Cars Over Planes for Holiday Travel

A lot of travellers will choose to fly if it will take more than six hours to drive to their destinations. However, over the past two years, airfares have gone up and gas prices are at a two-year low.

During the holidays, airports are always hectic with family and friends trying to get home. There are the risks of your flight(s) being cancelled or delayed. According to the Bureau of Transportation Statistics, more people, about 91%, travel by car than by air during the Thanksgiving Holiday.

Many people also like to combine their holidays with vacations. Jen Catto from Travelocity says when choosing a vacation spot. "ask yourself where people are not going." Where would you choose to go and how would you choose to get there, car or plane?

It's All About Legos

It seems that there will be many unhappy little children running around come christmas time this year. Many of Lego's products are sold out due to the company's efforts to downsize. This is one of the main questions we talked about in class. What is the optimal size for an industry or factory to operate at? Because of the downsize, one Denmark newspaper predicts that Lego will lose $127 million U.S. dollars this Christmas. In the long run was this a good decision to downsize? It is clear that Lego was losing money becuase they were too big. This may be because the diminishing returns were so great that the cost of operating was just too expensive. In theory, to maximize profits a company should produce output until the marginal revenue (MR) is equivalent to marginal cost (MC).

Lego found another way to increase profits by decreasing the variable cost. It found out that if they outsourced a few factories into countries where wages are low, then they could make an even greater profit. And after all, that is one of the main reasons businesses exist.

So good luck in trying to find your little brother or sister Lego's for Christmahaniquanzica this year.

Restaurants and the minimum wage

Voters in Montana, Arizona, Colorado, Missouri, Nevada, and Ohio are voting on whether the minimum wage will be increased for their state. Restaurant owners are worried that they will be hurt the most from a higher minimum wage. If the minimum wage is increased the restaurants will have to make up for the money lost. The restaurants may raise their prices which would most likely decrease the number of customers. Some restaurants would reduce the number of workers. A study done at Ohio State University found that about 60 percent of restaurants fail after three to five years. If the minimum wage is increased, the failure rate of restaurants could become even higher because many will have higher prices.

Protesting at Millitary Funerals?

Many of you have probably seen video clips online or on television of Shirley Phelps-Roper such as this video at http://www.youtube.com/watch?v=-in16plR9Jk . She is an attorney and a member of the Westboro Baptist Church in Kansas, which has recently become famous for its protests of millitary funerals. The members of the congregation have actually picketed at funerals, holding signs reading, "Thank God for 9/11" and "God Hates Fags". Shirley has appeared on numerous news shows, trying to justify the horrible acts of her congregation, and even told Tyra Banks on her talk show, "Tyra", that she is a "fag-enabler". Her claim is that anytime one's child dies at a young age, such as the young men and women killed at war, it is "God's furious wrath" that took their lives away and that they deserved to die. Free speech is one thing, but picketing at funerals is another matter altogether. The content and interpretation of the bible are not so much important here as the rights of those poor families who have to tolerate the evil behaviors of the Westboro Baptist Church when they only wish to bury a loved one in peace.
Do you think the picketing of Shirley Phelps-Roper and her followers could actually lead to changes in American laws, as they wish? What kind of punishment could be enflicted upon the protesters when they, after all, are "simply expressing their freedom of religion and speech"? I encourage you to watch some of Shirley's interviews on Youtube.com and tell me what you think.

YouTube Goes Wireless

One of the most popular online video sharing sites is planning to go wireless within the next year. So for those individuals who are technological savy, they can do everything and maybe more that YouTube offers from the convenience of their cell phones. YouTube chief executive and co-founder Chad Hurley is predicting that this will be a huge market. YouTube already has over 100 million viewed video clips each day. The company is ahead of their competitors which this proposal and it does sound interesting. Tons of people want their cell phones to do everything. Who would not want their cell phone to have video's on it? I know for sure I would love it. So uploading and sharing personal video clips do not have to be strictly from computers. They soon will be on wireless devices and it will be the next big thing everyone wants.

Christmas Work!

Need some extra cash during Christmas Break? Go fill out an application now! In the article, “Holiday hiring season begins”, posted on MariettaTimes.com mentions how businesses have started to hire people for seasonal positions, and they seem to be hiring a lot more people than usual! Holiday season is a busy time for stores such as Wal-Mart and Big Lots, and they need all the help they can. It is estimated that about 25% to 40% of their annual sale is from holiday seasons. Big Lots manager McNamee mentions in the article that on average his store adds about five more positions during the holiday season. Also, the reason for the increase in opening positions are due to the fact that managers are giving some full time employees time off to spend with their families. Though just because there is five more positions does not mean that you can sit around and wait till Christmas Break starts. The demands for these jobs are high! McNamee states in the article, “College students aren’t the only ones looking for extra cash. We have everyone across the board apply for seasonal help…Senior citizens, college students, high school students, and really everyone in between”. Are you planning to apply for a Christmas Job? Do you usually have a hard time or a easy time finding a job? If you do plan for some extra cash, take McNamee’s advice: “Now is the time to apply”.

Cops Selling Drugs

On Thursday morning, Sheriff Harold Franklin Cassell and 12 of his duputies were arrested for selling guns and drugs to the public. According to the United States Attorney John Brownlee the guns and drugs were seized as part of there enforcement duties. They were taking from the evidence room and put back onto the streets.
Now, how do the people that pay taxes to keep the crime down and have Harold Franklin Cassell as Sheriff feel? All they are paying taxes for, is to keep the drugs and guns on the streets. This is a town I wouldn't want to live in.

Click It or Ticket = $

When you see the sign “Click it or Ticket” you may or may not listen to it. Well if someone told you that you were paying for all of those who are not wearing seat belts within your health care and insurance bills, would you still think about putting it on or leaving it off? I know I wouldn’t.
Today, states with primary enforcement on seat belts laws average 78% of belt use, while secondary enforcement states on average 63% of belt use. These numbers might not seen like a big deal to you unless you are told that you are getting charged for the other 22% or 37% of people that do not use seat belts while driving. The increase in health care and insurance costs for those crashes with unbelted drivers and passengers are is not only paid by the ones who chose wrong, but paid also by society. About 85% of the increased costs is distributed to those who were not involved. So, why don’t you just take the 5 seconds to buckle up when you are going to drive?
It is said that, “Increasing the national seat belt use rate to 90 percent from the current 68 percent would prevent and estimated 5,536 fatalities, 132,670 injuries and save the nation $8.8 billion annually.” So if there is an increase in the quantity of those who wear seat belts then there will be a decrease in the price of health care and insurance costs.
Society today is based on money; people are greedy. This being the case then why aren’t we trying to save money in one of the easiest ways, wearing your seat belt?

http://www.policyalmanac.org/economic/archive/seatbelts.shtml

MariettaEcon

This is mostly the opposite of a prank, but I thought it was a good story especially since it was just Halloween. Let me know what you think of this crazy story.
And also who you think is behind it? Could it be a candidate's stunt to win votes before the election?
http://www.cnn.com/2006/US/11/01/pumpkin.town.ap/index.html

Netflix of Purses?

A new company named Bag, Borrow, or Steal has come out onto the market. Using Bag, Borrow, or Steal allows the borrower to sign up, borrow the purse of their dreams, and return it. They are calling it the “net flix” of purses. When the new company came into existence, it began booming with people. Why buy a purse for $1,250 when you can borrow it?! And then exchange it for a better one!? Membership costs $9.95 but the rental fees depend on the bag, some of which cost $2,500 retail. With only about one other contender on the market, From Bags to Riches, their company is swarming with business. The CEO of the company, Mike Smith, says there are about 100,000 bags out on circulation, and they plan to add more merchandise to the company such as jewelry. The purses are cleaned, shined, and polished between users. “Our goal is for you to not be able to tell whether it’s been used before or not,” says Smith. The company is now looking for ideas to expand their horizons in order to make it better.

Do you think that this company will cause the purse market to fall if members can borrow instead of buy? What about the designer bags? Do you think they’ll lower their prices in hopes of getting back their buyers?

Vaccine for Cervical Cancer

Earlier this summer the FDA approved the first vaccine for the sexually transmitted human papillomavirus (HPV). HPV is one of the major causes of certain cervical cancers. Cervical cancer hits 10,000 American women every year, killing more than 3,700.

The vaccine, called Gardasil and developed by Merck & Co., was approved for girls and women ages 9 [through] 26. It is most useful if given to younger girls, because the vaccine is ineffective once the virus -- which is very common among sexually active people -- is already present.

Some conservative social organizations have expressed concern that the vaccine could encourage young girls and women to engage in more sexual activity. As a result, there is a concern that unintended pregnancies or other sexually transmitted diseases could rise.

Life is full of tradeoffs!

The Future of Video Games

The Nintendo company plans to launch a new gaming system, the first system that is designed to allow non-gamers the chance to play video games. This new system called the Wii will allow an person with reasonable motor skills and a TV to take a chance at video games. This follows last years success by Nintendo with the DS portable console which has been seen as rejuvenating tool in the gaming community. Now with the Wii poised to launch in early November it will be interesting to see if a new community of gamers will come about. Nintendo's President says that the system will do far better than Sony's Playstation or Microsoft's Xbox 360 because the games are easier and simpler to play. The simplicity of the controllers and the games along with other features will in Nintendo's opinion bring people back to gaming. Do you think that a game console should be designed for realism or for playability? Will you purchase a new game system if the games appear to be easier to play?

http://www.cio.com/blog_view.html?CID=26278
http://economist.com/business/displaystory.cfm?story_id=E1_RDRDSRS

BOO!!! Halloween Sales on the Rise.

As scary as it may be, halloween sales have risen since last year! The reason for the increase in profits is because (surprise!!!) of young adults and adults alike. Halloween, mostly known as a kids holiday from the trick-or-treating and candy that is traditionally passed out, quickly seems to becoming a cultural phenomena. Looking around the college campus on both Friday and Saturday night this past weekend, anyone could observe that there were far more parties then usual, and that they were all costume parties! It is not just us, the college students though, as of the 8000 adults polled nearly two-thirds were planning to celebrate this years Halloween, which is a 52% increase from last years.

Did you help to account for the increase in Halloween sales this year? I did, as this year I was a C.E.O., appropriately so it seems based on this article and Halloween's increasing profits. Currently, Halloween is sixth largest spending holiday. Do you anticipate it to stay at that number? Or do you see Halloweens in the future becoming more profitable then some higher grossing holidays, like Valentine’s Day, for example?

Housing Slump Slows Economy

There have been several changes in the economy lately, and there has been quite a focus on the economy with the November elections coming up. Many people are attributing the slowed economy to the slump in the housing market. The two parites are portraying the economy in different lights with the upcoming elections. Democrats are looking at the slowing down of the economy, while Republicans are focusing on the strenghts of the economy. The article sites many reasons for the changes in the economy, but what does this mean for the future in our economy?

Drop in Gas Sales Effects Some Retailers

During the month of September sales in gas dropped by 9.3%, even though there was a 20% decrease in price. I see this being a good thing in many ways because a decrease in sales means there probably are more people car pooling and not driving as much in order to save on gas. This is going to help the environment which i am glad about. However, many food and beverage stores and car dealerships saw a .4% drop in their sales. Car sales dropped 8.9% alone. Many other types of retailers saw a rise in sales. This is not what economist had expected. However, this is probably because people are saving money on gas and buying other things. These rise in retail sales and drop in gasoline sales has been pushing the price of gasoline down. However, the price may not keep falling for very long, and the economy will have to look at other places for inspiration for the economy to keep doing well.

Wal-Mart Bank?

We have been talking in class about firms entering markets. Sometimes firms can enter and leave without ever having any real impact on the market. However, sometimes when a firm enters or leaves a market, the effects can ripple throughout the entire market, changing everything.

I have recently learned that Wal-Mart is trying to establish a bank, or buy one, whichever comes first. I find this interesting because the idea of a Wal-Mart back is very appealing to me, a poor college student. Wal-Mart says that its bank, should it come to fruition, would be aimed at lower income individuals, many of whom do not currently have a bank account.

Here is the problem with this Wal-Mart Bank. If they start lowering the prices of financial services, it could possibly have a large effect on the market for financial services as a whole. By selling under the market price, it could drive the price down to a point where some firms can no longer stay in business. So my question is: would a Wal-Mart Bank be a good thing or a bad thing for the financial services market?

American Tragedies, to Sell Trucks

A new commercial by General Motors has some consumers and critics wondering if the corporation has gone too far, when it comes to flag waving propaganda. The Chevrolet Silverado commercial starts off with the typical patriotic icons, such as the Statue of Liberty, busy, happy workers and all-American families. However, it then goes on to flash clips of bus boycotts, Vietnam, Nixon resigning, Hurricane Katrina, fires, floods, and finally (surprise, surprise) September 11th. It finishes with the statement “This is our country, this is our truck” with a large Silverado appearing from a golden grain field. Some critics have attacked General Motors for using images of Martin Luther King Jr. and Rosa Parks in order to sell their trucks.

However, even ignoring the moral issues that arise from the manipulation of such propaganda, there may be some unintended negative economic consequences that GM will have to face as a result of this campaign. The overall message seems to say that even though Americans (and GM) have been through some rough spots, they’re on the rebound. “The message seems to be, ‘If you don’t buy our truck, we will go bankrupt,’ ” said Al Ries of Ries & Ries, a brand consultancy. “The kind of people who buy trucks are not going to buy them because a company is in trouble. People like to buy from winners.” GM has steadily been losing money in recent years. Will the pity approach appeal to their target consumer or further alienate them? And, most importantly, how do moral standards affect what people buy?

Stressed Out College Students

College life can be very stressful. Probably all college students experience stress at least once a week. Stress can be positive and serve to motivate, but usually works in a negative way. One possibility for this could be the workload. Students typically have a very busy week going to classes, doing homework for those classes, writing papers, preparing speeches, and studying for exams. With all these contributing factors stress levels are likely to rise. The desire to obtain good grades is probably the most common factor that leads to stress. A person's social life can also cause them to become stressed out. Also, people who play sports in college are at a greater risk than non atheltes. Between going to classes and practices, their free time is very limited. Dr. Gregory Hall gives important warning signs to know when you are stressed.

-Changes in sleep patterns; taking longer to fall asleep; waking up tired and not well rested.
-Changes in eating habits.
-More frequent headaches than is normal for you.
-Recurring colds and minor illness.
-Frequent muscle ache and/or tightness.
-More disorganized than normal for you.
-Increased difficulty in task completion.
-A greater sense of persistent time pressure.
-Increased generalized frustration and anger.

So are you one of these stressed out college students? What is your biggest cause of stress and what is the best way for you to deal with it?

The 10 best U.S. cities to find a job

Almost all college graduates want to find a good job with high salaries. It is common that people would like to head to big cities for better life. Many job hunters believe that the job offered in such big cities as New York and Los Angeles will give them a better life. Meanwhile, they ignore a big problem. Job opportunities in these cities are very limited and highly competitive. These big cities are already highly developed, so there are not many chances for job hunters. As the data shows, Detroit and New Orleans are the two worst cities to get a job. New York is the 96th out of 100. Chicago is the 93rd. San Francisco and Los Angeles are 87th and 85th.

So why don’t we try different cities? In the list, Washington DC is the best place to find a job. Since Washington DC is the nation’s capital, it did not suffer much from the recession in 2001. Orlando, Fla, the fourth on the list is famous for tourism in recent years. Richmond, Va. the 6th on the list is very close to Washington, many big companies are located there to avoid the high cost in Washington.

When you are hunting for a job, do not just stick to those competitive cities. Consider the cities ranked in top 10.

Top 10 cities for job hunting

Rank City
1 Washington D.C.
2 Phoenix
3 Las Vegas
4 Orlando, Fla.
5 Bethesda, Md.
6 Richmond, Va.
7 Raleigh, N.C.
8 Jacksonville, Fla.
9 Oklahoma City
10 Virginia Beach, Va.

Assembly Line in Atlanta

On Friday, the last Ford Taurus was rolled off the assembly line taking with it nearly 2,000 jobs. The workers who lost their jobs could choose among eight separation, educational and retirement packages. Ten months ago, the second-biggest automaker company announced that it would be closing its Atlanta Assembly Plant as part of a reorganization plan to boost Ford Motor Co.'s (F) profits. This popular sedan has been around for 21 years and has sold over seven million vehicles. In the last five years, the Atlanta Plant was ranked as one of the top ten assembly plants in North America.
On Monday, Ford announce a third-quarter loss of $5.8 billion, it’s largest quarterly loss in 14 years. It said the third-quarter loss came from the costs of its massive restructuring plan aimed at changing the company and cutting expenses so it can compete better against lower-cost rivals from the overseas. Company officials predicted things would be even worse in the fourth quarter.

http://www.beurs.nl/nieuws/artikel.php?id=172320&taal=US