How much would you pay???

By now everybody knows that college football is in full swing. Currently in NCAA rankings, my Ohio State Buckeyes are the number one team in all the land! Later today, they will be taking on the thirteenth ranked Iowa Hawkeyes at Kinnick Stadium, which is in Iowa City. For those of us who are not lucky enough to have tickets the game, it will be broadcast in front of a national television audience on ABC. But what about those people who do have tickets to the game?

Now I am a diehard Buckeyes fan, but for the right price, I would be willing to sell my ticket to any Ohio State football game (if I had one)! From economics, we know that as the demand for an item goes up, the price for that particular item goes up, especially as the quantity available for the particular item decreases. This is where the economics of the football game come in. Currently on eBay - Ohio State vs. Iowa, Ohio State vs. Iowa Tickets items on eBay.com, a single ticket to the game costs up to $900! Considering that the typical student ticket to any one of these games ranges from $25 to $50, that is a pretty nice profit for a single game ticket. Now, this is just a ticket to Ohio State against Iowa. For a ticket to the biggest rivalry in all of sports, Michigan vs. Ohio State, one can only guess and wait to see how high ticket prices skyrocket for this amazing game. Especially if both teams are undefeated when the Wolverines come to the Horseshoe and take on Ohio State this upcoming November 18th.

So what would you do if you were a student at Iowa and had a ticket that you could potentially sell for $900 or more? What if you were a student at OSU and had a ticket to big game against Michigan: go to the game or illegally sell the ticket? As aforementioned, I'm a huge Buckeyes fan and a have a hatred for the Michigan Wolverines. But if I had a ticket to the game and could sell it for $500 or more, you better believe I'm selling that ticket and settling the watch the game on a big screen television somewhere! How about you?

A Healthier Change???

A proposal in New York is being discussed about a ban similar to that of the smoking ban. The product being discussed is Trans fat in fast food restaurants. Thomas Frieden, a health commissioner, stated that “Trans fat is a dangerous and unnecessary ingredient.” This proposal will affect all fast food restaurants, including the famous McDonalds, Burger King and Wendy’s. If this ban is put in place there will be consequences. Chefs and restaurants will be fined if they are caught using certain banned ingredients. The question is, will fast-food restaurants lose income/consumers due to the possible change of ingredient, which could lead to a change in overall taste and satisfaction? Do you believe this ban should be passed? I believe that this change will not lead American’s towards better health; consumers may just eat more, which eliminates the healthy aspect of this change. All in all, changing an ingredient will only help guide the consumer through the steps of a healthier lifestyle. It’s the lifestyle that needs to be changed, not the product. People need to exercise along with eating properly in order to see and feel healthier. What is your opinion on this subject? http://www.cnn.com/2006/HEALTH/09/26/trans.fat.ban.ap/index.html

How to get the ladies????

Have you ever wondered why Jimi Hendrix got so many ladies. Was he really that attractive was it the guitar, or was it the fact he did acid on a regular basis. What we are going to do is try and successfully find out what gets makes you attractive toward the opposite sex.
You think back to all the popular rock stars, and every single one of them had women all over them, now what did they have they we don't. Lets take Alice Cooper for example is he better looking than most of the guys like you or me, no not really. He had instruments, and he played them well. Now lets take Snoop Dogg, he is not the best looking fellow out there, but he gets all the women. He smokes a lot of pot, right, so there is another quality you have to have. One last example would be Justin Timberlake, he does not do drugs, and does not play an instruments, but he is rich. Lets review:

• You have to do drugs.
• You have to act like you can play an instrument.
• You have to have a lot of money.
• Do not worry about dressing nice, just do the top three things and you would be good.

Ecstasy: Good or Bad

Ecstacy is a drug that everyone thinks is unbelievably dangerous, and noone knows anything about. Actually X is the drug which our government spends the most money on researching. There are 54 different types of ecstasy (pictured left) out there, and all come from underground laboratories. This exact webpage will sell a kit to test your X pill before you take to make sure that it will not physically harm your body. Many urban legends are out on the web, and around that say X is physically harmful, which is all urban legends.

As explained in the webpage the ecstasy pill used to be used in doctors offices such as psychologists, and mental centers. Why here you ask, well because people that go into these places have problems. A lot of the problems that involve your brain does not allow you to speak about what is going inside your twisted head. Not only would the patients take the pill, but the doctor as well would take it, so they could conversate, and share their problems.

Do not get me wrong X is not a safe drug by any means, but do not believe all the garbage about the physical harm. The only harm that you can get is if you bring it on yourself, like falling down the steps.

Dell looks to outsourcing to drive expansion

Dell is revamping their entire business model as they build new factories around the world. Their new goals are to reduce the number of services they provide in-house, do more outsourcing, and put a greater emphasis on design. Dell is currently building a new factory in Brazil and hopes to start building a new plant in India soon. They are also putting together a new team of over 60 design professionals to re-evaluate every current process and model. They want their products to be manufactured more efficiently while still being “cool” and not losing any of their functionality.
How will this affect their business? Will this expansion help or hinder Dell’s ability to be profitable?

Owens denies he tried to kill himself

Terrell Owens has been acting up for years, starting with his nasty comments about his quarterbacks, to risky touchdown celebrations, and complaints about being underpaid. These conflicts were always about the game of football, never about the matters of life or death. Late Tuesday, T.O. was taken in an ambulance to an emergency room. Some words that came out the next morning were suicide, depression, and overdose. Right away, Owens explained that it was all a misunderstanding. Right after he checked out of the hospital, he went back to the Cowboy’s headquarters. Right after he arrived, he caught some passes and then went to a crowded news conference showing his usual perky smile. At the news conference, Owens looked a little amused about the situation. He said he was sorry for causing a distraction, thanked his friends for worrying about him, and said he felt so good that he expects to play Sunday – even though he has the broken hand which led to the pain pills situation. “It was just an allergic reaction,” Owens said. “It’s very unfortunate for the reports to go from an allergic reaction to a definite suicide attempt.” A document said that a friend named Etheredge, called 911 about a suicide attempt and that she informed paramedics that T.O. was depressed. She also said that Owens bottle of painkillers was empty and that he was trying to harm himself. A spokesman said that whatever happened was “not a criminal offence”. Head coach Bill Parcells ended up walking out of his Owens-related news conference in nine minutes. “When I find out what the hell is going on, you will know,” Parcells said. At Owens’ news conference T.O. said “I am not depressed by any means” and that “I am very happy to be here”. The report said that rescue workers were notified because Owens tried “suicide by prescription pain medication.” There was mention of 35 pills that weren’t accounted for. “The rumor of me taking 35 pills, I think is absurd,” Owens said. “I don’t think I would be here if I had taken 35 pills.” Owens clarified that the bottle of hydrocodone, a generic form of Vicodin, was defiantly empty, but the additional pills were in a drawer. He had taken two or three, along with some all-natural supplements which he believes the combination made him groggy. Owens does not recall what he told the emergency responders. “I was kind of out of it,” Owens said. His friends and teammates supported Owens before he had his news conference. They were skeptical about him trying to kill himself. In my oppinion, T.O. is not your normal gifted athlete. I do agree with him and I don't think he tried to kill himself.
I believe that T.O. does a lot of his showing off just for attention. The question that bugs me is if he is really sorry for the distractions that he caused. He obviously didn't take 35 pain killers or else he would have overdosed and probably died. Hydrocodone is not a kind of painkiller you can take a lot of. You are out of it after taking one or two. I don't really like T.O. and I don't think anyone else can get along with him besides himself. Do you think he did it on purpose or was it a complete accident? Did he really know what he was doing all along? What do you think?

Homeowners May Get Cheaper Heating Bills

After years of rising heating bills, homeowners are likely to find some relief this winter. As we all know prices in gasoline have been falling dramatically, because of this the cost of natural gas on the market is about half the cost of what it was last year. Over the past two months the price per barrel of gasoline has gone down by fourty cents. By the price of gasoline going down people will have to pay less for their heating bills and for there transportation. By not spending so much money on high gas prices people can start to spend there money elsewhere. By spending there money elsewhere it is a good way to jump start other parts of the economy.

After a Seven-Year Ban, Salmon Fishing Returns to Maine

For the first time since 1999 salmon fishing has reopened but it took nearly two weeks after opening day for the first salmon to be caught! Salmon season was closed in 1999 due the rapid decrease in the population and the threat of distinction. According to Patrick Keliher who is the executive director of the Maine Atlantic Salmon Commission, "Pollution from paper mills, blasting by logging companies, and dams that impede salmon migration helped slice the Penobscot salmon population to 530 in 2000, from nearly 5,000 20 years ago.” Today around 1,000 salmon currently make their home in the Penobscot River but an Environmental Coalition has raised $25 million to buy three dams from a power company, tear down two of them and build a fish bypass around the third. This is in hopes of restoring the once large population of salmon and also bringing back the millions of tourists and their money to Maine. The reopening of salmon season has looked to be a positive so far; people from all over the United States are flying in to fish the rivers for these world renowned fish.

Although the season has reopened there are still many restrictions which will be monitored very carefully. People so far have been generally willing to deal with these restrictions in hopes that some day soon the population of salmon will flourish as it was many years ago. People in Maine feel very strongly about fishing for salmon, they believe it is a part of their history. It has been a tradition since most can remember that the first salmon caught each year is given to the president of the United States. Mr. Joel Bader, head of the bass-fishing club in Bangor stated, “I was last here when fishing ended, and I’m here today.” “It’s amazing, really part of history. It’s what every fisherman strives to achieve — catching Atlantic salmon. It’s what I want to achieve, especially on the Penobscot River.”

When the government closed the salmon fishing season many tourists stopped coming to Maine which resulted in a decrease in the economy. Was saving the salmon worth a decreased economy for seven years? Did the government make the right choice? In my opinion this was best for both Maine’s economy and fishermen. Although it may have hurt them for seven years, I believe it will benefit them in the long run. Salmon fishing is very popular and in high demand, so if they would have never closed the season, the fish would have died off, but by closing the season they have been able to restore the population, which will hopefully someday increase Maine’s economy.

Who Wantes to be a Millionare?

Liz Pulliam Weston explained in her article So You Want to be a Millionare , how the average American can make seven figures without even going on reality t.v. She was once like everyone else, grumbling over her morning coffee about how she would pay the monthly bills, when she decided to mess around with her personal finance computer software. She simply fiddled around with the numbers, told the software to update the account balances, and watched seven figures appear before her eyes. Mrs. Weston loves the fact that the experience of becoming a millionare was so "mundane". She did not even have to win the lottery, score big in the stock market, inherit a large amount of cash, or appear on a reality show. But she did have to practice the following key elements: making financial security a priority, spending less than she earned, saving and investing regularly, paying down her debt, owning a home, and maximizing her income. So follow these easy rules and maybe you too can become a self-made millionare and join the ninetieth percentile as far as United States' incomes go.

What do you think of Liz Pulliam Weston's plan for easily becoming a millionare? Is it realistic? If everyone listened to her advice, how would this affect America's economy?

Chew It Over... Using Snuff to Stop Smoking

In a front page article from the Wall Street Journal dated September 16, 2006 discussed the idea of using snuff to quit smoking. For those who don't know what snuff is, you may know it as chew or rub, with brand names such as Skoal and Copenhagen. While many find the habit disgusting, it is being explored as an option for smokers who want to quit. A growing body of research shows smokeless tobacco to be less harmful than cigarettes, but it obviously poses other risks such as tooth loss, gum disease and mouth cancer. Another attraction to this idea is the elimination of second-hand smoke, one of the largest gripes of non-smoking coalitions, and public health issues in this arena. It must be highlighted that this research was funded by the U.S Smokeless Tobacco Company, but also by the American Cancer Society. Also in the artice, a 2002 statement from Britian's College of Physicians believed that the use of smokeless tobacco is anywhere from 10 to 1,000 times less harmful than smoking. All that said, I point to a later article in the Wall Street Journal dated September 27, 2006 found here.

My view is that this is interesting research worth publishing for the sake of public awareness. If a smoker who wants to quit, and can't do it with the patch or the gum, perhaps chew is the answer to at least allowing them to live a more healthy lifestyle. Of course, we must weight the opportunity costs here. Is it necessarily better to chew? What about the health risks posed by chewing? Would we see less healthcare costs (paid for by insurance, and worse yet the government through medicare/medicaid), or would we see them go up with mroe health problems posed by chew? Of course, noone is saying that chew is a positive alternative to smoking, but in extreme cases, this research points to chew as a way to quit. Weigh the opportunity costs, your personal views, and tell me what you think...

Doggy Country Clubs?

According to The New York Times article, A Dog’s Life, Upgraded, the boarding kennel industry is a booming one. This industry is so booming that dogs are enjoying amenities such as heated swimming pools, hiking, listening to music, watching television, nail polish treatments, gourmet meals, and pedicures. Pet-related businesses are experiencing such an increase in demand that the projected sales this year will be $38.4 billion. The dog-days are over for these cherished pets. They are now being provided “bungalows” instead of rooms and heated tile floors and high-tech ventilation systems. Club Bow-Wow offers an “ambassador suite” where a staff member actually sleeps overnight with the dog. Now that is service. No longer do owners have to worry about their pets feeling lonely, because after an intense day of running outside pets can receive fresh biscuits, baths, and massages. The best part is the bedtime story over the sound system. One may think these additions are meaningless, but to the owners who are rolling-in-the-cash, it is a worthwhile investment. These luxuries come with a lavish price. For example, one kennel charges a customer for play time with an employee. This charge allows owners to increase their income without taking in more dogs. Community play, a chance for dogs to mingle, is becoming a demanded activity and one that employers are willing to supply. The turkey barbecue Thanksgivings and tailgating parties during college football seasons go to show the extent to which pet owners will go to accommodate for their companions. There is actually a class as the University of Wisconsin titled “The Biology and Philosophy of Human-Animal Relationships.” As much as these owners love their pets, the economy loves them even more. Some high-class kennels are charging as much as $185 per night.
This article, although humorous, is kind of interesting. As a profitable market, companies are taking advantage of the opportunity for pet owners to pay almost any amount for their pet’s lodging. Where is line between caring for a wonderful family pet and just down right not necessary?

Parents Unaware of Children’s Drug Habits

Most teenagers would never confide to their parents about what kind of substances they are using. Sometimes, parents can assume that as their little kids grow older, they are bound to try certain drugs and, of course, alcohol. A study by researchers at Washington University in St. Louis tried to distinguish how accurate parents are when guessing how much their child is involved with drug and alcohol use.
The study involved 591 parent and child duos that were asked about the teen’s drug habits. Alcohol, tobacco, and marijuana were the three most prevalent substances in adolescents at 54%, 44%, and 23% respectively. The parents were very naïve about their children doing drugs or drinking alcohol. They only reported use about 50% of the time for all three substances.
However, the older the child was, the more the parent was aware of these three substances being used by that child. This study shows that children, at a young age, are starting to delve into the experimental drug use, which can lead to substance abuse or dependency later on in life. Parents should try to become more involved in their child’s life outside of home and encourage them to stay away from drugs. If parents never teach their children about substance abuse, the teenagers can move from these three ‘soft’ drugs to harder drugs such as cocaine and heroin.

Closing Hospitals for Medical Costs and Education?

Attorney General, Eliot Spitzer is running for governor of New York. He plans to cut medical costs for New York in order to cut property taxes. In order to make these medical cost cuts, Mr. Spitzer says New York will have to close several hospitals. By making these medical cost cuts, property taxes will decrease by $6 billion over three years, thus giving thousands of uninsured children medical care. This cut in property taxes will also drastically increase funding for education.

What is the cost of closing hospitals? Would too many people lose jobs? Also, would the closed hospitals cause overcrowding in other hospitals? Will the benefits of helping children outweigh the costs?

U.S. Trade Dilemma: Free or Fair?

This article brings one question to mind, why does the U.S. trade policy seem to be at a standstill? Trade for the United States has accounted for nearly twelve million jobs and approximately twenty-five percent of economic growth. The change in domestic attitude and politics around the world together has created the least hospitable atmosphere for trade liberalization in recent memory.

U.S. trade policy is at a crossraods between pursuing a freer trade or a fairer trade. The United States has a dramatically lower rate than the economies than other large countries, making it impossible to ignore those countries negotiation positions.

If the U.S. does take on the free trade orientation, this would provide a more rational set of economic policies. This could promote economic growth, the leadership aspect for the U.S., and help control inflation. However, at the current moment, a freer trade is not what the public and congressional are looking for to happen to the U.S. In contrast, the fair trade orientation will make available a m0re accepted set of policies.

Changes happen everyday dealing with government, economics, social, technological, and with trade. Trade can expand or decline with these changes. Countries are interdependent on each other and rely upon one another. Each country specializes in certain products and then they can trade those products with the other countries. In order to keep trade from becoming a standstill, the American ecnonomy must keep trading. Any kind of war or halt of trading would severely damage the American economy. In the U.S.'s best interest, they need to keep trading and not have a standstill point. This goes for other countries as well. Economic expansion and growth is a vital factor of trade and stability for the United States.

Make College Cheaper

For almost every college student, to pay for college is always a problem. Undoubtedly, tuition is the biggest part of the total charge and people can hardly find any way to save money from this. The best situation ever is, of course, a student has a full scholarship. But for most other students, they still have to pay college by themselves or their parents. Obviously, tuitions give college students a lot of burden. However, there is still another big part of expense for college.
Books in the US are extremely expensive. It is not surprising that a student spends five hundred bucks on books at a bookstore at the beginning of a semester. This expense can be trimmed a great deal in a way provided by Davis. Actually, many college students are doing this to save their college expense, like buying books online. But some students are still concerned about the time they would spend online to get a book, especially at the beginning of a semester when people are busy settling down in their dorms. Hopefully, in many colleges, people can start to choose courses early in the middle of the previous semester. In such a way, you don’t have to rush to do everything at the beginning of a new semester and can start your book plan at the previous mid-term. Also, selling your used books, either in an auction on campus or online can add some bucks to your pocket.
Cell phone cost is also part of college expense. To save money, students can choose suitable rate plan for themselves. You can estimate how much you would pay for each rate plan and choose the one that costs you least. In many colleges, they offer free phone call on campus and in dorms. So if your cell phone service charge you respectively on each call you make, you’d better use the dorm phone to save money.
If you carefully manage your college expense, you can save a lot of money. What have you done to cut your expense?

How long will real estate go?

The sellers market is closing up shop due to the decrease in home values. Home sales have plunged about four percent. Lawrence Yun believes that " the decline will be short-lived and should turn back around in the spring of 2007". However, other economists aren't so optimist. The believed reason behind this decline is due to the disconnect between buyers and sellers. Sellers aren't willing to cut prices, while on the hand, sellers aren't willing to hand over a larger amount of money. Real estate has always been big on location, and what is going on in the Southeastern part of the country maybe different than what is going on in the mid-west. So how can the this buyer and seller market change?

Coca-Cola Plant Opens In Afghan Capital Amid Raging Violence

Sunday's opening of a new $25 million Coca-Cola production plant did not go smoothly. A sniper on the gleaming Coca-Cola factory's roof peered through his gun searching for any hint of a terrorist threat, while an American dog handler barked commands at a journalists being frisked by Afghan security agents in the parking lot. But according to the pro- U.S. Afghan President Hamid Karzai, more business openings and investments of this kind will lead to a downturn in Afghanistan's violence. Karzai claimed that this new Coca-Cola plant was another step forward for economic growth, self-sufficiency and better living standards for Afghanistan. The Afghan president said he hoped the new Coke plant would serve as a catalyst for further private investment to boost his country's ailing economy, which is heavily reliant on foreign aid. The Coca-Cola plant offered 350 new jobs for Afghanistan citizens.

However, many Afghans are not prone to the new plant. Jomaa Gul, a 34-year-old who lives in the ruins of what was once the administration block of Coca Cola's last production plant, sees things in a different way. Gul's father worked at the 40-year-old plant before it was ravaged by artillery fire, which killed more than 50,000 people and installed the Taliban. Jomaa and his family were forced to move into a bombed-out building, along with four other families. Jomaa believes that Afghanistan needs new hospitals and an end to violence, not investment for soft drinks. Because of the new Coca-Cola plant, some citizens have no running water, no electricity and no sanitation. Jomaa thinks hospitals and security are more worthy investments for $25 million than a soft drink plant.

Whose side are you on? Is the risk of economic growth worth making a country experience more poverty or violence? Even though Coca-Cola thought long and hard about returning to Afghanistan, could the brand be seen as a symbolic American target for terrorists?

Gang Uses Toys to Transport Drugs

After an eight month undercover investigation of a crew associated with the Crips, 96 people were charged in which 81 suspects were arrested for the sale of a controlled substance. These suspects made $1 million a year by transporting drugs in remote control cars and concealing the drugs in the cars battery compartment. During the investigation, officers saw suspects make deals on school playgrounds and one undercover officer even had a child bring him the drugs that he had bought!
Half of the suspects live in a housing project in the Queens where more than 3300 people live. Over 200 purchases of cocaine, heroin, and marijuana were made during the investigation and 10 pounds of cocaine, thousands of dollars, and assault weapons were also found. Police believe that these drug dealers are associated with the Crips and believe that they have multiplied in the Queens area.

Personally, I can't believe that people are so desperate to sell drugs that they would resort to transporting them in children's toys. Any child could intercept the car and have access to cocaine and heroin. Making a little kid transport drugs for you is also outrageous. We have laws which prohibit the distance a liquor store can be from a school and the fact that these people were making drug transactions in the actual playground is absolutely ridiculous. This can lead to the increase of young children trying drugs and becoming addicted. Drug dealers are always known to be criminals, but this story just makes me think that they are heartless.

Gasoline Prices

So what exactly is making gas prices high? Why have they declined over the last month? There are many things that go into the gasoline price. These factors are both direct and indirect. Some direct factors are amount of oil produced, refining capacity, distribution and marketing, and taxes. Some of the indirect factors include geo-political turmoil, political actions and sanctions, speculation by commodity traders, weather, and energy demands from up and coming countries. The direct factors are pretty well defined. For example, on average 20% or approximately $0.40 per gallon of gas is in taxes. For a view of the breakdown refer to http://www.howstuffworks.com/gas-price.htm. The indirect factors and their exact effects on gasoline prices are harder to nail down. However, these factors are very important when determining why gas prices are high or low. For example, when there is relative calm in oil producing countries, gas prices are usually lower.

What are your thoughts concerning the price of gasoline? How big of an impact do you feel indirect factors have? The government always says the American people deserve cheaper energy and that our current gas prices are outrageous, but have they thought about repealing some of their taxes on the commodity? What do you feel has a larger impact on the price of gasoline direct or indirect factors?

Forecasting the Winner of the Nobel Prize in Economics

The Bank of Sweden Prize in Economic Science in Memory of Alfred Nobel (aka the Nobel Prize in Economics) will be announced on Monday, October 9, 2006. Of the 57 men who have won the award outright or shared in it since the prize began in 1969 (no woman has yet to win it), 37 have been Americans. The leading university homes of the winners include the University of Chicago (9), followed by Harvard (4), University of California-Berkeley (4), and Cambridge University, England (4).

Now, let's see how well you can forecast. I will award 2 bonus points to the first person who correctly forecasts the next winner of the Nobel Prize in Economics. Your educated guess must be posted as a comment to this blog post before the Nobel Prize announcement is made. In the event that more than one person submit identical guesses, the earlier timestamp of the comment will determine the winner. The bonus points will be added to the winner's next exam score following the Nobel announcement on October 9.

[Any comments made to this post do not qualify as part of the required components to your blog grade. These bonus points are available only to students in my economics classes.]

Chrysler to slash production as sales of trucks and minivans suffer

Daimler Chrysler is agian ready to cut production by 135,000 vehicles to help reduce the dealer inventory in response to falling sales of its large pickups, SUVs and minivans. The announcement comes after Chrysler said Friday that it expects its third-quarter losses to more than double. With the demand in trucks and minivans going down due to the rise in gas prises, Chrysler is trying to curb the market by decreasing the amount of minivans and trucks produced. With oil as a complement to buying cars, consumers will try and forcast the price of crude oil in order to determine whether they want to purchase a brand new minivan or truck. The market is already being flooded with other manufacterers and compariable products that produce better fuel economy and better vehicles. Will the reduction in supply help the Chrysler cooperation try to sell more trucks and minivans? Will this reduction in trucks and minivan manufactering have other unintented consequences? We can only wait and see if this plan works for the Chrysler cooperation.

Have you been approved?

In 2002, a bill was written that claimed Ohio racetracks housing more than 2000 electronic slot machines and staying open for business for twenty one hours a day were to be called "mini-casinos". About half the proceeds, round-about $500 million annually would go to public school systems. The remainder of the revenue would be shared among the seven racetracks in Ohio and the communities that house the tracks and also some programs that prevent and treat gambling addiction. House and Senate made it a top priority to have the bill passed seeing it as a perfect solution to Ohio's budget problems and in hopes of helping the state's troubled racing industry compete with tracks in Kentucky and elsewhere. Although, the introduction of the bill did cause a lot of problems through out the state. They brought up the fact that Ohio's Constitution limits gambling to charitable bingo and the lottery. One citizen felt that it was "ridiculous" to offer a bill that would authorize slot machines by putting them under the auspices of the Ohio Lottery Commission. The good thing about the bill is that it called for the lottery commission to approve a menu of games and machines that racetracks would select from. The Senate president says the bill is constitutional.

Personally, since the bill requires certain rules to be followed, I think its a great idea. Since half the revenue would go to public schools, it is even better. What do you think? Do you feel that the bill was constitutional? Do you think it would add to a gambling problem that could already be present?

The Patriot Act and Corporations

Wesbanco Inc., one of the largest banks in our area, is just one of the numerous corporations affected by the United States' Patriot Act. Since the act has been put into effect, Wesbanco has actually had to create new departments just to ensure that they abide by the laws of the act. New departments equals more employees, which also equals more and more money put towards the company, technology, and the salaries of the employees. According to an interview I conducted with Cathi McClelland, Assistant Vice President of the Mortgage Lending Department at Wesbanco Inc., some of the steps the company must complete before approving anyone to open anything as small as a one hundred dollar checking account include background checks, OFAC (which determines if the individual is listed under the directory of terrorists), and photo I.D. Also, if anyone places more than $3,000 in the bank or takes more than $3,000 out, all of these checks must be run. In the case of the Amish, if they were not approved before the Patriot Act was enforced or refuse to get a social security number for religious reasons, they simply cannot be approved.

Do you think it necessary to complete all of the above measures just to open a checking account? Do you believe it right that Amish must either betray their religious beliefs or simply not use the services of the bank?

The Christmas Story

It is the beginning of September and that means the start of Christmas. Or does it? Hopefully people realize that Christmas is not for another four months. Most cannot help but think that Christmas is right around the corner. Where ever you go right now Christmas displays are up and holiday items are being advertised. If you walk into Wal-Mart at the start of September you can already buy decorations and toys for the holidays. J.C Penny, Toys R Us, and Target also are putting out their Christmas merchandise in hopes that they will boost sales. Do you want to see Christmas lights, ornaments, Santa Clause, and elves in the summer? Now that is the question one must ask themselves. There are a lot of people that like getting their holiday shopping over with before the rush. The National Retail Federation survey said that more then 21% of shoppers do some Christmas shopping before the end of September. Really though, is Christmas in September a good idea? It might be for retailers but it is debatable for the consumers.

If people know that things that go on sale early might not be around come Christmas time, they will buy it now and save it for later. The scarcity of the products will motivate consumers. This in turn makes the stores benefit. Even though it is not freezing or that merry time of the year, buying your Christmas gifts now is not a bad idea. However, before we know it, people will be seeing Easter merchandise in all the stores as well.

Online Coupons on a Keychain

Have you ever taken the time to go through the coupon section in the weekly newspaper and clip out any coupons that may be of interest to you? According to the coupon-processing firm, CMS, fewer than 1% of coupons ever get redeemed. Imagine all the savings that the general population is missing out on. However, one might argue that the savings aren't worth one's time.
The founders of ScanAps believe that they have found the solution to help Americans save money without taking the time to clip coupons. ScanAps is producing a new technology which involves a usb scanner that would enable consumers to scan coupon bar-codes online, thus eliminating the use of scissors and the possibility of paper cuts. The coupons can be redeemed by downloading the coupons at the store.
This new technology has been tested and it was found that consumers actually spend 8.3% more and use a whopping 26% more coupons. ScanAps is currently negotiating with a national and a few regional grocery chains and could turn out to be the greatest thing since sliced bread.

The Asymmetry of Gasoline and Crude Oil

Approximately 8.5 million barrels of gasoline is consumed daily in the United States. It is said that gas prices respond more quickly when crude oil prices rise than when crude oil prices fall. Market power, search costs, consumer response to changing prices, inventory management, accounting practices, refinery adjustment costs, and the behavior of markups over the business cycle are many explanations offered from economists. Crude oil prices over the past year has more than tripled. At http://www.dallasfed.org/research/efr/2000/efr0003b.pdf it said, "The cost to produce and deliver gasoline to consumers includes the cost of crude oil to refiners, refinery processing costs, marketing and distribution costs, and retail station costs and taxes." The Balke, Brown, and Yucel (BBY) found that the shocks to crude oil and gasoline prices originate with supply rather than demand.
Borenstein, Cameron, and Gilbert (BCG) used weekly and biweekly data from 1986 to 1992, for their studies, in a series of bivariate error-correction models to test for asymmetry in price movements between gasoline’s various stages of production and distribution. They have found strong and pervasive evidence of asymmetry with this study.
The remaining explanations for the asymmetry suggest that policies to prevent an asymmetric relationship between gasoline and crude oil prices are likely to reduce economic efficiency.

Online Poker: Ban it or Tax it?

In an article by the San Francisco Chronicle we're informed that nearly 70 million people in the United States use the online gaming world to play poker and connect with millions from their own home. Now Congress wants to pass a law to ban online poker and make it illegal. However there will be exceptions for online betting on horses and some state lotteries. There are poker player alliances forming now to help fight Congress and prevent this law from passing. I feel that Congress should allow people to spend their money how they choose to and with the amount of money that passes through online poker daily if they were to begin taxing it then it could lead to great gains in the American economy.

HP Computer Stock Prices- A Buyer's Market

HP Computer's stock prices are holding tight. With allegations in the media of illegal practices in information gathering, from dumpster diving, to spyware, to using cell-phone logs of competitors and officials in the computer industry. Executive Boardroom member Dunn, of HP Computer, is on the chopping block for this recent scandal. Remarkably, the stock price has weathered the storm thus far. However, as more and more people catch wind of the story, and the media becomes more interested in the happenings of HP Computer, the stock prices are bound to fall. Even as Microsoft held trial for monopolistic practices, their stocks fell. However, while there is egg on the faces of HP Execs and company employees, a true economist would see the benefit to be made. HP stocks may plummet through the floorboards, but it is sure that they will bounce back. A small scandal like this one never hurt anyone, as far as corporate America is concerned. This is a minor case when compared with the Firestone incident of 5-7 years ago. Firestone killed customers, HP doesn't have that to worry about. For a more relevant example, Microsoft stock is strong as ever, and they were drug through the dirt much worse than HP will be. While courtroom trials are likely, it seems it would be very difficult to end a computer company in today's modern world. We rely so heavily on computers that it would only take the release of a newer, smaller computer to save HP's future. That said, as stock prices fall (if and when, yes) a true economist would snatch them up. As stockbrokers say, "the trend is your friend." While the stock is down, it will grow in the future, as the memory of this recent scandal fades and the computers get smaller and cheaper. We will see if HP has the same fate as Microsoft, or if it is destined for corporate doom. Time will tell, and so will the ticker...

GM attempts to improve business

GM is trying to increase sales by offering an extensive warranty on its vehicles. This includes full service on engines and transmissions for up to five years or 100,000 miles. By offering this warranty GM is placing an extreme amount of confidence on its product. GM hopes consumers will place their trust in their company. They are able to make this warranty and believe in its viability for a few reasons. First, vehicle quality has improved 25 percent over the last five years. Also, repairs under warranty have decreased 40 percent. GM has received higher rankings from customers in dependibility surveys. The hope is that GM will be able to sell more vehicles, thus create a greater profit. This is a gamble however, because if the quality of GM vehicles is not up to standard the company will lose money in repair costs.

Saudi Students in American Colleges

According to the Associated Press article "Saudi Students Pour Into U.S. Colleges," roughly 10,000 Saudi Arabian students are registered to attend classes this semester in American colleges. These students, 90% of whom are given $31,000 scholarships by the Saudi royal family, are much sought after by large public universities throughout the United States who want their tuition dollars. According to U.S. government officials, Saudi Arabia plans to send even more students by January, bringing the number of Saudi students in American universities to approximately 15,000.

Will this influx of Saudi students paying full tuition affect the likelihood of colleges accepting many American students? Additionally, what effect, if any, will the presence of these Saudi students have on tolerance and understanding between Americans and Saudis during this time of conflict between the ideals of fundamental Islam and the Western world?

Minorities Pay More for Loans

A recent study done by the Federal Reserve on Friday shows that minorities such as African-Americans and Hispanics are more likely to pay higher interest rates for loans then Whites. The report was based on data was collected from the Home Mortgage Disclosure Act (HMDA) from 8,850 loaners across the nation. The law states that "lenders must make pricing disclosures for home loans whose interest rate exceeds certain thresholds. For first-lien loans, lenders must report those on which the rate exceeds the yield on comparable Treasury securities by at least three percentage points". In 2005, aproximately 55% of African-Americans went over the threshold which is dramaticly higher than the 17% of white borrowers. Does this seem fair to minorities? Are there any ways to help preent this from happening?

Who's to Blame?

Whos to blame for the gobal imbalances? China's currency policies are being singled out by the G7 finance ministers and central bankers. At their previous meeting, they came to the conclusion that China needed its currency to become more flexible. They believe that this may be the cure for global economic imbalances. The group is to meet again this month to further discuss the issue. They plan on discussing the doller, yuan and yen.
Could one country really be the problem for global economic imbalances? I find this hard to believe. It seems that China also thinks that the idea of them being to sole problem of global imbalance is false. Chinese Finance Minister Jin Renqing says, "The global imbalance is more a result of globalization and macroeconomic policies taken by each country." He says that China is only accountable for 5% of the world's gross domestic product. It surly has to be the world as a whole who needs change to solve this problem. China has also responded to the issue saying the the U.S is a major problem for the imbalance and that we need greater national savings. So, who is to blame?

Biology in the Backyard, or Worse the Bedroom

Just like how some computer businesses or viruses started in a teenagers' garage or room; biotechnology may follow. Due to the cost of hardware falling and genetic information multiplies, bio-hackers are surfacing. Teenagers can’t quite shell out the $50,000 for second hand equipment and basic home-biotechnology lab, but prices are falling. There are a myriad of biology graduates that have graduated and are interested in this. Some have already had success, Agribiotics, which is an agricultural biotechnology firm, was sold for $24 million and it grew from a home run business. A reader from the magazine Biotech Hobbyist, brags that he has created a weed resistant to Roundup. More tell of cloning trees and creating skin-tissue cultures.

As interesting as this all sounds, it scares me to know that people have the capabilities to do such things in there homes. With new technology comes the questions of ethical issues and how to handle restraints. Should they’re be laws against these home labs? Could this be hurting our economy and/or our environment? Should there be penalties for wrongdoing?

Stem-cell research

According to Foxnews.com, a company by the name of Advanced Cell Technology Incorporation was accused at a Senate hearing of falsification of its work. The company claimed to have figured out a new technique to remove a single stem cell from an embryo without harming the embryo. The single stem cell could then be constructed into a useful stem cell line. Many stem cell advocates believe that stem cells are the key to treating and curing many diseases and injuries.
However, currently government stem cell research is not allowed because the embryo dies in the process. If embryos were truly unharmed in a new technique, this would be a great step for the medical world. However, after the company claimed their ability to do such work, the company disclosed that during experiments, they took out more than two stem cells and the embryos were killed.
But could Advanced Cell Technology Incorporation really be close to developing a new and improved technique? This could lead to great changes in the medical world as we know it.

Happy Labor Day

During this past Tuesday, the day after Labor Day, Intel Corporation announced that it would be reducing its job force by 10,500, or approximately 10% of their entire labor work force. I'm sure that those 10,500 people greatly appreciate Intel for waiting until after the holiday to terminate their position! The article, Behind That Sense of Job Insecurity, asks the question whether job security in America has dramatically declined. More often in the news, it seems as though we hear of big time companies and corporations who have to let go significant portions of their labor force. Statistically though, over the past three decades nothing have significantly changed.

Consider this: According to Ann Stevens, an associate professor at the University of California, in 1969 the average amount of years that a working male held their longest job was 21.9 years, whereas in 2002 that number has only slightly reduced to 21.4 years.

So what do you think? Most of us are college students working hard and spending big money to earn our college degrees. Does it make sense for us to spend large sums of money as well as creating large sums of debt to be turned loose into an economy that seemingly produces unstable job positions?

Iraq War could exceed 1 Trillion

One thing is certain about the Iraq war, it has cost a lot more than advertised. The costs grow by at least $200 million each and every day. In the months leading up to the launch of the war three years ago, few administration officials were willing to comment publicly on the potential costs to the United States. In fact, the economic costs are rarely included in the debate over whether to go to war, but some economists argue it is quite possible and useful to think about potential costs and benefits.
Most estimates put forward by White House officials in 2002 and 2003 were lower than the cost of past wars. White House economic adviser Lawrence Lindsey estimated $100 billion to $200 billion for the cost of the war in a September 2002 interview with The Wall Street Journal. The U.S. direct spending on the war in Iraq has surpassed Lindsey's estimate and most economists attribute billions more in indirect costs to the war effort. The most current estimates of the war's cost generally start with figures from the non-partisan Congressional Budget Office, which as of January 2006 counted $323 billion in expenditures for the war on terrorism, including military action in Iraq and Afghanistan. The House approved another $69 billion for military operations in Iraq and Afghanistan, which would bring the total to about $400 billion. The Pentagon is spending about $6 billion a month on the war in Iraq, or about $200 million a day. That is about the same as the gross domestic product of Nigeria. With costs growing day to day with the war in Iraq is it really worth the money that is being spent?

Quakes

When living in Florida one tends to worry about Hurricanes, but not earthquakes. On September 10, 2006 people from Tampa Bay, Flordia reported that they felt an earthquake come from the Gulf of Mexico. The quake had a magnitude of 6.0 and lasted about 20 seconds, having no effect onoil operations. According to Don Blakeman of the National Earthquake Information Center, this was a big quake for Florida.

This should not effect anything in Flordia, being that it only lasted 20 seconds and only did little to any damage to the oil operations in the Gulf and to the Tampa Bay residents. The last earthquake to cause any real damage happened way back in 1879. Back then oil was not as big a deal as it is now a days.

A Change in the Air

From 2001 to 2005 the airline industry lost a whopping $42 billion dollars as a whole. However, since this past summer changes have been made and helped to improve the industry all-round. John Weber, an airline vice president said "he doesn't believe September 11 did anything but maybe jump start the changes that the airlines would have made anyway during the last five years."
He went on to say, "It's the economy that drives the aviation business, not any single accident or terrorist event." The internet boom is actually what is believed to have had the mose impact on the airlines, not the attacks of 9/11, which are considered to be a "coincidence".
Another consultant to the business, Michael Boyd claims that the changes that many airlines have gone under are due to the events of that day in 2001. With airlines using less efficient forms of production, it is believed that the attacks boosted the renovations. In response to the events on 9/11, economists predicted a quick net decrease. However, actions were taken and the situation was improved.
Employment has been reduced by almost 40%, fuel saving modifications have been implimented, capacity regulations were changed, and more energy efficient planes have been produced. The question lies in whether these changes were a long time coming, or are a direct result of the terrorist attacks felt all across the world on September 11, 2001.

That's mine!

In June 2005 the Supreme Court split five-four on a decision of eminent domain. The majority sided with the cities and it was ruled that government officials can use the power of eminent domain to condemn homes for private development. This development is all in hopes to boost the local economy.
It has long been a duty of the government to promote economic development and eminent domain is the next step on many cities' economic plans. The problem is growing throghout the nation especially in rural areas. Cities are expanding into farm land, but the owners of this land do not want to sell their land that has been in their families for many years. Many people to not feel that any amount of money can make up for the loss of thier land.
The developers that say they are working towards econmic development seem to forget that every time they take land away from someone the economy is decreasing. There are many people in rural communities that are completley losing thier livelihoods to these expanding cities. Has the agricultural economic development that this country was built upon been completley forgotten? How will the newly expanded cities and companies survive when there is a shortage of food in this country?

A Biliionaire Athlete?

Professional athletes have been making more and more money over the past ten years, but none of them have been making more than Tiger Woods. Woods could become the first ever billionaire athlete. His all-time PGA earnings, in his ten year carrer, accounts for $64,412,324, when the next closest is half of that. If his endorsements (NikeGolf, Buick, American Express, Accenture, etc.) were included, he is then a definite billionaire, but earning a billion dollars just as an athlete is the question. Tiger just turned 30 years old and is playing better than ever winnning 5 straight PGA victories and won 2 of the 4 majors this year. Within the next ten years Woods' will break one billion in earnings easily. This is becoming a big issue because people believe that an athlete should not be able to make that much money. So, is this right, having an athlete be a billionaire?

Tiger Woods is more than likely the best golfer in history, possibly only to Jack Nicklaus, and Tiger has won over fifty times in his career, but does it still seem reasonable? You can't take away any of Tiger's accomplishments and everything that he has earned, but hard-working individuals who achieve different/smaller accompishments can not receive the same type of pay. Nowadays, a professional golfer, on average, earns nearly $400,000 in prize money a year, while the average worker earns no where near a quarter of the $400,000.

There will never be any correlation between a professional athlete and the average workers, such as teachers, in their salaries. Do you believe that professional athletes make too much money? Even if the athlete earns the money, 50+ victories, is it still wrong for an athlete, such as Tiger Woods, to become multi-millionaires and even billionaires?

Should the Fed raise the Interest rates?

We Know that four things determine Nominal interest rates, first the money supply and money demand in our market determines the price level. This price level determines the inflation rate, and then inflation rate determines what the Fed will set the interest rate at. In this article there is a debate on whether or not the Fed should continue raising the interest rate, or if they should pause on raising it until a later time. "Cleveland Federal Reserve Bank President Sandra Pianalto said, Friday it was crucial the U.S. central bank anchor inflation expectations and explained that their stability was an important reason she supported a decision to hold interest rates steady last month" She believes that we first must look at what the inflation rate was predicted to do in the future. "Unlocking some of the mysteries about inflation expectations may help central banks to decide whether, and how, to incorporate a numerical inflation objective into the monetary policy process." Was one of Pianalto’s several suggestions. After reading this article it sure did make me think about the benefits and the con's about increasing the interest rates in the United States. What do you think?

Hurricane Florence

Hurricane Florence, the second hurricane of the Atlantic system this season, will reach Bermuda sometime Monday, September 11. Experts say it is too early to say whether it will hit Bermuda directly or head farther out into the ocean, but the effects have already begun to hit Bermuda and the surrounding area. Winds have reached nearly 80 mph and the storm is quickly becoming a Category 2 hurricane. All but the most thrill-seeking residents and tourists have been evacuated over the past few days, as scientists predict up to 5 or 6 foot tidal swells and an increase in the violence of the surf and rip currents along the entire eastern seaboard. While Bermuda's infrastructure is built to withstand hurricane conditions (with newly built houses required to withstand sustained winds of 110 mph and many power and phone lines underground), what will the effects be on the other parts of the eastern seaboard? Will east-coast tourism and manufacturing suffer from a large loss in revenue as a result of Florence?

Top Jobs in America

Everyone wants to get a job that pays well in order to provide for themselves and/or their families. There are thousands of jobs in America that you can choose from. A lot of the top jobs do not have many annual job openings. People will choose a job based on its flexibility and the stress level.

The top ten jobs in America were rated by MONEY Magazine and Salary.com. They were rated considering their growth, salary, stress, and other aspects.

Looking at the list I realized that we do not have some of those majors here. Should small liberal arts colleges broaden their course/undergraduate programs in order to increase their opportunities?

Wages Affect Inflation?

Is an increase in wages in America beneficial to the economy? Many economists, such as Stephen Stanley at RBS Greenwich Capital, believe that increases in labor wages will ultimately lead to inflation, which is an economic term used to describe the general rise in prices. Recently labor costs in the U.S. have increased, which seems beneficial, but may be a sign of inflation.

From the statistics of The Wall Street Journal it is evident that labor costs have indeed risen, which means; workers are being paid more, that they have been given more bonuses, or that they have received better health care and pension benefits. This is a good thing right? Michael Moran at Daiwa Securities America Inc. says that if the pay gains are mostly driven by bonuses, they will not be inflationary risks. On the flip side, if unit-labor costs rise, then inflation could be just around the corner. *Note: A unit-labor cost is the cost of labor for each unit of output. Defined by Rafael Gerena-Morales.

For now it seems that inflation is at ease according to the Federal Reserve's August research studies, but one can never be too sure. Will this sudden raise in our nation's labor costs ultimately lead to inflation?

Ramifications of 9-11

The attacks of September the 11^th 2001 have ramifications that are only now just being felt by the world. In the days following the attacks the world economy was faced with a daunting task. How to ensure that markets all across the world remain open and that the investors remained confident in the markets. In the United States of America the response was quick and efficient. The Federal Reserve announced shortly after the attacks that, “it stood ready to furnish any financial institution in short-term difficulties with enough cash at hand to carry on trading.” The reserves actions lead to the distribution of billions of dollars to companies and organizations, thus ensuring that the economy kept running. When the US markets opened six days after the attacks the Federal Reserve continued its proactive stance slashing interest rates on money loaned. These actions and those of the Bush administration and their international counterparts saved the world from a market collapse in the days following the attacks.

Now five days from the five-year marker, the United States of America is on once again on a perilous road towards economic hardship. The United States of America while being perhaps one of the strongest economic powers is facing a serious crisis. As a result of the structure of our economy and the war on terror the United States of America is facing two increasing large deficits. The first deficit is a result of our economy’s structure with nearly a 700 billion dollars being spent on the import of goods and services. This trade deficit is what some economist believe will lead to a sharp and sever drop in the value of the US dollar in the world economy. The second deficit facing America is that in the realm of leased money, the US Government currently poses a large amount of debt or cash it owes to another party. According to the LA Times writer Richard Simon, “The Congressional Budget Office revised its estimates of the federal deficit Thursday, predicting that it would shrink to $260 billion in the current fiscal year — lower than previously projected — but rise to $286 billion in the 2007 fiscal year, which starts Oct. 1.” According to the CIA World Factbook the current population is “298,444,215 (July 2006 est.)”. This means that in order to play the debt off every citizen would have to pay nearly 1000 dollars if the government ordered the debt paid. In the coming years with increasing expenditures in defense and security the debit is sure to only soar.

Should Americans worry about the prospects of the collapse of the dollars value? Do we as a nation need to plan to restructure the economy of America so the trade deficit is more balanced? Is the mounting debt something that we should fear in the coming years? Is the world once again faced with problems that provide no clear solution?

Massachusetts House OKs Stricter Abuse Laws

Prompted by the clergy sexual abuse scandal, the state House of Representatives passed new legislation on September 8th that makes it easier to prosecute sexual abuse cases against children and puts tougher restrictions on convicted sex offenders. The new measure changes the statute of limitations for child sexual abuse cases from 15 years to 27 years. The intent is to allow young victims to mature to adulthood and realize that what happened to them when they were younger was wrong. The measure also increases the number of convicted sex offenders who must wear global positioning devices after their release, bars the most serious sex offenders from living in nursing homes, requires lifetime parole for high-level sex offenders who do not register their place of residence, and requires the state to classify offenders by the severity of their offense before they are released from prison.
Many people believe that this is only a step in the right direction. There are many other steps that need to be taken in order to get justice for the victims. Some people feel that the statute of limitations for civil cases should be extended as well. Is this new law fair? Does it make more victims come forward or does it allow too much time? Will this cause faulty accusations to surface? What impact will this have on other states?

http://www.boston.com/news/local/massachusetts/articles/2006/
09/09/mass_house_oks_stricter_abuse_laws/

How Does Engineering Sound?

Have you ever wondered what to major in to pretty much guarantee a job after graduation? Well Anna Fisher, FORTUNE senior writer says that engineering is among your most promising fields. She mentions that The Bureau of Labor Statistics expects that the economy will generate 200,000 more engingeering jobs by 2014, and many employers are already noticing a shortage of skilled workers in a variety of engineering fields. The annual pay for the average engineer in the U.S. is now $72,925. Thats alot of money considering the average U.S. citizen will recieve just under $30,000 a year. Two other majors that seem to be very promising are accounting and physical therapy.
"New and complex laws are creating tremendous demand for accounting skills,"says John Challenger, CEO of Chicago-bases outplacement firm Challenger, Gray & Christmas. In 2005 the average salary for an accountant in the United States was $50,770. That is almost double the average Americans salary.
Physical Therapists are also in desperate need in the U.S. "The aging population of baby boomers will create high demand for workers in this field," Challenger predicts, with nearly 56,000 new job openings by 2014. The average annual pay for physical therapists was recorded to be $65,350. Not sure what you want to do with your life? Well now you may have a hint to where you might want to lead yourself.

Pay your bills with a finger

No need to worry about forgetting your credit card or cash when going off to a shopping spree; just make sure to bring your fingers with you!
According to an article on CNN Let your fingers do the paying by Matthew Boyle, in the near future big retails stores such as Wal-Mart, Target, and Costco are planning to install a paying system called “electronic wallets”; which is an idea of swiping your finger on a scanner at a register to pay for groceries.
This is how the ‘magic finger’ biometric system works. The customer who wants this service goes to a kiosk store and submits information on their checking account, phone number, and credit card information. This process enables them to register their fingerprint in the system, so the next time they go to the register all they have to do it scan their finger, enter their telephone number, and choose to either pay with credit, debit or checking.
This new and advanced biometric system brings benefits to both the customer and the retailers. For the customers, it provides a 70% speedier check out, and most importantly it increases security and the possibility of avoiding fraud.
There is even a bigger advantage for retailers. Every year the retailers pay an immense amount of transaction fee for credit and debit card payments hurting their profits (retailers have even filed lawsuits against Visa and Master Card). If the retailers install this new technology, they can avoid transaction fees. Research’s Scott Langdoc estimates “switching from credit cards to checking accounts could shave the net cost of a transaction by anywhere from 40 to 70 cents. That’s big money”. This biometric system just may be the savor to grocery stores which has low margins set.

Though as we learned in Economics class, every choice must and always has an opportunity cost. One of the opportunity cost mentioned in the article if this system is installed is the privacy issue, or simply customers may not even bother to go install their fingerprints because it is time consuming.

Do you think it is a good idea to install this biometric system where you can shop with your finger? Can you think of any other opportunity cost if this system is installed? Would you apply for this service to make your shopping easier?

Finally... 3, 2, 1, Take off!

Today, Saturday, the Atlantis launched at 11:15am on its way to continue work on the space station. The ship carried 6 astronauts on it, along with one of the heaviest cargos. The cargo weighed about 17 ½ tons. The crew was short one man do to the extra weight it carried. This launch was the first one since the Columbia incident in 2003. The crew has been trained extra and is happy that they were. The extra training will be a lot of help, being that they are going up to install a big part of the space station. The mission will consist of three space walks. The crew is happy to finally launch being that this launch was delayed a few times, for different reasons. Some of the complications they ran into were weather, and sensor troubles. The sensor delay cost NASA a lot of money. On a brighter side, NASA saw this as a clean launch with very few complications. The station is expected to be finished in 2010, and there will be several launches till then from the U.S. and allied countries to finish the work. I feel that NASA was smart in taking the extra time and money to train the astronauts extra. NASA spends alot of money each year for experiments, tests, and equipment. Spending alittle extra to ensure the safety of the crew, I think was very important. Ever since the Columbia incident it is very important that NASA check, recheck, and check again, to make sure everything is working properly. The cost of the extra precautions is worth the final product (space station) in my opinion.

Gas May Be Headed Back Near $2

It has been no secret that gas prices in the past couple of months have been outrageous. However, I am sure some of you have noticed that the price has been steadily dropping in recent weeks. According to the chief oil analyst, Tom Kloza, at the Oil Price Information Service, prices should keep steadily falling once we pass September 15. The fall in gas prices would be huge for most. Since the hurricanes that hit last summer and the threat that has remained for more, oil has been a scarce necessity. Most people have no other option than to purchase gas, this is how they commute to and from their jobs. Gas companies feel they can charge outrages prices and get away with it because people need this resource and there is no getting around that.

Since the increase in gas prices though, many people have cut back on leisure drives and vacationing because they don't have the extra money to spend on gas. According to Kloza, a few circumstances that have caused the drop in gas prices are, the closing of the summer driving season and the demand for gas, decreasing threat of a hurricane or tropical storm, and the end of seasonal federal requirements on gas that make importing and refining cheaper. Although prices are decreasing, I do not believe they will decrease significantly enough to affect many peoples opinion on outrageous gas prices.

In the last year gas prices have fluctuated dramatically. How have you reacted to increased gas prices around the country? Do you believe that we should be charged so much for a natural resource we cannot live without?

Can You Here Me Now?

Since the creation of the cell phone during the late 1980's it has changed the world forever. No longer is it uncommon to see someone talking to themselves while walking down the street, or while sitting in class at school to hear a song from one of our favorite artists. In fact cell phones are being used at record numbers, and as a cause of this some states have banned cell phone use while driving. For istance it is illegal to drive and use a hand held cell phone in the state of New York, and other states such as California are working to put a ban on cell phones while on the road.

As the cell phone craze continues it is more of a problem in certain states and cities. Miami, Florida has become the number one city for cell phone use. With the average person recieving nine to ten calls per day, and that number will continue to increase as more and more people every day continue to buy cell phones.

Safety Since 9/11

Ever since the attack on the World Trade Center on 9/11, America has a feeling of anxiety about terrorism. To try to erradicate this feeling of axiety the government has decided to launch a "war against terrorism," which is essentially the war which started in Afghanistan and is now in Iraq. The Government claims that this war is increasing our safety in America, but according to a Poll: Many Americans Feel Less Safe taken by CBS, more Americans feel less safe than they did five years ago. We all know the real reason of the war in Iraq; we want the oil. According to the poll many Americans believe that we've created more terrorists from the war. Even though 55% of Americans say that Bush is handling the war the right way, it's sharply decreased from 90% when the war started. When asked if we were prepared for another terrorist attack, almost half said that we are not, and when asked about a chemical attack, almost 80% said we are not prepared.

Even though the War in Iraq seems to be helping out the war on terror, it doesn't seem to be making Americans feel safer. Could it be that we're trading our feeling of security for oil?

The New Facebook Creeps Me Out

Earlier this week, on September 5th, the current most popular social-networking site added a new feature to their site. Facebook's new feature has been named "News Feed" and has an unusual demeanor to it. Users can now view any recent actions that their friends have performed. Although, even in a society that has been extremely open with their personal information, this new feature is not being very well accepted. Just a few short hours after the change in the site that receives up to 250 million hits a day, countless anti-News Feed groups were formed. I myself joined a group entitled "The New 'Stalker Version' of Facebook Creeps Me Out," and one group, "Students Against Facebook News Feed," already had more than half a million members by September 7th. But in the college world, I couldn't imagine not having Facebook. This is all stated in the story The Facebook Rebellion on CBSNews.com, but the main point of the story is the fact that students do have power in numbers. They are only hoping that sometime soon our generation will put our numbers into something important such as the war in Iraq or voting. But is our generation as involved with the government and society as we should be or do we need to rally our numbers to become more active? Is there a way that sites such as Facebook could help us to create involvement in society?

Cuba's Economic Fate Up in the Air

Fidel Castro is ailing after surgery, and the country is anticipating the rule of brother, Raul Castro. Anxious to see what occurs, people believe that Raul will change Cuba's economy, for the better, and he is open to some changes. The U.S. is eager for Cuba to welcome capitalism and economic reforms. Since the Cuban missle crisis, the relationship between the U.S and Cuba has been somewhat shaky. http://www.usatoday.com/money/world/2006-08-27-cuba-economy_x.htm. The U.S. has an embargo on Cuba limiting nearly all exports except those of agricultural and medicinal purposes. Cuba is ranked as one of the world's least-free nations.
More than half of the Cuban population lives in poverty, and it has also ran a heavy debt owing European nations forty billion dollars. Along with the people and money problems, the production of goods has fallen and only oil, gas, and nickel have seen growth. If Cuba and the U.S. make ties and the embargo is lifted, agricultural exports would grow drastically, helping the U.S. economy. The U.S.-Cuba Trade Association works on behalf of its U.S. business members to protect the current trade and to expand and increase the potential for future business between Cuba and the U.S.

So, imagine if we lifted the embargo and traded not only agricultural products, but also medicine. We could help poverty, we could save lives, and we could help their economy grow, as weel as our own economy.

Time Magazine: California's Global Warming Solution

Global warming is an issue that cannot be ignored on any level, and I found this article to be interesting because someone is finally doing something. Here is a state that is not letting the federal government decide what to do, and is taking the time to make it's own impact and lead the way for other states to follow. It is not surprising that most citizens in this country want to do something about global warming and other negative effects that we as a nation are having on the environment. But is anybody really doing anything? How are you changing your ways to help the environment? When it comes down to it, can we really change our ways or is it too late? This effects all of is economically and socially but what can we really do to reverse it?

A Changing Climate

It is not secret that the earth’s climate is changing. And I am sure you have all heard more than enough about global warming and perhaps even some really crazy ideas on how to solve it. When I worked at a non-profit environmental group over the summer another group from Germany actually suggested to us that if we could get 2 million people to jump up and down at the same time on a certain day, we could throw the earth out of orbit and all global warming problems would be solved (right). Despite what you may have heard, climate changes are of real concern, especially for the U.S.

An article published in The Economist stated that, the United States is the world’s biggest producer of greenhouse gases currently, although it looks like China may surpass us soon.
The article goes on to say that developing nations feel that counties like the United States created emissions problems that are leading to negative climate changes and they should be the ones to fix these problems. However, as a country, we have done little to take control of emissions problem therefore it seems that if we don’t take action, many other countries won’t either.

Believe it or not, possible solutions that are being offered to solve emissions and global warming problems are economic ones. One solution would put a price on emitting harmful greenhouse gases. Or another option that economists like but environmentalist might grumble about, which is to have a carbon tax, allowing producers to emit and buy and sell emissions credits.
What do you think is the best way to solve these climate problems? What are your thoughts on emissions credits?

MLB Players Make Too Much Money?

Many hard working Americans were outraged when Alex Rodriguez signed a record contract that would give him 252 million dollars over 10 years. How can a grown man playing a kids game make over a quarter billion dollars while Americans working “normal jobs” make so little?

So it is a common response that most think professional athletes, particularly baseball players, make entirely too much money while teachers and other hard workers don’t make enough.

There is no doubt that 252 million dollars is a lot of money, more then anyone would ever need to live well. It is also only natural to want as much as you can get especially if the owner of the team you signed with is making even more money then that off of selling goods and tickets with your name attached to them. It is difficult to calculate how many people Alex Rodriguez puts in the seat day in and day out, and many hot dogs and pops those people purchase but there is no doubt the New York Yankees owner George Steinbrenner is making a pretty penny by having A-Rod on his team.

On jersey sales of $150 each it is clear that possibly the problem isn’t the players asking for too much money, but instead the owners trying to make too much money off these “cash cows” that put people in the stands.

Realtors Expect Home Prices to Fall

The cost of houses is expected to decline in the next few years. Although prices may remain the same or increase a bit, with inflation factored in, the cost of houses will still be less that what it is now in the next two years. People effected will include those who own their own home, those you are looking to buy or sell, and those that buy and sell homes quickly to turn a profit. The value of real estate typically rises, ther drop may have adverse effects on people in the market. Real Estate agencies may also see a difference in their business. Although prices may temporarily decrease, it does not seem to have any long term consequences for the market.

Essays for Money

I'm sure many of you have to write several essays each semester in fulfillment of the course requirements for your various classes. You may even look forward to writing a couple of them because they satisfy some intrinsic, scholarly, curiosity on your part. Well, what if you could also earn some money for the essays you write? (And I'm not talking about selling your essay to some desperate underclassman.) If you have the inkling, check out the following essay contest sponsored by the Institue for Humane Studies at George Mason University.

• aBetterEarth.org is sponsoring a contest on the topic "Endangered Species Act has failed not because it isn’t strong enough, expansive enough, or funded enough, but because its incentives are wrong."
  
• aWorldConnected.org typically sponsors a contest on the topic of Globalization.
  
• iLiberty.org typically sponsors a contest on the topic of Civil Liberties.
  

Prize money for each of the above contests are typically:

1st prize: $2000
2nd prize: $1250
3rd prize: $750
Honorable mentions (4): $250
Authors of the top 50 essays will receive a free book.

If anyone is interested in pursuing any of the contests, just check out the above websites for the details. I'd be happy to proof read any of your essays if you're interested.

If anyone is aware of any other essay contests, please add relevant links to the Comments section of this post.

Pushing nicotine - September 1, 2006

Do you ever wonder why cigarette companies receive so many customers? Particularly in some states where packs are priced over six dollars. Well, ten years ago Clinton's Food and Drug organization attempted to control tobacco as a vastly addictive substance. The Supreme Court denied it because Congress didn't give power to regulate it. The following may give congress a reason to start changing their minds. A state Department of Public Health made studies that showed that tobacco companies amplified levels of nicotine in many cigarette companies by an average of ten percent between 1998 and 2004. Silently raising nicotine levels at a period when states were outlawing smoking in public places and raising tobacco dues has helped the industry to continue a steady twenty percent or possibly even extra adult Americans hooked as customers. One of three states to actually trail the contents that are in cigarettes is Massachusetts. Nicotine levels rose in 92 of 116 cigarette brands, according to the DPH study. In twelve brands nicotine stayed constant, and in twelve it fell. This study came out a little more than a week following a federal judge lined that the industry had steadily deceived the public about the risk of its products. Mike DeWine of Ohio would have given the FDA the power to control tobacco but not ban it completely. The DPH statistics make it apparent that, lacking an agency like the FDA riding pack on it, the industry will do anything it can to keep smokers addicted. Congress should put an American life before this authoritative lobby and order the FDA to regulate tobacco.

Hurricane season a safer bet for travelers

“When a major storm hits the Caribbean, most airlines and hotels eventually wind up waiving the usual restrictions so that customers can change or cancel their plans free of charge. But because policies have traditionally been announced on a case-by-case basis -- and at the last minute -- you had little choice but to wait and cross your fingers. Now, after two brutal hurricane seasons, a few airlines and tour operators have taken steps to ease travelers' concerns.”

According to CNN, some airlines and agents have allowed that customers can make changes for free once the National Hurricane Center (NHC) declares a hurricane watch or warning. In addition, a few tour operators have improved their travel-insurance policies, such as a free replacement vacation if a hurricane interrupts your trip.

Nevertheless, the question is that will this action really lead to an increase in business? Will people still want to travel in a hurricane season? How many people will take the risk of a hurricane to travel? But anyway, I think this policy was not bad after all.

Are You Ready For Some Football?

As the pro football season fastly approaches, many fantasy football leagues are being started. This includes people in business firms.

Employers and now preparing for a potential decrease in productivity of their employees. Creating a fantasy league in the office takes up alot of time that employees should be using to work. Checking team stats, trading players, and chatting takes up time each day. Fantasy leagues may also pose legal risks for employees. Employers can face lawsuits claiming bias if office leagues exclude some workers, such as women.

However, fantasy sports can be a good thing for the office. Employees compete each week and build camaraderie between their co-workers. Some companies can even make connections with other clients.

Michael Henby, author of Fantasy Kick, a book about leveraging fantasy football in the office to provide a career boost, said, "It's like the new version of golf," he says. "Why do people want to play golf with the boss? So they can get good face time. Fantasy football allows you to be with a group of people from different departments."

Money Ball

I am a huge sports fan, and my sport of choice is baseball. I wanted to find out if team salaries translated into winning championships. Next I found a website on baseball economics 101. At that site I noticed that the player info was a little outdated, but the point is the same. Today if you look at the contract of Alex Rodriguez (A-Rod) you would notice that he has a salary reaching a quarter of a billion dollars! Alex Rodriguez makes more money than the Florida Marlins. Now that is an interesting piece of information. One not close to the game of baseball would probally expect the Marlins to be in last place, but that is not the truth, the Marlins are one game over .500 and only a couple games out of the wild card. They are also the hottest team in the league. Teams in the past have won with low salaries like the Oakland A's, Minnesota Twins, and the Florida Marlins. And on the other end of the spectrum there are teams with high salaries that are underachiving like the Giants, Cubs, and Red Socks. Year in and year out the Yankees are in the playoffs, but they have not won in several years. I think it takes more than just abunch of high paid athletes to have a winning team. Sometimes you need the guy that will stick his nose out there for the bettering of the team. If you don't believe me just look at the recent loss of Team USA to the Greek squad who didn't have any NBA stars on their roster.

9/11 Movies Maybe A Little too Early

September 11, 2001 was the most tragic event in our nation's recent history. Just like the bombing of Pearl Harbor it caught the nation by surprise; just like JFK's murder, everyone will remember where they were when it happened. People have been mourning the losses from that day for 5 years coming this September 11, but it seems that film makers have just found another tragedy to turn into big bucks. With 2 9/11 movies already into theatres and a made for TV movie ready to air on ABC, it makes someone wonder, is this a little too much for only 5 years after the actual event took place? According to Fox News, the producers of "World Trade Center", the movie that has just been released, have donated 1.3 million dollars to the building of the 9/11 memorial. That may seem like a huge amount of money, but when looking at the grand scheme of things, that's only about 2% of their gross (50 million) from the movie. Dyson and Baudo have put more money than that into Marietta College. Another movie, "United 93" has been released to DVD after being shown in theatres. This movie depicts the actual events on one of the planes from 9/11. It may just be me, but it's a little early for these movies to come out. I'm sure movie producers could have waited another 5 years. Going to the movie theatre to relive the horror of 9/11 this soon just doesn't interest me. I think that when the producers were thinking of making this movie they should have thought more about the pain people have felt from this tragedy instead of trying to roll over a profit.

Do you really know the status of your partner?

Homosexuality has been linked to AIDS for as long as AIDS has been linked to African-Americans. The virus is increasing in the African-American community. According to a research done in five major US cities, 46% of African-American men who had sexual intercourse with other men were found with the virus (HIV). African-American women are also affected by the virus. African-American men who are homosexual are scared to come out of the closet due to the antigay bias and are therefore pressure into sleeping with females.

At their annual AIDS meeting, the national black leaders of NAACP decided to take a new approach on the issue. This new plan is not to only target AIDS, but to deal with other issues that are associated with the disease, for example homosexuality, sex behind jail walls, and drug use. At the conference, the leaders talked about AIDS being a “black disease”, but few blacks disagreed with that idea or mentality. Cathy Cohen, a African Americana professor, at the University of Chicago, has been studying the effects of AIDS in the black community. According to Cohen, the stigma that AIDS is only a black disease, gives more fault to politicians and government officials to blame African-Americans for the disease. There hasbeen more medical facilities lately to help accomodate those who live with the disease. AIDS is not just a disease geared towards a specific race so it should be looked at as a world wide issue. AIDS should be treated as any other chronic disease like cancer. Many people tend to sweep the topic under the rug and not face the facts. Last year, Hip-Hop artist Kayne West would break that silence and bring about a change in the community. He touched on a subject that many tried to avoid. Through his efforts, he helped educate and save thousands of peoples lives.

Keeping things in prospective, we have to ask ourselves, what is really important? Is it legal to keep such vital information from someone? I think that the government should consider some type of legislation. Something that states it is illegal to keep your diagnosis from someone if he or she asks. It should also be illegal to keep your status from someone if you know you are HIV positive or have contracted the disease regardless if he or she asks. Just as measures were taken for alcohol, drug and tobacco prohibition, certain measures should be taken to prevent the spread of AIDS through ignorance.

Say Good-bye to the SAT?

According to the New York Times, one-fourth of U.S. News & World Report's Top 100 small liberal arts colleges have made entrance exams, such as the SAT, an optional choice for perspective students. Liberal arts colleges have found that there is an increase in the size and diversity of the incoming students. With no required admission exam, students from low-income families and students from non-English speaking families have equal opportunity to receive higher education, as opposed to students from wealthier families who can afford extensive tutoring prior to the exam. The optional exams also represent the commitment of liberal arts colleges to consider each student based on the potential of everyone regardless of the results of these tests. Therefore, the reputation of small colleges increases, because of the willingness to evaluate the whole person instead of one element of a student's ability.

As admitted college students, we were, at one point, compared to other perspective students for admission. Were we admitted or not admitted to a particular school based on defined test scores or on the quality of our academic/extra curricular activities? Is this a positive or normative analysis? Do the SAT and other admission exams represent the quality of a student? And if there were no entrance exams, how would admission counselors' evaluate the potential success of two students? What are small liberal arts colleges giving up when they make admission exams an option?

A Big Star May Not a Profitable Movie Make

Movie industry executives may be forgiven for thinking that the Viacom chairman was mad to let Tom Cruise go after a 14-year relationship simply because Mr. Cruise seemed a little off balance. Yet, if you ask economists and other academics that study the movie industry, Mr. Redstone’s decision was, in financial terms, spot on. No one really knows what was going through Mr. Redstone’s head, but one can’t discard that the reason is that it doesn’t make economic sense to pay him all this money. “There is no statistical correlation between stars and success,” said S. Abraham Ravid, a professor of economics and finance at Rutgers University, who, in a 1999 study of almost 200 films released between 1991 and 1993, found that once one considered other factors influencing the success of a film, a star had no impact on its rate of return.

In fact, there is a whole branch of economics that aims to explain how talented people generate so much more money than competitors who are only slightly less good. This idea is know as “superstar economics.” Superstar economics states that improvements in technology would make it easier for top performers in a field to serve a larger market. This would not only increase the revenue generated by stars, but would also reduce the revenue available to everybody else.

On average, movies that have big names starring in them make more money at the box office than movies that do not. Movie industry specialists argue that, in the complicated world of Hollywood economics, stars bring many different kinds of benefits. They are easier to market, they help sell more tickets at home and overseas and they help drive home-video sales, which are a bigger and bigger slice of studio revenue. Moreover, even if a star-studded movie does well, it does not necessarily mean that the stars are causing higher ticket sales. In fact, it seems to move the other way around: stars select what they believe are promising projects. And studios prefer to put stars in movies that they expect to be a success.

What do you think? Are superstars the reason for Hollywood’s success? Maybe the combination of a promising project and a superstar is the reason for fame.