Lessons from Blogging 101

Thanks for those who participated in this first attempt at integrating a blog into my courses. I've learned a few lessons that I will apply in next semester's rendition of MariettaEcon.

1. The content of many of the earlier blog posts did not contain as much "analytic" thought as I was hoping. Rather, many of the posts merely introduced a topic and then "asked" what the reader's thoughts were on the issue. The original post should contain at least one conjecture or quibble regarding the issue at hand. I blame myself for this as not clearly explaining my expectations and not providing enough proper guidance early on. The comments, on the other hand, tended to be very good--I could see that some of you were quite passionate about some issues.

2. From a grading perspective, while it still seems to me that quantity is more important than quality at this point, I suspect I will change the grading scheme to assign point values to posts and comments rather than setting quotas. I will also put more emphasis on spelling and grammar in my grading scheme.

3. I did not have 100% participation, even though 5% of the student's course grade was a stake. Perhaps I should raise the weight of the blog beyond 5%--I'll give this some thought.

4. I need to do a better job of getting students to space out their blogs over the course of the semester---there was too much bunching of posts during the last week of classes. Such procrastination does not allow for adequate time to comment on late blog posts.

Hurricanes An Advantage For Florida Economy?

In a recent article the question was brought up of whether the hurricanes helped the economy in Florida. Is this even a possibility? Regrowth and new job opportunities are obvious advantages to a disaster such as a hurricane. Could these possibly outway the costs of a hurricane? In most cases the loss is going to be overwhelming compared to the very marginal benefits afterward. In Florida's case they talk about construction jobs mainly and how the huge increase in the number of construction jobs will help to balance the economy after the hurricanes. Do you think the increase in construction jobs could possibly balance the loss in the economy from the hurricanes?

Did America "embrace" Bush's agenda?

Today in class, we discussed a politician's positioning on the median voter model. Recall that this model suggests that a candidate seeks the support of swing voters of whom will ultimately determine the outcome of a political race. Using the median voter model as reference, President Bush was the most successful at reaching a "common ground" with Republicans and Democrats alike. But in an election with a 3% difference in popular vote, John Kerry had to be almost as close to the median as Bush was/had been.

In his acceptance speech, President Bush claimed that America has "embraced" his agenda, but Democratic senator Kent Conrad doesn't get it. "There's no free lunch," Conrad said, echoing Dr. Delemeester's teachings, "and at the end of the day our country will have a tremendous price to pay for this profligacy." What do you think? Did America truly "embrace" Bush's conservative agenda? What could John Kerry have done during his campaign to have gained the few extra feet of "common ground" that would have convinced the swing voters to have voted for him?

Demand for Energy Increasing

According to the United States Department of Energy, the demand for energy is still increasing, despite increasing prices. The demand is expected to continue to rise in the coming years, and the United States is making plans to supply more energy to meet the demand by producing more oil and importing more natural gas. Although energy use is expected to rise, the rate at which it is expected to rise is not as high as predicted last year, so the higher prices have had a small effect on the demand for energy. If the prices remain where they are now, energy consumption is expected to continue to increase at the current rate for industrial, commercial, and residential consumers, but the rate is expected to decrease for the consumption of energy in the transportation sector. This article suggests that the demand for energy is inelastic, but not perfectly inelastic.

College Athletes vs. The NCAA

We talked about the large revenues that college athletes bring the NCAA each year with their participation in collegiate sports. This Time Magazine article discusses how in February of 2000 46 college basketball player formed the Student Basketball council in order to bring there concerns about the rules and regulations imposed upon them straight to the NCAA. With such stringent rules and penalties placed on the athletes, they believe that the NCAA could possibly reward them better. One of there resolutions to this dilemma is a stipends for the athletes. What are your feelings on the payment of college athletes? Remember though the possible repercussions on competitive balance and league performance. Also would the threat of a sit down, as presented in the article, threaten the value of the league? The athletes control the supply of talent, and they create all of the demand so is a free college education enough of an incentive to keep the NCAA going?

Wine by mail

In 26 states it is legal to order wine directly from out of states. The question as to whether the 24 states which do not allow it have the legal rite to block the sales. The issue was brought to the US supreme court, and a decisions was past down December 7th. The issue was whether the jurisdiction to make the decisions was up to each state, or was left up to the federal government. There were two peaces of legislation that were looked at. The first was the 21st amendment, and the second was the interstate commerce clause. The interstate commerce clause is what allows the federal government to regulate business. The 21st amendment gave the states blanket authority over importing of alcohol into the state. The main finding is that the states do not have the rite to make these decisions. It went on to say that the state should not be able to discriminate in the favor of the wine producers that are in their own state. One other argument that is being addressed is the sale of wine to minors. The people against the sale by mail say that there is no established way to make sure that the people who order the wine are of legal age to consume it. This is being seen as a staling tactic and a way to slow down the movement towards legalizing this.

Outsourcing by Financial Frims

Outsourcing is a concept that is very popular with today’s financial industry. It allows the industry to increase efficiency and increase cost savings. The firms can also increase customer satisfaction, which is a goal that companies are always trying to obtain. In the long run it allows firms to provide a better service to their clients. I am a strong supporter of outsourcing. I feel that it helps to build a stronger economy because it requires companies to specialize in certain areas of business and therefore not have to do everything by themselves. The decision to outsource is ultimately an opportunity cost, because a corporation has to give up something in order to gain more profit. However what the financial companies have to give up is the highly confidential information of the clients. This is part of the risk in the decision to outsource. Risk can take the form of three types, operational, reputational, and legal. However I feel that the marginal benefit of outsourcing is higher then the marginal cost of the risk, so if I were a financial president, I would have no hesitation outsourcing some operations of my company.

http://www.frbsf.org/publications/economics/letter/2004/el2004-34.html

City or Country: Where do Businesses use the Internet

I found this article to be very exciting. I had never considered the Internet to be a tool that would change the style or location of where a company would do business. By looking at the Internet in this position, one can immediately realize the heavy economic change that this would pose to society. Currently most large companies reside in many major cities all across the world. Certain types of companies also inhabit certain cities, for example: automakers in Detroit, film production and distribution in the Los Angeles area, and financial services in New York. This article states, that through the availability of the Internet, these companies will be able to relocate to into rural areas. This would then allow the companies to create global villages, where they can communicate all around the world with the Internet and no longer have to be located near each other. If the companies moved out of the cities, they face immediate drawbacks, such as having to build a new office and learning to work without the availability of unlimited resources that you would have access to in the city. If the companies moved to rural areas, I also think they would downsize, since they could outsource work through the use of the Internet.
I feel that even though the Internet allows the possibility for companies to relocate to rural areas, majority of companies will stay in their city locations so that they can be in the heart of the industry. If they moved to rural areas, they would always be behind the times and constantly catching up with their competitors. The idea of relocating to the country is the same idea as telecommuting. It just doesn’t work. It removes people to much from the internal structure of the company which results in the marginal benefits of working outside the city being far less then the marginal cost of working in the city.

http://www.frbsf.org/publications/economics/letter/2004/el2004-24.html

the computer evolution

MariettaEcon.

The use of computers has had a great impact on the workforce of the world. “In this article the writer used research from five surveys, covering the period of 1984 to 2001, to examine two key aspects of the computer evolution: The spread of PC’s at work and the evolving wage differentials between individuals who use them and those who do not.” The article drew connections between a college education and the use of computers at the workplace. I also found it interesting that the wage gap have not gotten smaller between people who use computer in their jobs and those where computer usage is not required. In today’s world I find it hard to believe that a computer would make a difference in someone salary. I feel that most people posses the necessary computer skills to perform simple task drawing on knowledge from using their own personal computer. I also found it interesting that the article leads the reader to believe that just because you have a college degree means you are skilled in using a computer. College education and computers leads to one of the underlining economic principles of this article. A worker will now how to be weigh the marginal benefits and marginal cost of having a college education. The marginal benefits of having a college degree means you can have a job that requires computer usage which will ultimately lead you to be paid more, the marginal costs are the cost of college and the lost wages you could have earned doing a that didn’t require computer skills.
This article posted some very interesting numbers and I was glad to learn that my computer skills will come in handy at my future employer.

http://www.frbsf.org/publications/economics/letter/2004/el2004-19.html

Chiron Boosts Vaccine Market

The current suspension of Chiron, the company that had supplied most of the US's flu vaccines, has been extended until at least April. But in the mean time, Bush has been frantically searching it seems for other companies providing vaccines.

At least three other companies have been temporarily approved by the FDA for vaccinations, including Glaxo, a company that since 1992 has been supplying at least 70 other countries with vaccines but never the US. The stock in these companies is climbing quickly, and more are becoming interested in the US as a market for flu vaccines. So why did the US rely solely on one company to provide vaccines, and can we blame the government for the shortage panic this flu season? Sure, this seems great for all of the prospects for the industry, but this emergency approval for the companies rushing to get in line leaves me NOT rushing in line to get a flu shot.

BCS Screws Up Again

I think it is time to get rid of the Bowl Championship Series (BCS). This article shows that for the second year in a row, we are left with three teams in the National Championship hunt in college football, yet only two teams get to play for the championship. The main reason why a tournament stystem (the only way a true National Champion will ever be decided) is because the bowl games rake in a ton of money for the schools playing in the bowls. The Presidents of the Division I-A schools are in no hurry to change the system either, they will continue to get alot of money for their school and in their pockets. How do you think we can solve this problem so that everyone is happy? Is there a solution at all to make everyone happy? College Basketball and the rest of College footballs divions can do it, why can't Division I-A?

Gambling for Scholarships

When I went to school in West Virginia, I received the Promise Scholarship. This scholarship let anyone with a certain high school GPA and ACT or SAT test score, go to any public college in West Virginia without having to pay for their tuition. They would give you the average amount of money spent for a public tuition if you went to a private in-state college. I have since lost the scholarship since I transfered to an Ohio school, but that's ok.

This was first turned down by the state before it passed the second time it was voted on by the state representatives in Charleston. The reason it was turned down the first time is because part of the bill was allowing casinos to be built in the state, such as at the Greenbrier, and part of the money from those casinos and the state lottery would go towards the scholarship. Casinos are actually illegal in West Virginia. Many of the county representatives voted against it because it "promoted gambling." Now the money comes from the tax payers in West Virginia. With the lottery already going on for years, slot machines at race tracks such as at Wheeling and Charleston, and the fact that many bars have machines in their business that pay out money (if you have ever been in JP Henry's, you know what I'm talking about), what would be the difference if businesses in the state could build a casino and some of the money could go towards students getting an eduacation? People are already going to gamble if they want to, no matter what, so lets at least make it so that someone benefits from it other than the casino owners.

Will NBA's Revenues Fall?

We have all heard about and seen the brawl that took place in Detroit, between the Indian Pacers and the Detroit Pistons. This fight has been said to be one of the biggest disgraces in sports history. Charges were handed out to Ron Artest, Stephen Jackson, David Harrison and Anthony Johnson. With these charges if convicted some of these players face jail time. Also many of the fans involved were faced with very similar charges. My question to you is, do you think that due to this fight the NBA’s revenues will decrease? The fans and players were both charged so should there be a difference in peoples views on weather to go to a game or not, or will people feel that it is to dangerous. The NBA is trying everything in its power to get everyone from both sides (fans & players) to come to some kind of middle ground. The players have been suspended already, Artest for the entire season. Will the absence of these star players hurt the NBA’s profits and revenues though? Will fans take their blame and consider what happened to be mutual and continue to buy tickets and NBA apparel?

What is the price of life?

Halliburton, a subcontracting company based in Texas, has received around $10 billion in money from the government for work done in Iraq. Although Halliburton is being audited and investigated for its business practices, Halliburton is still the prime contractor in Iraq. Halliburton has suffered 55 deaths at the hands of militants and other reasons since combat ended. Can this be defined as an externality? Is it fair for Halliburton to continue doing business in a without protection for its workers?

The Smart Mergers Continue

It seems that the recent Kmart/Sears merger has become a fad with the major leaders of industries. Now, a possible merger between Sprint and Nextel is being considered.

A merger of the two companies, with Sprint being the third largest wireless supplier and Nextel being the fifth, would give both companies an advantage. Nextel would have access to Sprint's high-speed data network, and Sprint would have access to Nextel's well-oriented management team and business oriented base (and as a Sprint customer, I have to say they definately need some better management). Stocks for both companies have already raised because of the rumors and it is clear that this would be a profitable thing to do.

The merger would leave only four main wireless carriers in the industry. Less competitors, less price elasticity... sounds like a good idea. But is it always safe for these major competitors to be teaming up like they do? Maybe for the companies, but what about us consumers? What effect would the merger have on us, and will the merger trend continue?

A Sirius Problem

The value of Sirius stock fell sharply Wednesday after the increased popularity of the satellite radio service caused many analysts to say that the stock was overly priced. With the signing of Howard Stern to the Satellite radio provider, Sirius' popularity has increased since October. Sirius has been competing with XM satellite radio for years. Do You think that Sirius decision to sign Howard Stern was a good idea? Will Sirius be able to make up the losses that they are currently facing?

Can Giambi be an Externality?

For the past couple of years now we have had an ear full of steroid talk when relating to baseball. The latest story to hit the baseball headlines was not free agent pick-ups or any other kind of cool baseball topic it was Jason Giambi. If you have not heard Jason plays for the New York Yankees and has recently come out to admit publicly that he had used steroids. This brings me to my question, do you think what Jason Giambi or any other player using steroids for that matter is involved with the term externality? In class we covered that an externality is when decision makers do not consider all relevant costs and (or) benefits. With Giambi being on one the biggest center stages in baseball do you think that him using steroids has caused some sort of negative externalities? With all the fans who would have given anything to see their hero hit that long ball do you think that Giambi really gave a crap about their feelings and how they loved him oh so much? This is just one externality that might be present, can you think of any? May you think that sports figures should be free to do what they will, explain why.

Cingular and AT&T Combine

There had been rumors circulating about the merger of Cingular and AT&T. Obviously, I would be slightly interested because I am an AT&T wireless customer. One day a couple weeks ago, I received a letter and a large pamphlet in the mail. The letter told me that nothing had changed on my account and that the merger was complete. The large pamphlet told all about what Cingular and AT&T customers now receive and then all the new phones and great offers you can switch to for extra money. I am satisfied with what I have, but just out of curiosity I visited their web site(attached) and clicked on "I am an AT&T Wireless customer". First I learned that I now have access to the Cingular Allover Network, which is supposed to give me better coverage, because it's a bigger network. I also have unlimited mobile to mobile, which is the largest network of 46 million customers and I am eligible for Cingular's rollover minutes to name a few changes. Now all of this stuff sounds wonderful but I have always been a bit skeptical. As I read further, I found out that if I want all these new great things, all I have to do is call and change my plan. I am sure that would increase my payments. As I have learned in Econ all these recent mergers could be a negative thing for consumers. Sure this sounds like a great thing now, but what about in the long run. If they begin to monopolize the market, then what? In a few months will my bill go up a few dollars. No doubt, if it did they would claim it would be for my benefit. So they could offer more wonderful services. What do you think? Do you believe that customers will benefit from this merger or not? I guess time will tell for sure.

New California Emissions Standards and Auto Makers

The California Air Resources Board (CARB) recently passed new regulations stemming from a law AB1493 signed by for California Gov. Gray Davis in 2002. The new regulations require automakers to cut cars' greenhouse gas emissions by 25 percent starting with the 2009 model year and up to 34 percent by 2016.

Other states that follow California's rules on automobile air pollution, such as New York, Massachusetts, Vermont, and Maine may have to abide by the new regulations as well. New Jersey, Connecticut and Rhode Island are in the process of adopting the California air quality standards as well.

What this means for the automakers is that their emissions standards would have to be set at the California state standards instead of the federal standards because of the large and infeasible cost they would occur from producing two separate types that conform to both standards.

The argument that is currently happening is between the cost that the automakers claim they would incur based on these new regulations and the cost CARB estimates automakers would have under the new regulations.

The other argument proposed by the automakers is that the new regulations on auto emissions are actually designed to increase fuel economy standards which can only be set by Congress under the federal Energy and Conservation Act of 1975 which prohibits states from adopting policies on fuel economy. The CARB states that their regulations are not designed to increase fuel economy standards, but to limit automobile emissions to decrease greenhouse gases.

So, does it really matter if the new emissions standards set by the CARB does increase the fuel economy in the automakers' fleets when it is actually designed to decrease automobile emissions which lead to greenhouse gases? And, what responsibility is it of the state legislature of California if other states decide to mimic their auto emissions standards?

Title IX

Title IX, a law that was enacted in 1972, requires schools receiving federal funds to offer equal opportunities to men and women. This Time Magazine article proposes the argument that this law was originally a good idea, but might it be outdated in the present era? I am all for equality among sexes, but forced equality does not work. In creating this law I believe the government has created a type of ceiling on the number of men in sports. And as we all know, most interference with a free market will end in inefficiency. So why keep a law that is creating a gender quota at many schools. For efficiency and fairness sake, maybe the government should just let athletes (men or women) be.

Coming soon: Toy Story 3, Nemo 2 ?

New York (CNN/Money) - The Walt Disney Company is pushing forward with plans to capitalize on the blowout success of "Finding Nemo," "Monsters, Inc." and other animation films whether partner Pixar Animation Studios likes it or not.

See this article -> http://money.cnn.com/2004/12/08/news/fortune500/iger/index.htm

According to this article, the Walt Disney is forcing to Pixar Animation Studios to work together for famous sequel such as Toy Story 3 or Finding Nemo 2. However the problem is that Pixar seems that they don't want to consider about this suggestion. Although, Pixar Animation Studios are composed of many people who had worked in the Walt Disney Company before.

My question is this.
What do you guys think about this situation?
If Pixar accepts it, would it be better decision for the Walt Disney Company? OR would it be better decision for Pixar?
What if Pixar disagrees this suggestion, what situation will happen between these two companies? For Animation Industry, Are there going to be a big change because of this conflict between two companies?

Paying for the Colts

When the Colts moved from Baltimore to Indianapolis, the team signed a lease with the city until 2013. Part of the deal with the NFL, the Colts, and the city was, that the Colts had to bring in the league average of revenue. If they were not able to do this, essentially, the people of Indianapolis would have to be the ones to pay to get their team up to that average. In 2003, the Colts missed the mark by $12.6 million dollars. Now, the Colts could get out of their lease in 2007 if the people of Indianapolis do not pay the extra sum of money through taxes. If you lived in Indianapolis, would you want to pay to keep a professional football team in your city, or would rather just see them leave?

'Tis the Season

This article tells of the sales that took place on the Friday after Thanksgiving this year. It is stated that advertising has begun to slightly increase the sales in the past few years. Sales are higher so far this year than at this point in the past three years. The economy is in the process of recovering from its fall after the terrorist attacks, but has the economy recovered so much that people can once again afford to spend A LOT of money on gifts this year?? Or have people adapted the the declining economy and learned how to make their budgets stretch so that they can spend during the Holidays??

I think it is a combonation of the two. The economy is recovering therefore enabling those people that are employed to have money to put back into the economy. But, since people are still struggling, they have had to adapt by making sacrifices during the year. This gives them more money to spend when they are feeling the holiday spirit. Stretching the money that is put back into the economy makes for a better holiday season for buisnesses, gift givers and gift receivers.

Reply: Would you like to pay more?

I have noticed that hamburger comes in different leannesses. At Reeds where I work we shop for lean hamburger which commands a higher price over the less lean meat which commands a lower price. I prefer lean hamburger because it tastes less greasier than the cheap hamburger. The hamburger that we buy isnt always brand name just depends who has the better deal that week. So how do you like you burgers? cheap a greasy? or pricey and lean?

IBM Quits the PC Business

Like most people out there, I too was first introduced to the personal computer world through the handiwork of IBM. I remember having a friend who had one of those really old Apple computers...The one with the dark green screens; but I wanted something better and at that time, IBM was the only one that offered any options. Nowadays all kinds of PC producers have emerged, including names like HP, Compaq, Dell, Gateway, Sony, etc... IBM was the first to ever make a portable computing device when it introduced its ThinkPad to the technology world. It's so hard to believe that a technological pioneer like IBM would throw in the towel after all these years of work with PCs. I guess it's to be expected though since companies like Dell have come in and offered so much more product for the money. I was just recently looking up some PC information for my parents because they wanted to buy a new computer over the holidays. I compared three PCs: Dell, HP, and IBM. The Dell was much less than IBM and only slightly cheaper than HP. I have to say that even the outside appearance of the Dell and HP would have made me want to buy them over the IBM. I suppose this might be the reason why IBM's PC sales (about 10% of total) have seen losses over the past years. The ticket price isn't cheap (at $1-$2 Billion), but like the article said, it would be a great way for some smaller named computer groups to better compete against PC giants like Dell. Goodbye IBM, and thanks again for the PC.

Food Prices on the Rise

Ephraim Leibtag, an economist with the USDA’s Research Service informed consumers on Monday that, “The price of food is going to rise as much as 4% this year.” This food price inflation is going to be the highest since 1990. The past two years the food price inflation has been 2.2 and 1.8 percent. Why is the price of food increasing? Since some consumers have adopted a high protein diet, the beef industry has seen an eleven percent increase. Dairy products have increased by eight percent. Due to the harsh weather the southern states have suffered this past hurricane season and which caused farmers to replant their crops, there has been a four percent increase in fresh vegetables. My question to you is, “How much more of our consumer income are we going to have to use to purchase food and is that food, fad or necessary?” Do we need all these high proteins diets on a daily basis or can we supplement our diets with seasonal items, such as fruits and nuts to get the most value for our food dollar or will we be at the mercy of producers and the premise of “what the market will stand?” If the demand for beef were to fall and the supply were to rise, the excess inventory would then become excess production and producers want to move excess inventory, especially if it is perishable. Smart shopping can hold the price we pay for our consumer good and an increase of 1.8 and 2.2 percent could carry through the year.

Free Ipod - Scam or No?

Okay, I got this thing about a free ipod (http://www.freeiPods.com/?r=12744069
) and I was wondering about it. Supposedly it works - you sign up, refer 5 people who sign up, and complete one offer, like a free trial of diet pills. Supposedly, you can cancel the diet pill trial just before the free trial ends, and avoid at least the majority of fees, but still get credit for it. A friend of mine did this, and it actually worked for him. He checked the serial number and it is legit and everything.

But what about the old adage, "If it sounds too good to be true, it is"? (AKA TANSTAFL - remember that? There ain't no such thing as a free lunch.) And what are the economics of it? Seriously, how do they make money if they give it away for free? My guess is that their sponsors (the people you have to sign up for an offer with) pay a lot of money for the advertisement they receive, thus Ipod makes money still.

Porky Pets

The article that I found on National Geographic.com entitled Porky Pets caught my attention. My three year old golden retriever is 20 lbs. overweight and the vet suggests a special formula to help her lose weight. I think it is also necessary to mention that the dog food is about two times more expensive than any regular store brand.In the article it discuss how 1 in every four pets in America is obese which puts them at a high risk for diabetes, heart disease, and many other health problems. Which makes me want to provide the best for my dog, no matter how expensive. So my question to you is whether or not the diet dog food is worth it? And if the veteranarian(they only place you can buy the food) has created a monopoly like advantage?

Gas prices continue to drop

Since Nov. 19, the national average for self-serve regular unleaded gas dropped about 3 cents and was about $1.93 a gallon on Dec. 3. The main reason of the dropping price is that more plentiful crude oil supplies. Thereby, gas prices also are going down. It means that the supply curve of gas shifts right. Although demand of gas will increase with the dropping temperature of winter weather, U.S. heating oil stocks rise due to the fall in oil prices. In order to control the price of gas, OPEC could choose to rein in output of crude oil. Lundberg said “the oil cartel is unlikely to cut production and that would prompt gasoline prices to drop even further.”
However, I think that gas price will increase in the long run, because demand of gas will increase. As far as we know, winter is coming and temperature is lower and lower. The demand of gas for heating will go up if people want to keep their room warm. On the other hand, OPEC is planning to reduce supply. According to those reasons, the supply surplus of crude oil will decrease to a new price so that the supply can be equaled to the demand. About the future gas prices, what do you think?

Discounts = Sales This Holiday Season

As the holiday season of 2004 is here in full swing, now is the time to head out to the stores and buy buy buy...however if these things can wait till after the big 25th you may find some better deals. It seems this holiday buying season will be fueled heavely by discounts around the marketplace. Sales are poping up everywhere from places such as BestBuy.com, abercrombie.com even down to the little Putnam Chocolates here on front street in Marietta.

Kathleen Hays in this article, reviews some of the latest movements in corperate America to help attract you to send your hard earned buck at their store...

Australian firms bullish on China

This is an article about Australian companies, which would like to increase their investments for commodity exports increases. As a developing country, China needs to trade with other countries in the world that have a comparative advantage in a specific good. China was Australia’s second-largest market for exported goods in the nine months to Sept. 30th, 2004. Many companies have already made a plan about investing in China in the coming year because they have confidence in the Chinese substantial economy. However, some economists think that China’s economics is not very strong, and compare it to pie in the sky instead of Promised Land. What do you think about it?

Sony vs. Microsoft

If there's ever been any question as to what Microsoft does and does not monopolize, the video game industry would certainly fall under the "Does Not Monopolize" category. In fact, Microsoft is challenging the Sony Playstation's dominance of the gaming market, especially now that Sony announced that their super speedy computer chip - dubbed The Cell - will power the next Playstation console in 2005 or 2006.

The Cell, which combines four processors that will allow the third Playstation's graphics to look as if it were "done in a Hollywood studio," has Microsoft scrambling to respond with a new gaming system of its own.

And considering that gamers tend to be price-sensitive, The Cell will sell for less than $100, as opposed to the $150-$200 selling price of a lot of computer processors. This is even worse news for Microsoft!

But an Insight 64 chip analyst says PC processor designers shouldn't be too worried, considering how specialized The Cell chip will be. On top of that, the market for video game chips is only 1/10 the size of the market for PC chips.

So here are my questions: Will the demand for Playstation systems increase, allowing Sony to dominate the market even more so than Microsoft is claiming they already do? Or will the demand for The Cell chips be nearly non-existant, considering how small the size of the video game chip market is compared the market of PC chips. What will Microsoft's new system have to be like in order to rival Sony's, or will Sony's system even be a threat to Microsoft?

Video games calm kids before surgery-More effective than tranquilizers or parental presence

This article talks about a hospital in Trenton, NJ that has been letting children play video games on a Game Boy in the operating room before undergoing surgery. They claim that it will help them relax better than tranquilizers or holding "mommy's hand". Researchers have found that by letting the children play the Game Boy, the childrens anxiety was reduced before the anethesia actually kicked in. They say that this could be especially helpful, because parents are extremely uneasy about tranquilizers being given to their children. They say that these methods have been used before, but never actually in the operating room. The Design Continuum Inc., has even begun testing a "combination anesthesia mask and headset that would allow patients to play video games or listen to music". The hospital is even considering making Game Boy use standard before pediatric surgery.

So my question to you guys, is "if hospitals begin to use Game Boys before pediatric surgery, what effect will it have on the market for game boys?" Another important thing I should mention, is that on CNN.com(the place where I found the article) advertisers from e-bay.com, fingerhut.com, shopping.com, and fun-free-videogame.biz have all took up advertising spots on the website. Game Boy has already recieved free PR from the article itself, not to mention the paid adverstising from other Game Boy stores.

BASEBALL STEROIDS

If you follow sports or even just the news in generaly you have heard the recent news. Jason Giambi of the New York Yankees has admitted to taking steroids, becoming the 3rd MVP to admit to taking steroids in the past 5 years, joining Jose Canseco and Ken Caminiti. Also, Barry Bonds, one of the greatest ever, has said he took a form of steroids but did not know they were steroids. My first question is this: This could possibly be four great players who have won MVP's and have set many records. So should Major League Baseball take away their MVP's or their records? Should there be an asterick in the record books saying they took possibly took steroids when breaking these records? These are many questions MLB commish Bud Selig will be debating soon. Giambi is also facing losing his contract with the Yankees because of admitting to steroids. Should he lose all this money he was possibly going to make. Baseball is on the downfall right now. There are many other players out there as well who are taking steroids and just have not got caught yet. Is this going to hurt the income of MLB teams in now? Are fans going to start to boycott games. Things could get interesting. And teams could possibly lose money, but will they lose so much it could hurt them? Just some questions for everyone to think about a little. Some Econ related some not. But all interesting.

GM, Ford cut production after U.S. sales fall

General Motors and Ford are planning to cut production of automobiles more than expected because of weaker sales in November. Some analysts predict this will hurt profits. However, even GM's "Lock and Roll" incentive, which would have given consumers the option to lock in current financing rates on both a new 2005 model and a second bought years later, didn't meet General Motor's expectations. I'm wondering what factors caused sales in the United States to slip. Apparently higher incentives are no longer enough to boost sales significantly. As a consumer, I know that price influences me more than anything. Perhaps the price of Ford and GM's vehicles are too steep at the moment for some consumers who would normally invest in an automobile manufacured by the companies. Chrysler, Toyota, Nissan, and Honda have all reported stronger November sales, so perhaps consumers are finding better deals on vehicles there. If supply is cut, according to typical supply and demand analysis, price will increase. However, since demand is weaker than expected, maybe this will result in a move towards equilibrium. I guess we'll just have to wait and see.

The Hardee's Monster Burger Beefs up its Advertising

Two weeks ago Hardee's released the newest item on its menu known as the 1,420 calorie 107 grams of fat "Monster Burger". In order to gain publicity for this new product, they are going to launch a multi-million dollar advertising campaign. Foriegn nations such as Japan, England, and Canada have allready heard about the "Monster Burger". With no indication of its sales so far, Hardee's is still intent on making the campiagn.

Here's my question for you....do u think that Hardee's is making a smart choice by spending such a large amount on their advertising campaign or not? With the hype over healthy eating today and low-carb selections, more cosumers are being drawn to places like subway. The 3 major fast food chains - Burger King, McDonald's, and Wendy's- have all resorted to making more healthy menus with items such as new salads, bunless-burger meals, and more chicken selections. Also, these larger franchises would have the money to advertise for a "monster burger" campaign and recover if it failed, unlike Hardee's. So, is the risk for Hardee's advertsing campaign going to break the chain of healthier food going to be a success or are they doomed to fail from the beginning??

Are the Yankees a Monopoly?

My question to everyone is, are the Yankees a monopoly? Yes, I know that in class we covered that there are really no monopolies in the everyday world. However, I want to ask, are the Yankees a monopoly in the baseball world? With peeking the payroll records every year now for the last ten, the Yankees have done nothing but buy the best players and gather up the best records in baseball. Yes it is true that they lost to the Boston Red Sox this past world series, but still we all know that George Stienbrener will come back next season with something up his sleeve.
My next question is about one of the aspects we covered in class relating to a monopolist. That is price discrimination. In my mind the Yankees have handed over these huge contracts and made impressions on these players that they are worth these ridiculous amounts. I know as a Cleveland fan that the Indians not only would never pay A-Rod the money hes making, but couldn't afford it to begin with. With that in mind is it really fair? The Yankee's can afford to pay these top players what ever they want and with the game of baseball turing into a money game we know noone will beat out the Yankees eventually in this money game.
Finally, I would like to bring up the dead weight loss side to this possable monopoly. Do you think that by the Yankees having all the top players have hurt and cost other franchises money? Of course. Every year you can pencil them in as a playoff spot, meaning that that other teams that couldnt afford to keep up with the Yanks are left to a loss in not only the extra money the playoffs bring to a team but the social aspect as well.
In closing I just wanted to point out that in recognition of the free market world of baseball the Yankees are becoming a monpolist. Should the government put a salary cap on baseball, or should we let these monopolist bore up the amercain past time.

Toys To The Rescue?

Most everybody recognizes the Cabbage Patch Kids, and Tickle Me Elmo as two toys that created some of the biggest crazes during the Christmas shopping season in recent history. Robo Sapien is this year's toy that may come close to this level of success. The existence of these toys has two positive affects for retailers: First, they generate a lot of direct revenue since these toys are able to sell out. This will increase the retailer’s profits. Additional profits will lead to higher wages for labor, and higher investment, which leads to more economic activity. Second, these toys bring in a lot of extra people who may not have shopped at this location before. This will not only increase the retailers profits further because of additional purchases the people make while in the store, it will have a multiplier affect on the local economy (The multiplier affect means the money used to purchase an item, is used over again by the new recipients until it is fully spent or saved, therefore multiplying the affect on the economy; The multiplier affect applies best when the original money spent is from a source outside of the relevant market as is the case here). Any growth in economic activity is obviously positive for the entire economy. Soon, the day may come when the economy is having a severe downturn, a toy of the nature of Tickle Me Elmo comes out, and the added economic activity throughout the nation would become enough to stimulate growth in the down turned economy. Toys to the rescue? Sure, why not.

More digital TVs seen under trees this year

Can you imagine that in a few years, you are not able to watch TV if you don’t have a digital TV set? It's not a joke. The digital TV or DTV sets came out in the late 90s, but they were too pricey at that time, one digital TV would cost you thousands dollars. Therefore, in the electronic market, the price was high, the demand was low. But in the past several years, the price of DTV was keeping falling. Today, according to the nonprofit Consumers Union advocacy group’s Consumer Reports; the price of basic DTV sets start at price $500, and the price of the HDTV (high-definition Television Sets), which are the most sophisticated form of DTV sets with the best quality picture and sound is as much as $1500. People who want to by a DTV or a HDTV now can afford those prices. As the price declining, the demand increases. On the other hand, which the demand of DTV increases, the supply of the programs broadcast in digitally compatible "high definition" would increase to satisfy the demand. Today, you can see Many major sporting events on HDTV, as well as regularly scheduled hit shows such as "CSI: Crime Scene Investigation," "Desperate Housewives," "Without a Trace," "ER," "Everybody Loves Raymond," "Lost," "The Tonight Show With Jay Leno" and "The Young and the Restless."

In the report, it also says that the Consumer Association, a trade group for manufacturers and retailers had an optimal prediction. They think that there would be 3 million DTV to be sold in the last three months of this year, which in the total of 7 million predictive sold for 2004. Therefore, homes of the United States will have 12.1 million HDTV at the end of this year, comparing 7 million for 2003, according to the Yankee Group, a Boston technology research outfit.

That optimal prediction makes sense because the sales of electronics kept tech stocks slightly raised during the thanksgiving weekend, compared the others were declining. Also, The Federal Communications Commission urged TV broadcasters to switch from airing programming on the traditional analog spectrum to a digital spectrum, which offers higher picture and sound quality as well as a government-led consumer education campaign. All of those will help the sell of DTV.

The demand of the DTV set increases fast but not fast enough. As I mentioned at the beginning, why you are not able to watch TV unless you have a DTV? Because the transition from analog to DTV is slated to end by 2007; isn’t it a concern that it is likely to extend the date? The DTV definitely have better quality of picture and sounds; I have seen the DTV in my friend’s home in China, and I like it. But I believe not everyone in this country can afford this by that time. Well, unless the prices of DTV keep falling until what everyone can afford. It is not a dream though, the price may keep falling, and people’s income will increase in the long run; eventually everyone can afford this new technology just like the transition from black and white TV to color TV, but maybe not in this short time.

WalMart, Jr?

Blockbuster is currently the leader in the movie rental industry with Hollywood Entertainment in second place behind it. Blockbuster has been offering $700 million dollars to buy out their competitor. Movie Gallery Inc has also recently placed an offer for Hollywood Entertainment, though the amount is undisclosed. The future of Hollywood Entertainment is unsure.

With Blockbuster owning 9,000 outlets worldwide and it's nearest competitors only owns 1,920 stores (Hollywood Video) and 2,000 (Movie Gallery) it is becoming apparent we may have a "WalMart" of the movie industry on our hands. Throughout the past few years, in my town at least, I have watched small "mom & pop"-type video rental stores go out of business due to Blockbuster moving into town, they simply could not compete with Blockbusters convenience and selection. If Blockbuster buys out Hollywood Video, what will be next? Soon, Blockbuster could be the only place to rent from. Considering their prices are already one of the more expensive of rental stores, it is scary to think of how they could manipulate prices once they have reduced their competition. Who knows, maybe WalMart will enter the video rental industry... that would make for interesting competition...

Holiday Tipping

I never realized this was such a big deal, but apparently there are even rules regarding 'Holiday Tipping.' I guess it really does make sense to give a little extra something to those who provide you with outstanding service day in and day out all year long. Below are a few guides to tipping etiquette this holiday season:

Reward those who make a difference.
Start by looking at people whose work has had the greatest impact on you, like those who take care of your home and your family, particularly your children. One housekeeper no longer takes on regular clients who never tip, because he's working for money, not the love of Joy. This isn't always the case, however many who do work have to pay bills just as you and appreciate the thoughtfulness and recognition for hard work.

Think about those whose services you use frequently.
They may include a beautician, a barber, a doorman, or the newspaper carrier.
In the past few years, more clients have begun to give gifts in lieu of cash. This is probably best considering it is illegal for US Postal workers to accept cash.

Include those who go out of their way.
Those who do things for you that normally wouldn't be expected of them are the ones you really want to focus on.

So this year, think of those who do the most for you and consider giving a little extra something to say thank you for 'a job well done.'

http://www.consumerreports.org/main/detailv4.jsp?CONTENT%3C%3Ecnt_id=513403&FOLDER%3C%3Efolder_id=162679&ASSORTMENT%3C%3East_id=333147

Ridge Resigns Homeland Security Post

Tuesday morning, Homeland Security Secretary Tom Ridge submitted his resignation to President Bush. Because the Department of Homeland Security was new in 2001, Ridge was the first chief of the department and became secretary in 2003. He has watched over six national "orange alerts", which is when government raises security because of concern that an attack may be coming. He said he will stay on the job until February 1. Other people lined up for the new position include Bernard Kerik (the former New York City police commissioner who helped rebuild Iraq's police), Joe Allbaugh (former Federal Emergency Management Agency Director), Mike Leavitt (Environmental Protection Agency Administrator), and Fran Townsend (White House homeland security advisor). The other cabinet members that are leaving include Attorney General John Ashcroft, Agriculture Secretary Ann Veneman, Secretary of State Colin Powell, and Energy Secretary Spencer Abraham.

I think that it is strange that six Cabinet figures in the Bush administration will be replaced, among other changes in the administration. It seems like a lot of changes at once, and I am wondering if this will have a positive or a negative effect on his administration and the economy.

Bush Chose New Commerce Secretary

President Bush appointed Carlos Gutierrez as the new commerce secretary. Gutierrez is the chief executive officer of Kellogg Co. Bush is working on replacing his economic advisers. Gutierrez was born in Cuba and moved to the U.S. when he was six years old. When speaking of Gutierrez, Bush said that he thinks Gutierrez understands the complete world of business at every level, which makes sense because Gutierrez has been on every rung of the ladder. He started out working at as a truck driver for Kellogg in Mexico City and worked his way up to becoming the executive officer of Kellogg. Since becoming chief executive officer of Kellogg, he has helped Kellogg sales rise 43%. He is living the American dream. Gutierrez's responsibilities will include improving America's manufacturing sector and helping to administrate the changes in social security and the tax system. The article also mentions that even though Gutierrez isn't a loyalist to Bush, he still shares the presidents' values. He said that he " believes in [Bush'] call for a vibrant, growing entrepreneurial society, where everyone has the opportunity to experience the joy and the pride of ownership, where everyone can contribute and everyone can benefit".

I think that Gutierrez is a great candidate for the Commerce Post because he obviously knows a lot about business. He worked his way up from being a truck driver for Kellogg's, delivering Frosted Flakes to various places in Mexico City, to becoming the chief executive officer of the entire company. He is great proof that hard work does pay off. Since he has experienced all aspects of the business world, I think that he will do all that he can to help out people in every level of work. Because Gutierrez was born in Cuba, his nomination adds to Bush's diverse cabinet, which will allow him to get several different points of view when it is time for him to make a decision. I think Gutierrez was a great choice.

Drilling new oil fields in Alaska

This article says that the government has allowed for the first drilling to take place in the national petroleum reserve in Alaska. This will allow the United States to increase our production of oil which is the primary source of fuel to power various types of machinery. The question that I have is if this will have any effect on the price of a barrel of oil (or gallon of gas). Drilling for this oil should increase the supply of oil in the world but I am wondering by how much and if it will be significant enough to lower the price of crude since so much is already produced.

Stocks End Lower as Fears of Falling Dollar

Stocks end low Monday, November 29, 2004 as investors worried that the weakening dollar would establish inflation and hurt the overall economy. This concern also affect the holiday shopping season.

Declining issues are a lot, which contains 1.79 billion shares that increased from 631 million in Friday's holiday-shortened session. There are more than the advancers by nearly 5 to 4 on the New York Stock Exchange

I know that dollar has been dropping for several months. But the weakening dollar was actually helped the export, which was good for the domestic products. Therefore, stocks were rising in the past couple of months. But now it started declining during the holiday period. Why that happened? There’s something that I don’t understand, I think the dropping dollar might helped the export, and the foreign investors might invest more, or buy more US stock. That kind of trade should help the stock market as what it was like in past a few months. I think there might be many other reasons for the declining stock market; and what the news says make sense to me that people didn’t consume that much for this holiday as what the retailers expected because of the fear of the inflation.

The fact is that the retail stocks were lower even the holiday shopping increased the sales for most of the retailers over the thanksgiving weekend. Wal-Mart Stores Inc. said that its sales were lower than expected. As well as Target Corp. dropped 31 cents to $51.90, J.C. Penney & Co. dropped 65 cents to $39.91, Sears Roebuck & Co. dropped $1.88 to $52.42, and Kmart Holding Corp. fell $5.38 to $102.01.

According to preliminary calculations, the Dow Jones industrial average fell 46.33 or 0.44 percent, to 10,475.90. And it had been down more than 105 points earlier in the session. Moreover, the government bond also dropped according to the sell off on Wall Street. That’s because of the fears of foreign bondholders that giving up. Treasury bills as the dollar continue to dropping. Ten-year treasury notes fell 71.875 cents to $99.34375, along with the yield rising from 4.23 percent to 4.33 percent. And the Fed is expected to raise the benchmark interest rate to 2.25 percent.

In contrast, the sales of electronics kept tech stocks slightly higher for the session. Apple Computer Inc. raised $3.89, or 6.03 percent, to $68.44 after Merrill Lynch analysts said that holiday sales of its iPod music player would give the computer and electronics company a strong boost. Merrill Lynch raised its price target on Apple from $66 to $77per share. IBM Corp. and Sony Corp. have worked together on a new semiconductor specifically designed for home entertainment products with limited production. IBM raised 78 cents to $95.50, as well as Sony raised 40 cents to $36.37.

For the oversea issue, the stocks are generally raising as the dollar is weakening. Japan's Nikkei stock average raised 1.33 percent. In Europe, Britain's FTSE 100 closed up 0.18 percent, France's CAC-40 slipped 0.04 percent for the session, and Germany's DAX index fell 0.18 percent.

Farm Bureau survey shows big drop in Thanksgiving food prices

When you enjoy Thanksgiving dinner with your family members, have you think about how much money did your family pay for the dinner ?
The survey showed that the cost of 13 basic items found on the Thanksgiving Day dinner table decreased from $37.43 in 2003 to $34.91 in 2004. This is the lowest price recorded by the survey since 2000, when the cost of the meal averaged $34.87. IFB volunteers scattered around the state collect the data for the survey at their local grocery stores.
Turkey itself dropped in price to 83 cents per pound, compared to $1.10 in 2003, which means that the price of a 17-pound turkey dropped from $18.17 to $14.11. This is the lowest price for this Thanksgiving staple since 1997, when turkey cost about 80 cents/pound, and it’s identical to the price shoppers paid in 1995.
“Farm prices go up and down depending on supply and demand,” noted Carolyn Hegel, IFB second vice president. “Most people’s income either continues to rise or stays the same. Low prices are wonderful for consumers, but may not be the best for farm families since they are often associated with lower farm income. “We Americans really take our abundant food supply for granted, but Thanksgiving is a good time to remember what we do have, and that it all starts with farmers,” Hegel added.
In addition to turkey, decreases were recorded for rolls, which dropped from $2.66 for two dozen to $2.60 and 16 ounces of frozen peas, down by 8 cents to $1.16. In addition, two items were unchanged in price: 5 pounds of potatoes for $1.84 and 1 pound of sweet potatoes, 93 cents.
Eight items in the market basket increased in price, most by 10 or 20 cents but none by more than 50 cents: a 14-ounce bag of stuffing, which increased by 49 cents to $2.47; a 30-ounce can of pumpkin pie mix, up by 10 cents to $1.17; two frozen pie shells, up 14 cents to $1.76; a 1-pound bag of carrots, up 12 cents to 81 cents; celery, up 15 cents to $1.34; 1 gallon of whole milk, up 34 cents to $2.84; cranberries, up 12 cents per 12-ounce bag to $1.75; and one-half pint whipping cream, which rose by 22 cents to $1.59.
The IFB survey was first conducted in 1993 when the average cost of a Thanksgiving meal for a family of 10 was $32.50. Average prices from each year the survey has been conducted are listed below.
1993 – $32.50 1999 – $37.77
1994 – $30.51 2000 – $34.87
1995 – $31.35 2001 – $37.72
1996 – $34.07 2002 – $38.62
1997 – $31.85 2003 – $37.43
1998 – $31.98 2004 – $34.91
From the article, we can see that the main food for the thanksgiving dinner really decrease a lot, people can buy more with the same money than usual. Are the merchants really kind? We find that the price of some dairy food also increased. According to consumers psychology, people tend to consider less about price during the festival. Especially, they already bought some food with cheap price, they may not care too much about buying some food with higher price. May be these foodstuff with heigher price are complements for some necessary food. So I think merchants had never lose. The average cost of thanksgiving meal had a big change since 1999. What is the reason for this? May be some political reasons?

Twelve Days

Every year a bank in Pittsburgh tabulates the cost of purchasing the items of the Twelve Days of Christmas, this year the total comes to $66,334, an increase from the $65,264 the items would have cost last year.

What I found to be particularly interesting is the difference between the cost of the nine ladies dancing verses the eight maids-a-milking. Each dancer is paid around $488.89 where as one maid-a-milking earns the sum of $5.15. The article continues describing how skilled work has steadily increased in wages where as the unskilled labor of a milkmaid has remained low over the years.

Also touched upon is the declining US dollar when comparing the cost of three French hens, last year they totaled $15 now the trio comes to $45.

Why do you think giving the Twelve Days has increased $1070 over one year?

The article can be found at Yahoo! via the following:
http://news.yahoo.com/news?tmpl=story&u=/ap/20041129/ap_on_bi_ge/twelve_days_cost

You don't have to be as stuffed as the turkey

Lots of people over the holidays cheated on their diets. With another holiday almost here it will happen agian. People will gorge theirselves and promise to stop when the ball drops for the New Year. Seems to be that the demand these days is to diet so here are a few solutions to overeating. Medical director of the weight-loss Web site Diet.com and a professor at Northwestern University School of Medicine, groups holiday overeaters into three categories: mindless munchers, heavy portioners and emotional eaters.

If you happen to be a muncher it is recomended that you avoid buffets and little foods such as dish candy.

If you have problems with portions, they recomend to get a smaller plate and to eat slower. Also, don't load up your fork while your still chewing. By eating slower you have more time to realize when you really are full. I myself tend to be a heavy portioner overeater during the holidays : )

If you eat when you are emotional, they suggest that you create a list of things other than food that make you feel good. When a "breakdown binge" is about to happen use the list to help you through it.

These are just suggestions to help you control yourselves over the holidays. For those of you who diet hard core this site also has more in depth ideas to help you stay true to your diets. Ladies enjoy.

The More You Make, The More You Pay?

It seems that with the rising cost of getting an education, graduate students are looking at the expected career incomes to help decide what field they want to enter. For the expensive private schools, getting a degree in a lower paying job is becoming less of an option. But what can we do about the problem?

Former labor secretary Robert B. Reich has formulated a plan that will allow students to follow their dreams, even if they result in lower-paying careers. His plan is that the payback on a graduate student's loans would be a percentage of what their annual salary would be over a 10-15 year period. In simpler terms, the more you make, the more you pay back. All of the money would go into a general lending fund for other graduate students. Now this may seem fine to the social worker or teacher, but what about the law student or doctor? The idea is to be unselfish and support the thought to let other people follow their dreams instead of worry about paying back the cost of their education.

The idea seems rather far-fetched, since we know that the common trait of American people is not unselfishness. But another thought is that if ways continue like they are, the amount of students entering fields with lower paying jobs will decrease, resulting a shortage of teachers in public schools, lower paid physicians, ect. But what if the idea was implemented? Would this cause too much of an increase in the lower paying jobs, which might result in the payback of student loans being lower than the actual cost of education? If only there was an easier solution...

For many retailers, holiday sales tepid

With one of the biggest holiday shopping weekends of the year, the numbers are in and it seems that stores like Wal-Mart seemed to struggle, where Sears and JcPenney did well. Sales were said to be strong on Friday but seemed to weaken as the weekend wore on. Are Wal-Marts woes due to the aggressive advertising of other companies by offering special purchases and pricing or because there were no must haves in apparel or toys for Wal-Mart to carry. Other areas where they lost some shoppers were in the main attractions such as electronics, particularly flat-screen TVs and DVD players where other stores seemed to clean up. This was an interesting article because it seems that Wal-Mart always does good and never seems to struggle during the holidays. Do shoppers shop for the best deals for more brand named items on the big sale days and just hit Wal-Mart whenever they have time? Do there numbers reflect how busy Wal-mart always seems to be? Maybe everyone had the same idea to skip Wal-Mart because they figured it would be so busy. I myself don't enjoy shopping especially when there are alot of people there at the same time.

Krispy Kreme Stocks Drop

Anyone who watches the stock market knows that the values are constantly changing. They rise and fall for many different reasons, many having to do with the economy. However, have you ever heard of stocks falling because of a diet? The carb-counter crazies may be partly at fault for the 16% decrease in the value of Krispy Kreme Doughnuts. New diets and higher interest in "healthy" foods have caused consumers to be more weary of the junk food that they eat. A regular glazed doughnut has 200 calories and 12 grams of fat.

Trouble in the company first arised in May and shortly after, many new store plans were cut and existing factories were shut down. Investors also believe that the company expanded too quickly when they began selling in gas stations, supermarkets, and other convenience stores. You can even buy Krispy Kremes through school fundraisers! Before, these doughnuts could only be bought in Krispy Kreme stores.

Since its stock hit a lifetime high of $49.74 in August 2003, Krispy Kreme has lost more than 80 percent of its market value. During this session, the stock hit a record low $9.37. Could this dramatic decrease be all because Americans are becoming more health conscious?

Wal-Mart's next victims

When Toy's R Us in August said that stiff competition from Wal-Mart was making it consider whether or not to exit the toy industry, had struck fear in the hearts of retailers everywhere. Toy's R Us was the first to pioneer the idea of the "category killer" that is now used by many big box specialty retail stores including Best Buy, Home Depot and Bed, Bath & Beyond. These retailers giant specialty stores that cater to one particular product segment of the U.S. economy. Wal-Mart is the antithesis of a category killer with isles filled with a vast amount and variety of many different products is posing a threat to many of these "category killer" stores.

Walmart is threatening many of these "category killer" stores with their expansion and improvement in many of the different types of products they offer. They are looking into expanding into gasoline, a better and expanded fashion line to compete with stores like JCPenney and Target, drugstores, an extended line into electronics, and even are considering getting into the business of banking. This has many other stores worried. Although Wal-Mart does have more competition with the merger of Sears and KMart.

I find this story to be scary. I know it is a long way away but if Wal-Mart eventually becomes the only store in a town will they then raise there prices because there will be no competition to go against them. I think in the future they may become a monopoly and in some smaller towns where they are the only retail store they already are.

What is wrong with Monopoly Game

We learnt "Monopoly" lately, which made me remembered a game I played when I was a child. It is Parer Brother's board game Monopoly. It is considered as a game to teach children do business. I think most of you had ever played it. I forget specific details in this game. But I still remembered that I always lost in this game, and I felt boring about it, because I always could not decide what I want to buy or do but followed what the cards said. And when you want to buy something, there are only one seller who can decide price, and sometimes the cards will also have right to decide price. I thought I cannot be a business person, but now I am majoring in Economics. And I know the situation the game gave to us was not a real world. Most of the markets are competitive, there are many competitors, and government Macroeconomics control cannot always be effective. Now I feel interesting about this game, and I recommend this article http://www.mises.org/fullstory.aspx?control=1451. May be it can make you recollect something in your childhood.

Need a Textbook?

As some of you know, and others may not, Follet Books has exclusivity rights on the Marietta College campus, meaning that the Administration has granted Follet a monopoly on this campus. However, many options have presented themselves to students here, and at other institutions across the country as similar situations have arisen. Many of the alternatives exist on the web, with half.com, and amazon.com being the main two companies. A new site, swichtextbooks.com will soon be open for business. The site is supported by Baltimore Solutions and the United States Postal Service. The site will allow students to submit a list of books they have, as well as books they need, and the computes will automatically match the your need with someone’s book. This new site presents many different issues for Follet, if this site can be publicized on this campus, and all the students use the service, what is Follet going to do? Well, as the Supply of books increases and all else remains constant, prices will fall, and Follet will have to keep up. As the price of the books fall students will experience increased consumer surplus. Hopefully this will happen, and we can all pay a little bit less for our textbooks.

Retail Wars

This week, a merge between Sears and KMart has been completed. The new company, to be called Sears Holding Corp, has a lot of goals. At the top of the list: Take down Wal-Mart! The battle against Wal-Mart will start by creating a more efficient supply chain, lowering prices, and promoting Sears and KMart owned brands. All this will result in a larger consumer surplus among that American people. They help out consumers and manage to diminish the control that Wal-Mart seems to have over retail. Sears and KMart hope to cut their combined costs by $300 million and increase their profit by about $200 million. However, Wal-Mart, and other stores like Target, will not simply sit in their chairs and watch. This will ultimately start a price war resulting in a constant battle for lower prices. Sears and KMart may not 'beat' Wal-Mart, but for the time being, their merger will certainly have a large affect on the retail industry.

Wal-Mart Dominates Consumer Sales

After reading this article, I would have to reconsider whether to keep shopping at Wal-Mart. It seems absurd that one company can dominate so many market areas while providing 1.2 million workers with low wages and costly healthcare. From this article, I feel that Wal-Mart is the most profitable company because of their lower labor costs and their ability to purchase mass quantities. Wal-Mart drives out competitors because of being able to provide these lower prices because of their purchasing power and lower labor costs. I would much rather shop at smaller establishments but as I have learned in microeconomics, consumers tend to buy where they can get the lowest price. As long as consumers continue this trend with Wal-Mart, more and more competing retail stores will continue to fail. One point about Wal-Mart I feel is against them is their clothing, shoes, and accessories are not high quality. Since these items are mass produced in countries like China, the do not fit as well as higher scale department store items. If they would be able to compete with the higher scale clothing lines, what would be left to dominate? Maybe, Wal-Mart could go into providing medical services. While you wait to see the doctor, you could shop! When it is time for your appointment, it could be announced over the loudspeaker, like the way they do for an oil change. Seriously, though, since Wal-Mart dominates so many market areas, it would seem unrealistic for new entrepreneurs to try to go into retail sales. It would be great if the private establishment of retail could still exist, but if Wal-Mart continues as it has, this will be a thing of the past.

DaimlerChrysler Makes Costly Mistake

Recently Crysler Recalled many of their 2000-2003 models year veichles due to the fact that they were deemed unsafe. Apparently the ball joints on the upper front suspension was deemed unsafe. The company tried to blame this on the materials used to keep roads safe in winter, such as salt or other materials. The salt could have caused these problems but the car should have still withstood these conditions according to the NHTSA. This will probably affect the sales of Chysler quite a bit in the future, especially with the exagerated claims that wheels can go flying off and suspension can fall apart. This is enough to scare anybody.

Big Three set to launch new incentives

The big three automakers in the U.S. are ready to launch new incentives for consumers to buy new automobiles due to a large build up in their inventories. Ford, GM, and Daimler Chrysler with a large increase in their inventories are trying to sell more automobiles by offering more incentives to consumers. The big there automotive makers have seen the highest inventories in the history of their companies. Will these incentives increase sales for the big 3 automakers?

I found it tobe very interesting that foreign automakers seemed to be doing so much better than those that are based in the U.S. with their current stock level and the incentive levels that they offer. I think one reason for the problems for the big 3 are the high gas prices causing people to not want to go out and buy a big SUV or truck which have smaller gas mileage. Why when the incentives are much higher for the big 3 automakers do consumers still purchase from the foreign automakers like Honda and Toyota? Is the quality of there automobiles that much better than those made in the U.S.?

Will Keeping Oil Prices High Develop Growth?

U.S. Treasury Secretary John Snow Says that by keeping oil prices high we are encouraging growth in the area. Recently John Snow formed an agreement to allow oil producers to produce less oil in order to keep prices high. This makes little sense, since affecting the market externally usually leads to inefficiency. This agreement comes at one the worst times of the year since the winter months are approaching soon and many americans will need to heat their houses. This could cause drastic inflation in our country. This makes little sense to me since many americans already struggle to afford current oil and gasoline prices. John Snow sees raising prices as a way to keep jobs. This could make sense but i see little corralation. With less production that would normally mean less workers are needed. Either way something will have to be done because sooner or later very few people will even be able to afford gasoline.

What's Happening to Social Security

Social security seems like a good idea, but it is steadily depleating. It looks as if there is enoung to last the current generation but the future looks dim for the coming generations. The main problem is that there are too many retired citizens collecting social security benefits compared to the number of working people paying into the funds. This could have been due to the past "baby boom" as many like to call it. There have been a few options to counteract the problem. One of the options is to allow people working to defer a portion of their payroll tax into a private account for them to use when they need the money. Either way something must be figured out, but Sen. Harry Reid says that we have up to about 50 years with our current situation. One of the other options is to raise taxes to pay for the deficite. But would a tax really be benficially to stopping the shortage? Could it have other negative effects?

Are the 2003 Bush tax cuts creating jobs?

This article demonstrates that job growth was very poor for the month of September. It was not low enough to increase the unemployment rate, but it did not meet the projections that the Bush administration claimed would happen after the tax cuts. Infact, excluding March and April, we have yet to see employment meet the predictions that were supposed to come from the cuts. My question is is whether or not tax cuts influence employment. If a person gets a break in paying their taxes and has more money to spend elsewhere, does that really determine whether or not they can get hired? Based on that question, if tax cuts do not help unemployment...what is the Bush administration going to do in the next four years to lower unemployment?

Would you like to pay more?

When you buy a hamburger, what would you like to do? Do you prefer to buy a more expensive "brand name" hamburger, or just a cheaper store name humburger? Some people want to buy "brand name", because they think that the hamburger is different from others and its taste is better than others. Other people prefer to cheaper hamburgers, because they think there are not definately difference between these two kinds of burgers. Therefore, they would like to spend less. I think that there are not obvious difference on the taste of hamburgers. People want to "brand name" because of their habits. They always buy the same kind of hamburgers and they are accustomed to eating the hamburger. Therefore, they don't want to change to others, even if they know that there are some other cheaper hamburgers. On the other hand, "brand name" hamburgers have enough consumers who always buy their products. They don't worry about those consumers will give up their hamburgers and buy other store name hamburgers. Therefore, "brand name" can fix much higher price than other hamburgers and they also can spend more on advertisement.

NBC back in the market for NFL

NBC is looking to try a new contract with the NFL. NBC has steadily been declining since its hit sitcoms have went off the air. NBC says that they will not over pay, but would like to do a deal. NBC dropped its old agreement with the NFL becuase they had such good numbers coming from sitcoms and really didnt need the NFL and the money it would cost NBC.

Finally, Sweden has something more than a bikini team...

As I post this, the NHL lockout has been in effect for 55 days; 13 hours; 29 minutes; and 55 seconds. That's almost 2 months of agony for anyone who is a die-hard NHL fan (sorry Canada). But across the pond, in the land of "Sveden," things couldn't seem any better...

"With no end in sight for the NHL's labour impasse, more than 55 players have already committed to Swedish Elite League teams and more are expected to follow."

More than 250 other NHL players have committed to other European leagues; however, its drawn criticism from people claiming that NHLers are stealing jobs.

Not Sweden though.

Those "dirty Swedes" (I had to do that in honor of the late John Candy and that awful sailing race movie he made) are excited as can be. They believe the NHL stars will bring new life to the league, and new revenue to the country. People believe that the SEL is much deeper now with the influx of new players coming from the dormant NHL. Hockey arenas are filling up and ticket prices are soaring. Yet the fans don't care, because they know this will be "the season that will never come again."

is it a wise decision to build Three Gorges Dam in China?

Dated to 1919, the a dam on the Yangtze River was proposed to be build for power generation purposes but the idea was shelved due to unfavorable political and economic conditions. Then because of a lot of domestic and international pressure, the Chinese Government agreed in 1989 to start the construction plans for the Three Gorges Dam.
Before the construction, there were many people made a lot of debates because it would benefit many people and also cause serious problems. On one hand, there were a lot of merits after building the Three Gorges Dam. For instance, the dam can control flooding on the lower Yangtze River, which used to be a very serious problem in south of China every summer. The dam could also generate hydroelectric power, which must be a great help to reduce the electricity-lack problem in large cities, for example, Beijing, my hometown. Then it could reduce pollution caused by the burning of coal because most of the people would like to use electricity as their powers. On the other hand, the dam brings a lot of demerits, too. For instance, by building the Three Gorges Dam, there are approximately 15 billion people need to move to other places, which cost the government a huge amount of money. Forty thousand builders will work for 16 years to complete Three Gorges Dam on the Yangtze River, which means they will leave their home, their family and have to stay with the Dam for a really long time. Also many historical relics are being moved while famous scenery will not exist at all. So during 1999 there was a travel boom in Sichuan because it will not be seen forever after the construction of Three Gorges Dam. And because the location of the Three Gorges Dam is very serious and important for the safety of China, as long as a war breaks, the Dam must be the first aim of our enemy. Once they bomb it, the most developed area of China will be under water and the land full of wheat and corn will disappear in one second. Another very serious problem the Three Gorges will cause is earthquakes. A certain expert on geography said the Dam may make a more frequent earthquakes happen. The Dam will eliminate tourist trade to the area and destroy important archaeological artifacts. What do you think of the Three Gorges Dam? Do you think it is a wise decision to build it?

NFL Broadcast Contracts

The NFL has agreed with CBS and Fox for a contract worth $8 billion over the next six years starting after the 2005 season. The negotiations between ABC and the NFL over the Sunday night games and Monday night games has not yet been finalized. Do you think that there is too much money involved in getting the rights to the NFL games? As of now, the revenue is split evenly between the teams in the league. Should the larger market teams who have more of a fan base along with popularity get more money than the smaller market teams? The deals give the NFL the option to move seven late-season games from Sunday to Monday night to feature more attractive matchups. The NFL also can develop late-season prime-time satellite or cable packages of eight games, which would be televised on Thursdays and Saturdays. Or the league could take those eight games and show them regionally in prime-time telecasts on Sundays and Mondays. What do you think about all of the money being put up for broadcats and the NFL? What is your opinion of the article?

Global Economy

In an article from MSN dated November 5, 2004, the dollar has hit an all-time low against the euro. The euro reached $1.2962 Friday. The U.S. dollar buys only about 3/4 of a euro. This is not good news if the U.S. wishes to import goods from Europe or citizens plan to travel to Europe. However, it is good news for U.S. Manufacturers since they could export more goods to Europe because they could buy more goods at a lesser price. This could assist in stimulating the U.S. economy. In time, it appears that the U.S. economy will continue to grow thus leading to higher interest rates and a more attractive dollar. When this does occur, would the U.S. import more goods and export less goods? It would seem it would depend on how fast the U.S. economy is growing and if it is at a point where it would continue stimulating the economy such as consumers purchasing more. This article could be seen as how the global economy works. It shows how the strength of the currency of a country determines its exports and imports, which ultimately could determine the direction of the economy.

Kerry Concedes

What do you all think will happen to the economy with Bush in presidency for another four years? I do not think the outlook is hopeful, but I am saying this out of my opinions, not out of any economic facts, other than Bush has already lost numerous jobs.

Beef is Beef

I for one would not spend extra money on a brand name of beef. There are brand names of jeans and other types of clothes, but each brand name fits differently. The difference in the way beef tastes for the same cut of meat, is how it is prepared after the butcher. The question is, how are they going to make Oregan Trail Beef more desireable to consumers? The chicken industry advertises different brands of chicken, each having thier own unique chicken quality. Tyson chicken advertises that their chicken is not injected with hormones, therefore it is healthier. There are other brand names of chicken that claim to be more tender than others. Unless Oregan Trail Beef can somehow make the beef better for the consumers, the beef market is going to remain perfectly competitive. There are very few people that would pay extra for 'better tasteing' beef, when that can be done in their own kitchen.

http://econ.aplia.com/images/fenner_beef/beef_article.html

Vice Presidential Debate Costs Cleveland

As the campaigning draws to a close tomorrow, we can look back at the more than 45 times that the candidates have visited the great state of Ohio. As a “political battleground state” Ohio has been the target to visits by the Campaign Corps from both of the major political parties. Cleveland, on October 5^th, was host to the Vice President and Senator Edwards (hopefully after tomorrow he will still be just Senator Edwards) as they exchanged ideas in the first and only Vice Presidential debate. As reported in the Cleveland Plain Dealer, the City and Case Western Reserve University were proud to host the event, even though it meant spending large sums of money on safety measures, and cosmetic adjustments to the surrounding areas. The VP’s debate cost Cleveland a reported $227,406. Unfortunately these costs have been bared by cities across our state, each of the other visits costing between $15,000 and $30,000. Not including the costs that the state highway patrol has had to shoulder since last May. The question is whether or not the visits have had a economic benefit on the cities the candidates have visited. Well in my opinion, the hundreds of man hours logged (Most of which are time and a half) must have helped the local economies in some way, shape or form.

Walmart to Blame for Health Care?

Critics have found another problem to blame on Wal-Mart, the country's largest employer. An abundance of Wal-Mart employees have been found to not be under health care or to be on Medicaid. The reason many of the employees are uninsured is because Wal-Mart either makes the eligibilty requirements too hard to meet, or because they made the monthly premiums too high for the average family to afford. Although Wal-Mart is being blamed for causing so many employees to go without insurance, they advertise themselves as a company that helps their employees out. Recently, Wal-Mart has run a television ad with a man claiming that his son survived because of Wal-Mart's health benefits. Is Wal-Mart really the cause of an abundance of employees being uninsured, or are the critics trying to blame Wal-Mart for yet another wrong doing?

Sleepy Medical Interns

In recent studies they have found that medical intern students are working too many hours. The interns were hooked to machines to moniter them. They found that on average the interns nodded off around 5 times when working the long shifts. In 2003 interns were limited to 4 weeks with 80 hours a week. That is too many hours to be working. So far no deaths have been caused by mistakes due to the lack of sleep. Hospitals have now cut intern hours to 12 in surgery and 18 in medicine. What do you think needs to be done?

NHL Collective Bargaining news

The NHL's Executive Vice President and Chief Legal Officer Bill Daly has started a article to keep people updated on what is going on in the NHL NHLPA discussions. This will keep us all updated on the problems that are facing the owners and players. The fact that the NHL is not as popular as the 3 other major sports makes me think right away that hockey players shouldn't make as much but that is just me. The economic outlook for hockey players and owners is discussed pretty good in this article. Also, it points out some facts that the players are not looking at.

New Tax Loophole

Everytime one tax loophole is fixed, another one opens up. This new loophole is very interesting. I just wonder how long till this one is fixed and what could be next. Do you think this new trick to get out of paying taxes is fair?

Four Myths About Social Security

Social Security is a hot political (and economic) issue that is fraught with misperceptions and misunderstandings. Arnold Kling writes,

"The transition cost myth is one of four Social Security misconceptions that I want to address here. The others are the misconception that Social Security is a pension, the misconception that the Baby Boom is the main problem with Social Security, and the misconception that Medicare is in worse shape than Social Security. Although there is an element of truth behind each of these
misconceptions, what is reported in the press and believed by the general public is more myth than reality."

Read the full essay here.

Does Your Vote Really Matter?

While browsing on the web the other day, I saw this article called "Don't Vote: It makes more sense to play the lottery". Of course, with it being election time and all, I decided to read it. The author, Steven Landsburg, is trying to make a point that your vote doesn't really matter. He says in the election of 2000 when the vote came down to Florida, if any 1 of the 6 million voters would have stayed home, Bush still would have won because the only way your vote would matter is if the election in your state is within one vote of a dead-even tie. And even if that were the case, it would only matter if your state tips the balance in the electoral college. Steven Landsburg says,

"Imagine you live in Florida and the 6 million voters are statistically evenly divided—meaning that each of them has (as far as you know) exactly a 50/50 chance of voting for either Bush or Kerry—the statistical equivalent of a coin toss. Then the probability you'll break a tie is equal to the probability that exactly 3 million out of 6 million tosses will turn up heads. That's about 1 in 3,100—roughly the same as the probability you'll be murdered by your mother."

He also stated that,

"The situation is worse for people who live in New York state. Last time around, about 6.5 million votes were cast for major party candidates in New York state and 63 percent of them went to Al Gore. Assuming an electorate of similar size with a similar bias, my chance of casting the deciding vote in New York is about one in 10 to the 200,708th power. I have a better chance of winning the Powerball jackpot 7,400 times in a row than of affecting the election's outcome. Which makes it pretty hard to see why I should vote."

Does this really make sense? Does he have a point? So if people are so pressured to vote all of the time, especially teenagers and college students, is it really making a difference whether we vote or not? What if thousands or millions of people who would have voted decided not to, would it make a difference?

Oil backs off a bit

hey oil prices are dropping. Good news eh. Check out the link

End of the Ride

Disney CEO will quit in 2006 after 20 years at the top. Michael Eisner will step down as Walt Disney Co's chief executive when his contract expires in September 2006. Eisner has been through bruising corporate battles and a shareholder revolt that has hurt the company. Disney is a world wide name and with this annoucement of the CEO leaving by 2006 may have people questioning what will take place in the next two years. With Disney being such a giant parent company to companies like ABC and Fox Family Worldwide, what will this annoucement bring. With a CEO planning his departure what will the public and shareholders think, will people think differently. Will Eisner make foolish decisions knowing he is leaving or will he continue to work hard for company while he is there. If Eisner makes foolish decision in his final two years will it have a impact on the US's economy being such a big company linked to so many other large companies. What will the impact of this annoucement have on the economy.

Tomato Shortage

Due to the recent hurricanes in Florida and the recent floods in California, the nation is experiencing a shortage of tomatoes which results in an increase in the price of tomatoes. Many restaurants are trying to find alternative means of preparing their dishes with less or no tomatoes. Wendy's has cancelled it's planned promotion of a new sandwich due to this shortage and is expecting to end this quarter in a loss because of it. In contrast, smaller restaurants who are also feeling the effect of the higher prices and lower quantity have decided to keep their prices the same within their menus because they fear they will lose their customers.

If you were a restaurant owner, which approach would you use in order to gain profit - increase your prices, cancel or modify certain menu options, or keep your prices the same in hopes of a higher quantity being purchased from you due to customer loyalty? Is there another option which would work best?

World Series

The Yankees got beat lastnight in the ALCS by the Boston Red Sox. It is clear that the Yankees are the most popular team in baseball, even though other teams are catching up quickly. If you look at merchandise sales the Yankees are always at the top. My question is this. With the Yankees not in the World Series this year is this going to hurt the ratings in the Series? Obviously the Red Sox are popular too, but do they draw as many fans as the Yankees do? Also, because of the Red Sox winning the ALCS, and the Yankees struggles to win a World Series for awhile now will this cause merchandise sales to go a different way?

Economics and the Movies

CNN/Money staff writer Corrin Eckert offers an intriguing theory regarding the relationship between the state of the economy and the types of movies that reap millions at the box office or are rewarded 'Best Picture' at the Academy Awards. Eckert suggests that darker, depressing films succeed in times of recession, while brighter, uplifting films fare well when the economy is strong.

The 1970's support this claim. "The Godfather, Part II" and "One Flew Over the Cuckoo's Nest" were crowned 'Best Picture' in '74 and '75, during a period of severe recession. As America's economy regained its strength, the following two years gave the Oscar to "Rocky" and "Annie Hall," both uplifting, heartfelt films.

The article offers a slightly more recent example: the success of "The Silence of the Lambs" and "Terminator 2" back in 1991, two dark movies that were popular during "extreme economic anxiety and a wavering stock market performance."

But what about the time it takes to make a movie? Movies take an average of 2 to 3 years to create: unless the world is facing a long-standing crises (like a war, for example), a movie will most likely reflect what producers thought people were interested in 2 or 3 years before. Movie critic Peter Reiner states that most recessions do not last long enough to have a real impact on the content of a movie.

Entertainment and Media Analyst, Chris Dixon, says that audiences seek escapism when choosing movies, looking for not only entertainment, but also hope.

According to the CIA's website, "the years 1994-2000 witnessed solid increases in real output, low inflation rates, and a drop in unemployment to below 5%." This makes for a fairly healthy economy, and every film rewarded with the 'Best Picture' Oscar between '94 - '00 were uplifting pics, with the exception of '99's dysfunctional-family black comedy, "American Beauty."

Now consider these past three year's winners: "A Beautiful Mind," "Chicago," and "The Lord of the Rings: The Return of the King." Did the content of these three films correlate with 2001 - 2003's economic conditions? Do you feel that Eckert presents a sound theory?