Wounded Warrior Project Scamming

Jessie Bacon

A1

Mr. Reuter

Jessie Bacon

A1

Mr. Reuter

   Wounded Warrior Project is a non-profit organization that raises money for veterans who have been physically or mentally affected by the war following the events of September 11, 2001. Their founders include Albion Giordano, John Melia, Jim Melia, and Steven Nardizzi. This organization has given millions of dollars to help thousands of veterans and their families pay for high medical costs and treatments. But over time, the donations that have given to this organization, soon have been more focused on fundraising than helping veterans.

   Last Thursday, COO’s Steven Nardizzi and Albion Giordano have been fired following a January news investigation on the two men. Dozens of reports from former employees who said that the organization was spending money on lavish parties and meetings instead of the actual veterans themselves.

   Over the last 13 years, Wounded Warrior Project has raised over a billion dollars. People who donate this cause believe that they're giving “to honor Wounded Warriors,” as their company's mission states. However, CBS revealed that “charity spends between 40 to 50 percent of their money on overhead – while other veterans’ charities spend an average of 10 to 15 percent of the same expenses.”

   Over the years, the Wounded Warrior Project showed an increase in consumer spending.  $26 million was spent on employee conferences in 2014, compared to $1.7 million in 2010. The events were described as “boozy, such as one annual meeting held in a luxury hotel in Colorado Springs, where 500 staff members attended a four-day conference that came with a final price tag of $3 million” (Fox News). Also, when arriving at various meetings, Nardizzi would arrive on horse’s and a Segway.

   Many Americans trusted the Wounded Warrior Project with their money with donating over 372 million dollars last year. It’s ridiculous that over half of those proceeds went to first class air tickets, employee retreats, and extravagant salaries. The money that went to these stupid spendings could have been sent to wounded warriors who needed the money to undergo various surgeries. An example of how they effectively helped a veteran is when they gave assistance to Sgt. Michael Schlitz. He lost both hands and suffered from burns that covered over 85% of his body after his car was hit by a bomb in Iraq. He soon was contacted by the Wounded Warrior Project, who helped pay for his expenses. There are so many great things that this organization does for people like Sergeant Michael Schlitz. But it’s heartbreaking that the money that people thought were going to this organization was going to the higher priced champagne bottle and a company trip to Colorado.

   Another example of a veteran who could have received money but was turned away is James Glover, who did two tours in Iraq in 2006 and 2007. Glover suffered from a case of PTSD which eventually caused him to lose his job. He contacted Wounded Warriors and asked for their help, but they said they can’t. Glover then contacted other Veteran organizations, and they gladly helped him out. Because wounded warriors are turning away veterans like James Glover, this causes an increase in demand for other Veteran companies to help fund for James.

   Thank God the opportunity cost in this situation is the fact that soldiers like James Glover won’t get the help that they need to ensure that there is enough booze at their company meetings (Totally Kidding). By no means am I trying to come across that this isn’t a good organization with good ideas. Originally this started as an honorable program with great intentions to help veterans. But overtime they got lost in the glitz and the glamour, and forgot what they were all about-supporting veterans. Wounded Warrior Project needs to learn how to budget their finances effectively to ensure that majority of the money is going to the veterans.

Work Cited

Fishel, Justin, and Jennifer Griffin. "'I Still Have a Fighting Chance': Wounded Warriors Share Stories of Survival, Recovery | Fox News." Fox News. FOX News Network, 2013. Web. 15 Mar. 2016.

"Wounded Warrior Project Sacks Two Executives Over Spending Scandal." Fortune Wounded Warrior Project Sacks Two Executives Over Spending Scandal Comments. 2016. Web. 15 Mar. 2016.

"Delaware County Veteran Frustrated With Wounded Warrior Project." WBNS-10TV Columbus, Ohio. Web. 15 Mar. 2016.

Is College Football Big Business?

Is College Football Big Business?

By Paul Pulczinski

3/13/16

Much has been said lately about the business of college football.  Should athletes be paid to play? Is there money to be made from athletics at this level?  

When universities recruit high school students, they sell the kids on their “academic support centers.” The University of Oregon boasts the Jaqua Academic Center, a lavish three-story, 40,000-square-foot, $42 million facility financed by Nike founder and Oregon alumnus Phil Knight. It is equipped with tutors, ADHD specialists, life-skills advisers, psychologists and other staffers, as well as plenty of laptops on loan.

At Texas, Michigan, Auburn, Alabama, Georgia, Florida, Penn State, Notre Dame, Louisiana State University and Arkansas, revenues have increased to $762 million from $229 million from 1999 to 2012. That is a whopping 233 percent.

At the University of Texas at Austin, the school’s athletic department budget ballooned from $4.5 million to $170 million. A big chunk of that increase came in the past decade when the school added thousands of stadium seats (including premium spots), television fees doubled, and royalties, licensing fees and advertising revenue grew nearly fivefold.

For alumni, Saturday afternoons are filled with nostalgia about the good old days. Students are no longer the focus of filling the college football stadium, with athletic departments pumping wealthy fans and alums for every dollar. One amazing way to do this is “seat donations” — making particular ticket purchases contingent on financial gifts to the university. Depending on the seat, these fees can range from a few hundred dollars to tens of thousands. In 2012, University of Georgia fans paid $22 million not for football tickets but for the right to buy football tickets. At the University of Michigan, seat donations bring in $20 million per season. At the University of Alabama, it’s nearly $30 million. Listed as ‘charitable donations supporting the schools’ educational missions’, they are tax-deductible.  That’s just one tax break the game enjoys. “Congress has effectively decreed that college football is exempt from paying taxes on billions in seat donations, television broadcast rights, bowl-game payments, and corporate sponsorships,”

Today, 75 college football head coaches make $1 million or more per year, and five earn beyond $5 million. Alabama coach Nick Saban takes in nearly $7 million annually.

It’s no wonder some players want to be paid for playing.  64 schools in the five major conferences brought in a combined $2.8 billion in revenue in 2015, mostly from broadcast rights and ticket sales. And since these teams don’t have to pay their players, they keep nearly half of that revenue -- a profit margin that would make any professional team owner envious.

On November 6, 1869, Rutgers and Princeton played what was billed as the first college football game. I can’t imagine they had any idea the big business that sport would have today.

Works Cited

Forbes.com/economics of college football

NY Times/2015/8/26/books/review/economics of college football

Washington Post, August 21, 2015

Foxbusiness.com, January 11, 2016

Economics Involved with St. Patrick’s Day

Michelle Dieckelman

Mrs. Straub

AP Economics

14 March 2016

Economics Involved with St. Patrick’s Day

When one sees the color of green everywhere, one knows that the holiday of St. Patrick’s Day is right around the corner. Every year people get dressed in green and can’t wait to celebrate on March 17th. For example, in 2015 82% of people said they wear green to celebrate this holiday (“St. Patrick’s Day”). There is tremendous preparation that gets put into preparing for this holiday including: the dying of many rivers, making a delicious meal, and making sure the parade goes on without any faults. As this holiday is so widely celebrated, it increases the GDP for each country. For example, $4.6 billion was spent on St. Patrick’s Day in the United States in 2015 (“St. Patrick’s Day”). Since this day generates so much revenue, there will be an increase in the national income, for the United States.

As well as that many people plan to go out and do something fun on this eventful day, so there will be an increase in workforce. The unemployment rate will not necessarily increase, as the amount of workers may only increase just for one day, instead of these laborers finding a permanent job. All of these workers will be paid for them doing a specific job. In order to be the most efficient on this holiday, workers should specialize and chose something they would want to do.

Besides the color green, gold and leprechauns are associated with St. Patrick’s Day. Some people may try to buy a product with gold on this day to be in the holiday spirit. Since gold is a different form of payment than the usual cash, fiat money, it is considered to a standard of value.  Many people chose to celebrate this holiday because of the history found all over the world. In the United States, many people have an Irish heritage, which gives them more of a reason to celebrate. As one can see from the picture below that most of the Irish heritage in the United States is found more on the East Coast (Kiernan).

The East Coast has a lot of Irish heritage which means they have many traditions that they celebrate for St. Patrick’s Day. These traditions have been passed around through the United States, almost like the multiplier effect, and now all states celebrate this holiday.

When going out on St. Patrick’s Day, make sure to be careful because in the years of 2009-2013, there were 273 drunk driving casualties (Kiernan).  In order to keep this number down, everyone needs to be careful. As well as this, make sure to have fun when celebrating. On the business standpoint, when people celebrate, a business can increase their revenue, because of consumer spending, which also can affect GDP. All in all, whether you have an Irish heritage or not, celebrate St. Patrick’s Day and create a memory.

Works Cited

Kiernan, John. “St. Patrick’s Day by the Numbers.” WalletHub. Evolution Finance, Inc, n.d. Web. 14 Mar. 2016.

“St. Patrick’s Day Statistics and Trends.” Fundivo. N.p., n.d. Web. 14. Mar. 2016.

March Madness

Nicholas Roberts

Mrs. Straub

AP Econ

March Madness

With March Madness just around the corner, many fans are anxiously anticipating its start. It’s a time of the year where basketball fans far and wide, of all colleges, come together and cheer for their team with hopes of watching their team raise the NCAA Championship. Some believe that March Madness has a negative economic impact, but I challenge that claim and say that it actually has a positive and much needed impact on the economy as a whole. It is true that with all the hype that comes with March Madness will come with possibilities a loss in productivity. According to an article written by Danny Vinik, “about one-third of the workforce said they will watch basketball in their workplace.” This loss in productivity will bring an estimated economic loss of 1.2 billion dollars. Because of this loss in productivity, the supply curve will drastically shift to the left reducing the output produced by each company. However, March Madness also induces incredibly positive economic gains that heavily outweigh these economic losses. First, March Madness provides certain types of companies with enormous economic upside. These companies, “hotels and restaurants in the 14 cities that host games will gain the most, thanks to traveling fans cheering on their teams” (Vinik). These companies will reap the benefits of an increase in demand for the goods or services. Increased demand ultimately allows these companies to increase their prices and the consumers are forced to pay whatever the price due to its high inelasticity. Additionally, there are many fans, of every college, that will spend thousands of dollars to see their teams play in the tournament, especially of their team makes it far into the tournament. Ticket prices skyrocket during the tournament due to the increased demand to see each of the games. Ticket prices range from about $100 for each nosebleed seats to upwards of $10000 for each courtside seat. These boosted ticket prices allow for stadiums to be renovated, creating a better environment for its consumers, thus creating more future revenue. Also a major benefactor from March Madness are casinos and other betting establishments. It is estimated that “$9 billion dollars will be wagered on March Madness” (Tuttle). The estimated total is projected to be well over the amount bet on the Super Bowl, providing casinos with an enormous economic boost for their revenue. The NCAA is arguably benefits the most as March Madness is its most profitable time of the year. Its average revenue during this 3 week stretch is 900 million dollars. The main contributor to this insane 3 week profit is the 14 year 10.8 billion dollar deal that CBS signed to air the tournament’s Final Four. That is about 771 million dollars a year. The commercials during March Madness bring in a huge portion of revenue for CBS. Commercials that air during the championship game goes for about “1.5 million dollars for a 30 second ad… The overall amount spent on advertising is expected to be 1.13 billion dollars” (Berr). That is an expected profit of around 350 million dollars. Not to mention the financial benefits distributed to colleges for making it to the NCAA tournament. “They can net $1.67 million just for appearing in tournament regardless of whether they win. They earn about $5 million making it to the round of 16 and $8.3 million if they reach the Final Four” (Berr). That is a ton of money that can help grow the university athletically as well as academically. Overall, March Madness does provide some opportunities that will reduce productivity and cause some companies to lose money, but provides enormous upside that translate to massive economic gains.

Works Cited

Berr, Jonathan. "March Madness: Follow the Money." Money Watch. CBS News, 20 Mar. 2015.

Web. 13 Mar. 2016.

Tuttle, Brad. "The Staggering Numbers-and Dollars-Behind March Madness." Everyday Money.

Time Inc., 20 Mar. 2015. Web. 13 Mar. 2016.

Vinik, Danny. "The Economics of March Madness: The Tourney May Not Hurt the Economy as

Much as You Think." New Republic, 16 Mar. 2014. Web. 13 Mar. 2016.

Rise in Inflation in America

Kameron Osterman

A2 Reuter

Econ

March 2016

Rise in Inflation in America

Could the US be facing a problem with inflation? In the month of January, the spending by consumers all across America rose absolutely. Due to the winter temperatures which causes a greater need for heating, as well as the increased purchases on foods and other services. According to the Commerce Department, consumer spending has risen 0.1% in December, keeping in mind that consumer spending counts towards about two thirds of America’s economic activity. The US central bank looks to keep inflation at around 2% and below. Personal Consumption Expenditures or PCE, are the measures of price changes in consumer goods and services. The PCE increased around 1.3% in the past 12 months through January. This increase is the largest since October of 2014. 0.7% of this increased happened in December. Prices rose 0.3% (not including food and energy). Due to the higher consumer spending and a slowly rising rate of inflation, the Federal Reserve increased their benchmark interest rate in December. This is the first time it has been raised in the last ten years. The graph below shows the inflation rates from 2006 to 2016. With minimum interest rates rising, this leaves a little chance for an increase in economic growth for America.

One of the main causes for the increase of consumer spending was a rise in income across America (around 0.5%). The second largest increase was in June and adding a 0.3% in the month of December. In some states, minimum wage has been increasing (Approximately 0.2% in December). Regular wages and salaries went up about 0.6%. With minimum wage rising in some states, there will be an uneven money-value across the US. Inconsistent wages/salaries along with the inconsistent value of money across America causes inaccurate calculations of how much money is really worth to the country as a whole.

Works Cited:

Reuters. "US Consumer Spending Rises; Inflation Stirring." CNBC. 2016. Web. 03 Mar. 2016.

"Current US Inflation Rates: 2006-2016." US Inflation Calculator. 2008. Web. 03 Mar. 2016.

Why you Shouldn't Support PETA

Why You SHOULDN’T Support PETA

By: Tyler Caraulia

A2

Reuter

*This article contains information on animal cruelty, abuse, and religion mockery. Photos are too graphic to show, please visit one of the links below to see.*

The People for the Ethical Treatment of Animals or, PETA, claims to be an animal rights group. However, some of their actions also involve not only hurting people, but the animals they “love and support” too.

At the top of PETA’s web page, they have the statement, “Animals are not ours to eat, wear, experiment on, use for entertainment, or abuse in any other way.” With over 3 million supporters, PETA has made a total revenue of $44,923,150 dollars. “We expended only 15.5 percent on fundraising efforts that drive our operations and 1.9 percent on management and general operations.” This all according to their financial reports which can be found on their website. And in the past, PETA has made some big steps towards the Animal Rights Movement; like filing the first lawsuit to become owners of animals being experimented on. Now, their once good intentions, have turned into unethical treatment of both animals and people.

In 2014 alone, PETA managed to take in 2,631 animals into their possession. Of these, 252 were transferred, 39 adopted, and killed 2,324. From ‘98 to ‘14, 33,514(86.64%) of the animals that were taken shelter there, were euthanized, many within the first 24 hours of their arrival. Dr. Daniel Kovich inspected one of PETA’s shelters in 2010 and found that their adoption rate dropped from 14% to 0.7% the year before, meaning that 2,317 dogs and cats came in, and only 0.7% came out. Kovich released his statement to the public stating, “The findings of this site visit support the assertion that PETA does not operate a facility that meets the statutory definition of an animal shelter as the primary purpose is not to find permanent adoptive homes for animals.” And PETA’s defense? They claim that the euthanized pets were suffering and/or close to death when they arrived. While that is hard to believe in of itself, PETA also has actively seized owned pets and killed them, and their version of burial for other victims was stuffing them in garbage bags and dumping them in a dumpster. If that wasn’t bad enough for you, just wait till you hear about the type of advertising and protest rallies.

PETA has done direct attacks to religion, families, and even fun games that are sewn in our childhood memories. In 2004, PETA made a billboard promoting Vegetarianism by putting up a picture of a pig in a grassy field with the words, “He Died for your Sins.” The next year in Berlin, a similar protest was held, this time they have a man hanging on a cross, crucified, and wearing a pig mask. In 2006 there was another anti-meat protest where they put humans on a plastic covered tray that is decorated with fake blood and even a pricing sticker.

One story is of a family that had their pet chihuahua stolen from them by PETA, where video evidence shows a van with PETA’s logo taking the dog without cause. The owner was later visited by the thieves, gifted with a fruit basket and bearing news that their dog had been killed. Another billboard incident occurred in 2011, where a man who needed 800 stitches after a shark attack, was attacked further by PETA with a billboard that had a shark carrying a human leg with the words, “Payback Is Hell” in order to promote Veganism. In 2003 near Christmas, PETA made a graphic comic titled, “Your Mommy Kills Animals!” And handed it out to children who were with women wearing fur. Similar comics had been made; “Grrr! Kids Bite Back”, was a comic where the students who received it were asked to, “compare the progression of the civil rights movement in the U.S. to the current animal rights movement.” While comparing African-American slaves to livestock animals.

PETA has also released a number of spin-off video games, one being the famous Pokemon. In the Pokemon series, the games are titled by colors and gemstones--PETA decided that they should make their own called, “Pokemon Black & Blue” where the cover is bloodied made to look like how a dog-fight would. The Pokemon shown are in terrible condition and have a strong implication of abuse.

PETA has made itself famous. To some who don’t know these facts, PETA is a wonderful organization that wants to save animals. To those who do, PETA is a dangerous, radical organization that isn’t all good as others seem to think. So next time you see a PETA ad or someone talking about how great it is, please let them know that they have been misinformed and/or, direct them to one or all of the websites below.

Works Cited

http://www.daytondailynews.com/gallery/entertainment/photos-outrageous-peta-protests/gfwQ/#1495109

http://www.huffingtonpost.com/2011/09/30/petas-shark-attack-ad_n_987791.html

https://www.petakillsanimals.com/

http://listverse.com/2013/05/30/10-insane-facts-about-peta/

http://www.peta.org/

$5 Movie Tuesdays

Carson Cotterell

Econ A3

Reuter

3/7/16

$5 Movie Tuesday’s

On every Tuesday of a week at Marcus Majestic Theater’s  there is a promotion for everyone, that movies cost $5 per ticket vs the usual $10; a small popcorn is free and hot dogs and candy are both $2. (Marcus)  You think this would cause a trade- off or loss in money for the theatre but really it is the exact opposite. When you go on Tuesday’s the theatre is always packed and there are rarely any parking spots left. So the opportunity cost of going on Tuesday  is it will be cheaper but you have to go a lot earlier to get a seat vs going on a different week night it will be more expensive but not as busy leaving more time for other activities.

Another benefit of $5 movie Tuesday’s is it gives a lot of more people an opportunity to go to the movies who more than likely wouldn’t if they didn’t have this promotion. On average it costs a family of four around $80 to go to the movies (that includes tickets and snacks). (Fontana) Where on $5 movie Tuesday it would cost closer to $20-25. This makes sense because the law of demand states that when the price is higher on products less people want it, and the cheaper it is the more people want it. The demand curve of a movie theatre changes based on $5 movie Tuesday’s: because the demographics and income change as more people go to movies who normally couldn’t afford too, more people go in general on Tuesday’s because they know it will be more expensive all other days (future price) . There are so many people coming in vs all other weekdays that the fact tickets are cheaper really has no negative bearing on the movie theatre’s economy.

Citations

Fontana, Anthony. "Save vs Splurge: Movie Theater or Home?" ZING Blog by Quicken Loans. Quicken Loans, 06 Mar. 2013. Web. 07 Mar. 2016.

"$5 Tuesdays at Marcus Theatres | Value Pricing." $5 Tuesdays at Marcus Theatres | Value Pricing. Marcus Theatres, 2016. Web. 07 Mar. 2016.