and marketing the healthier products more to make them more desired. This is just an economic solution to obesity, but it is largely based off of individual's decisions. For example it is very difficult for a person after they just ate three grilled stuffed burritos from Taco Bell for $5, to give that up the next meal and eat a healthier food that cost twice that of Taco Bell. Healthy eating is a habit that must be perfected day by day, it's not always the most enjoyable activity. But more aggressive marketing and the lowering of prices on these healthy foods could lead many Americans to be more willing of eating healthy.

Wednesday, September 14, 2011

Record number of Americans living in poverty

When the economic in a country or a society goes down, the unemployment tends to go up and more people lives in poverty. It happens because there are no jobs available for the people and daily supply or inelastic demand value increased from the previous year. An inelastic demand like gasoline has never been stop using and the value increased throughout last year. There were 46.2 million Americans lived in poverty last year which is the highest since it started record. The unemployment percentage rate has been increasing for four straight years. Because adults are living in poverty, the children from the family are also living in poverty which was more than a fifth for last year. Income of the individual person or family is one consider of being poor and be able support himself. Government has been trying to cut off the tax from the people and they have the money to put into the society and increase the demand. Tax cut makes people have more money to spend on whatever they need or want; it helps the economic when they do spend it. Because it’s not always the case that people would spent the money they saved from tax, but people do spend their money if they have jobs. Government would need to have a stronger unemployment insurance system to avoid people losing their job and live in poverty.

Tuesday, September 13, 2011

Back to the Future Nikes auctioned for charity

Last week Nike began auctioning off their special edition back to the future nikes on ebay. As seen in the Back to the Future part two; these shoes have LED lights through out the sole, heel , and instep. Their official name is nike MAGs and they will be auctioned off on ebay everyday through september eighteenth. The bidding starts at only $0.99 but if you check here the bids are rapidly increasing. All proceeds go to the Michael J. Fox Foundation to help those with Parkinsons Disease. Nike has seemingly engineered this event perfectly. Nike is a signature brand heightening the paradox of value in their favor. Also heving only made 1,500 pairs Nike has added scarcity to the equation; further heightening the value of the shoes. Lastly they made the event an auction which allows Adam Smiths theory of competition to further heighten the bidding. So far this event has been a huge success and there is still plenty of time.

Monday, September 12, 2011

Apple vs. Samsung

Three days ago, Germany's Dusseldorf Court announced it's decision on whether the Samsung Galaxy Tab 10.1 should be banned in Germany. The tablet was banned because Presiding Judge Johanna Brueckner-Hofmann believed that "Apple’s minimalistic design isn’t the only technical solution to make a tablet computer, other designs are possible". The verdict surprised many, as what Apple wanted seemed quite severe. This verdict could possibly spread to other countries in the European Union, not just for the Galaxy Tab 10.1 but maybe all other tablets that use to the same basic design. This would give Apple a monopoly in one of the biggest tablet markets in the world.

Thursday, September 8, 2011

20-Foot Crocs are Just Tradition

The Manila region of the southern Philippines is home to some of the largest saltwater crocodiles on the planet. This past week a 20-foot, 2,370 pound crocodile was captured out of the fear from a local village. Crocodile hunting is a big role in this traditional system as the hunters laid their traps, caught the croc, and then transported back to the village. A classic example of hunting and gathering that has been taught down through the generations in this Filipino village. Although today these crocodiles are on the endangered species list and are not allowed to be hunted without permission for reasons such as fear or humans getting eaten. This is strange to think that crocodiles have so much power and force in this part of the world because in the U.S.'s mixed economic system either the government or the people out of competition would have devised some way of ultimately controlling these crocodiles.

The demand for one of these crocodiles is most likely very high in this Filipino village because of how much meat the crocodile produces. As the Filipino village mayor said the whole town showed up like it was a 'feast'. Also producing such large findings of these crocodiles may attract people to come to the Filipino village. The more people coming to the village, the more money is coming to the village, and one day maybe advancing the Filipino village into a more complex economic system.

Tuesday, September 6, 2011

Wildfires sweep across Texas

There were more than 70 days of 100 plus degrees in Texas over the summer, and only few of rain dropped during those days. Because of the extreme weathers, wildfires happened many time in Texas and it has destroyed over 1000 homes and four people were killed from the fire. The worst of the fires is at Bastrop County Complex fire, already destroyed 550 homes and other properties, 5,000 people evacuate from their house. Everything they lost in the fire need to be rebuild by the owners or find other place to live which would cost a lots of money for both victims from the fire and the state government. Days when there are no rain also meant the water supply on the daily bases is decreasing day by day, and the value of water would go up. Everyone will buy the water from the store if the water supply to the house is cut off which will let the price of water go up. If there are no enough water for the people, the local government will have the limit the water supply so everyone could have limited of water. More than 3.6 million acres were burn down by the wildfires in Texas and cost over 5 billion damage to the state’s agricultural industry. Rains can bring the water for the people and plants and also help to put down the wildfire which haven’t happen in Texas. The wildfire has not only destroy the house but also the livestock of the people and killing people and costing billion of money from the governement.

Monday, September 5, 2011

Nike Air Force 1

Nike is one of the few companies to ever not have their finances go into the red. They changed their name to Nike from Blue Ribbon Sports in 1978. Four years later, Bruce Kilgore designed the Nike Air Force 1, the first basketball shoe to ever feature air technology in it's sole. This one shoe (offered in three different stylings: high, mid, low), along with Air Jordan series, and the Nike Air Max line are the biggest reasons of why Nike's finances have never gone in the red. The AF1 was released with no advertising and was initially seen as a failure, it was only produced for a couple of months. In the late 1980's and early 1990's the shoe was rereleased, around the same time that Air Maxes and Air Jordans were at their peak. In the 29 years since the shoe was originally released it has raked in over a billion dollars for Nike and in 2005 it was estimated to have a profit margin of 70%. Not only that but the Nike hasn't spent a single cent on advertising the AF1. The Nike Air Force 1 is still being produced and worn today. It's regarded as one of the most significant shoes in sneaker culture.

Example of Our Economic System

An article in the Fort Worth Star Telegram had an example of our economic system in action. Our mixed economic system borrows many ideas from the market economic system. The difference between systems being that monopolies are illegal and that the government can intervene if deemed necessary in a mixed system. In Fort Worth a hotdog vendor was accused of having a virtual monopoly; owning the rights to 5 locations. She mainly used only 2 locations; the others were only profitable during certain circumstances such as events. The local government intervened and forced the auction of 3 locations. However the vendor was already on the decline. This auction was the final blow in the vendors business and she was forced to close. The mixed side of our economic system crippled her business and its market roots offered no assistance in her closing. Though rather depressing this is still a good example of our economic system.

Friday, September 2, 2011

Lasers Used to Control Rain

Scientists in Geneva experimented with infrared lasers over the Rhone River, and discovered that the beams could trigger the growth of micron sized water droplets that eventually could turn to rain. Though if too many droplets form in can be ineffective because then no actual rain drops would form because all the moisture in the air would be used up through the micro droplets. The use of infrared lasers to produce more rain would be a huge technological advancement in the United States. For example if the U.S. was producing at maximum efficiency in agricultural output we could use these lasers to bring more rain to the dryer regions throughout the South West or even in the Mid West. Therefore increasing our agricultural mass production through technological advancements. Also these infrared lasers are predicted to bring on competition between different regions because of the ability to steal the moisture out of the air, and thus not allowing the natural cycle of moisture to take place in the next region. This could be good and bad for the U.S.'s mixed market as it can bring on more competition, but it could be more hurtful than helpful to the current system if abused. These infrared lasers are ground-based systems allowing less costly use, and easier use. This could be helpful to a region by increasing its efficiency while still keeping costs down. Overall these rain-making infrared lasers could be a tool of economic utility anywhere in the world.

Wednesday, August 31, 2011

Helicopters rush food, water to cut-off Vt. towns

After the heavy rain from Hurricane Irene, the flood caused the transportation completely cut off from a dozen of Vermont towns. The towns populations are under 200 to nearly 1400 and the town people need food and water. Local government has been airlift the supply by helicopters into the towns. In the towns, people needs to have their basic needs to survive until the roads and bridges are fixed. Because the transportation is cut off, the towns’ economy broke down from the mix economy system to tradition economy. Tradition economic system works in the same idea of just to survive for the town people, but in this case the people doesn't have the ability of getting food and water. In the towns, water and food is the most important supply for the people. Scarcity of the food and water is the needs for the towns and the only source of it is from the helicopters. When the transportation is fixed, towns will back in the U.S. economy as it was before the hurricane hit. U.S. economic system needs the transportation to work or the economy will break down.

Monday, August 29, 2011

NY Delis Stay Open Through Storm

The Wall Street Journal Article "Where Delis Never Sleep" reports that some delis and pizza shops stayed open through Irene to feed the populace. The storm closed many of the shops leaving only the select few to service the many. This "Scarcity" of competition led to a very busy yet profitable day. The delis were swamped just moments after the hurricane with more than enough customers to stay open. Some even ran out of ingredients and were forced to serve abstract creations to the many consumers. Not all that made the decision profited however. Some other non food related businesses had the opposite outcome of almost no customers. This is probably due to the paradox of value caused by the storm. None the less Scarcity worked both ways in this situation. The scarcity of both food for the customers and competition for the delis set the perfect setting for major profits.

Indie Record Stores Fire Back

On August 8th of this year Jay-Z's and Kanye West's much anticipated collaboration album, Watch the Throne was finally released. It was first digitally available on iTunes. Four days later it was released at Best Buy, who had the exclusive rights for the physical copies of both the regular and the deluxe versions of the album. While the album was breaking iTunes' first-week sales records and reaching gold certification in the first full week of both digital and physical copies up for sale, independent record store were hurting. They were only allowed to sell their copies of the deluxe version 10 days after Best Buy. The indie stores were outraged and penned an open letter to both Jay-Z and Kanye West stating that their exclusivity deals were putting many stores out of business. As many of their regular customers would have to go to a "mainstream giant" to get one of the year's biggest releases.

Wednesday, April 20, 2011

Smart Phone's Tracking

Recently To researchers have discovered an undercover application in the iPhone. This application records where the iPhone has been and when it was there by default. No one in Apple is willing to comment on this new discovery leaving many to question why it was installed in the first place. One question that came up to me personally was, "why the secrecy?" By asking this question it brings up the reputation of Apple. By putting the reputation up at stake with the majority of the population this could affect Apple sales in the mobile products. This could possibly decrease there demand creating a domino affect on there company. Creating another economic problem that this country needs less of. If one of the worlds largest companies (Apple) losses business it would affect the business cycle indeffenatly. However the business cycle would only affect Apple and other main computer companies as business would only switch from Apple to them. However the release of this information may not be major enough to put them in trouble but it will be important enough to make a statement to Apple that they can't keep secrets like this from the customers.

Wednesday, April 13, 2011

28 Million Dollar Debt Could Increase Sharper Image's Image

Sharper Image, a former electronics company, went bankrupt in 2008. It was sold to a group of investors and now goes by TSIC Inc. However, the "Sharper Image" brand is still being marketed. Sharper Image is now trying to get a bankruptcy court to allow them to spend $60,000 in marketing fees to find its former gift card holders. After a law suit by one of them, they want to reimburse the customers with up to $2,245. A lot of customers have probably given up on getting their money back, and this might be a nice surprise. It will probably give Sharper Image really good publicity, and any product that still uses the Sharper Image brand could possibly benefit. It could also give consumers more money to spend on other products.

Tuesday, April 12, 2011

Less Demand for gas?

Unexpectedly as gas prices go up people are driving less. This didn't occur before when the gas price rose people remained to drive the same and consume the same amount. But as the gas prices are rising ( currently the national average is $3.60) people are consuming less putting strain on he economy in many ways both directly and indirectly. Gas prices are predicted to rise to $5 in the summer of 2011. This is due to a political unrest in the middle east and africa because they supply much of the United States oil. They are expected to continue to rise. This will make people drive less and consume less gas slowing down the business cycle in almost every way. This is so because if people drive less they're work might not necessarily be affected but there spending of the money will. If people slow down how much they drive they are cutting of the money flow for the gas companies along with every other company because people wont be going to stores to spend money as much as they used to. This happens because a larger portion of the salary would be going towards the cost of gas then in previous years thus creating a slow in the business cycle along with demand for products, the supply of products( becaus epeople will buy less so they will produce less). This could also drasticly affect employment and unemployment as well because companies will have to fire people to keep there profit in place as demand goes down.

Thursday, April 7, 2011

The BBC article which explains the meltdown of the nuclear power plant in Japan poses a question about nuclear power. This is the third major nuclear accident since nuclear power has been introduced. The Question becomes will an accident like this put a halt to nuclear energy. Nuclear Energy economically is the most efficient form of Energy (even over coal powered plants) but are very expensive to build. Aside from cost the only real risk is the harm it could cause to people in the region. If nuclear energy is stopped employees will get laid off, but most important the world will become more dependent on an energy source that is constantly becoming more and more scarce (meaning prices will always be rising)

Wednesday, April 6, 2011

Is Southwest Airlines' Reputation Deteriorating As Fast As Their Planes?

Southwest Airlines is currently experiencing a little trouble with their reputation. One of its 737-300 planes developed a hole in its roof... while in the air. Three more were found with cracks in them, and ultimately 79 out of 170 737s were grounded for inspection. This creates problems everywhere for the airline. First of all, they lose business because of the planes being inspected - that's 79 less planes to fly and hundreds less passengers. Second, people on the flight where the roof deteriorated could be contemplating taking legal action against Southwest, which with the current repairs/inspections, probably doesn't fit into their budget. Third, reputation is everything, especially when it concerns people's safety. Southwest's reputation isn't the best right now, and this will likely cause them to lose even more business. Also, like I said before, they probably didn't factor the costs of major repairs, inspections, and time lost to identify what is causing these problems (which they still haven't done) into their budget. The bottom line is: They are going to lose money.
However, this might hold a bit of a bright side for the consumer. For those that don't see the current situation as that big of a deal, they might get cheaper rates from desperate Southwest Airlines. With the recession, there might be more of those people than there would be in a thriving economy, and that will probably help the airline out a bit. I doubt Southwest will go under because of this, but this is going to be a big hit to its PR and its pocketbook.

Monday, April 4, 2011

McDonald's jobs

Around the country many Mcdonald's stores are moving to a 24-hour operational status. This will produce an increase in Mcdonald's profits because it will allow costumers to buy there product at all times of the day. It will also help boost the economy because with this switch over Mcdonald's will have to hire more employees. In fact they are hoping to hire around 50,000 employees in a single day to fill in the new and empty positions. For companies to create a vast amount of jobs in a short amount of time would boost the economy indefinitely. It would lower the unemployment rate while increasing the business cycle. This would be so because now 50,000 people that were previously unemployed will now have a job. This would intern put money in their pockets for them to spend on other business increasing the flow of the business cycle. This could be a boost for our economy, giving us the push that could help us rise faster and out of the recession.

Thursday, March 31, 2011

Super Computer's Win May Benefit Others

This article discusses other possible uses for the Semantic Analysis Technology (SAT) IBM's super computer used to win Jeopardy. The technology was made to do "much smarter searches on larger amounts of data." It could be used to help lawyers find documents that are relevant to their cases, detect financial fraud in banks, and match customers to the customer service representative that would work best with them. The assistance to lawyers could save people thousands in lawyer fees. That's good for them and good for the economy, since they have more to spend. The same goes for banks. The banks don't lose money and neither do the account holders. The cost of the machine would be heavy, but probably not as much as the money they save by preventing fraud. As for customer service, if people get better treatment they're more likely to buy the company's products again and recommend that product to others, which can't be bad for business.

Wednesday, March 23, 2011

Detroit's Decline

An article discussing Detroit's decline points out that it's moving from decline to decay. The population has decreased by 25% in the last ten years and buildings are continuing to be abandoned. The dilapidation will probably make it hard for Detroit to ever recover. Despite recent pushes to revamp Detroit, people are continuing to leave. Most people that emmigrate from the city are the ones that can afford to and/or have opportunities in other places. They're the more educated, which means the poorer, less educated demographic is what is left. As a result, (especially with the recent cuts to education) the population of Detroit is even less likely to help the city rise from the ashes than before. That along with the fact that Detroit is decaying and that it is one of the more dangerous cities in the country makes it pretty unlikely that educated people are going to seek it out. All in all, Detroit's fate is looking pretty grim right now.

Tuesday, March 22, 2011

Is there Little concern for Verizon

We the recent announcement of AT&T making a bid to by T-Mobile for $39 billion does Verizon have anything to worry about in the upcoming change in the economy for wireless devices? Verizon says they have nothing to worry about at least in the short term, but in the long run to stay in the game they will need to do something. They will have to stay technologically ahead of AT&T or have better service. Either way this buy out is a major change to the wireless world because it will change the wireless service as we know it. With this buy out it will leave only 3 major wireless in America. But what most are concerned about is a monopolization. With a monopoly one company takes over all the other companies in its field of work leaving only one choice for buyer. The scarcity of services would decrease to one as all other companies would be bought out or run out of business. This could negatively affect the economy because they could drive prices up because there would be no competition. This would mean people would be forced to pay this price or not have a wireless server. Leaving less money to be spent in other areas of the economy.

Thursday, March 10, 2011

Stink Bugs Are Creating An Economic Problem

An article in DailyFinance discusses the increase in the stink bug population. Not only do they emit an awful smell when threatened, they wreak havoc on crops. This is a big problem for farmers trying to recover in this economy. Their income determined spending would be completely eliminated if the problem gets too out of hand. As of right now, no one can come up with a solution to get rid of these bugs. A lot of people are turning to exterminators, though, so the bugs are helping that business significantly. It's even better for them because most of the affected property is farmland, and the exterminators have the opportunity to make a lot of money. GDP is taking a hit though, because the exterminators don't produce any products. The farmers do, and their product has been cut by 40% in some states.

Tuesday, March 8, 2011

iPad 2

According to the iPad 2 to Sell Faster Than First iPad: Munster article the iPad2 is predicted to sell over 1 million units faster then the original. The release of the iPad2 in general will be a benefit to the economy. It will produce a stimulant for the economy wether it be big or small a stimulant in this situation is good. What I mean by a stimulant is that it will create spending which is need to help circulate the economic cycle. By spending you are allowing the company to prosper by creating a flow of income. This income can then be invested in newer and better products which could create or maintain many jobs. With these jobs people will be able to lower the unemployment rate if even by the smallest of margins. With this people will get a steady flow of income for there house holds allowing them to live comfortably and eventually contribute to the spending part of the cycle. what people overlook continuously is that it is products like these that can have a bigger impact on the economy. By the release of newer products that people want, they would be willing to spend to get it. But when companies release products that people don't want or need they wont spend money therefore decreasing the flow of the cycle.

Wednesday, March 2, 2011

Charlie Sheen Is Crazy, But Is He Helping the Economy?

An article in Daily Finance discusses the possibility of Charlie Sheen's recent stunts to be good news for a lot of people. The biggest winners in this situation are the tabloids. There's always a lot of celebrity gossip, but seldom are there topics that everyone is constantly discussing. And the people that don't know what's going on will want to be in the loop soon, and what better way than to buy a magazine with an extensive story on the whole thing. As demand for their products increase, they can increase their prices and also increase production. It's probably not a big enough production increase to affect employment, but it does affect products produced, which helps the nation's GDP.
It seems as though CBS would be hurt by Charlie's behavior, but it's actually doing just fine. Even though new Two and a Half Men episodes aren't airing right now, more and more people are tuning in for the re-runs. This way, advertisers still get their money's worth and they get it on people who may not watch CBS normally. That might mean an increase in sales for them. As more people spend on their products, they'll spend more money in their employee's salaries, which will allow the employees to spend more, and the business cycle continues.

Wednesday, February 23, 2011

Retirement Expectancies May Hurt Unemployment

This article says that most people plan to retire when they're 70 or older instead of 65. Some even speak of waiting until they're 80 to enjoy their golden years. People simply can't afford to stop working any earlier than that, especially since most don't expect to get anything from Social Security. But those people staying in the work force longer could have a negative effect on unemployment. It would reduce frictional unemployment (voluntary unemployment), and that may seem like a good thing on the surface. But frictional employment is natural and will always be present to some degree, so it's not a big deal if we have it. The problem is that if people wait longer to retire, they make it harder for others to get jobs. In recessions and troughs, the younger and more inexperienced are going to be layed off first unless they're needed. If the more experienced potential retirees hold on to their jobs, the younger people (who may have to provide for a family) won't be needed and will have a harder time finding work. That will increase the cyclical unemployment, which is the type of unemployment we want to minimize the most. But if Social Security is going to run out soon, the older people don't have much of a choice.

Wednesday, February 16, 2011

Time to Repay the Home Tax Credit

In 2008, first-time home buyers were eligible to receive a tax-credit. The government referred to it as something similar to an interest free loan. Americans could take advantage of this on the condition that starting about now, they would pay back the loan over a 15 year period (if they took the maximum amount of $7,500). When the government gave out these loans, it was 'creating' money and injecting it into the economy. This increased the money supply and expanded the circular flow. Now the government wants their money back. Since households are paying these loans back in taxes, money is being leaked from the economy and the circular flow will shrink.  If people have to pay more a year in taxes, they may have to cut spending in other areas of their lives. If spending drives the economy, this won't bode well for trying to propel the economy up into a recovery period.

Click here to read the article that discusses paying back the credit.

Tuesday, February 15, 2011

Obamas Budget

With the recent release of Obama's budget for the next couple years the government has been restless. The Republicans are already saying that the budget isn't serious. Saying that the Budget wouldn't really decrease the rising debt that our country is acquiring. If we don't stop the increasing debt to our country our economy will plummet back into a recession. This would also be known as a double dip recession. This would happen if the budget didn't work because the value of the american dollar would go down. This would create inflation to compensate for the decrease in value of the dollar. This would create major issues for the world in whole if we didn't fix the debt of our country. To fix the debt we have created we would have to decrease government spending which would have a negative and positive affect on the economy. But we would also have to increase taxes which every american who pays taxes would disagree with this proposal. That is why the President comes up with a Budget plan to limit and decrease government spending over a set period of time.

Friday, February 11, 2011

Chrysler Super Bowl Ad

Although we did touch on the Chrysler Super bowl ad I4u confirms it as the most expensive. The question we did not cover is why Chrysler chose to spend so much on an ad of that length rather than the usual 30 seconds. I do believe the reason why they chose to do an ad of that length was to transform the commercial to almost a short film. In this super long commercial there were three different points of focus, first being the city of Detroit. If I live in Detroit after seeing this commercial I am definitely more likely to by a Chrysler versus say a Hyundai. The commercial also featured an artist who topped all album sales last year. The fact that Eminem was top in album, which means he has a very wide range of fans, sales confirms that the commercial was not at all solely aimed at the lower class. But to everyone who supports American economy, or has an Eminem song on their iPod.

Thursday, February 10, 2011

Are Low Prices On Older Products Beneficial for Everyone?

A report in Yahoo! Finance discusses the prediction that several high-tech items will be cheaper in 2011. Different products have different reasons for lowering their prices. For example, the current versions of the Kindle and Wii are expected to be cheaper because newer versions are coming out this year. A lot of people don't consider the fact that they can still buy the older version of a product after the newer version comes out. Articles like this one may turn people to the fact that this is possible. My initial reaction would be that the companies selling these electronics would be upset about this because they may not have as many consumers wanting to buy their new product. But then I considered the fact that consumers are still buying what the producers are selling, even if it's cheaper. Companies don't want to lose out on the money they've made producing the older versions, so people taking advantage of these deals isn't bad news for them. Plus if people rush to buy the older versions when they become cheaper, they may become sold out or very scarce. This forces others to buy the newer version, so the company gets a win-win.

Tuesday, February 8, 2011

iPhone 5

With a little redesigning of the iPhone 4 for there newly contracted service, Verizon, iSupply also leaked new information on the iPhone 5. The leak of information on the iPhone 5 will affect Apples supply and demand on there iPhone 4 product. This will affect the iPhone 4 product because people will want to wait for the new iPhone 5. Thus creating less demand for the iPhone 4 but the demand for the iPhone 5 will increase. This would take into affect the supply of the iPhone 4 that is distributed to the service companies. This would create, for an amount of time, a decrease in the amount of profit generated by the iPhone 4 alone. But since the iPhone 5 has been leaked and is sure to come out, the value of the iPhone 4 will go down. This is because the iPhone 4 will become out dated and replaced by a newer product. In the long run the iPhone 5 will generate a better profit for the company. It will also cause for a bigger demand for the iPhone 5 due to the iPhones credibility that it has earned over its many generations.

Wednesday, February 2, 2011

Amazon Encroaches On Netflix

As discussed in this article, Amazon is going to start streaming movies and TV shows online to its customers. This is great for Amazon since more and more people want to watch television online now, but it's not so good news for Netflix. Netflix has done a great job building itself up with online streaming of movies, home delivery, and no late fees. Most importantly, it beat out its biggest competitor: Blockbuster. Netfilix had a very strong hold on online streaming, but Amazon coming in could change all of that. It would be really convenient for consumers to get their books and movies all in one place. That would give consumers a good substitution for Netflix, especially if Amazon is cheaper. Substitutions equal a decrease in quantity demanded for Netflix, which equals a decrease in profit. Since Netflix has a larger selection and an HD option, I don't think Netflix will be in major trouble. But as Amazon develops their new idea, Netfilx will have to find something to stay in the game.

Monday, January 31, 2011

Nashville Flood

The article by CNN talks about the Nashville flood last May. It tells how there was an error in communication about how serious the flood will be and explains it in detail. The most important part of this article economically was "more than $2 billion in damages,". This mistake by the National Weather Service and dam operators would us all. Although charity organizations will help the majority of the money will come from state and federal taxes. This will cause a raise in taxes which will take money out of Americans pockets. This hurts the overall economy because there will be less money being put into it. Realistically this flood probably had a small impact on the US economy if it had happened in a much larger place it would have a much greater impact.

Wednesday, January 26, 2011

Social Security Failing to Help Seniors

An article in Daily Finance discusses how senior citizens are struggling because the prices of commodities (particularly corn, cotton, wheat, and gas) are rising, but they aren't seeing any increase in Social Security payments. This is because when the Social Security Administration determines how much the seniors will get, rises in prices in unpredictable products like food and energy often aren't taken into consideration.
As the Law of Demand predicts, since the prices of the commodities are rising, the demand for these products is decreasing. The seniors need these products, but some of them simply can't afford to buy them. Fortunately for them, President Obama expressed a desire to make Medicare and Social Security a priority in government spending in the State of the Union address last night. Hopefully if more money can be given to the seniors, that change in income will allow them to demand more of the products that they need most. If not, some seniors may have to go back to work in order to pay their bills. If they aren't able to, the economy will only suffer more. It's not only the elderly that can't pay their bills. Another article states that adults between 30 and 49 are the largest burden on the economy because they have more obligations than people older and younger than them. To have even more elderly and disabled people added to that burden could do a lot of damage. The bottom line is, something needs to change in order to keep the economy from falling farther into disarray.

Thursday, January 20, 2011

First Lady and Wal-Mart partner on a healthy foods program

This article talks about how Michelle Obama is working with Wal-Mart to provide it's customers with healthier foods. She wants Wal-Mart to try and sell less foods with sugar, sodium, and trans. fats. Also, opening more stores in urban areas like New York City rather than rural areas. Since Wal-Mart has the support and publicity of Michelle Obama, then maybe the store in NYC will be a success and it will multiply within each city. As Wal-Mart becomes more popular the more stores and quantity are demanded and so the prices will decrease. The healthy living aspect will also draw customers in to buying more products from Wal-Mart, since many people these days are focused on healthy living and eating smarter. This will also cause an increase in Wal-Mart customers. Wal-Mart has also emerged in carbon reduction and improving fuel efficiency to its supply trucks and eventually produce no waste at all. Some environmentally conscious people will like that new aspect of Wal-Mart and start shopping there as an effect. This will help the money production for Wal-Mart and customer satisfaction.

Wednesday, January 19, 2011

Wells Fargo Meets Expectations of Increased Profit

An article in Daily Finance discusses Wells Fargo's increase in earnings and paid back loans. It received a bailout from the government during the financial crisis and was able to pay all of it back, plus increase its overall performance. This showcases the benefits of the mixed economic system the U.S. uses. To review, a mixed economic system is one in which the economy is driven by competition and self interest, but government intervention (for things like bailout money and health care) are allowed. Without government help, Wells Fargo may not have been able to make so much progress. Granted, not all businesses bailed out by the government were so fortunate, but Wells Fargo is a great example of those who were. If it was left to fend for itself, the country could have seen the loss of one of its major banks, and some very unhappy people as a result. Government aid in the financial crisis not only helped out businesses, but also the people who lost their jobs as a result of the bad economy. Without at least a little help from the government, the United States would probably be in much worse shape than it is now. Too much intervention, like in a command system, isn't ideal either, but a market economy has no government influence at all. The Unites States' mixed economy is a happy medium that allows for a lot of growth, but also for recovery when that growth declines or stops altogether.

Tuesday, January 18, 2011

How Will Apple Do Without Steve Jobs

In an article by USA Today it stated that CEO Steve Jobs will be taking a medical leave from the Apple company. The article focuses on stock but what it really is focusing on is how this will affect the company financially as a whole. The article explains how Jobs was able to help apple when they were struggling to stay alive to one of the most successful electronic companies in America. The question becomes without Steve jobs will Apple still be able to make products that are superior in quality of all other competition. If so the company will be fine and its stock value will stay steady. But if Apple is not able to produce this quality product (which many predict they can't) we will see the Apple stock decrease long term. And this loss of money will be reflected with and upward rise in competing companies.

Thursday, January 13, 2011

Gas prices are raised as price of oil climbs,0,7096207.story

This article shows that as the price of oil increases so does the gasoline we buy to fuel our cars to go to work, school, grocery store, and other places we need to be. The predicted price of gasoline for 2011 is 100$ a barrel. This is very high compared to last year, but in 2008 we hit $100.64. The price of gas prices per barrel will most likely hit 100$, but not any more than that. If it does go higher, then the consumers will cut back on buying gasoline which will make the prices drop back down some. This rise in gasoline and oil prices may be an effect of our economic recession and scarce resources. The more consumer demand of oil to make gas, the more the workers have to get the oil then refine it to produce gas. There isn't an infinite amount of it just to waste, like the oil spill in the Gulf of Mexico recently. That's most likely why prices have raised and will raise even more throughout this year, to make some people cut back on driving because it is a scarce resource. Also it may make people save money in the long run, because most people try to find many ways to save money these days no matter if it is two cents or $20.

Wednesday, January 12, 2011

Falsified Study Leads To Possible Financial Trouble

A report in Daily Finance discussed the recent revelation that a 1998 study conducted by Dr. Andrew Wakefield is fraudulent. His study concluded that some development of autism is linked to vaccinations for common childhood diseases. The article discusses the impacts the discovery of this lie will have on scientific research, but it has also had a significant financial impact. That aspect is further discussed in this article.

Unfortunately, this act of deception has cast a financial burden on a lot of families. A vaccination is normally far less expensive than the cost of treatment for a disease, especially if the disease is serious. A lot of parents chose to forgo the vaccine. They saved money in the short term and believed that they were actually helping their children, with an opportunity cost of a chance of avoiding other diseases for their child. Now they're finding out that they misinterpreted the value of avoiding the vaccines, and now their children may have to suffer for it.

Dr. Wakefield's study definitely affected research at the time of its publication as well. If the public thought that vaccines were causing a serious disorder, support for funding for vaccine developers was probably cut. On the other hand, if they thought that they could no longer rely on vaccines to prevent diseases such as the measles, more money may have been put into finding an alternative method of prevention.
The discovery that Wakefield's study was a lie has an impact on a lot more research than just disease control because it discredited scientific discovery as a whole. It has made the people more wary of scientific publications and developments, especially if they're groundbreaking. If people don't trust scientists, they won't give them funding. If scientists don't have as many resources, they can't work at maximum efficiency, and lack of efficiency means a lack of production of results.

Verizon and The Iphone

On february 10, 2011 the Apple Iphone will be available for Verizon customers. This is huge in the cellular industry because previously the Iphone was only available on the AT&T network. This will change the amount of profit AT&T will recieve. They wont be recieving as many customers from other cellular network companies since they aren't the only company to be offering the Iphone.
Verizon signed the contract with Apple January 11, 2011. This could dramatically increase profit because the Iphone is such a popular phone. It was also a smart descion made by Apple to offer a contract with Verizon. Now Apple has the possiblity of drastically improving sales. This is possible because they arent' limited to just one network company anymore. They have opened another door that was previously closed in the Iphone section of Apple.

The Cleveland Cavaliers Need To Blow Up Their Team Right Now

This Post explains how the cavaliers are in an economic slump. Although it talks mostly about the teams troubles we must understand that this directly affects attendance, and attendance is how these teams are able to make money. The factor that triggered this economic slump for the cavaliers was losing their star play and one of the best players in the league, LeBron James. The fact was that Players this talented are a scarcity, and in order for this team to appeal to a player they must be better than the competition in the areas that matter to that player. Although Cleveland embraced LeBron because he was one of their own, this was not important to him. What was important to him was the talent of his supporting cast and the Cavs did not have the supporting cast that another team would offer.