Should NCAA Athletes be Paid?

Should NCAA Athletes Be Paid?
Jake Schlicht

The question “Should NCAA athletes be paid?” has been one of the most talked about topic in the collegiate world of sports for over the last 10 years. There are multiple different opinions on the debate between both sides. With it still being illegal to recieve any sort of money from college schools, other than scholarship money, there have been multiple different cases where outside parties try to bring the top recruits for sports like football, and basketball, by paying them money to go to their school.

The first factor that people should look into is, what is the NCAA? The National College Athletes Association, is an organization that promotes a wide range in college sports across the US. There are different divisions within the NCAA, such as D1, D2, and D3. These divisions range from colleges that have different amount of people in them. D1 are the big colleges that bring in the most revenue for college sports. Last year in 2016/2017, the NCAA brought in over 1.4 billion dollars in revenue across all sports. But the athlete that are bringing in the fans, getting watched to play the game on TV is getting none of that money.

There has been a recent FBI scandal within some division 1 basketball schools, including top programs such as: Duke, Kentucky, Louisville, North Carolina, ect. These schools have been caught with tampering with recruits, and giving them illegal benefits to try and pursue them to come and play basketball at their schools. You would think a few 100$ for a dinner would not affect anything when the NCAA is bringing in around 1.4 billion a year, but they certainly believe it does. Take an example of Miles Bridges, a star sophomore playing at the University of Michigan State. His name was brought into the recent FBI allegation saying that there was records of his mother receiving 400$ from the Michigan State Spartans, and with him being a top 10 draft prospect going into next year's NBA draft, he wisely solved the problem by donating 40$ to charity. I don’t know how that solved the issue but it did. 

With so much money brought in by these collegiate athletes, you would think that they would be able to receive some sort of the revenue when people come to watch them play, or buy merchandise that represents them. There is even a problem with selling jerseys with the collegiate players names on the back of the jersey, just because of the fact that they cant recieve any of the profit.

There have been many outspoken athletes where they shared their opinion about whether or not NCAA athletes should be paid. One of those being an ex Wisconsin Badgers Basketball player Nigel Hayes, who is currently playing for the Toronto Raptors. Nigel had multiple different occasions where he expressed that the booming business known as the NCAA was keeping all the money for themselves, and not expressing any interest to help the broke collegiate athletes that were bringing in revenue for them. If you think about it, the NCAA basically gives athletes around $80,000 in a 4 year time period in scholarship money, which does not even bring in the factor of if the player goes pro or not. This $80,000 dollars in scholarship money only covers the academic part of the college, and does not bring in any food, or transportation outside of the athletic department. For a broke college athlete who came from a rough neighborhood with no job because they are doing athletics for the majority of the time, how does a $1,400,000,000 dollar industry each year not give the heart and sole of their business no money? That question may never be answered.



Works Cited
Berkowitz, Steve. “NCAA Incurred $1.4 Billion in Expenses in 2016.” USA Today, Gannett Satellite Information Network, 8 Mar. 2017, www.usatoday.com/story/sports/college/2017/03/07/ncaa-incurred-14-billion-in-expenses-in-2016/98856520/.
“College Athletes Should Be Paid by bradmiller1116 - Infogram.” Infogram: Create Infographics, Reports and Maps, infogram.com/college-athletes-should-be-paid-1g6qo2qgzrvkp78.
Fuller, Marcus. “Statement Games: College Basketball Likely Will Launch a New Round of Athlete Protests.” Star Tribune, Star Tribune, 10 Nov. 2016, www.startribune.com/college-basketball-likely-will-launch-a-new-round-of-athlete-protests/400578231/.
“Why the NCAA Made Miles Bridges Pay $40 to Charity.” Land of 10, 27 Feb. 2018, www.landof10.com/michigan-state/michigan-state-basketball-miles-bridges-ncaa-40-dollars-charity.

Kwik Trip Take Over

Kwik Trip Take Over
Riley Solomon

In the Pewaukee area we have 4 out of the 380 Kwik Trips in Wisconsin alone.  That is crazy to me that in one city there is basically a Kwik Trip on every street. This is forcing other gas stations to file for bankruptcy or to just accept that Kwik Trip is dominating the gas station industry and let them buy out their station. Kwik Trip took ownership of 34 PDQs in the last month and is starting to remodel them.

Donald P. Zietlow is the President and CEO of Kwik Trip and employs 12,000 people in the Wisconsin. One reason why Kwik Trip is favored over other gas stations is because they have a high standard for their customer service. Every time you enter the door you will get a enthusiastic “hello welcome to Kwik Trip” and every time you leave you get a “Thanks for coming see you next time”. Comments like that make the customers what to come back and associate Kwik Trip with positivity and are more inclined to return. Not only is the Kwik Trip atmosphere pleasing to the guests but to the workers too. Past employees have left comments on the Indeed site saying, “KwikTrip Inc. values their co-workers as much as they do their guests. Which if you've ever visited your local KwikTrip you would know that it is indeed a great amount” and “working at Kwik Trip was great and it was also busy every day. The people were great and I was sad to leave! The guests are usually friendly and like to hang around and chat”. Kwik Trip provided a positive experience to both the customer and worker which makes the gas station more appealing.

Kwik Trip has recently announced that they will be starting projects totaling up to $300 million in La Crosse which is where their headquarters is located. These projects will create 300 new jobs if they meet the goal of 40 to 50 new stores annually. The money will be used for the “construction of a $113 million 200,000-square-foot bread and bun production facility and the renovation of its existing bakery for sweet goods production. Other projects include improvements to the dairy manufacturing facility, kitchen operations and transportation fleet” (Wisconsin State Journal). Governor Scott Walker stands by the construction saying “Kwik Trip has already shown a strong commitment to our state, and that commitment is being solidified with this expansion” (Wisconsin State Journal). Kwik Trip is trying to rise above the normal standard of gas stations and give the consumers a better experience.
The take over of Kwik Trip will benefit Wisconsin because it is creating more job opportunities and it is bettering our gas station experiences by supplying better quality items and good service. Also because the more Kwik trips that pop up the less the other gas stations will be able to survive will reduce competition.


Works Cited
Adams, Barry, and Wisconsin State Journal. “Kwik Trip Announces $300 Million Worth of Projects in La Crosse.” Madison.com, 23 Nov. 2017. N.p. 26 Mar. 2018.
Indeed. “Kwik Trip.” N.d. N.p. 26 Mar. 2018.
“Johnson Outdoors : Casey's, Kwik Trip, Apartments among New Developments | 4-Traders.” 4-Traders.com | Stock Exchange Quotes| Company News, 6 Jan. 2018. N.p. 26 Mar. 2018.
Mac, Allison, et al. “Top Rated Gas Station Convenience Store in Each U.S. State. N.p. 26 Mar. 2018

Opioid Crisis

Maggie Spankowski

Drugs Are Bad
Recently in the news there has been talk about an opioid crisis in America. According to drugabuse.gov, there were an estimated 64,000 drug related deaths in America in 2016, and death rate relating to drugs has almost doubled in the last decade. However the number of deaths is just a small portion of drug abusers actively using illegal drugs in America. So, it’s not surprising that the growing use of drugs in America is costing the economy billions in healthcare, treatment programs, and labor loss.
The biggest expense as a result of the opioid crisis is in the healthcare industry. According to georgiadrugdetox.com, “In 2011, a study by Pain Medicine found that an estimated twenty-five billion dollars had been spent in health-care costs related to opioid abuse -- considering the 1000% rise in insurance claims for opioid abuse treatment since then, you can bet that it’s a lot more now…. Insurance companies commonly value a single human life at five million dollars. If we multiply that five million by a conservative estimate of twenty to thirty thousand opioid related deaths a year then we can see that the opioid abuse is costing the economy an additional hundred to a hundred fifty billion dollars a year.” Not only does the use of opioids effect those directly using them, but it also costs the average, non-drug using citizen billions of dollars.
Similarly, according to georgiedrugdetox.com, “In 2011 an estimated $5.1 billion dollars had been spent by the criminal-justice-system in combating the opioid epidemic-- a huge sum that doesn’t take into account the last six years of rising opioid abuse.” This money went towards rehab programs, the creation of drug-task forces, and strengthening other resource to help people quit their drug habits. If we wouldn’t be experiencing this opioid crisis, that money could’ve gone to other important aspects of the criminal justice system such as bettering education for law enforcement, or increasing wages for employees.
In addition to a hefty healthcare cost, increasing rates of drug use also has the potential to damage local and state economies. According to fiscaltimes.com, “The labor force participation rate, the number of people working or actively looking for work, has fallen since the Great Recession and has stagnated near 63 percent for the last four years, according to the U.S. Bureau of Labor Statistics. This stagnation comes despite monthly job reports, such as the one due Friday, showing a steady pace of job creation and a decline in unemployment” (Cheng). A possible explanation for this is the increasing severity of the opioid crisis. As the use of drugs increases, employers are finding it more and more difficult to find employees, as they are either not able to pass drug tests, or are unreliable as a result of their drug habit. This can cause companies to be short-staffed and possible cause them to downsize or close because of lack of employees.
In conclusion, not only are drugs bad for people’s health and wellbeing, but they are also bad for the economy, costing it billions of dollars. In the last decade the amount of opioid addicted people has skyrocketed, and continues to cause thousands of deaths every year. As a result of this, the three largest expenses of the opioid outbreak are healthcare, the criminal justice system, and labor forces which amounts to billions of dollars spent to combat that increasing drug use. 



Sources:

“How The Opioid Epidemic Affects the Economy.” Georgia Drug Detox, 3 Oct. 2017, georgiadrugdetox.com/resources/opioid-epidemic-affects-economy/.

How the Opioid Crisis Is Damaging the US Economy.” The Fiscal Times, www.thefiscaltimes.com/2017/07/06/How-Opioid-Crisis-Damaging-US-Economy.

National Institute on Drug Abuse. “Overdose Death Rates.” NIDA, 15 Sept. 2017, www.drugabuse.gov/related-topics/trends-statistics/overdose-death-rate

Demand of Peeps

Charlene Hecht


With the Easter holiday right around the corner, stores have been supplying many of our favorite easter treats. From Reese’s chocolate eggs to peeps, stores are willing to supply these many candies, as they know that there is such a high demand for them at this time of year. However, much of the candy that is currently on the market as Easter candy, usually ends up sticking around in its normal form throughout the year. Unfortunately, Peeps don’t quite work this way, and are most often gone by the end of the Easter holiday. This in itself is one of the reasons as to why peeps do so well in the market at this time of year. Because of this, it limits the amount of peeps that can be supplied in these stores, and therefore creating scarcity.


Consumer tastes also has an effect on the demand of these peeps as well. Oftentimes when a person thinks of Easter, they think of candy as an important component to this holiday. While it’s easy to think that this is simply because of our culture, it actually is all due to advertisements. Because these candy companies put out advertisements for these different festive candies, people have come to believe that it’s important to buy candy for Easter.

Another reason there may be such a high demand for peeps around this time of year, is because in a way, peeps have a monopoly on this product. Sure, technically in terms of candy, this is a monopolistic competition, as there are many different companies out there creating different kinds of candy to sell to the public. However, peeps are a fairly unique type of candy, that no one else as of yet has tried to mimic to sell for their own company. Therefore, there is a high demand to buy this specific brand, because there really are no direct substitutes for this type of candy.

This year in particular, Peeps has added a whole new reason for there to be a high demand for peeps. For this Easter holiday, they’ve added eight new flavors for consumers to try, three of which they’ve left as mystery flavors. With this new addition, there will be an increase in demand for this item this Easter, once again due to consumer tastes and advertisements. With the new item being sold, there will be more people that will want to buy it to try, which will increase the demand for this Easter treat.


Works Cited
Vicar, Nathan. “Peeps Launches New Flavors.” 99.5 WYCD, WYCD, 18 Mar. 2018, wycd.radio.com/2018/02/21/peeps-launches-new-flavors.
Korosec, Kirsten. “Peeps Is Releasing 8 New Flavors-But Only a Few Retailers Will Sell Them.” Fortune, 26 Feb. 2018, fortune.com/2018/02/26/peeps-new-flavors-easter/.

The Economics of March Madness

The Economics of March Madness
Written by Hannah A.

The end of March means nothing to some people, but for college basketball fans it signifies the ending of March Madness. With the Final Four approaching, this tournament has impacted the economy in many ways and will only generate more money moving into the final rounds.

Every year, millions of people around the world create brackets, betting on which powerhouse teams are going to lead the tournament. Whether you spend hours researching teams, pick the winners based on which mascot you like better, or scramble to put together a bracket at the last second because you forgot, almost everyone is in it for the same reason: to win money. In the 2017
NCAA tournament, an estimated $10.4 billion was wagered legally, an increase of roughly $1.2 billion since the previous years tournament. Another $10.1 billion is bet illegally, totaling roughly $20.5 billion a year being wagered on these games, with the average bet on a bracket being anywhere between $20 and $50. Even though the odds of getting a perfect bracket are 1 in 9.2 quintillion, multiple people still fill out multiple brackets in order to strengthen their odds of winning their pools (“March Madness”).

It is without a doubt that this year has been one of the wildest tournaments since it started in 1939. This year was the first time ever a 1 seed beaten 16 seed, and there have been countless of other major upsets that have made this tournament so interesting to watch. TV companies such as CBS paid “$19.6 billion for basketball tournament broadcast rights by CBS/Turner to NCAA for 2011 through 2032” (Schwartz), and another $1 billion is made in ad revenue. This is good for the NCAA as they are receiving a lot of money, and it is also very good for companies that are paying for ads because even though they are paying millions to get their brand on TV in the form of a 30 second commercial, this is great for their brand recognition due to the 80.7 million people that watched the tournament in 2015. With numbers that high three years ago, the numbers now will be even higher.

There is a huge opportunity cost when it comes to watching March Madness as well. During the initial rounds, most of the games are aired during the day, so people with full time jobs or who are in school aren’t able to watch these. However, people have found ways to get updates on their phones or stream the games to their computers. It is estimated that this year, there will be $6.8 billion of corporate losses because of distracted and unproductive workers watching the games. This is bad for the companies because they are losing a lot of possible revenue and profit that could have been easily made if it weren’t for the games.

March Madness has proven to have positive and negative effects on the economy whether it be the large amount of money cities are making when hosting the games or the billions lost to distracted workers and busted brackets. However, while some are benefited negatively in the economy, we can all agree that we are benefited positively because of the pure excitement and entertainment college basketball gives viewers all over the world for the month long period that comes only once a year.

Sources

Athlon Sports. “Economic and Social Impact of March Madness
(Infographic).”AthlonSports.com,
athlonsports.com/college-basketball/march-madness-numbers-economic-social-impact.

“March Madness Stats & Facts.” WalletHub,
wallethub.com/blog/march-madness-statistics/11016/.

Schwartz, Elaine, and Econlife Team. “March Madness Money Facts and the NCAA, the Teams,
the Viewers.” Econlife, 19 Mar. 2017, econlife.com/2017/03/march-madness-money/.

Foreign Aid Dependency

Foreign Aid Dependency
Emily Willis

The United States and many other wealthy countries tend to be very generous in their efforts to help developing countries. Through foreign aid, we attempt to stimulate and expand their economies. However, even though we funnel money into nations across the globe, many of the citizens are faced with poverty and horrendous living conditions. This is seen best in African nations, who receive a large portion of foreign aid and still make up some of the poorest countries worldwide. While it’s often debated, the problem with foreign monetary aid is that it forms strong dependence on the aid and doesn’t always go to the countries, and the people, who need it most.

Red countries receive US foreign aid.

The idea of foreign aid first started in the 1960s, yet as it continued to grow (particularly through the 1990s), GDP decreased and the standards of living were drastically low. Most donor countries give “official development aid” which includes grants, loans, and debt relief. These methods essentially put more money into a country’s economic system. In terms of the circular flow model, a leak (or extra input) is created, meaning that governments don’t need to tax their citizens as much as usual due to the extra income. This sounds good, but it undermines the policies needed for effective governance. Without taxes, citizens don’t necessarily feel the need to keep their governments in check, increasing the risk of corruption. As more aid is given to corrupt governments, the wealth inequality grows larger and impoverished people become stuck in the vicious cycle. This is furthered in countries with rich natural resources. Often called the “natural resource curse”,  it causes a tremendous wealth gap as aid is poured into industries for precious metals, coal, and oil. The money directly benefits those who hold the resources, while citizens and workers are left behind.



Take Liberia for example, a resource-rich nation that has been ravaged by civil war and infectious disease. In 2015, Liberia was receiving about $765 million in official development aid, 73% of its gross national income (Glencorse). In spite of all this, an estimated 84% of Liberians live below the poverty line, and the nation is ranked 182 of 187 countries on the Human Development Index (HDI). This is caused by a lack of accountability and transparency as to what the money is actually going towards. In most cases, aid is given for short-term results rather than sustainability. This means that instead of investment, the money funds supplies such as food, water, and tools. During a famine in a country like Liberia though, food is one of the worst things to provide. Food aid lowers the cost of food, making it harder for local farmers to compete with such low prices. The demand for locally grown food goes down, causing the supply to fall with it, thereby increasing the dependency on foreign food aid. While people are being fed at that specific time, it’s clearly not sustainable--the agriculture sector is shrinking, not expanding.

The prevalence of foreign aid in these African nations is hurting them in the long-run, not helping. While these countries may benefit from some limited foreign intervention, simply giving them money is not the way to go. Foreign governments who give aid should be focusing their resources on sustainable investments for that country, as well as holding the country accountable for where that money is truly going.

Works Cited

Chester, Penelope. “Liberia and Aid Dependency.” UN Dispatch, 4 June 2010, www.undispatch.com/liberia-and-aid-dependency/.

“Misplaced Charity.” The Economist, The Economist Newspaper, 11 June 2016, www.economist.com/news/international/21700323-development-aid-best-spent-poor-well-governed-countries-isnt-where-it.

Swanson, Ana. “Why Trying to Help Poor Countries Might Actually Hurt Them.” The Washington Post, WP Company, 13 Oct. 2015, www.washingtonpost.com/news/wonk/wp/2015/10/13/why-trying-to-help-poor-countries-might-actually-hurt-them/?utm_term=.c158dfd9f027.

“Why Foreign Aid Fails – and How to Really Help Africa.” The Spectator, 27 Jan. 2014, www.spectator.co.uk/2014/01/why-aid-fails/.

The Economic Importance of Spring Break

The Economic Importance of Spring Break
Written by: Madison Sterling

With spring break approaching this week, many families are looking to flee Wisconsin for a change of scenery. College students all around the country are also looking to go to tropical locations with friends during March and April, increasing the demand for flights, hotels, and restaurants. Without these spring break travelers, gross domestic product in vacation cities and countries would not be as high as they are.

Beach towns, such as Panama City, face some opportunity costs dealing with the amount of beaches that become overcrowded, pollution, and the vast amounts of heavy drinkers, which can lead to some minor crime. According to Bob Warren, executive director of the Bay County Tourist Development Council, “Spring break is controversial because it’s about young people who want to have a good time. There are people down here who don’t necessarily approve, but I don’t think many Florida communities would want to turn down generating $170 million in the month of March.” The amount of revenue generated from spring breakers overrules the minor inconveniences the city faces. The money spent on spring break is also a great indication as to how our economy is doing because when there’s more money transferring from student’s and vacationer’s bank accounts into liquid cash at restaurants and entertainment, there is a flow of money that helps to boost the economy.

Tourism in Mexico is also extremely important with 8.9% of its GDP coming from tourism alone. 29.2% of Mexico’s GDP also came from transportation services, 24.8% from restaurants and bars, 12.7% from hotels and lodging, 12.3% from commerce, 11.4% from handicrafts, and the remaining 9.6% from miscellaneous activities (fluxcapacitator39). These numbers show just how important tourism is for Mexico’s economy, which correlates to how important these numbers stay up for employment rates. According to howmuch.net, “most of the countries that are most reliant on their tourism industry for GDP are poor or have a relatively small population and therefore economy.” So looking at the map below it’s shown that Mexico and other vacation country’s business cycles heavily rely on tourism.


Without the heavy amounts of tourism in these select countries, gross domestic product would be much lower without the spring break season.


Overall, the spring break season plays a crucial role in gross domestic product and our economy as a whole.

Works Cited

Jones, Roland. “Sea, Sun, Sand... and Revenue.” NBCNews.com, NBCUniversal News Group,
8 Mar. 2004, www.nbcnews.com/id/4428577/ns/business-us_business/t/sea-sun-sand-revenue/#.WrPG6WrwbIV.

fluxcapacitor39. “How Does Tourism Affect Mexico's Economy.” Storify, 2018 Storify, 2012,
www.storify.com/fluxcapacitor39/how-does-tourism-affect-mexico-s-economy.

Raul. “Which Countries Are Most Dependent on the Travel Industry?” HowMuch, HowMuch, 26
Apr. 2017, https://howmuch.net/articles/travel-tourism-economy-2017

Demand for Teslas

Emily Siderits

Despite being one of the leading car companies in the auto industry today, recently, Tesla has suffered from unforeseen panic involving their new Model 3 car. The Model 3 was introduced last year as a cheaper alternative to their expensive Model S car. Although it is less advanced in comparison to the Model S (from $74,500), the Model 3 (from $35,000) holds its own. However, upon announcing the Model 3, Tesla was faced with shockingly high consumer demand--demand that was far too high for their supply levels. Even to this point, Tesla has struggled to keep their production aligned with the demand, yet Elon Musk--the co-founder, CEO, and product architect of Tesla, Inc.--keeps lofty goals (see chart to the right). Buyers have been patiently waiting months for their Teslas, despite the fact that substitutes are available at the same price point, and would likely come in two to three days. The media has been all over this issue, saying “The automaker is entering one of the most critical phases in its history, a make-or-break period in which Tesla must boost production of the Model 3 or possibly face severe financial consequences” (Wall Street Journal). Rightfully so, as a consumer, you may wonder, why are Teslas still in such high demand?

First and foremost, Tesla’s vehicles are fully electric, which is favorable when compared to substitute cars at similar price points that run on gas. Referencing the visual on the right, on average, a premium sedan that runs on gasoline costs 454% more per mile to drive. This is not surprising as gas is a fossil fuel. Fossil fuels are categorized as non-renewable sources (meaning the source is scarce and non-replenishable), and therefore are quite valuable. Furthermore, gas is directly dependent on the oil industry. In fact, “In 2016, the United States imported approximately 10.1 million barrels per day (MMb/d) of petroleum from about 70 countries” (eia.gov). However, any of these 70 countries could suffer from an oil shortage. Then, our quantity of gas supplied would decrease and consequently, the price of gas would have to increase. This has happened throughout history and will continue on in the future. Unlike gas, neither of these issues arise with batteries used in electric Teslas.


The other largest factor contributing to high demand for Teslas is their advertising; specifically, their advertising in regard to the tastes of consumers within their buyer profile. Currently, according to Tesla’s 2015 marketing plan, the current target individuals are “business executives and entrepreneurs who are city dwellers, tech-savvy and green-friendly…wealthy, early adopters in the upper to middle class.” More or less, this narrows down to “males looking for a premium luxury car” (Investopedia). Tesla is clearly aware of this and consistently appeals to their crowd, emphasizing details that are relevant to the buyers’ interests. This is apparent with their newest car, the Roadster, which is to be released in 2020. Across all advertising platforms, Tesla has been sure to highlight that this new Roadster can go from 0 mph to 60 mph in 1.9 seconds--something that is highly regarded by most within their buyer profile, and surely some others as well. Tesla has also put significant emphasis on their “Autopilot” feature seen in all their vehicles, which is a setting in which the car drives itself. This creates an appeal to eco-friendly, tech-savvy, and entry-level luxury buyers in their 20’s to young 40’s, who otherwise land outside their typical buyer profile, which in turn, increases overall demand for their cars.

In the end, Tesla vehicles have benefits that outrank other luxury cars at the same price point, explaining to why the demand remains high. For now, Model 3 production delays are overshadowed by consumer’s excitement. It will be interesting to see how Tesla continues to adapt to their production issues and if equilibrium is met once again.


Works Cited
Crothers, Brooke. “Tesla Week: Elon Musk, Model 3 Media Panic: 'Make-Or-Break'.” Forbes, Forbes Magazine, 20 Mar. 2018, www.forbes.com/sites/brookecrothers/2018/03/18/tesla-week-elon-musk-model-3-media-panic-make-or-break/#351806d744bd.
DeBord, Matthew. “One of Tesla's Biggest Advantages Could Become Its Biggest Problem.”Business Insider, Business Insider, 26 Feb. 2018, www.businessinsider.com/tesla-strong-demand-could-backfire-become-problem-2018-2.
U.S. Energy Information Administration. “How Much Petroleum Does the United States Import and Export?” Eia.gov, 4 Apr. 2017, www.eia.gov/tools/faqs/faq.php?id=727&t=6.
Zucchi, Kristina. “What Drives Consumer Demand for Tesla?” Investopedia, 17 Feb. 2015, www.investopedia.com/articles/personal-finance/021715/what-drives-consumer-demand-tesla.asp.

Pictures (in order of appearance):
https://gas2.org/2017/03/27/tesla-model-3-expected-outsell-bmw-3-series-mercedes-c-class-combined/
https://insideevs.com/of-course-its-cheaper-to-fuel-a-tesla-model-s-compared-to-a-gas-premium-sedan-but-by-how-much/

Toys R Us

31,000 Out of Jobs
Klaus Ebenhoch
Just recently, Toys R Us announced that 200 stores around the globe are closing.  The company filed for bankruptcy back in September, and announced in January that it would be closing down.  As of the most recent report, 31,000 employees will be losing their jobs.  The kicker is that they won’t be receiving severance.

For many kids and adults alike, the news is shocking.  Obviously, children are upset that their favorite toy store is closing, but even adults are taking to social media, reminiscing about childhood memories born from the chain.  Toys R Us has a long running history for selling toys, as it opened back in 1948 selling cribs, strollers, and other baby items.  According to CNN, “The chain has struggled as shoppers move online . . . And as video games and other high-tech toys grow in popularity” (Toys). 


In a sense, Toys R Us itself was also a factor of the company closing.  The company filed for bankruptcy in September, instead of after the holiday season.  For retailers, holiday season is a huge source of yearly income.  The bankruptcy statement was a huge distraction for the company, as they weren’t able to focus as much on advertising their holiday deals.  When the news of the chain’s bankruptcy out to the public, competitors sold their toys even more aggressively.  Companies like Target and Walmart “priced toys "at low-margins or as loss-leaders" during the holiday shopping season and offered aggressive online shipping options” (Reasons).  Toys R Us had no chance of surviving the holidays with competitor prices, especially because they rely solely on toys for profit.

For the employees of Toys R Us, the news is even more devastating, as they won’t receive any severance pay.  Because of bankruptcy laws, 401k benefits and health insurance are lost.  Employees will have no job and no benefits.  The laid-off employees will still have 60 days of pay, but some employees will still be required to work past two months to close down operations.  However, there is hope.  The job market at the moment is promising, as the unemployment rate is at an a 17 year low of 4.71%, and lots of retailers are in dire need of employees. 

While the famous toy retailer might be closing down for good, the name will live on in many hearts.  Kids will still have options for purchasing toys, but nothing will come close to the magic and nostalgia of Toys R Us.






Bomey, Nathan. “5 reasons Toys R Us failed to survive bankruptcy.” USA Today, Gannett Satellite Information Network, 18 Mar. 2018, www.usatoday.com/story/money/2018/03/18/toys-r-us-bankruptcy-liquidation/436176002/.
Many employees told CNN the shutdown caught them surprise. “31,000 Toys 'R' Us employees: No job and no severance.” CNNMoney, Cable News Network, money.cnn.com/2018/03/16/news/companies/toys-r-us-employees/index.html.

March Madness and the Economy

March Madness and the Economy
Jamie Brodbeck

March Madness is considered to be a widely popular social event, creating a way where National Collegiate Athletic Association (NCAA) college basketball fanatics can support, predict, and bet on the biggest university teams throughout their spring tournament. As consumer tastes increase, more and more people watch and are actively involved. The greatest impacts reside in the influence on television networks, the NCAA, and host cities of the tournament games.


Considering that this event brings a sense of unity and collectiveness to the nation, each game is streamed live. This greatly impacts the broadcasters who are willing to support and be involved in such an event. Television Broadcasters CBS and Time Warner’s Turner made a deal with the NCAA in 2016 regarding a broadcasting rights commitment extension, from 2024 until 2032 (SBNation). This extra eight year extension came with a steep price tag for the television channels: $8.8 billion. CBS and Time Warner agree to this bondage for their own marginal benefit. After all, an average 30 second commercial was worth $1.5 million, and in 2015, the total revenue for advertisements in the form of commercials, was $1.1 billion (Forbes). While it seems that the contract is exorbitant in price and the outcome is unknown from year to year, it is expected that March Madness is enough of a widely popular event that the opportunity cost is worth it. 

Just last year, according to Investopedia, the NCAA made approximately 1 billion dollars in revenue from ticket sales, social media awareness, broadcasting rights, and a portion of advertisements. In addition, the college players do not earn a living off of their performances, and thus, the NCAA does not have to pay. However, the NCAA does give out $8 million dollars in “conference grants,” for officiators, programs, and services that benefit the student athletes (SBNation). To many, this seems miniscule in respect to the great amount of revenue. The NCAA’s best support as to why it can run a billion dollar event is that a great chunk of the profit goes back to support student athletes and teams. However, suppliers are undeniably selfish, so the NCAA will keep most of its profit for its own benefit.

Cities which host the tournament games benefit for this event as well. In 2016, fourteen US cities hosted the first two rounds. Philadelphia made approximately $18 million in hosting the “Elite Eight” game between Notre Dame and North Carolina. Houston gained approximately $300 million in the Final Four. While the average price of a ticket is $344 (Forbes), which is considerably less than a super bowl ticket or NBA finals ticket, the revenue for the host city is incredibly immense.

Whether the outcome of your bracket fails, or your favorite team is defeated in the “Sweet Sixteen,” many companies, cities, and teams are economically bolstered by the support and liveliness of Americans.









Works Cited
“March Madness Economics.” Investopedia, 18 Mar. 2011, www.investopedia.com/financial-edge/0311/march-madness-economics.aspx.
Ogus, Simon. “The Economic Impact Of March Madness From First Four To Final Four.”Forbes, ForbesMagazine,24Mar.2016,www.forbes.com/sites/simonogus/2016/03/17/the-economic-impact-of-the-ncaa-basketball-tournament-from-first-four-to-final-four/#7df60a891b56.
Sherman, Rodger. “NCAA Will Now Make $1 Billion from TV Rights.” SBNation.com, SBNation.com, 12Apr.2016,www.sbnation.com/college-basketball/2016/4/12/11415764/ncaa-tournament-tv-broadcast-rights-money-payout-cbs-turner.


Pictures
https://www.bigonsports.com/national-championship-odds-ahead-of-sweet-16-kansas-favored/
https://www.ncaa.com/news/basketball-men/article/2018-03-13/printable-march-madness-bracket-2018-ncaa-tournament

American Healthcare

American Healthcare
By Emily Burk

Should going to the doctor cost you an arm and a leg? The average American pays more than double the amount for their healthcare than what those in other nations. American prices related to health care are nearly double that of European and neighboring nations, and our healthcare is not of higher quality. American healthcare is too focused on adding to the GDP and raising consumer spending. The standard of healthcare needs to be raised, not our prices!

The cost of life saving treatments, prescription drugs, and imaging tests used to save people’s lives, topple the prices found anywhere else. For more information click here. As stated by CNN, “ Americans spent more than $9,400 per capita on health care that year, compared to an average of $5,400 in the peer nations.” Americans pay greedy inflated prices, but the quality of care is no better. Americans still have a lower life expectancy, worse care for birthing mothers, and a higher infant mortality rate, some of the most important factors reflecting the health of a country. Additionally, “The average salary for a general practice physician in the United States was more than $218,000, compared to an average of nearly $134,000 in the peer nations. Specialists were paid $316,000, compared to nearly $183,000, while nurses earned more than $74,000, compared to just under $52,000” (Luhby). America is more focused on making a profit, than improving quality of care and saving lives. Americans are making such huge investments into the medical system, further damaging the already ridiculous price of healthcare. American doctors and healthcare workers are paid almost double that of counterparts, yet more people still die.

The overwhelming prices of basic healthcare also discourage Americans for going to the doctor due to high medical bills. Additionally adding insult to injury, if Americans cannot pay their bills up front, some hospitals even charge their patients interest rates, only furthering the debt and inability to pay for those patients. America needs to lower their healthcare prices and make it more affordable for its citizens. Following the example of many peer nations, practicing free healthcare will find America a better quality of care, longer life expectancy, and improved health of the country. There is no necessity to make life saving drugs astronomically more than other countries, or deny care to patients who cannot afford to pay hundreds or thousands for their care.

America needs to find more innovative ways to lower the cost of healthcare. For example, “The biggest cost savings could be realized if we eliminated the practice of defensive medicine,” (Weinreb) in which we avoid ordering unnecessary tests and screening to avoid responsibility if something goes wrong in the future. Overall, America’s healthcare is ridiculously overpriced, and will lead to the point where more people than not cannot afford to keep themselves healthy. America needs to take note of peer nations, and take example of the healthcare system that keeps many more people healthy. We need to make a change and admit we got it wrong.

Works Cited 

Luhby, Tami. “Americans Spend Nearly Twice as Much on Health Care, but Have Shorter Lives.” CNNMoney, Cable News Network, 16 Mar. 2018, money.cnn.com/2018/03/15/news/economy/health-care-spending/index.html?iid=SF_River.

Squires, David, and Chloe Anderson. “U.S. Health Care from a Global Perspective.”Spending, Use of Services, Prices, and Health in 13 Countries - The Commonwealth Fund, 8 Oct. 2015, www.commonwealthfund.org/publications/issue-briefs/2015/oct/us-health-care-from-a-global-perspective.

Weinreb, Saul. “How to Fix the Cost of American Health Care.” TheHill, 11 Feb. 2018, thehill.com/opinion/healthcare/373297-how-to-fix-the-cost-of-american-health-care.

March Madness

March Madness
Written by: Becca Dettlaff

Like all national sporting events, March Madness has got everyone’s attention, which means the amount of money going into these games have an incredible effect on the economy. The economic effect of college sports continues as billions of dollars are expected to be poured into this sixty-eight team basketball tournament. Although the amount of money put into these sporting events it can have a very helpful impact on our economy.

Just in the city of Houston, Texas alone is expecting to generate around $300 million worth of revenue from the Final Four, which will benefit them and make the taxpayers of Texas feel better about eight million dollar subsidy they provided to the tournament.

Money generated by hosting the Final Four is just one of the many ways March Madness is having an impact on the total GDP and economic earnings. The money from the TV advertisement as well as broadcasting rights are estimated to bring in enormous amounts of money. For example, CBS and Turner were estimated to each pay ten billion dollars for broadcasting rights in 2016, and that number has only been increasing. A normal thirty second TV ad sold at around a million dollars and ad revenue from past March Madness’s brought in over a billion dollars.


These are just a few of the many benefits and contributions to the economy that this tournament provides. Another portion of the total revenue of March madness is the ticket revenue generated. The average one game ticket for a Final Four game this year ranges from $250 to $7,500. Not only does this tournament increase the overall GDP of the United States, but it provides for more advertisements for companies to promote their products and services at the games. This in turn could overall provide for more jobs and more consumer spending, boosting the economy in all aspects.

In conclusion, we can all stop and take a step back and look at how large of an impact March Madness has on the economy. Just like all national sporting events, they bring opportunities for business, and increase consumer spending all across the country. Whether its spending money on food and beverages for parties, or betting on which team is going to make it to the Final Four, one thing's for sure, that this event not only entertains Americans, but it boosts the economy in so many ways.

Work Cited 

Ogus, Simon. “The Economic Impact Of March Madness From First Four To Final Four.”Forbes, Forbes Magazine, 24 Mar. 2016, www.forbes.com/sites/simonogus/2016/03/17/the-economic-impact-of-the-ncaa-basketball-tournament-from-first-four-to-final-four/.


Athlon Sports. “Economic and Social Impact of March Madness (Infographic).”AthlonSports.com, athlonsports.com/college-basketball/march-madness-numbers-economic-social-impact.

Papa John's

Papa John's
Masen Beatty

The founder of Papa John’s, John Schnatter was fired a few weeks ago. This happened because two months after the sales in Louisville started to decline he blamed it on NFL player protest which occurred during the national anthem. The owner John claimed that his comment were heavily influenced by the Dallas Cowboys owner Jerry Jones, this way Jerry could put more pressure on Roger Goodell the NFL Commissioner. Jerry Jones goal is to have Goodell removed as commissioner. During a conference about Papa John’s earnings Schnatter's comments that were made were constructed as racist, since the protesters in the NFL are predominantly African American. This lead to the stock price for Papa John's to decline.


The company’s stock plummeted and many people went to sell their shares only thinking the price would continue to fall. Papa John’s apologized later saying Schnatter’s comments were not meant to offend people. Also the company said that it supports the NFL players movement to create a change. A few months after Schnatter had to step down as head of the company and Papa John’s was let go of by the NFL, shortly after Pizza Hut became the official pizza of the league.

The company now has more than 5,000 locations and owner John Schnatter is preparing to leave. The pizza chain’s stock has decreased 5 percent since the comments by Schnatter were made about the protests. SInce the beginning of 2017 the stock has dropped 30 percent. This has reduced much of the income for the company and decreased the company by close to $84 million.






Works Cited
Boren, Cindy. “Peyton Manning Dumped His Stake in Denver Papa John's Two Days before the Company Split with NFL.” The Washington Post, WP Company, 7 Mar. 2018, www.washingtonpost.com/news/early-lead/wp/2018/03/07/peyton-manning-dumped-denver-papa-johns-stake-two-days-before-the-company-split-with-nfl/?utm_term=.f0d0fab61260.g g g g g g g g gb b b b b b ba a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a
“Papa John's Drops after Killing Its Sponsorship Deal with the NFL (PZZA) | Markets Insider.” Business Insider, Business Insider, a markets.businessinsider.com/news/stocks/papa-johns-stock-price-drops-after-killing-its-sponsorship-deal-with-the-nfl-2018-2-1017440223.a a a a a a a a a a a a a a a a a a a a a a
Patton, Leslie, and Jonathan Roeder. “Papa John's to End NFL Deal as New CEO Confronts Sluggish Sales.” Bloomberg.com, Bloomberg, 27 Feb. 2018, www.bloomberg.com/news/articles/2018-02-27/papa-john-s-shares-plunge-as-north-america-pizza-sales-decline.
Rovell, Darren. “Papa John's, NFL Make 'Mutual Decision' to End Sponsorship Deal.” ESPN, ESPN Internet Ventures, 27 Feb. 2018, www.espn.com/nfl/story/_/id/22597858/papa-johns-nfl-end-sponsorship-deal.
A a a a a a aa a a  a aa a a a a  a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a

The Science Behind Streetwear

The Science Behind Streetwear
Nathan Warner

Streetwear clothing brands are very popular in modern day culture. You can see it all around you. It has taken over a lot of modern day fashion and those that are interested in this type of thing sometimes develop a cult-like obsession and following for these companies.
Streetwear is a type of clothing that is really appreciated for it’s often times risky approach to fashion that a lot of people may not understand. And this is part of the appeal. Because of the exclusiveness of brands such as Supreme, Gucci, Palace, Off White and many others there is a certain pride that owners of clothing from these brands have. Many of the products sold by these companies are in very little supply in comparison to the amount of fans that wish to buy them.
Some brands such as Supreme have been known for raising their prices to nearly unthinkable prices for what is estimated for cost of production. Supreme is now a billion dollar company while still collaborating with low end companies such as Hanes. But because Supreme has their name on it they can mark it upwards of 300%. And now a very similar pair of underwear that you can get at Walmart in a pack of 3 for $10 or $15 now costs nearly twice the price.
The ultimate question is “Is it worth it”. This is the only thing that really ultimately matters when determining if you are going to buy that $200 jacket or just stop at Walmart and pick one up for a quarter of the price. As I mentioned before there is somewhat of a cult following for
brands like this. And these brands could probably never charge too much that their adoring fans wouldn’t help them sell out. But as far as the general population goes, there is no real benefit in overspending on brands like these. Unless you want to spend your entire paycheck so that your shirt can match your pizza, I would stick to spending elsewhere.



2017, Hanan Haddad 26 July. "Why Are People So Hyped Over Streetwear Brand, Supreme?" Harper's Bazaar Singapore. July 26, 2017. Accessed March 13, 2018. http://www.harpersbazaar.com.sg/fashion/fashion-news-trends/what-is-up-with-the-supreme-hype

Wolf, Cam. "Supreme Is Now a Billion-Dollar Streetwear Brand." GQ. October 09, 2017. Accessed March 13, 2018. https://www.gq.com/story/supreme-billion-dollar-valuation.

"Revolutionary" Revenue

“Revolutionary” Revenue
Lydia Heinen

Whether you spend your time listening for hours on end to the hit musical “Hamilton” or not -- odds are you have heard of the “revolutionary” production.  Creator Lin Manuel Miranda took a seemingly boring subject that should be left to history textbooks and created a musical masterpiece that has been breaking the charts since its release in August of 2015.  Theatre productions, especially musicals, are usually lucky to have more than a six month run time, yet Hamilton has managed to run strong since its release, and is well on its way to becoming a billion-dollar musical.  Also, it’s on track for a twenty city tour around the United States.  The real question is: how did they do it?  How does the show manage to run strong, consistently selling out theatres with tickets sometimes going for over $1,000, and why do tickets cost that amount?  How is Hamilton, a musical about a historical figure, such a success?

To start, Hamilton from the beginning had success on its side because of the creator: Lin Manuel Miranda.  Before writing Hamilton he wrote the hit musical “In The Heights” which received four Tony Awards and had had revenue over $100 million.  Lin Manuel’s soundtrack for Hamilton gained initial popularity after performing it at the White House for President Obama.  From there demand took the reigns.  Supply was never able to quite meet the demand for tickets to see the show.  As consumer tastes increased for the musical, demand increased, and since theatres can only house so many people per show, the show was granted longer run times to meet the demand.

Since the demand for popular musicals such as Hamilton is so high, ticket prices are very high as well.  Yet, the high ticket prices come with reason.  The cost of production of a musical is extremely exorbitant.  According to the New York Film Academy, the cost of putting on a show is around $2,400,000 along with an additional $300,000 per week.  These prices come from multiple factors, including: physical production, talent fees, rehearsal space fees, salaries, and advertising.  Physical production involves a lot more that what some people think; as shown by the visual, factors such as the illuminating the stage with the 856 lighting cues in Hamilton would immensely raise the cost of production.  Small factors such as regulating temperature, laundry, and maintaining the quality of the costumes easily add up.  This results in ticket prices that are oftentimes very expensive, and the opportunity cost of going to see Hamilton could potentially be paying for groceries for a month; yet many fans will do just about anything to see their favorite musical played on stage.  Although there are many costs to production, like any major business Broadway makes major profits.  As shown by the chart, Broadway continues to make more and more money as the years go by and more and more musicals are created.

In the end, Broadway is a big business; productions such as Hamilton connect people from all over the world.  Prices may be high, but the demand to see such as revolutionary production lives on. 


Works Cited
“No Business like Show Business.” The Economist, The Economist Newspaper, 16 June 2016, www.economist.com/news/business/21700674-our-analysis-art-and-science-creating-hit-show-no-business-show-business?zid=319&ah=17af09b0281b01505c226b1e574f5cc1.
Oswald, Anjelica. “'Hamilton' Tickets Sell for More than $2,000.” Business Insider, Business Insider, 13 Apr. 2016, www.businessinsider.com/hamilton-musical-revenue-facts-2016-4#he-wrote-most-of-the-songs-in-the-order-they-would-be-sung-in-the-musical-4.
Zeke. “Why Are Broadway Tickets So Expensive?” Student Resources, 7 Apr. 2015, www.nyfa.edu/student-resources/broadway-tickets-expensive/.

Image URLs (in order that they appear):
http://www.playbillstore.com/Shared/Images/Product/Hamilton-the-Broadway-Musical-Magnet/Hamilton-Magnet.jpg
https://i.pinimg.com/474x/be/e9/80/bee98031d365feac78c60cc3db8134bf.jpg
https://www.nyfa.edu/student-resources/wp-content/uploads/2015/04/Screen-Shot-2012-06-11-at-11.13.08-AM.png

The Cost of Hosting the Olympics

The Cost of Hosting The Olympics
By: JB Becker

The 2018 Winter Olympics in PyeongChang, South Korea has just come to a close. Athletes all across the world came to compete for the gold, but what trade-offs do the Olympics have on the hosting country?

The first impact on the country’s economy is their bid to host for a given year. For example, Tokyo lost approximately $150 million on its bid for the 2016 Olympics, and spent approximately $75 million on its 2020 bid (Investopedia). Then, once the city wins the bid to host the Olympics, cities commonly add roads, build or enhance airports, and construct rail lines to accommodate the large influx of people. Housing for the athletes in the Olympic village, as well as at least 40,000 available hotel rooms, and specific facilities for the events, must be created or updated as well. Overall, infrastructure improvement costs range $5 billion to $50 billion. When PyeongChang won the bidding of hosting the 2018 Olympics in 2011, their estimated cost spent on building up infrastructure was $7 to 8 billion. Now in 2018, the Olympics were estimated to cost South Korea $12.9 billion.

With the Beijing Olympics in 2008, $40 billion was spent, and only $3.6 billion revenue was generated. After the Olympics, Beijing had a deficit of $36.4 billion. The figure below shows the deficit of recent Olympics. This results in the country needing to increase their taxes until they pay back this debt. In addition, the Bird’s Nest (stadium used for the Beijing Olympics) costs $10 million dollars annually to keep it maintained. Montreal hosted the Olympics in 1976, and they did not pay back their deficit until 2006. After some Olympics, the country does not maintain the buildings and they often go abandoned. (More information about the cost of hosting the Olympics, Video)


http://www.ibtimes.com/economic-impact-winter-olympics-not-great-russia-sochi-stands-gain-1554153

In 2009, Rio de Janeiro bid to host the Summer Olympics. At that time their economy was in the midst of one of its best economic times in 50 years. Contrast that with today, where Brazil is in its worst recession since the 1930s. During the process of building the infrastructure, Brazil ran out of money and had to take loans from the government to be able to finish building the arenas. This lead to the government cutting pay for many teachers in Brazil, which caused the teachers to go on strike for three months and resulted in schools being shut down for these months. A big news issue with Brazil hosting the Olympics, was the outbreak of the Zika virus. This virus caused many tourists and athletes to not participate in the Olympics, Rio lost $7 billion in tourism. Some people say hosting Olympics add jobs. In Brazil, the risk of the Zika virus lead Brazil to employ 2000 healthcare professionals to help during the Olympics. Unfortunately, many other host countries hire more employees to help construct the new buildings, yet most jobs are temporary and ultimately do not help the country with unemployment.

So why would any country still want to host the Olympics? There are some benefits to hosting the Olympics. Countries will more people to know about that city. For example, the Sochi Olympics lead to more people wanting to travel there. Other countries use the Olympics as a way to improve their city. London used the Olympics to improve the east side of the country. When New York was bidding, it was a way to get a new stadium for their football team the Jets and Giants.

Overall there is a extremely large negative effect on the hosting country of the Olympics. Most countries lose billions of dollars, and ultimately gain little to no marginal benefits from hosting the Olympics. While they may have received the global attention they desired, they will be reminded of the costs and debts for years or decades to follow.


Works Cited
(www.dw.com), Deutsche Welle. “Is Hosting the Olympics Worth the Cost? | All Media Content | DW | 05.08.2016.” DW.COM, www.dw.com/en/is-hosting-the-olympics-worth-the-cost/av-19451281.
Allen, Brian. “Rising Cost of Olympics Begs Question: Why Host?” VOA, VOA, 4 Feb. 2014, www.voanews.com/a/rising-cost-of-olympics-begs-question-of-why-host-the-games/1844546.html.
CBSThisMorning. “Are Costs of the Olympics Worth It for Host Cities?” YouTube, YouTube, 3 Aug. 2016, www.youtube.com/watch?v=XbhkW1WR5jg.
Harress, Christopher. “The Economic Impact Of The Winter Olympics: Not Great For Russia But Sochi Stands To Gain.” International Business Times, 5 Dec. 2015, www.ibtimes.com/economic-impact-winter-olympics-not-great-russia-sochi-stands-gain-1554153.
“Investment Management Company.” Manning & Napier, www.manning-napier.com/insights/blogs/markets-and-economy/the-economic-impact-of-the-olympics.
Voa. “South Korea Worried About High Cost of Olympics.” VOA, VOA, 18 Dec. 2017, learningenglish.voanews.com/a/south-korea-worried-about-high-cost-of-olympics/4164319.html.
Wills, Jennifer. “What Is the Economic Impact of Hosting the Olympics?” Investopedia, 24 Sept. 2016, www.investopedia.com/articles/markets-economy/092416/what-economic-impact-hosting-olympics.asp.

Is The Stock Market Safe

Cameron Maderski
Insight
3/12/18
Is The Stock Market Safe

The stock market makes up a huge part of our economy and most people do not know how it works. The big question behind every investment is always to see if it is safe and that is a big issue with the stock market. When you buy a stock, you're buying a small part of the company. When a company needs some money, it will issue shares. The shares are bought an an initial public offering (IPO). At the IPO the company worth gets estimated and it is then that the price of shares, and how many shares will be issued. The company gets to keep the money raised to help grow its business and pay off loans, while the stocks continue to trade on an exchange.

When you buy stocks you are not just donating money you have the opportunity to make or lose money which is where the risk comes in. Companies will pay shareholders a dividend which is a small cut of the companies profit. The prices of the dividend can vary along with the prices of stocks but it makes sense that a company projected to do well in the future would have shares set at a higher price. Some of the risk in buying stock comes in the fact that you are placing your money on a business in hopes that it does well in the future and if it does poorly
then you can lose some of your investment.             10 Year Daily Chart of the Stock Market          According to Investopedia, dividends can be large or small – or nonexistent (many stocks don't pay them). Investors seeking regular income from their stock market investments tend to favor buying stocks that pay high dividends.

The chart shown is a current model of how the stock market and it clearly shows the stock market crash in 2008. If you look more recently the stock market is doing very well and had a great recovery. In a report written by The Balance they states that a rejected bank payout bill was the final blow needed to crash the market but it had been building for a very long time. U.S. h
omeowners lost a cumulative $3.3 trillion in home equity during 2008, according to a report from Zillow. One in six homeowners is underwater on their mortgage in 2009. The stock market erased $6.9 trillion in shareholder wealth in 2008 (Quora). Now that the risk is clear the question still remains is investing in stock safe. The answer to that is that now is a great time to invest in the economy. With Trump being able to boost the economy in his first year, many are projecting similar trends throughout 2018. Anything can happen and your money won’t stay safe for every but with the economy's condition right now investing in stock has a lot of promise. 

Works Cited

Amadeo, Kimberly. “When and Why Did the Stock Market Crash in 2008?” The Balance, www.thebalance.com/stock-market-crash-of-2008-3305535.

“Dow Jones - 10 Year Daily Chart.” MacroTrends, www.macrotrends.net/1358/dow-jones-industrial-average-last-10-years.

“How Much Money Did Investors Lose in the 2008 Financial Crisis?” How Much Money Did Investors Lose in the 2008 Financial Crisis? - Quora, www.quora.com/How-much-money-did-investors-lose-in-the-2008-financial-crisis.

Mitchell, Cory. “How the Stock Market Works.” Investopedia, 10 Aug. 2017, www.investopedia.com/articles/investing/082614/how-stock-market-works.asp.

Well. “Can the Stock Market Bull Keep Raging in 2018?” CNNMoney, Cable News Network, money.cnn.com/2018/01/02/investing/stock-market-2018-outlook/index.html.

Virtual Reality’s Economic Impact

Virtual Reality’s Economic Impact
Renata Krieger

Since the internet’s dynamic impact on the economy in the late 1990’s, industries are on a continuous search for the newest innovation to improve their businesses. In recent years, virtual reality has gained popularity due to features like no other. Virtual reality allows viewers to observe augmented spaces without leaving their current setting. As technologies continue to transform the economy, virtual reality will play a significant role throughout industries such as retail and education, thus increasing GDP and consumer spending.

    In a classroom setting, for example, virtual reality enhances learning by using the headset as an online school. Additionally, this allows students to collaborate with peers and educators internationally as another form of an online class. As schools and universities allow virtual reality to contribute to their classrooms, the demand for the headsets increase. Predicted by Wired Magazine, the virtual reality industry will experience economies of scale within the next 5 years due to the rapid increase in demand for the headsets.

    Another industry taking advantage of virtual reality's innovating purpose includes retail ranging from clothing to home improvement. One downfall to the convenience of online shopping is not having the ability to try the selections on. However, virtual reality alleviates this problem by creating a virtual avatar in proportion to one’s real body. Online shopping, as well as virtual reality, changes the demand for certain types of jobs. Also, within home improvement stores like Carpet World, an augmented view of customers’ homes is provided by changing wall colors or flooring options. Wired Magazine describes the shift as, “An explosion of wealth that leads to the creation of a massive number of high-tech, good-paying jobs and one of the most prosperous sets of economic conditions in history”. The overall effect could be underemployed workers and discouraged workers in the retail industry as consumers online shop, leaving stores empty, while jobs are thriving in technology. Additionally, the labor force will remain the same during the shift, while the unemployment rate within retail workers increases. On the contrary, the increase in consumer spending and inventory investment through the demand of virtual reality decreases the possibility of a recession.

In conclusion, the virtual reality industry is projected to increase by over 50% between years 2018 and 2020. Statista shows an increase from $12.6 billion dollars in economic impact in 2018 to $29.5 billion in 2020. With this, virtual reality will significantly transform the economy as the internet did in the 1990’s.

Works Cited

Chacos, Brad. “Virtual Reality, One Year out: What Went Right, What Didn't.” PCWorld, PCWorld, 22 Dec. 2016, www.pcworld.com/article/3148754/virtual-reality/the-messy-magical-birth-of-virtual-reality

Digital, Brian Shuster Utherverse. “Could Virtual Reality Revitalize the Economy?” Wired, Conde Nast, 6 Aug. 2015, www.wired.com/insights/2014/10/virtual-reality-economy/.

“Global Virtual & Augmented Reality Economic Impact 2016-2020 | Statistic.” Statista, www.statista.com/statistics/615968/global-virtual-and-augmented-reality-economic-impact/.

Is a Minimum Wage Increase Viable?

Is a Minimum Wage Increase Viable?
Written by: Adam Immel

Minimum wage is one of the most polarizing subjects of debate in the United States. While there will always be counter arguments, some believe there are plenty of incentives to an increase in minimum wage that would benefit the people and local communities without damaging. A minimum wage increase would impact the 89% of minimum wage employees that are over the age of 20, which definitely impacts more than teenagers. Additionally, research by the Congressional Budget Office shows that a minimum wage increase to  would also lift 900,000 families (not people) above the poverty line, and drive up the demand for goods. As a result of this, a heightened demand for goods and services, impacting employees with higher wages of whom sell those goods.


The argument to this wage increase is that there are simply too many negative trade-offs for the government and the rest of unaffected Americans to handle.  The same Congressional Budget Office that conducted the previously mentioned research suggested that an increase in minimum wage would result in inflated unemployment numbers, as much as 100,000 employees laid off for a wage increase to $9.00 per hour, and 500,000 employees off of an increase to $10.10. To support this negative, The Law Dictionary suggests that increase in minimum earnings will result in companies raising prices on goods and services to compensate. Essentially, the main argument from the increase naysayers stems from the potential negative effects on small businesses.

From all this information provided, some still make an educated claim that the Federal Minimum Wage in America should be raised somewhat. However, an increase needs to not be drastic (a $7.75 increase to $15), but instead be a gradual increase, or a smaller number, such as $12. Evidence provided by the US Department of Labor suggests that 3 out of 5 small businesses support a minimum wage increase, and doesn’t rule out that the other 2 out of 5 cannot support such an increase. Furthermore,many liberals create the argument centered around the rise of prices on goods stems from the majority of corporate greed, in which maximizing profits is the utmost importance. Such increases in prices could make resemblance to the increase in steel prices in 1962, in which President John. F Kennedy intervened.

Inflation rates suggest that it’s time for a minimum wage increase, as employees have lost about 8.1% purchasing power to inflation, as their wage have not increased. To subdue the arguments by many that minimum wage will benefit mostly minors, some in politics feel it necessary to propose a split age minimum wage, where minors make approximately the current rate, and adults receive a higher wage. With these incentives to make a move more appealing to doubters, many feel it is essential to make this increase effective to further grow our economy and lift hard working Americans out of poverty.

Works Cited

DeSilver, Drew. "5 Facts about the Minimum Wage." Pew Research Center RSS. N.p., 2015. Web. 10 Mar. 2018.

Region/Country, By. "Minimum Wage Mythbusters." United States Department of Labor. N.p., 2015. Web. 10 Mar. 2018.

"The Effects of a Minimum-Wage Increase on Employment and Family Income." Congressional Budget Office. N.p., 2015. Web. 10 Mar. 2018.

The Economics of St. Patty's Day

The Economics of St. Patty’s Day

Erin Zielsdorf 

St. Patrick’s Day is just around the corner, meaning it is that time of the year for people to splurge on just about anything containing the color green. This goes for clothing, decorations, and the big income source: alcohol. Not to mention, the day full of binge drinking for adults tends to result in the need for various designated driving companies. Now, to put all of this into perspective, St. Patrick’s day is bigger here in the United States than it is in Ireland. Almost everyone is planning on buying something, which helps our economy significantly.

According to Wallethub, about 56.1% of Americans celebrate St. Patrick’s Day, and the average drinker will spend about $38. As a result, the income from this holiday brings in almost $6 billion dollars! Specifically this year, this unique holiday lands on a Saturday, meaning that some people who didn’t go out and celebrate in the past might now, because the opportunity cost of going out on a Saturday is way less than that on a weeknight. 

Not only do the consumers love this holiday, but so do sellers. In March, you can walk into a store and find just about anything green and intriguing the second you walk in the door - and these items are typically cheap, too. According to The National Retail Federation, 83% of consumers will wear green to show their Irish pride, and 23% will decorate their homes in Irish theme. Sellers make these items cheap because they know the cheaper the item, the more Americans will purchase. 

Although we usually don’t think of St. Patrick’s day as a big “spending” day, everything that is bought comes together to ultimately contribute to our gross domestic product, which has a lot to do with goods and services produced. This year St. Patrick’s day should be a big one for the US, and it will be interesting to see how much the numbers increase this year. 

Works Cited

Ogg, Jon C. “St. Patrick's Day in 2017 to Set Record for Economic Impact.” 247wallst.Com, 21 Mar. 2017, 247wallst.com/economy/2017/03/17/st-patricks-day-in-2017-to-set-record-for-economic-impact/.

“St Patrick's Day Spending Statistics.” Fundivo, www.fundivo.com/stats/st-patricks-day-spending-statistics/#.

Saint Patrick's Days Affect on the Economy

Saint Patrick’s Days Effect on The Economy

Madelyn Raschka

Holidays are a big deal in the United States. Whatever the occasion, we always find a reason to celebrate.

 In particular, Saint Patricks is a holiday that is soon approaching, and will be widely celebrated throughout the U.S. As odd as it seems, St. Patricks day is more widely celebrated here in the U.S. than it is in another place in the world. Even Ireland. About 34.5 million Americans list their heritage as either primary or partly Irish, and that number is about seven times greater than the population in Ireland. On the map, you can see which states have the most Americans who state they are of Irish roots. So in terms of what this means for the economy. Well, millions and millions of dollars are going to be spent by Americans, in hopes to make this the best Saint Patrick's Day yet. 

In 2017 alone, $5.3 billion was spent in just one day of celebrating St. Patrick’s day. This number is expected to increase, and reach an all time high this year. Statistics have predicted that each individual celebrating will spend an average of $39.65 on March 17th, for a projected total of $5.9 billion spent by all celebrating Americans. The chart shows how the average amount spent per person on St. Patrick’s day has fluctuated, however is currently on the rise. And for a smaller holiday, celebrated on just one day of the year (March 17th) there is a rather large revenue that is generated on a year to year basis.

Holiday spending is what makes up for 70% of the GDP. Therefore, this kind of spending is a big deal for the economy. As more and more Americans are “becoming Irish for a day”, more and more money will be spent, as it is becoming increasingly difficult to maintain a budget when celebrating holidays. And that is then increasing the total amount spent in that day, therefore positively impacting our GDP. With the trends showing that in the years to come spending on St. Patricks day will increase, it is likely that spending will also increase during many other holidays as well. Which means that consumer spending will continue to drive our GDP growth. 

This spending growth can be attributed to more individuals wanting to get involved in every opportunity to do something fun, host a party, or go out. St. Patricks day is driven by many young adults looking to go out and party, spending much of their money on going out to a bar with friends or on decorations for the party they’re hosting. Data shows that 83% of celebrants will wear green, 31% will make a special dinner and 27% will head to celebrate at a bar or restaurant. And each of those tasks involve spending at least a little amount of money. For those who choose to drink, many will use services such as Uber or Lyft to safely arrive home after a night of festivities. Increasing the amount spent by individuals even more due to the new services such as those being offered. 

Overall, it is safe to say that Americans like to have a good time, not matter the occasion. And holidays give us even more reason to celebrate. Lucky for the economy, more times that not these holidays are economy boosters and are greatly beneficial. 

“The Irish-American Population Is Seven Times Larger than Ireland.” The Washington Post, www.washingtonpost.com/news/wonk/wp/2013/03/17/the-irish-american-population-is-seven-times-larger-than-ireland/?utm_term=.acf16ab125de.

Ogg, Jon C. “St. Patrick's Day in 2017 to Set Record for Economic Impact.” 247wallst.Com, 21 Mar. 2017, 247wallst.com/economy/2017/03/17/st-patricks-day-in-2017-to-set-record-for-economic-impact/.

Light, Larry. “Why Holiday Shopping Is so Important for the U.S. Economy.” CBS News, CBS Interactive, 28 Nov. 2016, www.cbsnews.com/news/why-holiday-shopping-is-so-important-for-the-economy/.

Online vs. In-Store Shopping

Online vs. In-Store Shopping
Ally Zillmer

Growing up in a generation where technology continues to progress at an increasing rate, it’s hard not to want to spend the majority of our time online or using technology. How often not only our generation uses technology, but even the generations above us is very prominent when you consider looking at the sales of online shopping vs. in-store shopping. Online competitors such as Amazon, continue to increase in their online sales. Specifically, Amazon continues to beat out other companies like Toys R Us who has been forced to close one-fifth of their stores due to bankruptcy and loss of interest from the consumers. Because today technology is so easy to access compared to walking into a store, the sales online are increasing not only for toys, but for most other goods as well.

Other stores continue to fight with the online store in sales and attracting customers to buy their numerous products. Because children and adults are so engrossed by their screen, they’re missing viewing advertisements for brands that may be passing them on a day to day basis. Technology being so accessible makes it much easier for those who are living busy lives to simply shop from home instead of trying to find time in their busy lives to go shopping for their families.

Below is an infographic chart that compares the sales of online shopping to in-store shopping:



In 2017, online sales were expected to supersede in-store sales during the holiday season. Customers reported that they were expecting to spend 51% of their budget for the holiday season online while others said that they would spend 42% of their budget in-store. This was an increase in online shopping compared to 2016 where consumers expected to only spend 47% of their budget online shopping. This increase in demand for online shopping continues to decrease consumers demands for buying goods in-store. Because technology is much more accessible, consumers find the idea of online shopping much more appealing.

More and more stores continue to run bankrupt due to the demand for online shopping. Stores like Toys R Us, Gap, Sears, and more are expected to have to close down 100 or more stores in the next three years. This huge decline in retail stores will continue to increase the demand for online shopping and then in return, more retail stores will end up bankrupt and the cycle will continue due to continuing in advancements in technology.

“Retail Vs. E-Commerce Trends: A Match Made In Heaven.” Retail TouchPoints,
Taylor, Kate. “Online holiday shopping is poised to beat in-Store sales for the first time ever - and it's terrible news for retailers like Sears and Macy's.” Business Insider, Business Insider, 24 Oct. 2017,
Thompson, Derek. “Who Bankrupted Toys 'R' Us? Blame Private Equity and Millennial Parents.” The Atlantic, Atlantic Media Company, 24 Jan. 2018,