“In-and-Out Burger” Is heading for big D town. Over the years the California chain of In-and-Out- has decided slowly but surely to expand it’s horizons to other states. And expanding I meant tip toeing since only three other states, besides California and soon to be Texas, have In-and-Out Burgers; Arizona, Nevada, and Utah. The scarcity of this burger place around America sharply raises it’s demand for these burgers. And when I say sharply, I am probably under exaggerating. The In-and-Out Burger franchise is flying out their top “burger makers,” as they are calling them, to Texas to make sure that the burgers are made correctly. Not only will this increase in jobs around the Dallas area, but also intensify the battle of the burgers. Competition of other burger joints like Whataburger, Mcdonalds, and any other fast food place that sells burgers, will increase dramatically. But, one question does remain. Will this trend of opening and establishing of In-and-Out Burgers happen all over the country? If so, will the demand of burgers from In-and-Out drop to a point that the uniqueness of these burgers are lost?
Tuesday, May 10, 2011
Finally, after a more than a month of gas prices rising daily, the price of gas fell one tenth of a cent ($3.984). Over the past couple of months, consumers have been spending thousands of dollars on gas alone, leaving many questioning the future prices on gas. Although this decrease of one tenth of a percent is a change from the constant rising prices, does it provide a sense of comfort for the consumers? Oil is cheaper than gasoline, and when measured, for every $1 of oil a barrel is dropped, 2.2 cents off of gas prices are knocked off. With $10 falling in the stock market of crude oil, gas seemed to have a stand still. As the price of oil lowers, gas should be at ease for a little. Gas is an inelastic demand, though, meaning no matter the change in prices, the demand for Gas will always stay the same. It’s a necessity to the everyday life of a consumer. But this doesn’t stop them from cutting back. If consumers cut back, investors grow nervous and jobs are then lost and economy starts declining. Summer trips planned by families across America are in question to be carried out or not. With gas prices, for the moment, standing still, can there be a short sense of comfort for the price of gas in the future or not? Or will gas continue to rise?
According to a report by the New York Federal Reserve, more consumers are willing to borrow money from banks, and in connection with, banks now and days are more willing to lend out loans. In 2008 the U.S. hit a meltdown point of debt and ever since, debt is increasing. But is debt, to a certain degree a bad thing? Debt, in terms of good can very much so stimulate the economy. If consumers feel that they are, at a comfortable time then others, able to buy more products, then isn’t that beneficial to the economy? It’s the simple rule of economics. If consumers buy, businesses are happy. Businesses are profiting, making more money and growing. This benefits the economy in so many ways. If businesses grow, job opportunities sky rocket through the roof. Unemployment rate has a chance to drop, money Is being circulated more fluidly than before. The economy has a chance to regain it’s footing. But too much debt is of course dangerous. The problem is that consumers borrow too much money then they could possibly pay off later. When consumers can’t pay off their debts, businesses, banks, or any other loaners aren’t paid. This can cause a chain reaction that isn’t wanted. When loans aren’t paid off, the economy suffers. Jobs and money are both lost. If consumers are starting to borrow more and banks are willing to lend a little more, maybe the best idea is to be cautious. To be careful on how much is lent and borrowed.
Monday, May 9, 2011
Sunday, May 8, 2011
Friday, May 6, 2011
Could the death of the face of modern terrorism, the master mind behind the attacks on the Twin Towers on September 11th, and the most wanted man in America affect the United States economy? According to Warren Buffet, Chairman of Berkshire Hathaway, the economy most likely will not be affected. Buffet feels that due to recent occurrences like the killing of Bin Laden that the economy won’t change. History also says the same thing as Buffet. Some of the companies that would be affected by the killing of Bin Laden would be the insurance companies. The demand for better insurance or insurance in general could go one of two ways. One way would be a demand increase for insurance. The death of Osama Bin Laden could make consumers of insurance want better coverage because of the fear that Al-Qaeda might retaliate due to the death of their leader. The other way would be that insurance companies see a decrease in demand. This idea would not be practical in my opinion, but some might feel that acts of terrorism might hardly happen due to Bin Laden’s death. Back to the ideas of business genius, Warren Buffet: he feels that natural disasters will and have had a much stronger impact on the “slow” but steady United States economy. The economy can climb and fall within a day. The ten year hunt for the most dangerous man in the world came to an end in a matter of minutes. Do you think there will be a demand for things like insurance? Another set of companies that could profit from this death are the airline companies. Traveling has been a hassle ever since the September 11th attacks, but all for good reason. There could now be an increase in consumers for airline companies because they now feel more comfortable traveling abroad. The killing of Bin Laden was just the first major step in ending the War on Terror, but for now the ending process will be just as slow as the current United States economy. http://www.foxbusiness.com/markets/2011/05/02/warren-liz-derail-slow-steady-recovery/