California, not so Golden

Bennett Wiley

December 9, 2013

California, Not So Golden

    California, one of the biggest states, also has the largest poverty problem.  Which to many, myself included may come as a surprise.  As when picturing California, the mind is filled with images of celebrities, Hollywood for that matter, professional sports team, the beach, surfing, and all the tourist sites.  Very solemnly does poverty even come to cross the mind when California also known as the Golden State is the topic.

        The US Census Bureau typically measures the poverty line at roughly $23,492, for an average family of four.  It does not include the geographical variations in the cost of living, as well as non-cash benefits as tax credits.  However if it were to include these factors, the poverty rate of Los Angeles County, already home to America’s largest poverty rate, expands from 18% all the way up to 27%.  Now that’s quite remarkable.  Los Angeles County isn’t alone though, other cities, larger ones per say like San Francisco almost double their poverty rate with the inclusion of those elements.  California’s poverty rate overall with the inclusion of those factors climbs to 22%.  With that being said, and doing the math, around 8 million people barely meet their needs to get by on a day to day basis.  Potentially leaving a quarter of America’s future(children) living in poverty in the state of California.

        John Husing, an Inland Empire Economist says, “Everyone knows it’s an issue, but no one is talking about it.”  This is primarily due to California having to manage its fiscal issue, which is another problem in itself.  The inland empire where John Husing is an economist includes Riverside County.  A county where recently a woman from Palm Springs, a town that is doing well to say the least(tourist town), called Second Harvest food bank, because she could not afford to feed her visiting family for  Thanksgiving.  This is old lady is not alone, California’s inland areas, such as the Inland Empire, and San Joaquin Valley(Agriculture land), have always been second to the coastal civilization, in employment, income and education.  It’s an issue that is being brought up more in meetings.  According to the Economist, at the California Economic Summit, gathering of notable people within the state, the bicker was primarily of “two California’s”: the wealthy coastal part and the struggling inland bit.  Fresno and San Bernardino are two prime examples of communities coping with poverty.

Jerry Brown the governor doesn’t seemed to be to worried about the high poverty rate.  As he points out, “Low skilled immigrants flock to the state, and take low paid jobs.”  He makes quite the point here, because the difference in ethinicity is quite clear.  Almost one third of California’s Latinos live in poverty.  to make matters worse they only have a high school diploma at best.  Now while Brown may come off as stubborn he has made efforts to school finances, by putting more money towards poorer areas.  In addition he has also approved a raise in the minimum wage that would make minimum wage a suitable 10 dollars an hour starting in 2016.  He’s got a lot on his plate as governor, as it’s a cycle of problems, that correspond with each other almost too much.

What’s at focus is how the poverty rate is changed, as with the raise of minimum wage, some may get out of poverty and be heavily benefited by this change.  However,  seeing both sides to this alternative, some say this wage increase will kill jobs.  The one thing that can’t be complained about is the cash flow, to poorer areas for education.  As a notable chunk of California’s future lives in a poverty, education can be the path to a life out of poverty, and in return a brighter future for California.  If the education is not being benefited by more cash flow, then California is on a downhill slope, as more poverty according to studies may lead to more crime, and with Los Angeles, that’s no secret.  So while thinking of California, perhaps a different image may come to mind, one of poverty, and perhahps  a thought of worry.

http://www.youtube.com/watch?v=555WJXQI7KU

http://www.economist.com/news/united-states/21590933-americas-biggest-state-has-americas-biggest-poverty-problem-not-so-golden

Works Cited

The Economist. N.p., n.d. Web. 9 Dec. 2013. <http://www.economist.com/news/united-states/21590933-americas-biggest-state-has-americas-biggest-poverty-problem-not-so-golden>.

Post Black Friday Report

By Kyle Gloss

$59.1 Billion dollars was spent on Black Friday in 2012, but this year, sales dropped by 13.2% according to ShopperTrak. The reason for this is most likely due to more stores opening early such as Walmart opening at 6pm on Thanksgiving. This is likely because Thanksgiving day spending rose to $12.3 billion, a 2.3% increase from last year. This spending could also account for the depletion of sales of Black Friday in a different way as well. As people spend more on Thanksgiving day, there’s less of a money supply to be spent on Black Friday, displaying another reason for lack of sales. The corporations could be another reason why profit wasn't as high, however. Black Friday deals have risen from an average of 25% off on most items last year to almost 35% off this year, possibly depleting the profit of companies. There was most likely the same amount of demand this year for the same items but there was more supply, and when supply increases and demand doesn't, the prices go down as seen. The statistics aren't all that show however, morals also play into the situation.

https://www.youtube.com/watch?v=OAhfwA8YIZE

Black Friday last year caused for stampedes, deaths, and riots, however this year it’s a bit more tame. The sales that lead into the weekend and those on Thanksgiving day spread the chaos throughout a longer period, establishing more of a peaceful atmosphere. However, according to CNN News, people “did not try to kill each other in a stampede as in years past”, but this is still not the case. While it’s true that the guaranteed sales that Walmart had established and other measures reduced the cause for havoc, the situation was still hectic. Fights still broke out and people were still injured over the “amazing” deals. The question now however, how are the Christmas sales going to turn out?

Some studies show that people go Black Friday shopping partially to find out what their kids want for Christmas. What I’m thinking is going to happen is the holiday deals starting with Thanksgiving will stretch into December and the entire month will become one giant mesh or holiday deals. This turn is for the better because maybe it will cause less hecticity in the future years finally.

"Black Friday Post-Game: 33 Million Shoppers Was Just the Beginning."DailyFinance.com. N.p., n.d. Web. 3 Dec. 2013. <http://www.dailyfinance.com/2013/11/30/black-friday-postgame-shopping-sales/>.

Loeb, Walter. "Black Friday 2013 Backfires On Retailers. Can Cyber Monday Save Them?." Forbes. Forbes Magazine, 2 Dec. 2013. Web. 2 Dec. 2013. <http://www.forbes.com/sites/walterloeb/2013/12/02/why-black-friday-2013-fades-into-a-big-blur/>.

"Thanksgiving trims Black Friday's sales."Pittsburgh Post-Gazette. N.p., n.d. Web. 3 Dec. 2013. <http://www.post-gazette.com/news/nation/2013/12/01/Thanksgiving-trims-Black-Friday-s-sales/stories/201312010156>.

weekend, Customers. "Black Friday: Spending and number of shoppers hit record highs." CNNMoney. Cable News Network, 25 Nov. 2012. Web. 30 Nov. 2013. <http://money.cnn.com/2012/11/25/pf/black-friday-sales/>.

Should the Government Help the Poor?

By Abby Monday

With a struggling economy, not all families can make ends meet. When times get tough and you can’t even afford to feed your family, what do you do? Obviously in our country the government helps the poor. However, one can’t be sure that helping them is really beneficial. Even though some people really do need all the help they can get, are some families taking advantage of what they can potentially get for free? I believe that it is right for the government to help the poor to an extent, but not as much as they are right now.

After doing some research, I was really starting to understand why all this help is sometimes necessary. Some people who live in extreme poverty make the decision to have a child. But, this child is not getting enough medical attention or even nourishment. Barack Obama once said, “...You can see what a free lunch program does for a hungry child. You can see what a little extra money from an earned income tax credit does for a family that’s struggling. You can see what prenatal care does for the health of a mother and a newborn…”. Clearly every point that Obama makes in this quote is completely valid. But, from my own experience I have seen how too much help for the poor can be a terrible thing.

This summer, I traveled with my church to Pittsburgh for a mission trip. I was so excited to really make a difference and never thought I would get as frustrated as I did. There was over 100 kids that traveled there. We split into different work “crews” and all had specific jobs. I worked at a place they called The FOR (Focus on Renewal) Center. The first day there we got a tour and really learned what this place was all about. It was an establishment that had a free lunch program. It also was a place where you could come and get food twice a week if you had certain qualifications. When I first arrived here, I was extremely saddened that people would have to go through this. However, within a few minutes I started looking closer and the people that were there. There were families that all had iPhones, women carrying designer handbags, boys wearing the latest basketball shoes. Sure, material items can be really fun to have if you can afford them. I just didn't understand why these people had all their priorities in the wrong places.

My second day there, I realized how easy it was for these people to take advantage of this program. They had no incentive to get back on their feet with everything the employees at FOR were doing for them. Each day at noon anyone can eat a meal for free there. My mouth would water looking at the gourmet meals that they would feed these people. Anything from ribs to lasagna was given to these people for free. Also, the serving sizes that they were getting were enough to fill them up for the entire day. But, on top of this they got to take home amazing amounts of name brand foods, large amounts of meat and even gallons of milk. These poor people were getting everything handed to them and they had to do nothing at all.

This trip made me realize that maybe the poor is getting more than they need. I certainly think that the poor should get some government help. But, not as much as the people at the FOR center. It was so frustrating to me that these people had to literally do nothing all day to get everything they needed. I understand that not everyone’s situations are the same. That is why this is such a difficult topic to touch on. Overall, I think the government should help the poor enough so they can live. The poor people should not be treated so greatly that the incentive to get a job just goes away. As long as these people can get by without becoming severely unhealthy, I think that that is enough help.

I do not think that the government should completely shut out the poor. But, I am not the only one that believes that the government is not the solution to the poor. I would like to end my post with a video of an economist giving his opinion on this situation. Milton Friedman is an economist who is featured in this video.

Here is Milton [Friedman] with his opinion on “Should the government help the poor?”

http://www.youtube.com/watch?v=AOHPzxT6PfY

The Value of Kobe Bryant

By Steven McGowan

         The median income for a household in the United States at $51,017, and some make more than that, and some make less. But there are however, the exceptions in our world of people who make a whole lot more than that $51,000. There are the celebrities of the world, who make millions upon millions of dollars a year. While many of them are indeed overpaid, some aren't, despite what you may think. And one of these iconic people got a whole lot richer on Monday, November 25th.

         Kobe Bryant is arguably one of the best basketball players that has ever played the game. On Monday, he signed a two-year contract extension with the Los Angeles Lakers, worth 48.5 million dollars. This year alone he will make more than 30.45 million dollars, and he hasn’t suited up for a single game so far this season. That is nearly 8 million dollars more than the next player on the salary list. Many speculate he will return from his Achilles injury that he suffered last April on Christmas day. If we assume he plays every game from then until the end of the season, he will be making approximately 564,000 dollars every game. If we assume he plays the same amount of time per game as he did last year (38.6 minutes per game), he will be making over 14,600 dollars per minute he is on the floor. And not only is he making money from his contract, in 2013 he will make 32 million dollars on endorsements, jersey sales, etc.


          With Kobe being the third highest paid player in NBA history, and soon to pass Shaquille O’Neal to be second, you may think that this is a ludicrous amount of money the Lakers have shelled out to some athlete to play a game, but the Los Angeles Lakers are paying for a lot more than that. The Lakers franchise is the 2nd ranked team in the NBA when it comes to team value, being worth 1 billion dollars. When they signed Kobe to the extension, they knew that they were going to be making that money back, with the 74 million dollars he has brought in by filling the seats with stands. According to ESPN, the Lakers in 2010 had been the top selling team when it came to merchandise seven out of the last eight years, with Kobe’s jersey topping the list of most sold jerseys among NBA fans, more than players such as Lebron James, Derrick Rose, and Kevin Durant. Not to mention that he has helped the Lakers win 5 championships within the decade of the 2000s. The Lakers bring in an annual revenue of 176 million dollars, and the owner of the Lakers, Jerry Buss, once said Kobe brings in over $80 million a year to the Lakers in revenue.

           If they hadn't signed him to that extension and he had gone elsewhere, you could expect something to happen like what happened in Cleveland, when Lebron James left to go play for the Miami Heat. The Cavaliers dropped from second in total attendance in the NBA during James' final season in 2010 to 19th in the 2012 season. To add onto the damage, the worth of the Cavaliers took the brunt of the impact, dropping 26 percent in value, according to Forbes in January 2011, with another 7 percent drop in 2012. Lebrons move also cost downtown businesses upwards of $150 million in revenue and perhaps even damage the local government.

          So when the Lakers gave Kobe that huge extension, they weren't paying just for the points he’ll put up on the board. With him being included in conversations about the best all time in the game of basketball, they’re paying to get fans in the seats, and to continue to keep the sales at the top of the league. The marginal benefit of Kobe Bryant is greater than that of the marginal cost for the Los Angeles franchise.

"Here's a list of the 100 highest paid NBA players ever, including 16 who made more than Michael Jordan." FanIQ. N.p., n.d. Web. 3 Dec. 2013. <http://www.faniq.com/blog/100-highest-paid-NBA-players-
of-all-time-Blog-54092>.

Guarini, Drew. "Life After LeBron: How Cleveland's Economy Is Faring After The Star's Departure." The Huffington Post. TheHuffingtonPost.com, 8 June 2012. Web. 1 Dec. 2013. <http://www.huffingtonpost.com/2012/06/08/life-after-lebron-how-clevelands-economy-is-faring_n_1582328.html>.

"Los Angeles Lakers." Forbes. Forbes Magazine, n.d. Web. 2 Dec. 2013. http://www.forbes.com/teams/los-angeles-lakers/>.

Badenhausen, Kurt. "Kobe And LeBron Top List Of The NBA's Highest-Paid Players." Forbes. Forbes Magazine, 23 Jan. 2013. Web. 3 Dec. 2013. <http://www.forbes.com/sites/kurtbadenhausen/2013/01/23/kobe-and-lebron-top-list-of-the-nbas-highest-paid-players/>.

"Kobe's No. 24 is No. 1 in jersey sales."ESPN.com. N.p., n.d. Web. 3 Dec. 2013. <http://sports.espn.go.com/los-angeles/nba/news/story?id=5142370>.

The Death of Cable TVs

By Alex Hamm

          The days of having to buy cable to watch TV are now coming to an end. These days cable providers can get away with charging massive amounts for a product they have to work very little to produce, but this will not last for very long. Since there foundation in 2002 the tech company Roku has envolved into a real threat for these cable giants. Roku recently released there latest product, the Roku 3, which has support for 750 stations including 94 TV and movie chanels! The best part is that to own a Roku you only have to pay one flat rate, no more subscriptions!

          For those who do not know what Roku is, the concept is really quite simple. Roku provides you with a little computer in a box that you plug into one of your TV inputs, basicaly you replace your existing cable box with this Roku system. Once you have the Roku plugged into your computer you can control it with the provided remote or even an app from your smartphone! The days of losing the TV remote are soon going to be a thing of the past!

http://wwwimg.roku.com/roku-3-chart-pics_0.jpg
An image of the new Roku 3 system with remote control

                                     

          Now one of the biggest concerns people have with dropping cable is that they will lose live coverage of sports and news. To some degree these people are correct but there are ways to get around this problem. For one thing to get local stations (local news, NBC, CBS, etc) all you need to do is go to Wal-Mart and buy a $50 antena! And no, this is not the same as the antenna your grandma had back in the 1950's, all of these stations are broadcasting these channels in HD for free! All Time Warner Cable or whoever your provider is doing is licensing and re-broadcasting the signal, you are literally paying hundreds of dollars for something you can get for free! As far as sports are concerned, a lot of what happens can be viewed online but Roku is also working hard to bring live TV to their systems. Already Roku users can watch MLB TV and more major sports networks will soon be on the way!

          Now the concept of internet TV (in this case through a Roku) is not something brand new. Cable company's have been dealing with these Roku's and similar products for years but their popularity has really caught on in the last couple of years. As shown in the chart below the amount of new subscribers to cable providers is falling and falling fast. The only way these cable company's can try to keep up is to raise their rates which will cause even more people to make the switch to internet TV. This is a vicious cycle for cable providers and in my opinion it will eventually be the death, or at least major restructuring, of them all.

http://static1.businessinsider.com/image/5273e0c7eab8ea4c775941a3-538/chart-of-the-day-
A chart showing the decline of new cable TV subscribers

          In conclusion the cable TV landscape is quickly changing and the days of everyone needing cable are coming to an end. Although there will always be some people that want cable, I predict that in the next few years Roku and products like it will dominate the market. This really is the death of cable TV!


Magid, Larry. "Review of Roku 3: Could It Kill Cable and Satellite TV?." Forbes. Forbes Magazine, 1 Apr. 2013. Web. 3 Dec. 2013.

"CHART OF THE DAY: The Death Of Cable TV." Business Insider. N.p., n.d. Web. 3 Dec. 2013. "Roku Streaming Player." Roku Streaming Player. N.p., n.d. Web. 3 Dec. 2013.

Retail Thanksgiving Mistake leads to Future online Shopping Boom?

Ben Spankowski

Retail Thanksgiving Mistake leads to Future Online Shopping Boom?

            The latest development in the world of the consumer is turning out to be the new pledge catching on in the social media world, entitling those who take it to “Not shop on Thanksgiving.”

          

This new movement has been shared more than 959,000 times on Facebook as of mid-day Wednesday (the day before Thanksgiving), and has sent the reputations of every major retailer taking part in this early opening tumbling. In many cases, previously dedicated shoppers have decided to abandon their favorite stores for good, an obvious dilemma for future profits.

            Now, it’s not to say these retailers had no benefits to their early openings (bringing in hundreds of millions of dollars between them in those few hours), but their newly acquired reputation will certainly have more significant consequences in the future. Many economists suspect that profit for these retailers will dip so significantly that their “Thanksgiving shenanigans” will have done nothing but hurt the overall growth and profit of the upcoming months.

            Yet, as one suffers, others will prosper. As consumers turn away from their previously preferred retail chains, they turn to the world of Internet shopping. A market projected by the very same economists to put up record-breaking profit margins and overall market growth in the coming weeks and months.              

            In fact, many of the latest stock market analysis are listing online shopping sites such as Amazon and eBay in the top five “must-buy” categories; a direct result of the recent projections for future growth.

And though the future is impossible to know, the evidence for a massive cyber-shopping boom and great investment opportunity is most certainly there.

MSNMoney. N.p., n.d. Web. 2 Dec. 2013. <http://money.msn.com/top-stocks/post--5-stocks-poised-for-a-cyber-monday-bonanza>.

CNNMoney. Cable News Network, 27 Nov. 2013. Web. 2 Dec. 2013. <http://money.cnn.com/2013/11/27/news/economy/boycott-black-thursday/index.html?iid=SF_E_River>.

The Economist. The Economist Newspaper, n.d. Web. 2 Dec. 2013. <http://www.economist.com/blogs/freeexchange/2009/11/black_friday_looms>.

"Nbc News Business." NBC News. N.p., n.d. Web. 2 Dec. 2013. <http://www.nbcnews.com/business/its-cyber-monday-over-131-million-expected-shop-online-2D11674373>.

Breitbart News Network. N.p., n.d. Web. 2 Dec. 2013. <http://www.breitbart.com/Big-Government/2013/11/27/Shoppers-Threaten-to-Boycott-Lash-Out-at-Retailers-Ruining-Thanksgiving-with-Black-Thursday-Sales>.

Facebook. N.p., n.d. Web. 2 Dec. 2013. <https://www.facebook.com/pages/Boycott-Shopping-on-Thanksgiving-Day/170242469660854>.

Colleges Trying to Stay Afloat

Becky Daul

Colleges Trying To Stay Afloat

For many Seniors and Juniors at Pewaukee High School who are getting ready to head off to college, the price tag that is hanging on a university is a big factor in choosing whether of not to go to a specific school.

The increasing debt to go to college typically gets the most focus, but colleges have been borrowing as well, almost doubling the they’ve taken on in the last decade to repair aging campuses, be able to with competitors and to get the attention of potential students.

Parents preparing for their son or daughter to start the looking at colleges definitely raise plenty of questions regarding the price to the college tour guide. The price has increasingly cause more question marks for parents who hope that a large price means a better education, but that isn’t always the case.

“There is a major problem in that the industry has an inability to grow revenue in a way they have for the last 20 years,” says John C. Nelson, the managing director of the higher education and healthcare practice at Moody’s, that examines the finances of more than 500 colleges and universities that issue bonds through public markets.

John C. Nelson has found that, “A handful of colleges have closed, merged or been bought by for-profit colleges in recent years — mostly small, tuition-dependent private colleges, which remain at most risk. Few see mass closings ahead in the future, but only 500 or so of the 4,000-plus colleges and universities in the United States seem to have stable enough finances to be truly safe.”

“Expenses are growing at such a pace that colleges don’t have the cash or the revenue to cover them for much longer,” says Jeff Denneen, Bain & Company’s leader of the higher education practice. “A growing number of colleges are in real financial trouble.”

“The rating is based on persistent operating deficits and thin cash-flow driven by a decline in enrollment and net tuition per student coupled with rising debt service payments and transition of several key members of university leadership.” Too often the price of education is brought down the the institutions cannot function and continue running when prices are brought down too much.

Michael Groener, Drew’s vice president of finance and business affairs, who arrived on campus at Drew University  last fall, said the financial decline mainly from discounting the $42,000 sticker price too much typically around 50 percent. “That is pushing it about as far as we can go,” Mr. Groener says.

However, these prices are still too high for many families to afford. Forbes magazine refers to this as one of the top ten economic issues going on in our world today. Though there isn’t a clear solution in fixing this problem.

College tuition continues to increase by 8 percent every single year. “Some suggestions are: add supply to our university systems to make them more cost competitive; add supply to funding through private student loans; encourage philanthropy that supports scholarships; and support technological advances in education that lowers cost.” However, the question remains of how best to lower the prices still remains. Since universities already borrow so much money from the government, it’s not clear if the support the government send should be increased, since they carry so much debt.

In the next few years when a majority of the students are heading off to colleges with a large price tag hanging off, remember what that money is actually going towards. Though you are carrying a large amount of debt, the university you are attending, is taking on even more to make sure their students don’t have to carry original tagged price of their school.

Odland, Steve. "My Top 10 Economic Worries." Forbes. Forbes Magazine, 1 Feb. 2012. Web. 1 Dec. 2013. <http://www.forbes.com/sites/steveodland/2012/02/01/my-top-10-economic-worries/>.

SELINGO, JEFFREY J. . "New York Times."Colleges Struggling to Stay Afloat. N.p., 12 Apr. 2013. Web. 2 Dec. 2013. <http://www.nytimes.com/2013/04/14/education/edlife/many-colleges-and-universities-face-financial-problems.html?_r=0>.