In-and-Out Burger Baby

“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?

Small comfort: Gas prices break their streak

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?

Banks lending, consumers borrowing

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.

Brazilian Blowouts

http://healthland.time.com/2011/04/13/warning-getting-your-hair-straightened-could-be-hazardous-to-your-health/

            Brazilian Blowouts have been all the rage in the fashion world. This styling technique provides the person with the treatment several months of straight, frizz free hair. Recent studies, however have shown a secret dark side to this treatment. Formaldehyde is one of the ingredients used to straighten hair, and the Brazilian Blowout process exposes both the stylist and the customer to this dangerous chemical. I think that this is definitely a situation where the tradeoffs presented show a clear decision to be made. Before this study was published, there was a large incentive to get a Brazilian Blowout that was sleek smooth hair. But now, that incentive is not enough because the incentive of not getting one is your health.  This could hurt the economy however, because people who had specialized in these blowouts will be getting less income. Then, they will spend less, which will lower GDP. Also, businesses will be spending less because they will not be buying the equipment necessary to provide the service any more, and this will also lower GDP. However, it is necessary to get rid of this service because of the health risks it poses. I do not think that this change will impact the economy severely.

Exon Mobile

In 2010, Exxon Mobil <http://money.cnn.com/galleries/2011/fortune/1104/gallery.fortune500_most_profitable.fortune/?source=cnn_bin&hpt=Sbin> , the largest oil company in America, reported a total profit of $30.5 billion dollars. As oil prices soar to over $100 per barrel, people around the world are paying some of the highest prices for gasoline in history. This raises the question: are consumers being forced to buy overpriced fuel while the oil companies sit back and reap the benefits? A $30.5 billion profit suggests that this could be true. My family alone spends over $900 a month in gas, and because of the close proximity of our work and school, we fall below the average familial gas consumption. However, Exxon isn’t the only company to blame for high oil prices. The number 3 most profitable and second largest American oil company, Chevron, posted a $19 billion dollar profit for the 2010 business year, making it another huge contributor to high gas prices for consumers. Businesses in the U.S. have also felt the burden of expensive oil; products are now more expensive to manufacture, ship, and sell than in previous years. Nearly every person in America, and a majority of people in foreign countries have been forced to limit their spending in order to cope with increasing fuel prices. The United States government has the power to force oil companies to rethink their rates, but little legislation has been enacted to take advantage of such power. Though President Obama has had a lot to deal with since his election, it has become apparent that gas prices are not high on his to-do list. The bottom line is: oil prices are at an all time high, and consumers are being forced to pay record amounts to simply drive to work or school -- a cost that many people aren’t able to afford in the recent economic downturn. Are oil companies infringing on American gas consumers’ right to life, liberty and property? You decide.

Facebook's Next Economic Move?

Facebook will begin paying users 10 cents if they will watch certain ads. Users will be paid in “Facebook Credits” which will yield about 10 cents per ad. The Facebook credits can be redeemed to purchase goods on Facebook Deals. Facebook Deals is a program similar to Groupon. It is hard to determine whether or not this will be enough of an initiative to motivate users to view ads. Watching an ad can take a long time and 10 cents is not very much money. Although these ads are time consuming Dan Greenberg, CEO of Sharethrough, (the company making these ads), claims that the ads will be more than entertaining. So maybe the entertainment factor will be more of an incentive for users to be motivated to watch these ads. If the popularity of these ads increase the products being advertised will also increase in demand. This is a smart move made by Facebook because they will recieve a lot of revenue from the ad company because the ad company must pay Facebook in order for them to show their ads. It is too early to determine how smart of a move it was for the Sharethrough to pay Facebook to show their ads. The success of their ads will be determined based on whether the entertainment supplied by these ads and 10 cent yield will be enough of an initiative for Facebook users to want to watch the ads. If this new innovative ad idea has a successful outcome, (sucessful, meaning many people watch the ads) than it will be extremely beneficial for the company. If ads offer a good enough initiative for people than the products being advertised will increase in demand dramatically. Since Facebook is such a highly populated website, when the popularity of the ad increases the demand for the product advertised will be extremely wide spread.

http://www.cnn.com/2011/TECH/social.media/05/06/facebook.ads.mashable/index.html

-Lizzie

Japan Crisis Effect Jaguar Production

The recent earthquake and Tsunami in Japan has caused Jaguar, Now owned by TATA Motors, to have some production problems. Although TATA Motors is based in India, as with the rest of the world, many of their parts and factories are based in Japan. At the current time, little has been released as to what items the company is facing a temporary shortage of. The problem with the companies supply, however, is that TATA Motors sources many of their products from Japan. The earthquake caused a shortage of the parts that come from factories in Japan. Most car companies source their products from other small companies, such as Samsung, or other large part makers. With much production occurring in japan, other companies besides TATA are likely to be suffering from the shortages. The effects on the market of Japan are likely to be catastrophic, because of all the money they will be losing during their time of rebuilding. Their factors of production are severely limited: their land is compromised, their labor is hard to come by, and their capital is extremely limited. Honda Motor Company is another foreign company that is affected by the tsunami. The company although they sell cars in America, has plants located in Japan which have 50% or less production rate at the current time. This is very hard on the market of Japan and also hard on the companies because they may have to spend more on parts. The United States however, may benefit from the tsunami. With the production of foreign cars such as Jaguar and Honda spending more on their parts and possibly having a shortage of vehicles available, American car makers are more likely to have the ability to compete both with price and quantity available. Overall, foreign companies who source parts or have plants in Japan are currently suffering from the earthquake and subsequent Tsunami.

George Collins

http://www.marketwatch.com/story/tata-motors-japan-crisis-may-hurt-jaguar-output-2011-05-10

http://online.wsj.com/article/SB10001424052748703864204576314330334072082.html?KEYWORDS=jaguar+land+rover

Could Lady Gaga Play a Role In The Economy?

For years and years, society has idolized pop culture icons and music artists. It is no surprise that articles with titles such as Lady Gag to Release New Song are even more popular than ever. Since the music sensations and music industry have so much influence on society, is it possible that they are helping our economy too? The answer is yes. It is no doubt that music icons are helping shape our world’s economy. Consumers want their products and with today’s technology music artists are able to create more than just music. They are able to create revenue by selling goods and services. It isn’t uncommon today to walk into a store and find a shirt with Lady Gaga’s face on it or find sunglasses that are inspired by some of her many music videos. Music sensations like these are helping fuel are economy because people want to buy products that are created by them or inspired by them. Stores selling music inspired clothing and accessories are more popular then ever. This stores help stimulate our economy by selling the products that are inspired by music sensations and the music industry and they are creating jobs. The music industry plays a huge part in our economy because they help sell products that are in high demand and that consumers want to buy.

http://www.rollingstone.com/music/news/lady-gaga-to-release-new-song-later-today-20110509

-Alanna Moore

Microsoft May Have More Than Just Word!

Over the best few years, video chat has become increasingly popular. The communication service called Skype has been more popular then ever. People are spending hours and hours video chatting with friends and family who they would not be able to see otherwise. Skype gives its consumers a more personal feel than your average phone does. By using Skype, consumers are able to see the person they are talking to making the service more comfortable because it is most like communicating with someone face to face. Since Skype has become so popular and so powerful, it is no wonder that Microsoft is plans to buy Skype. By buying Skype, Microsoft will be able to better please consumers because the demand for video chat services such as Skype are high. Microsoft will also be able to better compete with Apple and other companies. By buying Skype, Microsoft will be buying and controlling a company that consumers want and use therefore Microsoft will be worth more and their company will be even more successful. Microsoft should buy this service, so they have better control of computer program industry. Microsoft will be worth millions more. They will also be able to help fuel our economy since consumers will want their products. A demand for their products will help our economy flourish.
-Alanna M.

Help Wanted?

With the un-employment rate quickly heading towards 9% it is a shock to hear that there is a scarce for manufactures. In this article by James R. Hagergty it says that the retirements from the baby booms generation is the main cause of why they need more workers. Hagergty also mentions that in the U.S. education these days there aren't enough math and science people which is what is needed to succeed in manufacturing. The last reason Hagergty mentions is that the number of U.S. manufactoring jobs is growing, making the demand for math and science people grow larger. Manufactures are in search for talented people who can not only weld but shape metal in a lot of intricate ways. These days manufactures are in low demand for well-talented welders. Back in the day thousands of people would apply for these jobs, and today only ten people apply for manufacturing jobs. When discussing futured with friends eveyone talks about how their math and science people and how they want to be an engineer when they grow up. So they may have a scarce of talented math and science people now, but in a few years the demand for these talented people will go down and the supply of them will go up.

Texas Ranger Season Ticket Prices

A year after the Texas Rangers made their first world series appearance tickets have only increased by less than five percent. The Texas Rangers organization was able to raise the price of season tickets because the increase for demand to see the Rangers play has gone up. The main reason increases for season ticket pricing has only gone up for prime seating locations in the ballpark. However the Texas Ranger organization actually lowered some of the season ticket pricing in some of the non-popular locations. The course of action to decrease the amount one would pay for the “bad” seats and to increase the amount one would pay for the “good” makes more economical sense for the Texas Rangers organization to turn a profit. The strategic move only makes sense for the Texas Rangers organization if people only want to sit in the “good” seats. The only possible way for the new increase in prices could backfire on the organization is if people thought that it would be more of a bargain to sit in the not as good seats for a lesser price, which is highly improbable. Another main reason why the Texas Rangers only raised their prices five percent is because they are trying to increase their season ticket base for the years to come thus giving them a sustainable revenue base. The Rangers are not trying to exploit the new enthusiasm for the team by dramatically increasing prices.

-Johne

Facebook vs. Google

Over the past two years Facebook has grown a substantial amount over the Internet and threatens other Internet corporations such as Google, Yahoo, and Bing. Before Facebook became popular, individuals used to find out information on their browser using search engines such as Google, Yahoo, and Bing. However recently people have been using Facebook to find out all their information. This competitiveness over the Internet has recently hurt the search engine companies particularly Google, because Google is used to dominating and controlling the Internet market. Since Facebook is becoming more and more popular, Google’s success over the Internet is being endangered economically. Google feels people are starting to find out new information on Facebook thus the demand for search engines like Google, Yahoo, and Bing are decreased. Facebook is also making more of a profit than Google because it hires less workers and not having to pay as many people, while still putting out the same quality of information and work. Since Facebook is earning more of a profit they are able to explore and invent new ideas that they could benefit from in the future. Google and the other search engines are not hurt quite yet, but in the near future Facebook will catch up because of their profit margins. As long as Facebook’s demand is increasing and Google and the other search engines are decreasing, Facebook is looking to become a very successful company.

-Johne

LBJ 5 Year Project

Since I live very close to LBJ and use it frequently to get to where I need to go I am pleased to hear they are trying to do something with the traffic problems that occur on an everyday basis. But before things get better they are going to get worse, that of course being the construction being added on to the heavy traffic flow. I think that the new and improved LBJ will benefit not only the traffic flow but the near by business along LBJ, and the construction companies that are supplying the work and materials. This new big project will allow the construction company to hire more workers and supply more jobs. LBJ could have a domino effect on the near by business since the businesses could see more business, the business might have to hirer more workers, thus creating more jobs. The new project on LBJ can be very impactful towards the local economy. However the only hold up with the new project is that it is expensive costing around 2 billion dollars. Now on the flip side this could hurt the economy because this raises the question of how this is going to be paid for. The article says it will be paid for through raised taxes, and tolls along the new freeway. However in the long run, this looks to benefit people more than hurt them seeing that traffic will flow more smoothly bringing twice as many drivers on LBJ prospering near by businesses.

-Johne

Moms and Depression

http://healthland.time.com/2011/05/06/the-mommy-wars-and-depression/

            Mothers have a high rate of depression, which has lead to many studies on the topic. This study shows that mothers who have solid jobs have the lowest rate of depression. This can lead to a difficult decision for mothers in tradeoffs. On one hand, a working mom is giving up time that can be spent raising her kids. However, stay-at-home moms are at higher risk of developing depression. The study connects this depression rate with the income difference between a family with two working parents and one working parent. This is another tradeoff that mothers must deal with. A stay-at-home mom is gaining more time with her children, but lowering the potential income of her household. The researchers concluded that this could increase stress and lead to depression. The mother must be looking to protect her own self interest and her family's interests in her decision. Working a full time job does offer many incentives, with a steady salary. A mother who is working could be able to afford better goods for her family, which is also very appealing. Also, working mothers who make more money stimulate the economy because they have more money to spend. However, if a mother makes the decision to change from a full-time mom to a full-time worker, this could impact unemployment rates as more people look for jobs. Ultimately, the issue is a lot more complicated than just one study can cover and it should be completely up to the mother whether she works or not.

Apple News

 CNN International has declared Apple Inc. to be the world’s most valuable brand. This comes as no surprise to Americans – think to yourself, how many people do you know that have either an iPhone, iPad or MacBook? How many do you know that have two or more of those? Exactly. Apple has become a technological superpower in today’s society whose products have become a mainstay in our daily life. We RELY on our cell phones and laptops in order to communicate, accomplish tasks, gather information or simply to entertain us. Even as I write this, I am using two Apple products, my laptop and iPhone. Part of the reason for Apple’s great success is the physical quality of their computers. Even after years of use, most properly treated Apple products still function the same way that they did on day one. However, what sets Apple apart is not just their hardware, but their software. Apple’s many different operating systems, from mobile to business, are designed to be both easy to use and easy to manipulate, and this truly translates to success for the company. Apple has proven that if you provide an easy to use and semi-affordable computer for the masses, the orders will come.

-Asante Williams
http://economics.about.com/cs/macroeconomics/a/run_out_of_oil.htm

Running out of oil? Think again.

Ever since oil was embarked upon, we have been running out of it. Many people have predicted that we would have run out of oil years ago but this proves to be false since it is still being used. These predictions are far from the truth because even if we started to see vital signs of oil wells running dry, many precautions would be taken to prevent this from happening. Gas prices would rise profusely and many of the big SUV's that are so popular today would be seen in used car lots, more than on the streets. Things such as bicycles, small cars, hybrid cars, and electric cars will be used more and more to help conserve money, as well as oil, from becoming completely obsolete in the future. The ongoing reduction of oil is shown by the minor shifts of the supply curve to the left and the common associated  manuever along the demand curve. According to statistics, consumers will have found more stable resources to use around the time oil starts to experience scarcity and by that time, gasoline will no longer be needed.

PlayStation

Recently, the gaming giant Sony PlayStation was hacked by anonymous person, otherwise known as an online “hactivist.”Sony announced to their users that their system was down and that it was being put under construction. The real story was that over seventy-seven million PlayStation users personal information was breached and available for access. The criminal responsible for this breach of PlayStation’s security is still at large and is far from being caught. This has TREMENDOUS ramifications for PlayStation’s users; almost all of their information could have been confiscated and used without any of them knowing. Sony PlayStation will have to undergo a complete security makeover. They are going to have to start from the ground up, and rebuild their once indestructible security system. From an economic standpoint, the amount of new PlayStation users would most likely drop, as well as the demand for a new version of the system. The lack of security that online users are facing is immense; they are open to an attack on their information at any time. The marginal revenue for Sony and their product PlayStation will also be affected. There won’t be any additional income from selling the gaming system for a while, due to the fear of losing credit card information. Sony is now currently rebuilding their security and they have said to be in the final stages of this rebuilding. Some of the costs for PlayStation most likely won’t be affected though. For instance, the operating cost should not change as well as the marginal cost. Is this hack of PlayStation’s security going to hurt the gaming giant for the future? Or is this just one minor slip up that will be blown over in a matter of time? Only time will tell…

Corrupt Business Affects Who?

Corrupt business tendencies have often gone under the public radar. However I believe it is time to take a closer look into the corruption of large businesses. Most people do not stop to think about how insider trading, phony accounting, securities fraud, or embezzlement of large firms will affect them. In fact, most fraud cases that involve large corporations do not affect the corporation at large; it actually has most effect on common Americans who have taken the risk in being shareholders. It is terrifying to see large companies committing any type of fraud, and yet not be publicized in the media because it is the people who read the media that will ultimately be affected the most. As shareholders invest in any given company, they are giving money and ideally confidence to the company to make the shareholder money, or in the very least protect the money invested in making smart business choices. However, when a business knowingly commits fraud of any sort, they are knowingly putting their shareholders at risk of loosing large sums of money. When corporations get caught in the act of fraud they are not punished by jail, but instead, in a sense, slapped on the wrist and fined. However it is neither the CEO nor a single businessman within the corporation who ultimately committed the fraud that has to pay the fine. No, corporations take the money straight from the shareholders. In this, the shareholders loose deprecating amounts of money, while the corporation ultimately goes unpunished and continues business as usual.

Unemployment Rates Continuing to Rise

Thanks to the Federal Reserve and their recent purchase of 2.3 trillion dollars in mortgage and debt, more Americans will experience unemployment. The amount of money flowing through the economy will increase as a result of the increase in purchased bank reserves. This large amount of freely flowing money throughout the economy could easily lead to inflation. Inflation is when there is a general increase in prices but a fall in the purchasing value of money. Inflation tends to lead to more unemployment which is definitely not needed right now in the United States since our unemployment rate is at a frightening high of 8.8%. The predictions right now say that there will be a 2.2% rise in the unemployment rate. Other predictors are saying that this will create 3 million jobs by 2012, and by the end of June 2011 there will be 700,000 new jobs. The only way for this to successfully happen is if the Federal Reserve can make a clean exit from their previous record stimulus program. Surges in the money system always lead to higher prices because the value of a single dollar would decline. This then creates more unemployment since growth and good productions would be reduced. The hopes are that the unemployment rate will be trimmed down to 7.6% by the end of 2012. But the only way this could truly happen is if the Federal Reserve is smart about their decisions. So American citizens will just have to wait and hope that the future holds favorable economic conditions that could thus lower the unemployment rate. We will all just have to wait and see what happens with the Federal Reserve, which thus determines the future of 2012.

http://economics.about.com/od/incometaxestaxcuts/a/marijuana.htm

The Grim "Reefer"

Marijuana is a widely used drug in the United States as well as abroad and it is becoming more and more popular as the years progress. The only problem with this particular substance, according to our government, is that it is illegal to buy and sell. Why does our government go through so much trouble to crack down dealers of marijuana, put them on trial, and lock them up in jail when the affects of the drug are no more harmful than that of tobacco and alcohol? This is a question that is soon to be brought up in political matters because of the overbearing costs of keeping people from using the drug. The Government would make a lot more revenue from legalizing marijuana and placing taxes on it. The fight against this drug seems pointless because people will continue to produce, sell, and buy it, causing the government to use up ambiguous amounts of money. With the government's current shortage of money, their search for sources of revenue to help pay for important economic issues such as education and health care, by the legalization of marijuana doesn't seem like such a bad idea after all.   

Iphone Tracking Your Location

The mixed market of the United States allows choices on nearly every product that we purchase. Nearly every adult in the United States owns some type of cellular device. With the needs and wants of modern Americans, many people take the trade off of size for productivity when it comes to phones. More and more people are starting to use smartphones which are typically larger and bulkier than normal phones. The Apple IPhone is a strong competitor in the United States. Nearly everyone at my school owns an IPhone or some other type of smartphone. Rarely do we worry about our privacy when we use or even hold our cell phones besides simply setting a password for our friends. With Apple’s newer software version 4.3, your privacy may however be at risk. I personally have an iphone, and have never considered trading off my the productivity of my iphone for my personal protection. The 4.3 software according to two data scientists, stores up to one years location and every place where the iphone has been. The marginal benefit of being able to see where your phone has been, possibly from a parents or leaders perspective, my be useful. The marginal benefit however is not worth the privacy invasion, in my oppinion. Apple claims that the new software update should fix this privacy problem. I recommend that all Iphone users update their phone immidiatly so that their privacy is not violated. The incentive of updating your phone is that your privacy will no longer be compromised, according to apple. The competition from Motorola, Nokia, and other companies may use this as a way to sell their products or promote their products supremecy, but the economy will show which will prevail.

George Collins

http://www.cnn.com/2011/TECH/mobile/05/05/iphone.location.fix.wired/index.html?iref=allsearch

-Mason Reiter

-Mason Reiter
http://www.wired.com/gamelife/2011/05/anonymous-denies-psn-hack/

Bin Laden’s death affecting economy?

Bin Laden’s death affecting economy?
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/

-Mason Reiter

Hackers hurting gamers.

Recently, the gaming giant Sony PlayStation was hacked by anonymous person, otherwise known as an online “hactivist.” Sony announced to their users that their system was down and that it was being put under construction. The real story was that over seventy-seven million PlayStation users personal information was breached and available for access. The criminal responsible for this breach of PlayStation’s security is still at large and is far from being caught. This has TREMENDOUS ramifications for PlayStation’s users; almost all of their information could have been confiscated and used without any of them knowing. Sony PlayStation will have to undergo a complete security makeover. They are going to have to start from the ground up, and rebuild their once indestructible security system. From an economic standpoint, the amount of new PlayStation users would most likely drop, as well as the demand for a new version of the system. The lack of security that online users are facing is immense; they are open to an attack on their information at any time. The marginal revenue for Sony and their product PlayStation will also be affected. There won’t be any additional income from selling the gaming system for a while, due to the fear of losing credit card information. Sony is now currently rebuilding their security and they have said to be in the final stages of this rebuilding. Some of the costs for PlayStation most likely won’t be affected though. For instance, the operating cost should not change as well as the marginal cost. Is this hack of PlayStation’s security going to hurt the gaming giant for the future? Or is this just one minor slip up that will be blown over in a matter of time? Only time will tell…
-Mason Reiter

High Gas Prices Leads To Semi-Good Results

A recent study by the Federal Reserve showed that in twelve different regions, the rising gas prices actually benefited the economy. While nobody enjoys paying four dollars per every gallon of gas, these high-energy prices may actually be helping the economy. Companies seemed to be way busier which then increased their demand for workers. Companies hired more employees after this rise in gas prices because consumers were buying more of other goods. The price for materials for these companies is much more expensive but economists believe these higher priced consumer prices will not last long but rather it will be temporary. The higher energy prices also resulted in a high demand of auto sales and tourism, while some shoppers shifted to paying for low-priced goods and inferior goods rather than high priced luxury goods. Since so many factories increased their production, so many more workers were hired which thankfully lowered the unemployment rate. So maybe the highly expensive energy and gas prices are not only bad, even though they do result in workers getting less of a pay increase. But still, at least there is an optimistic side to this crisis and that maybe it will help American citizens and consumers since it increases employment and makes some goods less expensive.

-Taryn Dandurand
High Gas Prices Leads To Semi-Good Results

Starbucks Goes Mobile

        Starbucks has come out with a faster way to pay for coffee and it’s as easy as a push of a button. Starbucks has created an app that allows people to fill up a gift card online that exists only on phones so when people get up to the checkout counter, they just get their “card” scanned and the money gets taken off of it. This is a great way to interact the growing technological field with their growing company. This will make Starbucks more “customer friendly” for those who have iphones, and is also getting lots of free publicity off of all the papers and news teams that are talking about the app. Apps can get very popular very fast, almost becoming a trend. If the Starbucks app gets enough popularity people will want to try it out – people will buy drinks just to see what it is like to buy drinks on the iphone. This is a very smart move because with Starbucks on peoples mind (seeing it every time they look at their phone) and making it quicker and faster to buy drinks, Starbucks’ profit can only rise because more people will want to buy drinks and try out their “new toy”. 

 -Kendall Healy

Workers Needed, but Not Found?

Who would have ever thought that there would be a necessity for workers in the current economy? The amount of lay off workers reaches headlines every day. Businesses put out a front that they cannot afford to pay their workers and for that, a massive amount of panic has hit the American economy. However Isbister, president of a growing metal fabricating company reports she is in dire need of workers. This Wisconsin factory is growing and shows much potential, however Isbister reports their marginal revenue can double by adding a mere twenty more workers. With such a down economy one must ask, then what’s the problem? Workers are not in high demand in other areas and are therefore being laid off; the supply of workers should be innumerable. However it seems that the type of work Isbister needs requires specialized labor. She reports that she has had various applicants but consequently had to turn them down due to lack of experience. It seems blue collared workers consider themselves above working in a factory. It is both sad and scary to say that people are finding themselves above work and are therefore beyond helping themselves. The main point here seems to be, how low must this economy get before people realize they must do their part in the business world in order for the economy to make it?

New gaming system?

Microsoft recently created the Kinect gaming system, a console that allows for a person to be the controller. When Xbox released the Kinect gaming system the demand for the Nintendo Wii system went down, also taking away the Wii's first place best-selling position. Nintendo hopes that when they cut down the price of the Wii gaming system, in the next few months, more people will buy the Wii gaming system. Nintendo has been a large company in video games for a long time making it a well respect brand which means that Nintendo has many loyal customers. Therefore when the price of the Wii goes down the followers of Nintendo who could not afford the Wii before will now be able too, which ultimately creates a larger profit for Nintendo. Even though Nintendo is lowering the price of the Wii system I do believe that they will have to do more to win the first place position back from Xbox. There are rumors of a new console from Nintendo, although very little is known. If Nintendo creates a newer more advanced version of the Wii I believe they could take their first place position back from Xbox.

New Government Rule Brings New Flying Experiences

In the article, current airplane companies, such as Southwest Airlines and American Airlines (to name a few) are reportedly supposed to acknowledge and follow the new government rule that forces such airlines to respect the travelers and make the experience more pleasurable.  It limits their sneaky tricks and former guidelines to flying, while replacing them with much more restricted rules and requirements to follow.  According to the Yahoo article, airlines will have to disclose fees more clearly and will be forced to follow the new rules that protect flyers that lose their bags, are held on runways for four or more hours or are bumped off flights for a reason that can be controlled.  This new rule by government will help travelers out, especially when they are stuck on the runway for hours and hours at a time or their flight to a vacation or important business trip may be canceled. But it will most likely have a negative effect on airline companies.  Many companies get their profit from charging people for the extra bags.  Last year alone, their total revenue was over $7.9 billion just from the extra baggage.  Also, another negative side effect for the airlines is the fact that the price of fuel is extremely expensive right now while the demand is likewise extremely high.  Due to the evident law of demand just mentioned, companies will lose much more money than they already have since they will be forced to still purchase the fuel with less money to spend. They are ultimately spending more than they are making and this could maybe even cause some struggling companies to go bankrupt.  The competition between business and the incentive to make a profit is still in place but these rules may ultimately drive people to choose companies with better deals, and the airlines themselves may have to supplement the goods they use to be able to survive and find ways to still attract business in these hard economic times under such conditions.  I would not be surprised if we see some of the things we always see on flights disappear to make up for the loss of the companies income from baggage.

High Gas Prices Leads To Semi-Good Results

A recent study by the Federal Reserve showed that in twelve different regions, the rising gas prices actually benefited the economy. While nobody enjoys paying four dollars per every gallon of gas, these high-energy prices may actually be helping the economy. Companies seemed to be way busier which then increased their demand for workers. Companies hired more employees after this rise in gas prices because consumers were buying more of other goods. The price for materials for these companies is much more expensive but economists believe these higher priced consumer prices will not last long but rather it will be temporary. The higher energy prices also resulted in a high demand of auto sales and tourism, while some shoppers shifted to paying for low-priced goods and inferior goods rather than high priced luxury goods. Since so many factories increased their production, so many more workers were hired which thankfully lowered the unemployment rate. So maybe the highly expensive energy and gas prices are not only bad, even though they do result in workers getting less of a pay increase. But still, at least there is an optimistic side to this crisis and that maybe it will help American citizens and consumers since it increases employment and makes some goods less expensive.

DISH Networks Winning Bid on Blockbuster

Last year Blockbuster filed for Bankruptcy Protection, which worried many people that all of the Blockbuster stores would be closing and cause a shortage of video's. Blockbuster has 2,400 stores around the United States and are planning to shut down 700 of those stores, including all the operations in Argentina. Luckily for DISH network the more popular ones stayed along with the DVD vending kiosks and the DVD mailing and digital download business. DISH network bought Blockbuster with a winning bid of $320million. DISH network bought Blockbuster because they want to enhance its video-on-demand services. With DISH network buying Blockbuster I believe that they will ultimately have a higher profit than before. By enhancing the video, creating a new chain of stores, and with the brand name of Blockbuster and Blockbuster's relationships with content provider's, will help DISH network switch from a linear provider of scheduled broadcast into a provider of on-demand content. DISH networks switch to on-demand content from their usual scheduled broadcast will cause DISH network to have an increase in demand for their products. Therefore, DISH network will benefit by having a greater profit than before from having the winning bid on Blockbuster.

Radiation in Fish

                  Until recently, the massive earthquake and tsunami that struck Japan on April 11^th really didn’t affect Americans very much. Yes, we’ve all seen the Red Cross commercials begging for relief aid and hundreds of pictures and videos circulating around the internet showing the widespread damage that these natural disasters have caused, but our daily life really hasn’t been affected. This could however, change in the future. Seafood exports produce nearly 2.5 billion dollars a year in profit for the Japanese people, with many of those exports destined for the U.S. Last Thursday, a net of squirming eels was pulled up from the seafloor, only one prefecture over from the radiation-sticken Fukushima prefecture – home of the “rogue” reactors. This discovery of radiation in seafood has gotten the attention of food safety regulators both in Japan and in the Untied States, leading to more strict guidelines for imported and exported seafood. Radiation-plagued fish are being thrown out one after another; fish that would otherwise be ready for exportation. The economic effects of this unusable seafood will surely hurt the Japanese economy, but will also raise the price of fish in the United States. Since the supply of clean fish will be drastically reduced, one can expect a hefty increase in price since the demand will be the same. However, wouldn’t Americans rather pay more for certifiably radioactive-free seafood?  I know I would. 

Federal Workers Getting Laid off Good or Bad?

As the economy continues to make a down turn more and more federal workers are being laid off. However, America being the great country that it is has provided its citizens with a safe guard for those who have lost jobs. This type of security helps to put many American minds at rest. But when the number of people that get laid off exceeds a normal amout, is this security necessary? Or for another matter, affordable? This Friday, April 8 there are expected to be 2 million workers respectfully layed off from their jobs. Unemployment benefits do not simply come out of thin air, they come from the taxes other Americans have paid. When the unemployment rate rises at such a sharp incline (as demonstrated today) the demand for taxes will without a doubt increase. These workers who believed were being protected by these unemployment benefits will end up having to pay for it themselves through taxes. One must ask themselves, is laying off this many workers going to truly help this economy or simply set us back once again?

-Kinsey Budagher

New Wireless Internet, New Possibilities

According to Associated Press Writer Joan Lowy, there is a new wireless internet network, LightSquared, that could potentially threaten the GPS’s we use throughout America and the lifestyle we have grown familiar to.  It is so powerful it has the ability to interfere with GPS used in airplanes, cars and such that the government uses.  This new wireless network is so powerful that the Federal Communications Commission plans to help the economy by stimulating it with the new network.  They say that it would “bring faster and cheaper Internet connection to all Americans – even in remote corners of the country.” This could be a good or a bad thing for our economy.  It will stimulate and encourage consumers to join this new network, which would reduce the demand for other companies, creating a shift in demand.  Such a change could really weaken our economy as well by weakening other, current companies.  On the contrary, entrepreneurs and companies have the ability to create complements to be used with the new wireless network that will knock out all other completion and bring in more profit.  But at this moment, government is playing a role in regulating the company and requiring them to make sure that before they launch their new wireless internet network, they must be sure that it will not affect the GPS systems.  This new production and invention could either be a smart tradeoff for all or a dangerous new creation. At the moment, the risks are too extreme and for that, Americans will not be able to test out this new incredible wireless internet until all other issues are fixed. 

-Haley R

iPad 2 Supply Begins To Creep Closer to Demand

http://www.computerworld.com/s/article/9215476/iPad_2_supplies_creep_closer_to_demand&vm=r

According to current reports demand for the iPad 2 is now starting to move closer towards the amount of supply of Apple iPads. Apple is promising consumers the delivery of their iPads in 2 to 3 weeks now rather than 3 to 4 weeks. When apple was promising consumers the delivery of their Apple iPad in 3 or 4 weeks supply was not able to keep up with the demand. This struggle of supply to keep up with the increasing demand of the Apple iPad 2 was moving Apple farther away from equilibrium and in turn reducing the firm’s profit. The excessive demand is a result of supply being too low. There are a couple of Global reasons why Apple’s Supply chain is most likely less than normal. The tsunami in Japan that happened in March as well as the problems at one of the country's nuclear power plants are large factors that economists are speculating as factors that have caused this change in Apple’s supply chain. As a result of the Apple’s lack of supply of iPad 2s, people have been selling iPad 2’s for between 40%-53% more than market price.

-Lizzie Sanders

3-D Phone

In entertainment, the introduction of 3-D products is prominent. There have been 3-D movies, television and now 3-D phones. However, there is a special difference between the phone and previous 3-D products. The new 3-D phone will not require its users to wear glasses. Some may say that this can change the way people look at 3-D products completely. The biggest complaint I have heard about 3-D is the fact that they don't want to wear the 3-D glasses. So it would be appropriate to ask whether or not 3-D products will be more successful if the glasses aren't needed. Most likely, ditching the glasses, companies will have an easier time selling the product because users would not have to deal with the disadvantage of the 3-D glasses. In other words the trade-off would be eliminated. Users will no longer have to wear 3-D glasses that many dislike in order to view entertainment products in TV. This advantage will change the view on 3-D products, hopefully making them more successful and user friendly. If consumers respond positively to the new 3-D phone it could benefit the economy in the same way the iphone or android has done. In other words, the demand for this new 3-D phone will have the same effect as the iphone/android had. If the 3-D phone is just as successful, the possibilities the product can have is endless. New 3-D apps and games will be in store for its users making 3-D products a new industry. If the new phone is successful then the demand for all 3-D products could increase as well. The 3-D phone could be the new product that makes 3-D even more successful.

-Alanna

BP Oil

BP is in the process of making a deal with the US government to allow them to start drilling in the Gulf of Mexico – only about a year after, their oil wells exploded. Although they can’t drill any new holes, lowering chances of another spill, drilling in already established holes still could cause a spill and have consequences that BP does not want to deal with again. Should we afford to risk another oil spill just so we can get some oil from a United State’s company instead of an international one? BP has had to supposedly set aside $40 billion to cover the costs of the spill from last year – the one that killed 11 workers. They are apparently taking more time effort and money to be safer and take more precautions when going back out. I think that it will be good for more oil to be coming in from our own companies yes, but because of their reputation I am not sure how much help it will actually help. How much extra money will it take for “precautions” to be taken on top of the $40 billion? For BP it will be good for them to start drilling again, but everyone will be keeping an eye on them to see if they are more careful this time around.

http://www.nytimes.com/2011/04/04/business/energy-environment/04bp.html?src=busln

McDonald’s To Hire 50,000 April 19th

This idea of hiring 50,000 employees is a great way to help stimulate the economy. The excess demand for jobs is so extreme in America since the economic downfall in 2008, there is a desperate need for more supply of jobs. The demand for jobs far precedes the supply of jobs in America today. By hiring workers at McDonalds it will create more opportunity for people to be hired to other jobs because the demand will decrease as more workers are hired at McDonalds.  Workers hired at McDonalds will be given $8.30 per hour, which is a dollar and ten cents higher than minimum wage which is $7.20. Hopefully this will be a motive for people to gravitate towards applying to work at McDonalds. This will help the economy move the issue of demand of job opportunities vs. supply of job opportunities more towards economic equilibrium and farther away from America’s current economic issue of excess demand of jobs. Perhaps this will increase McDonald’s current marginal product of labor meaning that by increasing the number of employees hired, there will also be an increase in output of product. By increasing the output of product McDonald’s will also increase their revenue.

- Lizzie S

Health or Money?

http://healthland.time.com/2011/03/21/the-new-cost-of-preventing-prematurity-will-kv-back-off-the-high-price-of-makena/

http://healthland.time.com/2011/03/30/fda-will-allow-cheaper-version-of-pregnancy-drug-to-be-sold/

This is a great example of the potential downfalls of excess demand. This medicine limits the risk of premature birth, which is a fantastic leap in medical advancements, because of all the potential dangers of premature birth. However, this good was going to be sold at $1500, which is not affordable for many. I think, that the price should be lowered because of how essential this product could be in insuring the health of newborn babies. Unfortunately, if the price is lowered, there will be excess demand, and not everyone will be able to purchase this product, because the suppliers will not be willing to produce that much of a good at a lower price. I think that this is the perfect example of an indispensible good that is too expensive at market price, but if the price is lowered, there will not be enough of the good. Our group believes that if some sort of incentive was offered to the producers of the good, then this medicine could be supplied to all expecting mothers, which would be an amazing step in health. This article points out an uncomfortable position that this puts the parents in. They must choose between the health of the baby and their financial security. Because the demand for products ensuring the health of their babies is inelastic, the effect on the economy in the short term will be negative, because parents will be spending more on this medication and less on other goods. Hopefully, this will encourage companies to create a product that is inexpensive that produces the same result as this medicine.

Tablet Talk – Ipad or all the rest?

It has been just over a year since its debut and the iPad tablet has already made Apple the undisputed leader in the tablet world. The iPad sold a reported 15 million units alone in 2010 after first shipping in April. As iPad becomes more popular to consumers, other companies are getting their products known in the tablet world. For example companies like HP, Motorola, and Dell are just some of the many major companies that have tried to compete with the iPad. But how successful/important are tablets in the technology world? Is this a fad or trend that will only be around for the next couple years, or are tablets going to become the next big thing? It seems now a days it's Apple versus everyone else; and that might very well be true. The numbers don’t lie either, Apple had an 84 percent share of the tablet market. Today since the technology is new, there is a vast growth opportunity for other companies to challenge Apple, the only problem…will tablets still be popular. Apple dominates many aspects of the technology world. For example, the iPhone, iPod/iTouch, and Apple computers all dominate their respective categories. All the other competitors have a hard time making a product that comes close to rivaling what Apple has to offer to its consumers. The iPad is just another step in Apples recent dominance, but is there hope for companies with the same size network to create a product that out does Apple? In my opinion, the answer is no. Apple has too much power and has too much of wide consumer base to lose to another company. The recent iPad 2 that just came out has all the improvements that the already groundbreaking iPad original didn’t have. Time will tell the tale between Apple’s tablets and their competitors.

Action in Libya?

http://www.gallup.com/poll/146738/Americans-Approve-Military-Action-Against-Libya.aspx

  

An article that grabbed the attention of our group was one involving a poll that was taken as to whether Americans approve or disapprove of military action against Libya. After "reports that Libyan President Moammar Gadhafi had attacked Libyan forces opposed to his government", Americans were not happy that Libyans had crossed into the US no fly zone, and some suggested military action. This poll from Gallop shows that about 47% of Americans approve that military action should be taken against Libya. The strange part of the percentage however, is the difference in the approval rate versus in previous controversies. When the US was struck on 9/11, 90% of Americans, According to Gallop, supported the war in Afghanistan. According to Gallop, the polls they have taken have never had such a low turnout on the percentage of support dating all the way back to 1983. 

The economic relevance to our economy is very great. The labor that the US would have to supply would cost the United States millions of dollars. If a cost/benefit analysis were to be done by the government, they would agree with the above statement. Cost of the movement in Libya is vital to the decision we as Americans must make. We must decide whether the cost of doing what is right, is worth the benefit of the motive. If the United States had billions of dollars sitting around then the benefit would be totally worth the cost. With the economy being the way it is however, most people, I would assume, do not believe the government has enough capital to supply the soldiers with pay without increasing our deficit. Because the government’s budget is not unlimited, and is already in a large deficit, there would have to be some kind of trade off if the government were to fund any action in Libya.  Although the crisis in Libya may cause a shortage of oil and even an increase in oil and gas prices, the US government, most would say, does not have the money to pay for action in Libya. 

George Collins

Who's Got T-Mobile?

In recent news the cell phone company, AT&T made a business proposal for T-mobile to buy them for $39 billion. AT&T is buying T-mobile so that they can get the cell phone towers that belong to T-mobile in order to allow their network to grow and become more stable (less dropped calls and dead zones) – but is that their only reasoning behind this business deal? T-mobile is the fourth largest cellphone company in the United States, and with it now merging into one of the other top three companies, what does that mean for the furture of cell phone plans? With less cell phone companies there is less competition between them. This means that there aren’t as many reasons for them to lower their prices and the competition is less intense and more even. T-mobile was the least expensive of the four dominating cell phone companies, and examining the difference between the companies of AT&T and T-mobile, a big difference is the cost of their plans. Costumers with T-mobile pay much less than those with AT&T for the same coverage, so knowing what will happen with these customers is still unknown.  With AT&T having the in-demand phone (Iphone), more network coverage, and less competition who knows what is ahead for the future of their company and their customers.

http://www.huffingtonpost.com/art-brodsky/how-att-figures-it-will-d_b_841028.html

Who's Got T-Mobile?

In recent news the cell phone company, AT&T made a business proposal to T-mobile to buy them for $39 billion. AT&T is buying T-mobile so that they can get the cell phone towers that belong to T-mobile in order to allow their network to grow and become more stable (less dropped calls and dead zones) – but is that their only reasoning behind this business deal? T-mobile is the fourth largest cellphone company in the United States, and with it now merging into one of the other top three companies, what does that mean for the furture of cell phone plans? With less cell phone companies there is less competition between them. This means that there aren’t as many reasons for them to lower their prices and the competition is less intense and more even. T-mobile was the least expensive of the four dominating cell phone companies, and examining the difference between the companies of AT&T and T-mobile, a big difference is the cost of their plans. Costumers with T-mobile pay much less than those with AT&T for the same coverage, so knowing what will happen with these customers is still unknown.  With AT&T having the in-demand phone (Iphone), more network coverage, and less competition, who knows what is ahead for the future of the company and their customers.

http://www.huffingtonpost.com/art-brodsky/how-att-figures-it-will-d_b_841028.html

Best Buy’s Shift of Focus

Recently, the technology incorporation, Best Buy, has been experiencing major concerns regarding their high priced television sales. Selling these expensive televisions is said to be 20 percent of all of the company’s profits. Unfortunately, the sales for this category have gone down by double digit percent’s. Many people think that this is a result of the increasing gas prices and the extraordinarily high unemployment rate. Consumers are deciding to spend less money on overpriced, high tech televisions and more on mobile phones and broadband connection thanks to the recession. As a result of this shift of preference by consumers, Best Buy is deciding to focus more on selling mobile phones. These Best Buy mobile phones are starting to attract more buyers who do not want to spend their money on Best Buy’s televisions. So is Best Buy going to become a major cell phone supplier in place of televisions? Not exactly. In addition to loosing costumers from the recession, Best Buy has also been in a major competition with other similar stores like Target, Wal-Mart and even the online world of Amazon. Best Buy store sales decreased by 4 percent in December, right in the middle of the holiday season. On top of that statistic, the company also experienced a net income fall from 779 million to 651 million. These numbers show how Best Buy is experiencing major sales decreases. These decreases could easily be a result of the declining amount of expensive television buyers. So could shifting their focus to mobile phones help the company get their numbers back up? No one really knows for sure and there is definitely a bit of speculation, but time will only tell what will happen to this high technology incorporation in the future.

-Taryn Dandurand

New Iphone 5

According to the Huffington Post, a new IPhone is up and coming this summer, supposedly around June of 2011.  The idea that a new iPhone 5 is out and about is the most exciting part of this announcement – everyone loves a new iPhone! Rumor has it that it may be bigger or smaller, but the antenna problem should be fixed.  Also, the Huffington Post states that the back will most likely be made of aluminum, just like the first round of the iPhone.  Hopefully the screen issue will be fixed as well.  However, whatever Apple produces will have to compete with the new and upcoming phones out on the market and the phones that will be out soon.  A smaller screen with the easily breakable glass and the terrible antenna problems associated with the current iPhone 4 will just not cut it.  But as we all know, Apple will impress us.  I have no doubt they will struggle at all.  I think it is safe to say that the new iPhone 5 will wipe out all other competition in a heartbeat, sorry HTC and Blackberry.  Along with wiping out all other competition, it will be another great stimulus to the current economy, like all other new products Apple produces.  Anyways, like we all know, no one will know for sure what Apple will put on the table.  I guess we will all just have to wait and see!

-Haley R