Generocity

Even though we are in a recession some are still prevailing and doing very well for themselves. One of those people is at no shock Bill Gates. With the vast amount of money Gates as acquired over the years with his business techniques and technology development one can only imagine what he would do with that money. Gates and his wife, Melinda, decided to donate $10 million to develop vaccines in the poorest nations of the world. It may be alot easier for a multi billionaire to make this donation, but I feel that as we struggle economically more and more people forget to give. They focus more on themselves and making sure they don't lose their money instead of thinking about someone who may not be able to eat tonight. As companies downsize, worry about their stock, and focus on the all mighty dollar they ignore those in need. I think this is a huge step in setting an example for other companies and others in a position to give back. Hopefully everyone can follow suit the best they can.

http://money.cnn.com/2010/01/29/news/economy/Gates_Foundation_grant_vaccines/index.htm

Job creation focus no. 1

As Obama stated in his state of the union address job creation is the number one priority for washinton this year. According to the latest statistics our economy rose at the fastest pace in 6 years. The president relayed this information to citizens in Baltimore, where unemployment is up to 11%. The economy is growing. The GDP rate of 5.7% shows us that. The president concludes as many would that because our economy grew so much that more customers will be willing and able to purchase this year. This plan would cost Washington $33 billion and help an estimated 1 million businesses. I feel like this plan will work really well in the short run and because of the tax credits will cause many companies to hire. However, my concern is how long will the tax credit last. If it is just this year and companies hire to get the tax credit because it saves them money then what will stop them from laying off when the amount of employees no longer saves them money because they no longer apply for the break in taxes. I am glad they are starting to get the ball rolling and take action on the unemployment rate, especially with Americans getting more and more impatient, but I am not sure this is the complete solution.

http://money.cnn.com/2010/01/28/smallbusiness/obama_jobs_plan/index.htm

Protection Against the Dangers of Haggis

Haggis. A concoction of sheep stomach stuffed with innards and boil and prepared in the traditional scottish art. A delicious delicacy that Americans cannot recreate. However in America we cannot enjoy this dish due to a ban on the import of Haggis

American haggis-lovers were elated last week when word spread that the ban might be lifted. Haggis producers in Edinburgh were pretty excited, too. They were already salivating over potential sales to a U.S. market.But when the BBC contacted the U.S. Department of Agriculture, they said not so fast. "Recently, several news articles have incorrectly stated that the U.S. will be relaxing or lifting its ban on Scottish haggis," a spokeswoman wrote the news organization. While a review of the ban on beef and lamb is underway, there's no timeframe for its completion. Plus, there may be another barrier to importing haggis: Since 1971, the U.S. has banned all food made with lungs.

http://www.npr.org/templates/story/story.php?storyId=123179163

And Haggis is not the only foreign delicacy that we can only dream about appearing on our plate. Many soft cheeses of France and other European countries are banned due to the fact that they do not pasturize the milk before making the cheese. Now I understand that mostly these bans are due to concern for public health, but really, when we allow all sorts of imports of toys ridden with deadly toxins from foreign markets, what is the real danger of a little sheep innards? Personally I don't see the logic in it. Is America just being protectionist against the possible impending competition with sheep stomach? Or worried that the cheddar cheese industry cannot withstand the intense taste of a fresh Camembert?

I would rather have a child nibbling on a bit of cheese than drooling on a toy horse ridden with lead.

The Financial Crisis: Private Greed and Government Corruption

Back in March, Matt Taibi wrote this article in Rolling Stone about how we have come to find ourselves in the worst recession since the Great Depression. Though he's hardly an economist, he closely researched the players in the crisis, and sums up the article in the first sentence:

It's over — we're officially, royally fucked

He does go into more detail, of course. Very inflammatory and harshly-worded detail, but he does so with accuracy and truth.

After a couple pages of bemoaning the collusion between powerful corporations and the government, he gets down to the heart of the crisis, writing:

The mess Cassano [AIG Financial Products division head] created had its roots in an investment boom fueled in part by a relatively new type of financial instrument called a collateralized-debt obligation. A CDO is like a box full of diced-up assets. They can be anything: mortgages, corporate loans, aircraft loans, credit-card loans, even other CDOs... The key idea behind a CDO is that there will always be at least some money in the box, regardless of how dicey the individual assets inside it are... They then convinced ratings agencies like Moody's and S&P to give that top tranche the highest AAA rating — meaning it has close to zero credit risk.... Suddenly, thanks to this financial seal of approval, banks had a way to turn their shittiest mortgages and other financial waste into investment-grade paper and sell them to institutional investors like pensions and insurance companies... What Cassano did was to transform the credit swaps that Morgan popularized into the world's largest bet on the housing boom... Cassano could sell investment banks billions in guarantees without having any single asset to back it up... Initially, at least, the revenues were enormous: AIGFP's returns went from $737 million in 1999 to $3.2 billion in 2005. Over the past seven years, the subsidiary's 400 employees were paid a total of $3.5 billion; Cassano himself pocketed at least $280 million in compensation. Everyone made their money — and then it all went to shit.

So basically, people react to incentives. Intelligent, unscrupulous bankers looked for a way to achieve higher profits, and ended up gaming the system. While they should have known that what they put in place was ultimately self-destructing, this manner of raking in the profits became all too common, involving many that didn't even realize their banks were participating in such a high-stakes game.

He continues, blasting certain members of the government for making this possible:

For years, Washington had kept a watchful eye on the nation's banks. Ever since the Great Depression, commercial banks — those that kept money on deposit for individuals and businesses — had not been allowed to double as investment banks, which raise money by issuing and selling securities. The Glass-Steagall Act, passed during the Depression, also prevented banks of any kind from getting into the insurance business... In the 10-year period beginning in 1998, financial companies spent $1.7 billion on federal campaign contributions and another $3.4 billion on lobbyists... In 1999, [Phil] Gramm [R-TX] co-sponsored a bill that repealed key aspects of the Glass-Steagall Act... The very next year, Gramm compounded the problem by writing a sweeping new law called the Commodity Futures Modernization Act that made it impossible to regulate credit swaps as either gambling or securities...

One role of the government, accepted even by many conservatives, is to proactively ensure the stability of the economy. However, virtually all Republicans and many Democrats have turned away from this practice as the lessons of the Great Depression have been forgotten and even subverted. We learned in class that a tax hits both producers and consumers, and often results in a significant dead-weight loss. This is also true of regulation. Regulation imposes constraints on companies, theoretically ensuring that they cut no corners and spend money on people to check the quality of their product. The wages given to these otherwise optional employees causes higher prices for consumers.

But both tax and regulation, properly implemented, do not result in money shoveled into a fire. Instead, they ensure the safety of the consumer, the producer, and the economy as a whole. Except President Bush named Hank Paulson the US Treasury Secretary, an executive of the financial giant Goldman Sachs. Under his supervision, money was handed out to the biggest banks in America with little stipulation as to its use, nor the imposition of regulations that would constrain further risky action. Meanwhile, the Obama administration, having named corporate crony Timothy Geithner as the Treasury Secretary, has hardly shown signs of the Change that was promised on the campaign trail.

So, one long wall of text later, a few prompts for discussion:

-What is your idea of the proper role of government in the economy? I know we have a few libertarians and Republicans here, so some diverse opinions could be interesting.

-What action should be taken now?

-Not really an econ topic, but still critical just as an aside: Assuming that you find fault with the parties outlined as responsible, what needs to change in our government, in our economy, and our society to prevent future problems.

China-US Trade Relations Tested

As we all know China's economic and political power in the world has grown almost as fast as its population in the past decade. Since economic and trading constraints with countries outside China have been loosened the country has held more and more influence. America today is in an interesting position with China. We have a colossal debit to this asian nation and depend greatly on its citizens to produce our goods. This week though trade relations were strained as China reacted negatively to a US sale of arms to Taiwan. Although seen as an independent nation to the U.S., Taiwan is viewed in the eyes of the Chinese to be part of China. In selling arms to Taiwan the U.S. was undermining the sovereignty of China over Taiwan. China responded by suspending any military exchanges with the U.S. As one article put it this issues comes at a time when the world powers need to be cooperating on major issues.

The warning comes as the U.S. seeks Beijing's help on issues including the global financial crisis and nuclear standoffs in North Korea and Iran. Tensions were already high after recent U.S. comments on Internet freedom and a dispute between Google and China, as well as President Obama's plan to meet with Tibetan spiritual leader the Dalai Lama this year.

http://www.npr.org/templates/story/story.php?storyId=123153875

How do you think that trade relations will change between the US and China in years to come? Who do you see holding more sway? What could be a possible fate for Taiwan if America grows more and more dependent upon China?

Gates' foundation pleges $10 billion for vaccines

Instead of the normal "the economy is failing" talk, I found a very uplifting story. USA Today states that the Bill and Melinda Gates foundation will be donating $10 billion over the next decade to research new vaccines and help bring them to poorer countries.

"We must make this the decade of vaccines," Bill Gates said in a statement. "Vaccines already save and improve millions of lives in developing countries. Innovation will make it possible to save more children than ever before."

This more than doubles the previous amount of money ($4.5 billion) this foundation gave for researching vaccine. Reading Gates' comments, do you feel that over the next decade, medical research for vaccines will improve dramatically? I feel that this was a ver important thing to write about, because of the fact that research for vaccination will improve dramatically. It is good to see someone who is filthy rich, do something awfully nice for the world.

Get an unpaid internship or wait tables?

I found this article about a student in grad school very interesting. She asked the columnist for advice on whether she should work in the upscale restaurant she has been and earn enough to pay her tuition or take an unpaid internship she has been offered. The author gave some helpful advice on what factors the woman should take in to account. Things such as what your duties will be, how helpful the company is at helping you find a job after graduation or if they usually hire interns, and would the experience give you knowledge you will use in your job after graduation. The woman was studyin engineering and I am currently planning on being an engineering major. My mom had me send her a resume to try and set up and internship type situation at her office. I too have worries about whether i should do this or find a job because of the debt i am going to have after college. I feel like it is very important to get job experience before you graduate because it will help put you ahead of those without it and get you hired and working more readily.

Banks not making the turnaround

So far in the first month of 2010 15 banks have failed to make due and keep their doors open. Six falling friday nigth the biggest holding a total of $1.87 billion. Customers are protected up to $250,000 however, by the Federal Deposit Insurance Corporation. We keep hearing that we are making the turn-around but are we? We still see businesses to close and jobs being lost. Banks are supposed to be the place where you save your money, but these days it seems like its where you put your money to lose it. A penny saved is a penny lost? I don't know what I am going to put my hard earned money into because it doesnt seem like there is a stable place to put it anymore.

http://money.cnn.com/2010/01/29/news/economy/bank_failures/index.htm

Are Our Farm Subsidies Impoverishing the World?

Lately I have been focusing on how U.S. Food/Farm policy effects people living inside the United States. But as we all know, we live today in the age of globalization and through trade we are now dependent on other countries for our livelihood. In the case of U.S. subsidies to farmers it can be debated in circles about whether they are helping or hurting the American economy. What is certain though is that U.S. subsidies are severely harming the economies of the world. Cheap subsidized corn, cotton, rice and other goods flood the foreign market and make it impossible for local farmers to compete with the artificially low prices of U.S. goods. This is a problem that various groups have red-flagged over the past decade, but rarely has been paid any attention by legislature or news corporations. With the recent devastation in Haiti U.S. aid has been flooding in, but some have stopped to question how Haiti got into such a bad economic state to begin with.

In a 2006 report, the Cato Institute, a nonprofit Washington-based research foundation, called rice "one of the most heavily supported commodities in the United States," and argued that several countries including Haiti "could all plausibly claim that the U.S. rice program has driven down global prices to the detriment of their citizens."

"Until the 1980s," the Washington Post recently reported, "Haiti grew almost all the rice that it ate. But in 1986, under pressure from foreign governments, including the United States, Haiti removed its tariff on imported rice."

http://www.cnn.com/2010/WORLD/americas/01/27/us.haiti.rice/index.html?iref=allsearch

A common theme I have found when researching US trade relations in third world countries is that we tend to bully countries into trading with us and then ruin their local economies with our cheap commodities, most often agricultural commodities. This is not an event singular to Haiti. In Mexico the same thing happened with imports of our subsidized corn and in Africa with subsidized cotton. America is simply not playing by the rules and the World Trade Organization has called them out on it on numerous occasions.

“The global trading system depends on countries obeying rules and submitting to orderly dispute resolution,” said Kripke. “Thus far, the US has ignored the ruling of the WTO adjudication and continues large subsidies for cotton production. If the US continues this way, the integrity of the multilateral trade system is at stake.”

http://www.oxfam.org/en/pressroom/pressrelease/2009-08-31/oxfam-reaction-wto-judgement-us-cotton-subsidies

How far are we wiling to go as a country to continue down this route of unfair trade. How many externalities are we going to create with third world country to maintain our system of industrial agriculture in our country?

Obama's State of the Union Address

I'm not sure if many people hear heard Obama's State of the Union speech, however what he mainly focused on was America's economy. Obama plans to give businesses a $5,000 tax credit for each new employee they hire next year. This will thus hopefully create more jobs and hopefully pull the United States in the right direction. CNN states

Obama will travel Friday to Baltimore, where the local unemployment rate is nearly 11%, to unveil his tax-cut road map. The $5,000 per-worker tax credit he's calling for would be available to businesses of any size, and would be retroactive to the start of the year. Startups launched in 2010 would be eligible for half of the tax credit.

Obama is also proposing a reimbursement of the Social Security taxes businesses pay on increases in their payrolls this year. Firms could earn the credit by raising wages or increasing the hours of their current workers, as well as by hiring new employees. The tax credit would be adjusted for inflation, and would not apply to wage increases above the current taxable maximum of $106,800.

All in all, this is a $33 BILLION dollar project Obama has, and as most of us know, the United States isn't rolling in money right now. What are your opinions on Obama's proposals? Do you think this is economically the best thing for America right now? If not, what do you suggest?

Agribusiness, Farm subsidies, and the Outlook of Rural America

As we began to discuss the impact of government intervention in the marketplace there was one thought that was running through my mind. Farm subsidies. As someone who would very much like to see more support for the small-scale, local agriculture it is always a twisted somewhat endless search to understand how the U.S. farm subsidies really work and why they are in place. Believe me I have just spent under an hour looking for a quote to put in here and I could spend all afternoon and still not be totally satisfied. When we go to the store and purchase our groceries there are so many factors that play into the price. For one the government subsidizes the production of certain commodity goods to keep the prices down. These goods include corn and soybean, which in turn gets processed into feed for the meat industry or additives in processed food for the most part. That means that the $3.50 you just paid at Meijer for a gallon of milk does not really reflect the producer's cost. The subsidies are, in theory supposed to bolster the agricultural economy while keeping prices low. What it has actually done for decades is to bolster large-scale industrial operations and leave giant swaths of our country in a constant state of depopulation and declining economic situations. I found an article on NPR "How Will an Urban President Handle Farm Policy?"

Farm subsidies are supposed to keep food prices down, and farmers and farm towns thriving. As costs have risen, farming has consolidated. Fewer farmers are working bigger farms. So subsidies are not achieving one goal of farm policy, says Dee Davis of the Center for Rural Strategies, a group that seeks attention to rural issues. "The greatest out-migration in rural areas is [in] the places [that] get the highest agricultural subsidies," Davis says. "The system is not working."[....]"If we are really serious, we can make sure that family farmers are supported, not just big agribusiness," a casually-dressed Obama told a crowd in Amana, Iowa. "I think that we can make sure that subsidies are going to people who need it, not Fortune 500 companies."

http://www.npr.org/templates/story/story.php?storyId=97309054

If you cannot read the cartoon the pig is labeled "Agribusiness" and the ice cream "Food Subsidy Pyramid". Obviously a reflection on the current distribution of subsidy payments in the country. And its affect on the overall health of the nation.

This all just makes me wonder where is our country going? When bigger is always better in the subsidy arena? When we are paying farmers billions of dollars not to farm to control prices? When the ecology of the land is compensated for maximum output of monocrops?

All just something to dwell on.

Toyota's reputation takes a huge hit

Living in Michigan, many of us understand the importance of a strong auto-industry. Many of us also know the American car manufacturers, such as Ford, General Motors, and Chrysler have been doing sub-par and as a result, the economy of not only Michigan, but the United States has taken a hit. We also know that due to these poor performances by the American auto-industry, foreign auto-makers- most notably Japan's Toyota- have been doing very well. This all has changed however when a 'sticking accelerator' recalled over 2.3 million vehicles. CNN states

Toyota last week recalled 2.3 million vehicles spread across eight of its models because of problems with a sticking accelerator. Then on Tuesday night it said it would stop selling those vehicles for an indeterminate period as it scrambles to find a solution.

The models affected include the company's three best sellers in the United States -- the Camry, Corolla and Rav4 SUV. Between them, they accounted for more than half of the Toyota brand's U.S. sales in 2009.

Five North American plants will halt production of these vehicles. The five plants have 14,000 employees, but they will be given training and other duties for the week of Feb. 1, according to Toyota spokesman Mike Goss. Asked about the potential for layoffs, Goss would not speculate what Toyota will do if the sales halt extends beyond that week.

Toyota- at least in my opinion- was supposed to be the safe and reliable car, which is why people would buy them. They were the safe, reliable care that one could keep for 20+ years, however already there seems to be some serious damage to their sales because of this recent news.

Shares of Toyota Motor fell 4% in Tokyo Wednesday while Toyota (TM) shares that trade in the U.S. on the New York Stock Exchange were down 7% in late morning trading.

This may be a blessing in disguise for the American auto-industry though. With a sudden drop in Toyota sales, both G.M and Ford sales may pick up drastically. How might this affect out economy, if at all? Might this prevent you from buying a Toyota in the near future, or will you just shrug it off?

Earthworks: An Urban Farm Success

Many of you have commented my post from yesterday concerning John Hantz's idea to turn Detroit into an urban farming city. I am very happy about the discussion thus far, because while many people have responded positively to this idea, a handful of people have expressed doubts or concerns about Detroit evolving into an urban farm. I whole-heartedly agree with those who have stated that Detroit has a more to offer than farm land. The major hitch is what to do with all of those vacated lots. A city spread out is not in my opinion a unified city. There are huge swaths of the city that are what experts refer to as food "deserts". A food desert is a region in which there is no adequate access to fresh food. This has become a common problem in cities that are experience depopulation, and keeping people spread out will not help solve the problem. In a neighborhood with twenty families a small grocery store could keep in business, but when all but four families move out, it is not economically feasible to stay in business. These are simply factors of supply and demand. With out demand from a sizable population Detroit simply cannot supply those that remain with the current conventional food supply chains in place.

Urban Farming can help support areas in current food deserts and while Detroit has not transformed itself into the giant urban farm of Hantz's dreams, it has created a well established network of community urban gardening initiatives. Earthworks is one such farm that was established to provide for a food bank. Most of the food that food banks receives comes from either donations or the USDA commodity surplus system, both of which are heavy on the processed foods and very light on fresh healthy produce. In an article in Metro Times, Larry Gabriel outlines why urban farms are important for revitalizing and supporting Detroit.

He's motivated to feed people, but he also talks about using the work to empower people. "They can see that we're not just victims," says Yakini. "People will see that we can grow food and we're not dependent on others." ... There are skills to be learned, such as composting and cultivation, marketing and sales, even processing the food into products such as tomato sauce, pickles, jams and jellies. City government needs to create policies that encourage and support urban farming. (The city could legalize beekeeping, for instance.) And it wouldn't hurt if federal subsidies to giant agribusiness either stopped or were more equitably dispersed to smaller farmers. In Cuba, the government got behind the issue and supported training and even land reforms that helped small cooperative farms flourish.

http://www.metrotimes.com/news/story.asp?id=13732

As you can see urban farms are not just about trying to make a profit off of abandoned land, but lay deeply rooted in an commitment to building community and helping those in need help themselves and become independent from government and other organizational outreach. And as for the government subsidies that support large farms...well we'll get to that tomorrow.

If you are interested more about Earthworks Farm here is a link to a video about the farm

http://www.youtube.com/watch?v=0JvUQxsU8jc

Here's a question for all of you. What do you know about gardening? About the farm subsidies our taxes pay?

Japan Struggling Too

As the last post commented on the world seems to be struggling, not just the United States. Japan seems to be hitting a wall as well. After thriving for the past few years, working its way up to having the number 2 ranked economy in the world, Japan's economic growth is slowing and some experts say that they will soon be passed. The article I read said Japan's gross domestic product grew at a rate of 1.3% in the third quarter. This is still an increase, but this rate is half that of the United States. Some fear the U.S. is next however, as the fiscal outlook for the next decade shows deficits averaging over $600 Billion. Also expecting the debt to be $6 trillion in 10 years. I think this is something we should be concerned about, but at the same time Japan may be just entering a recession while, as some economists say, the U.S. is showing signs that we are coming out of one. Though we may have some similarities with our debt and Japan's i think that the fact we are exiting a recession is key and that this will not effect our debt rating.

http://money.cnn.com/2010/01/26/news/international/japan_ratings/index.htm

Britain Breaks out ofr Recession

As we know, the United States isn't the only country facing an economic recession- in fact- "expert" economists state that we have a global economic recession in our hands (see Forbes).

One country that got out of this sticky situation however, is Britain. The NY Times report:

Gross domestic product grew 0.1 percent in the October to December period from the previous quarter, the Office for National Statistics said in a preliminary estimate. That was less than the 0.4 percent growth that economists surveyed by Bloomberg and Reuters had been expecting.

Granted this 0.1 is not that much, it is still showing that Britain is heading in the right direction and is 'officially' out of the recession they once were in.

Can Detroit be Reborn Through Farming?

Motorcity. The birthplace of the Model-T and the industrial production model as we know it today. Yet as we enter the second decade of the 21st century Detroit's economy is anything but innovative. In the last few years we have seen scandals, followed by bankruptcy, followed by corruption in Michigan's most well known city. And where does that leave Detroit's reputation now? Internationally Detroit is synonymous with American failure, and domestically it is a symbol for our growing unemployment problem. Many people have been working on how we can "save" the car industry in Detroit and its surrounding suburbs. While the effort has merit, I believe that Detroit no longer has great potential to be the hub of the car industry. Fortune magazine recently published an article on a man who sees a much different future for Detroit.
John Hantz, former American Express stockbroker with a net worth of over 100 million is one of the richest men left in Detroit, and he has a plan to revive the city and put to use the acres upon acres of vacant land. His idea is to being to farm Detroit and turn it into the preeminent city garden of the world.

Yes, a farm. A large-scale, for-profit agricultural enterprise, wholly contained within the city limits of Detroit. Hantz thinks farming could do his city a lot of good: restore big chunks of tax-delinquent, resource-draining urban blight to pastoral productivity; provide decent jobs with benefits; supply local markets and restaurants with fresh produce; attract tourists from all over the world; and -- most important of all -- stimulate development around the edges as the local land market tilts from stultifying abundance to something more like scarcity and investors move in. Hantz is willing to commit $30 million to the project. He'll start with a pilot program this spring involving up to 50 acres on Detroit's east side. "Out of the gates," he says, "it'll be the largest urban farm in the world."

I personally think that this idea has a lot of potential. With the population of Detroit shrinking each year it is estimated decline to 700,000 inhabitants from over 2 million. All that extra space needs to be used productively in order for Detroit to regain any sense of prosperity and currently investors are not exactly jumping the gun to move in. The need for nourishment is universal though and growing food in the city would cut down the carbon footprint of transportation and create a sense of unity within the community of Detroit. What is your opinion of this idea? What other visions do you see for Detroit as we mature into adulthood?

For the full article
http://money.cnn.com/2009/12/29/news/economy/farming_detroit.fortune/index.htm

Pay decreases while hours increase.

http://money.cnn.com/2010/01/25/news/economy/workplace_loyalty/index.htm
The article above talks about how workers are getting more and more fed up with the economic situation. The ones looking for work can't find it and the ones with it are getting their pay cut, compensation cut, and their hours increased. I know, before my mom switched jobs, she had recieve 3 or 4 pay cuts in a span of a year and a half. The article posts a statistic from career builder saying 24% of workers no longer feel loyal to their employers. 19% plan to switch jobs within a year. It also gives an example of an airline attendant whose pay and compensation has been cut 33% since 9/11 and his hours his hours have increased. It seems like companies are doing what they can to survive the recession, but maybe some need to pay more attention to their employees or at least have better communication. I feel like loyalty his bigger than most people make it out to be in a business. If employees are happy and loyal they are obviously willing to work harder than an angry employee who feels slighted. I feel like some workers need to realize that these are tough times and a pay cut is better than a lost job. Although companies should try to keep communication high with their work force and give them reasons why things are being cut so at least they know why it is being done and how it helps the company.

Economics 101

Here I am fourth week and I find myself consumed by studying. The library has become my home and coffee my main food. Earlier today I sat staring at my econ. notes and couldn't help but think, "Why did I take this class?" So, like any good student, I googled it.

Economics can be found virtually anywhere, from working, to paying for school, to the places you live, to the friends you have, and the opportunities in life. While a lot of economists seem to be losing some credibility due to the recession, the basic building blocks of the subject remain the same.

Economics is an essential topic, it helps provide the foundation for understanding how the world functions. There are also countless professions that use economics every day including: bankers, financiers, lawyers, and small business owners.

Even though fourth week isn't my favorite, at least I know that I'm studying valuable information.



http://www.blogger.com/www.temple.edu/cla/economics/about/

Popular Stores Closing in 2010?

According to Forbes.com, the worst seems to be over, but retailing is still a tough business. In 2009, Waldenbooks/Borders was forced to close 110 of its book stores. Blockbuster took even a bigger hit, having to close 300 of its video stores. The company I was most surprised to see on the list was Starbucks, which closed an astounding 566 its coffee shops. According to the article on Forbes.com, these three companies are likely to be closing more of their stores this year as well, and might even go under as a result. The outlook for Waldenbooks/Borders may prove to be fatal according to the article which explains:

"Amazon.com continues to wreak havoc on traditional booksellers. The Borders unit says it will close an estimated 200 stores during the three months ending January 31, for a total of roughly 300 Waldenbooks stores over the past 13 months, close to 70 percent of all outlets. Retail analysts at Davidowitz & Associates give Borders Group, plagued with losses three years running, a 50-50."

Going to the book store isn't the only way you can purchase books, and it has been this way for quite a while now. It is now beginning to catch up with book stores, because looking online for a book is much easier. It takes less time and effort, as all you have to do is search it and click purchase if you want it. Going to a book store requires the drive to and from your home, which some people are unwilling to do anymore because of high gas prices. Also, there is the uncertainty that the store will have it, which could result in time wasted. When taking a look at Blockbuster and Starbucks, their prices have always been known to be relatively high. Near my home, more and more Caribou Coffee shops have begun to pop up, as well as Family Video stores, both of which have cheaper prices than their competitors. Starbucks and Blockbuster have always been household names in their respective markets, but are people beginning to settle for what's cheaper rather than what's known to be a quality product? Is it competition, like Waldenbooks and Borders are having to deal with, that is taking away business from Starbucks and Blockbuster? Also, could it be that people are just straying away from renting and buying these companies products because of the economy? I find that hard to believe for coffee, as for a lot of people it is a necessity.

Some Good News After All

My last posting was about some very popular companies that are struggling in these hard economic times and how it came off as a bit of a surprise. I had also mentioned how it gets tiring to look at the news and only see these depressing stories about our economy and how bad it is. Well this posting is actually on the opposite end of the spectrum for once! I finally found an article with some positive news about our economy today! In an article on CNN.com, I found some major companies with a lot of job openings. The article lists off 22 different companies that have a good amount of job openings. When added all together, the 22 companies add up to a total of 87,750 jobs! It was quite refreshing to hear this. The list contained such companies as: Edward Jones, Google, Nordstroms, American Express, Marriot Hotel, Fed Ex, Intel, and many more. Each of them had over 500 openings and some even had over 1,000 and 1,500.

The article was also nice because it gave a description of what each company was looking for, giving applicants a heads up. I feel like this is a great service by CNN to put this article up. With so many people losing their jobs these days, it’s so nice to finally see some positive news and have a little hope. These jobs could turn out to be life savers for some people. They even go as far as giving tips for what each corporation is looking for in their employees. I hope many people use this article to their advantage and that things work out well for them. I know there are a lot of people deserving of a job in today’s world that unfortunately cannot have one due to our economic hardships. It’s articles like this that can give people the hope and strength they need to keep pushing through these hard times.

Dr. Horrible Explains it All

The Emmy's this year had a fun interruption when Dr. Horrible took over the show. In his short time on air he made the very astute point that the Internet was taking the place of television. As the main character in the short movie "Dr. Horrible's Sing-Along Blog," which premiered on the Internet during the writers' striker of 2009, some bias can be assumed on his part. But he was very correct in suggesting that the Internet might be taking over TV.

There are a large number of shows that you can watch online from major television stations. The stations themselves are happy to supply Internet viewers with clips and episodes, probably as encouragement for people to get into the series and buy the DVDs later down the road. There are even things like Dr. Horrible or the Guild which were never aired on TV, made specifically for the Internet.

However, such easy access may begin to present an economic problem. Television stations could be in trouble if people continue going to the Internet for their viewing needs. As long as one has Internet access, you don't necessarily have to pay to watch certain channels on your television--you can just watch it online. The most worrying thing is that it is very easy to stream or download content that people couldn't normally watch for free; it's difficult to police something like the Internet.

Already the Internet has begun to take the place of printed newspapers. It wouldn't take much for it to replace television viewing as well. After all, computers offer much greater accessibility and less commercials than most television stations would.

Right now it doesn't seem as if television stations are doing too poorly. In time, though, they may start to feel the pinch.

Unemployment up and so is optimism?

Despite the unemployment rates given in December some analysts are optimistic about the country going in the right direction. In december only 4 states showed a decrease in unemployment rates. The rest of the nation either saw no change or joblessness went up. The report also noted that the unemployment rate in all 50 states is higher than the year before. Michigan was the highest at 14.6%. To me the first year economics student this looks like a bad report and definately not a sign of improvment or the right decisions being made. However senior economist Craig Thomas states, "It's been tough, but we are certainly here at the turnaround. In a few months these numbers will be revised up significantly to reflect the trends we're seeing nationally." Hes talking about the 11 states who have added jobs and despite the nation losing 85,00 jobs the unemployment rate for the nation held at 10%. I hope we are improving as a nation, but im not sure the data supports it. Maybe we are coming out of the recession and this was just a tiny set back. Hopefully Thomas is right when he says, "It's always disappointing to see these numbers, and it creates some wavering on the idea of the recovery progressing, but if you look at the hard evidence we are moving toward recovery."

The Problem With Education

I don't know about you, but I am very disappointed with the US educational system. There are so many issues surrounding education (I'm referring to primary education). For example, the US is trailing behind several nations including, Finland, Korea, and Japan in education. Not only do US students have lower test scores, they also have a lower graduating rate.
Also, the way that the current educational system is set up it only appeals to two of the seven 'multiple intelligences.' For those of you would are not familiar with psychology, it is argued that there are seven types of intelligences, or learning styles, as pictured below.

http://http://www.newhorizons.org/strategies/arts/cabc/oddleifson3_2.gif

US schools put their main emphasis on Linguistic and Mathematical/Logical subjects. It is also how the country's standardized testing is structured. I believe that the standardized testing methods used for things such as college entry are complete crap. A real life example is my ACT score. I took the ACT twice both times without doing any preparation and there was a FOUR point increase in my score the second time I took it, causing me to question the test's ability to accurately asses the intelligence level of a student.

Another thing I would like to address is the way in which the educational system is structured. In his book "The Underground History of American Education" John Taylor Gatto (a teacher of thirty years) argues that the current educational system is structured much like a factory in the 19th and 20th century. You go to class, you sit all day, you learn, you do homework, go to bed, and wake up to do everything over again. He argues that while this system worked in the 20th century, it is now the 21st century and serious changes need to be made. There is a fantastic article called 'How to Build a Student for the 21st Century' in Time magazine. If this post interested you I highly recommend you read it.

What I want to know is what kind of impact do you think not changing our education system would have on the economy? There has been an increase in professions that do not require just logical and linguistic skills. Do you think the Us should scrap the current ed. system and start fresh? If it did what repercussions do you think would be experienced? Also, do you think that the current education system should even be changed? Any ideas as to how?

Possible Store Downfalls

In these hard economic times it should come as no surprise that many stores are having to close chains across the country. Although, according to an article from dailyfinance.com, it was a bit surprising to see some of the stores are facing possible downsizing, mainly because they are very popular chains. The list included shops such as: Hot Topic, Barnes and Noble, JC Penny, GameStop, Zales Jewelers, and Abercrombie and Fitch. It makes me worried in a way that these big name stores are having trouble keeping their head above water, because they are established and well recognized retailers, therefore I would have assumed that they would be doing better than other shops. However, I suppose this is a good example of how nobody is immune from this economic recession, even a franchise as well known as Abercrombie and Fitch. It’s not like these stores are completely going out of business, but they’ll still have to make significant store cuts that will severely affect their profits.

Every time I go online to find an article to blog about I just find one piece of bad news after another, and this article is no exception. With these big names having such trouble, it would seem that other stores that aren’t as popular, yet still well known, are going to have a fair share of their own problems. It’s gotten to a point where I read these articles and then just ask myself, when are things finally going to turn back around? So if you’re at your local mall in the near future and can’t seem to find one of the above stores, it’s probably because it has since closed down due to corporate downsizing.

Blogger expertise

Please feel free to write about your interests and knowledge. The most exciting blog conversations build on these. We have some amazing people in this class with diverse backgrounds. Maybe everyone should write an entry that introduces themselves and their interests to the class?

Fowl Play

When you think of chickens, you probably picture a rural scene, complete with a barn and a tractor. However, chickens are becoming more and more popular away from the countryside. People from the suburbs and even the cities are beginning to raise chickens for a more natural, assumedly cheaper way of getting eggs and meat. U.S. News reported that the trend towards raising chickens was due to their "relative ease of care as pets; [an] increased interest in getting food from humane, local sources; and a desire by some to produce their own food in tough economic times."

While less money might be spent towards meat and eggs, though, chickens are far from cheap. They need food and bedding; as with any animal, they need to be cleaned up after, and may even need medical care if they get sick. However, besides their food-giving possibilities, chickens can be useful in a variety of ways. They're especially good for composting food--chickens will eat any variety of food scraps, which means less garbage going to landfills. Another economic option with chickens is selling surplus eggs for money.

Currently there are restrictions on chicken ownership, especially in cities. Many ordinances make it difficult or even impossible to raise chickens within city limits. This is understandable, given that neighbors may be subject to the smell and noise from the chickens. However, laws are changing, and chickens are becoming a more viable option.

It should be noted that chicken ownership would most likely have an economical effect on a more individual basis. The trend currently isn't enough to threaten chicken industry, and it would take a lot for it to have any effect on the market. This being said, is it economically feasible to raise chickens in a suburban or urban setting? What would be the trade-offs associated with poultry owning?

Green Pork

We've seen the pros and cons of genetically modified crops, both for the economy and the environment. Now, how would you feel about genetically modified pork? That's something scientists are working to make right now. Currently they're trying to find a way to create edible pork from pig stem cells. Though they still have a long way to go, they continue to strive towards laboratory-created meat--and for good reason. A recent news article reported that the artificial meat "could one day offer a green alternative to raising livestock, help alleviate world hunger, and save some pigs their bacon."

Why is it such a big deal? Pork that comes from pig stem cells would reduce the need for pig farms, which can be environmentally hazardous (thanks to manure run-off from the closely-packed pigs). It could also supply a cheaper way to get pork, meaning more people with lower incomes could readily access it.

However, a jump to synthesized pork might hurt as much as it helps. If the "green" pork is cheaper, more people will buy it versus pork that actually comes from pigs. That would hurt pig farmers; they might have to cut back on the number of animals that they raise. That in turn would hurt the businesses that supplied the food for the pigs, and so on. Therefore, any effect that laboratory-grown pork would have on pig farmers might have a ripple effect on the suppliers that depend upon the pig farmers' business. Also, if pork were to become cheap and readily available, it could easily become a substitute for other types of meat, lowering demand for things like beef or chicken.

Michigan Smoking Ban

Later this year, Michigan will be enacting a smoking ban in public places. Smokers will not be allowed to smoke in any public place with the exception of existing casinos (all casinos built after the ban is put in to place will be no smoking zones).
So before too long, when you go into a restaurant you won't be asked "Smoking or Non" it will no longer be an option. I'm really curious as to what your opinions are on this whole ordeal. I can understand both sides of the argument; Second-hand smoking is bad for the non-smokers, but people have the right to decide to smoke. How do you think this law is going to affect businesses? (I'm thinking bars and restaurants.) Do you think business will go unchanged? Or will there be negative effects?

For more read: http://www.detroitbusinesslaw.com/2009/12/michigan-smoking-ban-summary-of-house-bill-no-4377/

Burger King Bartending

What could be better than a Burger King Whopper, some fries, and an ice cold coke? Well, if we’re speaking in literal terms a lot of things are better than that. However, Burger King has come up with a new promotion that’s going to debut in Miami, Florida next month: a Burger King bar. That’s right, not only will customers be able to buy their favorite Burger King sandwich, but they’ll also be able to enjoy it with their choice of Budweiser, Miller Light, or Bud Light Lime beer for a cost of $4.25. Plus on top of all that, it will be open 24 hours a day. The article from CNN.com states:

It will be the chain's first U.S. location to sell beer, and the restaurant will offer a delivery service for local customers, a walk-up window for orders on the go and an outdoor dining area.

Experts mention that it may not be long until other fast food joints jump on the bandwagon and introduce alcohol to their menu. Personally, I’m not too sure how I feel about this whole situation. I suppose it would open up an entirely new market for fast food chains and would possibly bring in loads of new customers. According to the article, Burger King’s next targets are the cities of Las Vegas, Los Angeles, and New York.

"In the restaurant industry, if it works for one, others will try," said Forte. "Other operators are watching from the sidelines to see how effective this is for Burger King and then may consider it."

New York Trouble

According to an article from nytimes.com, the New York City unemployment rate hit a record high last month, pushing it ahead of the countries. 10.6% was the magic number for NYC, while the country stayed around 10%. Neighboring state New Jersey also announced that they had a jump as well, going to 10.1%. After reading this article I guess I was a bit confused. I’ve heard reports from one place or another that the recession is ending and that things should turn around soon. Yet, I’ve also heard the opposite of that as well. Then I get online and see this article that states just last month New York City has reached its highest unemployment rate in 17 years. The article reads:

Nearly 425,000 city residents were unable to find jobs in December, easily the highest total in the 33 years those records have been kept. The numbers were announced a day after New Jersey officials said that their state’s unemployment rate hit a 33-year high of 10.1 percent in December. New York State’s unemployment rate also rose, to 9 percent from 8.6 percent in November.

“The city’s rate is obviously the most disturbing one in the mix,” said M. Patricia Smith, the state labor commissioner. “What this shows is that the economy is still volatile. People are still nervous about the economy.”

I don’t blame people for being nervous when the unemployment rate is higher than the countries. The article goes on to mention that we shouldn’t be expecting a turnaround anytime soon either. Experts say that unemployment is likely to keep rising and won’t reverse the trend until at least midyear. It’s really like a vicious circle if you think about it. Thousands and thousands of people get laid off of work and lose their source of income, businesses start to lose money because the consumers don’t have any to spend, so what do the businesses do? They have to resort to even more layoffs. I just hope that our country and cities such as New York City can turn things around by the end of 2010.

Haiti Update

This morning I read an article in the NY Times called "Economy In Shock Struggles to Restart" (http://www.nytimes.com/2010/01/22/world/americas/22recovery.html?th&emc=th) the article was, of course, referring to the Haitian economy.

The Haitian banking system had been mostly shut down after the earthquake because officials were afraid of potential robberies. Also, the prices of goods such as: candles, ice, and matches has begun to skyrocket. However, the World Bank has made the decision to waive all of Haiti's debts for the next five years...hoping to give the country some time to get back on its feet.

One of the points in this article that really shocked me was that before the earthquake hit about 70% of the population was living on $2 a day. Can you believe that?

Anyways, the situation in Haiti is still awful, but it seems as though there may be a light at the end of the tunnel.

Carpe Carp

The Great Lakes have had many issues in the past with invasive species. Things like zebra mussels and lampreys have plagued the ecosystem of the lake and threatened native species. Now the race is on to prevent yet another invasive species from coming into the Great Lakes--and recent DNA evidence found in the lakes may reveal that they're already here.

Asian carp are large fish that can reproduce quickly. According to NPR, they were introduced to the U.S. as a measure against algae growth in catfish farms down in the South. Flooding allowed them access to the Mississippi River, and they've been making their way towards the Great Lakes since.

As the aforementioned article suggests, Asian carp could be a good deal for some fishing entrepreneurs. These fish are large and very edible--opening up the market in the Great Lakes states for a new type of fish. However, their rapid reproduction rates and excessive feeding may edge out native species like trout, bluegill and salmon. An article in the Sunday Morning Herald reported that "federal officials have warned that Asian carp--which have no natural predators--could have a "devastating effect on the Great Lakes ecosystem and a significant impact" on the seven-billion-dollar sport and commercial fishing industry." Established fishing businesses may no longer be able to catch species other than the carp without a lot of effort, bringing the price of native fish up. Some of Michigan's tourism is probably based around fishing, so the shortage of native species may be a turn off for visitors.

One thing for sure is that once they're here, they'll be hard to get rid of--and hard to prevent from travelling to all of the other Lakes. While the Asian carp may themselves present a possible economic opportunity, their presence will alter the Great Lakes ecosystem for the worse.

Recession's Effect on College Freshmen

Today I stumbled across an article in the NY Times... which you should all read http://www.nytimes.com/2010/01/21/education/21college.html?th&emc=th
The article discusses the numerous impacts that the recession has had on college students, primarily freshmen. I don't know about the rest of you, but I could really relate to this article. The only thing that would have prevented me from coming to K was financial issues. Had it not been for some generous scholarships I would not be here. In this article it was brought up that a lot of students were unable to go to their first choice school, not because they couldn't get in, but because their financial situations wouldn't permit them to.
I found the article interesting not only because it was so relevant, but also because it pointed out how financials issues are found not only within the government, but in the everyday lives of everyday people.

China Keeps On Booming

I know we’ve already had a few postings on China, but it’s hard to ignore them when their economy continues to grow. We’re still trying to get through this very tough recession, along with many other countries around the world, yet China continues to post growing numbers for their economy. According to an article on nytimes.com, China’s economy rose to 10.7 in the fourth quarter, which was up from a growth rate of 9.1 in the third quarter.

Over the whole year, the Chinese gross domestic product grew 8.7 percent, surpassing the 8 percent growth-rate benchmark that Chinese leaders assert is necessary to maintain social stability. If China keeps up that growth rate, it will very likely replace Japan as the world’s second-largest economy by the end of this year.

It really makes me wonder what it would be like if our own country was able to produce such fantastic numbers, instead of eeking our way out of this recession. It would be such a load off the shoulders to have a growing economy during a global recession, at least in my opinion it would be. However, Chinese officials have stated that much of their growth is a result of their exporting market and that they need to be able to transition to more domestic growth. They are also concerned about the possibility of inflation in the near future. The Chinese are also being criticized by other countries, including us, for their weak currency. The article mentions how the U.S., along with other countries, will be pressing China to strengthen it so they don’t have an unfair advantage in the export markets. I’m interested in seeing if this growth pattern will indeed continue, or if it will flutter out due to inflation and the inability to transition from exports to domestic consumption.

Bad for Us, Good for Them

I always assumed that a good economy would be better for the environment than a bad one. After all, people have more time to care about what's happening to the world around them when they've got a steady source of income. When the economy starts to turn sour, people would be more focused on, well, the economy, and less concerned with environmental issues.

I was therefore surprised to see an article titled "Is the bad economy good for the environment?" However, the article made some rather good points.

Basically it goes back to supply and demand. When people don't have as good as an income, they try to cut back and therefore demand falls. When demand falls, the supply curve shifts to equilibrate, and therefore less is produced. This helps the environment in conservation of natural resources. For example, people try to save money by using public transit instead of their own cars (therefore using less gasoline, and indirectly burning less fossil fuels). As industry slows, fewer pollutants are produced as a result. When wood and paper products aren't as in demand, fewer trees get cut down.

Of course, one still has to remember that there is an ongoing crisis in the environment (global warming), and it's important to focus on trying to fix what's happening. But it's good to know that there is may be some benefit to such an unfortunate circumstance as a bad economy.

Waffle Shortage!

I don't know about you all, but I'm pretty accustomed to having whole wheat Eggo waffles included in my morning routine. Evidently there was a massive recall of Eggo waffles in September of this year which has result in an Eggo waffle shortage. The recall occurred due to extensive flooding in one of Eggo's main plants in Atlanta which in turn caused the bacteria Listeria Monocytogenes to infect the waffles.
While this bacteria isn't as fatal as some, Kellogg still made sure to recall thousands of boxes.
For the full article:
http://abcnews.go.com/Business/eggo-waffle-shortage-bacteria-forced-plant-closure/story?id=9117059
It is nice to know that Kellogg had some decency and admitted that the waffles were potentially contaminated. In April of 2009 the salmonella outbreak in peanut butter could have more then likely been prevented had the peanut butter manufacturers not been so afraid of losing profits due to a massive recall.

New York Times fee

For those of you who like to go online to the New York Times and read the daily headlines for free, your time is now limited. The NY times has announced that starting in 2011 it will start charging people to access their online news. An article that is actually from the NY times states:
Starting in early 2011, visitors to NYTimes.com will get a certain number of articles free every month before being asked to pay a flat fee for unlimited access. Subscribers to the newspaper’s print edition will receive full access to the site without extra charge.

I understand that we’ll at least get some access to the website before we have to start paying, but personally, I’m still kind of bummed about the decision. I like to use websites such as the New York Times to follow the news, specifically because there is no cost to access it. When the time comes for them to start charging a fee, they will lose me as a reader. Sure I’ll read as much as I can without paying, but I have no intentions of buying a subscription to their website. Reading this article has made me wonder how many readers, if any at all, they will lose if they start charging to use their website. As of right now the NY times is not releasing any details, such as how much the fee would be, but it’s most likely going to be enough for me to stop reading.

I suppose I do understand the reasoning though, newspapers are struggling with getting advertisers and as a result, they are losing money. The internet is just another way to try and make up for loss profit. The article states:
Any changes are sure to be closely watched by publishers and other purveyors of online content who scoffed at the notion of online charging until advertising began to plummet in 2007, battering visions of Internet businesses supported solely by ads. Few general-interest publications charge now, but many newspapers and magazines are studying whether to make the switch.

It’s also comforting to know that the newspapers and publishers themselves don’t want to do this, but are forced to solely to try and make money. I don’t blame them, but unfortunately they will most likely lose me as a reader. I’m interested in seeing if others feel the same as I do, or if perhaps I’m a minority. (A)

Honey bee population takes a sting

Things aren't going well for the honey bees right now. Currently they're being hit with a disease called Colony Collapse Disorder (CCD), which is having a very negative impact on bee population. Unfortunately, while there is some speculation towards why this is happening, the real cause is still unknown. The only fact that is definite is that honey bees are declining in population, and if this continues, there will be a negative consequence for people as well.

Besides natural wax and honey, bees have another important resource that they contribute to--pollination. Bees, as reported in this article and as stated by the US Department of Agriculture, "pollinate 80% of our flowering crops which consitute 1/3 of everything we eat." This means a wide range of foods that we consume may be in short supply if we keep losing honey bees. And an effect on agriculture may have even farther reaching consequences (the above article mentions that it could even affect dairy and meat production, because cattle depend on plants like alfalfa, which would be affected by the bee crisis.)

If this situation were to be applied to a supply and demand chart (with quantity and price of produce), the demand would stay the same, but because of a lack of input due to the honey bee crisis, the supply curve would shift to the left. Price would therefore increase because of the lack of supply, making certain foods and other related items more expensive and less available.

Ironically enough, one of the postulated reasons to why bees are doing so poorly is genetically modified crops, which, according to this EarthTalk article, "may generate pollen with compromised nutritional value." So the crops that we modify to better suit our nutritional needs may, in the long run, be endangering one of our most important natural pollinators.

Haiti Debt Relief?

As you are all aware the earthquake in Haiti has brought devastation to the tiny island. I came across an article in The New York Times that discussed that France, and other wealthy nations believe that they should relieve Haiti of all its debt, which adds up to a total of $214 million. To read the complete details go to:

http://www.nytimes.com/2010/01/20/world/americas/20debt.html?ref=world

Now, I think that given the circumstances this is a wonderful thing to do for the poverty stricken country. However, I can't help but wonder what would happen if this became a habit. I'm not well versed in how all this financial stuff works, but it I feel as though this could set a negative precedent for the future.
Can anyone explain possible outcomes or just give their opinion on the topic?

Some Xbox Extras

For those of you familiar with the Xbox 360 gaming console, you know it can be used for much more than just playing video games. Recently, Microsoft executives have stated that their "Xbox Live" subscription service should be considered a cable channel according to an artilce in the New York Times. The article then mentions how Microsoft would like to put more emphasis on T.V. and media abilities of the Xbox 360, as opposed to just video games.Apparently Microsoft has been in contact with Disney in attempt to make a possible deal with ESPN. It states:

Microsoft has held in-depth talks with the Walt Disney Company about a programming deal with ESPN, according to people close to the talks, who requested anonymity because the talks were intended to be private.

For a per-subscriber fee, ESPN could provide live streams of sporting events, similar to the ones available through ESPN 360, a service that is available from some high-speed Internet providers. Microsoft could also create some interactive games in association with ESPN, the people said.

There are around 20 million monthly members of Xbox live and all of them have the ability to access Facebook, browse movie and t.v. shows, and also view Netflix. Of course, Xbox is not the only console available to have for entertainment. Sony and Nintendo have come out with the Playstation 3 and the Wii respecitvely. According to the article, about 60% of American households now have at least one type of console. This is up from 44% three years ago. To date, Microsoft said it has sold 39 million consoles around the world. With the focus on expanding the entertainment and media aspect, Xbox can also become some prime realestate for advertisers. Obviously Xbox and other consoles have a long way to go before they are considered an equal to cable television, but they may be on their way.

The company says it regularly counts more than a million concurrent users — and topped out at 2.2 million at one point during Christmas week last month. That compares favorably to some of the top channels on cable, like TBS and the Cartoon Network, which reach about one million viewers at any given time, according to the Nielsen Company.

So is this a new market that could potentially open up new opportunites? I'm not quite sure. I am the proud owner of an Xbox 360 myself and I can honestly say that I have never used it for anything but video games. However, the numbers are on the rise, perhaps we'll be buying Xbox's instead of cable soon.

The Economics of Genome Sequencing

Two recent articles on Biology News Net involved research on the genome of two important types of plants, the soybean and the sunflower. Apparently the soybean is the first legume species to have a complete, published genome, and now the sunflower is being studied to have the same.

How is this relevent to economics?

Soybeans and sunflowers serve as important resources. Soybeans are not only a food and oil source, they are a possible source of energy (biodiesel) and have nitrogen fixing roots (which increases the growing ability of soil). Sunflowers are also a source of food and oil. Knowing their genetic makeup will allow scientists to grow hybrids that maximize on these aspects of each plant. That means that not only more could be provided, what was being provided would be created especially for certain purposes. The plants could be bred to resist diseases or drought, to produce nutrients more suited for the human body, and so on. Genetic alteration would allow the plants to grow in places they originally could not; for example, the article on sunflowers noted that they could be bred for subsistence agriculture in places like Africa. New types of food would be available in places that need extra resources. Economically speaking, the knowledge that the genome offers us will allow us to produce more resources and a better quality of resources, increasing the supply.

Especially important to the U.S.A. is that the knowledge of the genome will allow the biodiesel capabilities of soybeans to be more fully expolored. According to the soybean article, "while biodiesel from soybean oil represents a cleaner, renewable alternative to fossil fuels with desirable properties as a liquid transportation fuel, there simply is not enough oil produced by the plant to be a competetive gasoline on a gallons-of-fuel yield per acre." Now that the genetic makeup of the soybean is known, the plant could be altered to produce more oil and therefore become a more suitable candidate for alternative fuel. People turning to biodiesel such as this as a substitute could help drive the price of regular gasoline down.

Though resources are never as unlimited as our wants and needs, genetic research such as this will do a lot in going towards as efficient of a production of resources as possible.

A link to the article on soybeans can be found here, and to the article on sunflowers can be found here.

Leno vs. O’Brien

Perhaps this is a bit of a stretch, but it would seem as though there is an abundance of late night talk show hosts, including: Jay Leno, David Letterman, Jimmy Fallan, and Conan O'Bri...oh, wait...just kidding. Over the past week or so the rather scandalous ordeal between NBC's Jay Leno Show and Conan O'Brien Show has come to the public's attention. For those of you who are not up to date with this whole mess, Seth Meyers , of SNL (in my opinion) does a superb job of summing it all up:
http://

Poor Conan. He found out the hard way that the demand for hosts like him is just not there.
Although, it is hard to feel too sorry for him, he is getting paid $40 million to compensate. Any thoughts, comments, concerns?