Tuition Reimbursement from an Employer

Tuition Reimbursement From An Employer
Morgan Breese

Most high school senior students are starting to apply to college or will be in near future. When deciding where to go to college, cost can be a huge deciding factor. Most people these days consider going to college the norm as it is essential to earning a good salary, and improving one's quality of life. College however continues to be more expensive. One can attend a university or a tech school and still be potentially thousands of dollars in debt after graduation from college. As you can see in the graph, the average amount of student debt is around 35 thousand dollars. Additionally, over time the number of students graduating with student loans has increased. In 2014, 70.9 % of college students had graduated with some amount of debt.

With college tuition cost being a huge concern, employers began offering tuition reimbursement to employees to not only help minimize the amount of debt students graduate with, but to also retain good working employees. Under section 127 of the IRC (Internal Revenue Code) employers can provide a program that provides up to $5,250 per year in educational assistance to each employee on a non-taxable basis. Although, under this section of the IRC an employer can set a maximum reimbursement amount lower than $5,250. It can also reimburse more than that set amount, but the excess money supplied must be reported as taxable compensation to the employee. The only way it does not need to be reported is if the coursework is related to the employee’s current job description. Thus being said with this section of the economic growth and tax relief reconciliation act, more employers are offering such an opportunity. These opportunities are great looking forward for the economy.

When students are trying to save money, most are trying to seek these types of opportunities. Some companies that offer such an opportunity are Cigna Health Insurance, Aurora Health Care, Wells Fargo, UPS, Verizon, and many more. For full time employees Aurora offers $4,000 a year for any accredited program, and $7,500 a year for a BSN. Additionally, any employee that works over a .5 (20 hours a week) is eligible for reimbursement. UPS offers $5,350 a year, Wells Fargo offers $5,000 year, and Verizon offers $8,000 a per year. Cigna on the other hand offers the lowest amount of reimbursement being $5,250 for undergraduate courses. You can file for a federal tax deduction and up to $8,000 for graduate ones with Cigna. This program has been so successful that the company has raised their price ceilings to $10,000 and $12,000. Thus being said, with such great opportunities more people are working to help pay off college. Most companies require a one year commitment after graduation as a “thank you” for the significant amount of money each individual has received.

Unfortunately, people working while going to college does not affect the unemployment rate like when people are solely in college studying as then they are considered institutionalized. Although, when they are out of college and still working to pay their commitment to the company, they are considered within the employment rate. With more working as they have received an education, the unemployment rate will decrease. This projects great economic growth in our economy. With more working, less state funding will be necessary and people will be able to live a higher standard of living with more money and a stable job.


Works Cited
“Aurora Health Care Employee Benefit: Tuition Assistance.” Glassdoor, www.glassdoor.com/Benefits/Aurora-Health-Care-Tuition-Assistance-US-BNFT41_E121528_N1.htm.

Marcus, Jon. “The Reason Employers Help Workers Pay for College, | Money.” Time, Time, 7 June 2016, time.com/money/4353997/employers-helping-workers-pay-college-tuition/.

“Student Loan Finder.” 10 Companies That Offer Tuition Reimbursement To Pay For College, www.estudentloan.com/blog/10-companies-will-help-pay-college.

How do Gaming Events affect the Economy?

How do gaming events affect the economy
By: Eric Freeck

There are events all over the world that happen from running to gaming. Having these types of events are really good for your area. One because you get store owners to sell more products and also all the hotels that will be getting money. Things like these are great because who wouldn’t want money for their city and also profit for themselves. In this day and age more and more people are playing games and so everything that is associated with video games is going to make lots of money.

Here’s proof that in 2016 LA made around 25 million from E3 being there in 2016 and has only grown since then. Gaming has become this monster of a machine and people love it because one it helps people get away from there real-life problems and also make new friends. That's what the people need sometimes just something new, waiting for the next game to come out. That's what E3 does they give you an insight into what the biggest new games are going to be in the next year and what you should expect from them. Another thing is that they let you play games there like the ones that they show to everyone and you have to wait months or even a year or two. Or just games from other consoles that are coming out very soon. This event is a great thing that was invented and also it is a big money grab. The money that you get if your city hosts the event it’s just going to make more and more money. This is just because gaming is becoming a big thing. As you can see in the graph below people spend lots of money dealing with games and accessories. $30.4 billion is a lot and that's only in 2016 that number has grown a lot in the past two years. And it is around $36 billion. That includes all accessories, games, and hardware. People are willing to spend a pretty penny on things like these because it's their passion their hobby or even their job. Things like that happen because of popularity with the people and all these big companies make millions and billions of dollars on just making a game and also putting it in E3 makes the people more hyped for the games and so people would spend even more money on it. This is a really good marketing strategy because E3 helps the people get info on items while they get paid for doing that and the companies make money from it as well it is a win-win situation.






Works Cited
DomsPlaying. “ESA Report: Essential Facts About Computer & Video Games Industry.” Working Casual, 20 Apr. 2017, workingcasual.com/esa-report-essential-facts-about-computer-video-games-industry/.

“Electronic Entertainment Expo.” Wikipedia, Wikimedia Foundation, 18 Nov. 2018, en.wikipedia.org/wiki/Electronic_Entertainment_Expo.

Gaudiosi, John. “E3: Video Game Confab Generates $25 Million in Revenue to Los Angeles.” The Hollywood Reporter, The Hollywood Reporter, 13 June 2011, www.hollywoodreporter.com/news/e3-video-game-confab-generates-196703.

The Economics of the Azov Sea Crisis

The Economics of the Azov Sea Crisis
by James Davis

In the news recently was the Russian navy seizing three Ukrainian vessels, a flare up of tensions stemming from Russia’s annexation of Crimea in 2014. War has been ongoing in Eastern Ukraine for the last five years as Russian backed rebels fight for control from the Ukrainian government. This conflict also takes the form of personal power struggles as Russia’s president Vladimir Putin and Ukrainian president Petro Poroshenko use it to justify their governments position and for promoting various domestic agendas. Economically it means that this situation is a classic example of game theory, specifically a scenario similar to the Prisoner’s dilemma.

As seen in the table above, although both countries withdrawing would be mutually beneficial, the better option for both independently is to hold on to their position in the war, putting conflict as the Nash equilibrium and the scenario we see playing out. So long as the current situation continues so will conflict unless the scenario fundamentally changes. This could happen thorough a number of ways, such as a different, pro-russian political party gets elected in Ukraine or if the Putin government is sufficiently harmed through international pressure that it makes withdrawing the least worst option and occupying Ukraine becomes too costly.

On a different economic perspective, this war has lead to Ukraine losing a lot of people to migration and many industries to leave the country. This is due to cost; as conflict increases the risks that capital is damaged or destroyed it becomes more expensive to operate profitably in the country. Many industries are leaving for more profitable locations inside the European Union or Russia. Some effects of this are a decrease in income, especially in the eastern part of the country in the Donbass area where conflict is the heaviest, causing many people there to switch to inferior goods rather than the normal goods that could otherwise been afforded.



One last economic ramification of this war is reliance of Europe on Russian natural gas to power their energy sector. According to CNN, Europe imports 69% of their natural gas, the most important source of energy in the EU, and nearly 40% of that comes from Russia through the Ukraine. Although this war has been troubling for many in Europe, Germany and other major countries in Europe have limited their actions against Russia to words as the cost of them switching from Russian gas is high. Under President Trump, the United States has criticized Europe for this reliance and calls for them to transition away from this reliance. Currently, however, this represents how a monopoly, Russia, can leverage demand to increase prices, in this case monetary and political, to earn a profit.

Works Cited

Kottasová, Ivana. “Europe Is Still Addicted to Gas from Russia.” CNNMoney, Cable News Network, 5 June 2018, 11:37, money.cnn.com/2018/06/05/news/economy/russia-europe-gas-dependency/index.html.

Kuzio, Taras. “[Opinion] The Azov Crisis Will Backfire.” EUobserver, 26 Nov. 2018, 17:25, euobserver.com/opinion/143498.

“Russia Fires on and Seizes Ukrainian Vessels.” The Economist, The Economist Newspaper, 26 Nov. 2018, www.economist.com/europe/2018/11/26/russia-fires-on-and-seizes-ukrainian-vessels.

Weir, Fred. “Behind Ukraine-Russia Naval Tensions, a More Brutal Economic War.” Yahoo! News, Christian Science Monitor, 26 Nov. 2018, www.yahoo.com/news/behind-ukraine-russia-naval-tensions-more-brutal-economic-165636598.html.

Naloxone: The lifesaving drug involved in a national monopoly

Naloxone: The lifesaving drug involved in a national monopoly

By: Allison Bunyer 

Opioid overdoses are becoming more and more prevalent in the US. Last year alone, 72,000 Americans died due to opioid overdoses;however, thousands more survived because of naloxone (CDC), which is a drug that can be used to reverse overdoses. The drug comes in many forms, from the classic needle injection, to a nasal spray called Narcan, to an auto injector. To inject a person with the needle, you need professional training. This is the cheapest method, with a syringe and medicine starting at $15, but is not accessible to many people who need to know how to save themselves or others in a dire situation. The Narcan device is becoming more and more accessible, with the price of $125 for a pack of 2. Many organizations across the country are starting to hand out these devices for free, but device is still very expensive. The final product, the auto injector Evzio, is made by the company Kaleo, who also produces the epinephrine auto injector, Auvi-Q. The auto injector for naloxone costs around $4000 for a pack of two (Bloomberg). Something needs to be done to control this industry, or soon the most accessible means for reversing overdoses will not be available to the average consumer. 

Kaleo, the pharmaceutical company that produces the auto injector Evzio has a monopoly over the auto injector device. The device gives you instructions on how to use the device, where to insert, how long, and talks through the process with you. The company uses almost the identical device for both naloxone and epinephrine. Because they have the only device of its kind, they are able to charge high prices for their products in an effort to make the most money they can. This device is the easiest to use out of the three options for delivering naloxone. When the product was first introduced into the market, its price was $690, and has risen to $4000 today (The New England Journal of Medicine). Though they have patents protecting Evzio, even if someone wanted to create a similar product, the industry is too hard to enter. Due to high costs of manufacturing pharma products and creating a device that can deliver the drug, a lot of time would be needed to create a product of its kind. The high barriers of entry make this industry a oligopoly because all of these products use naloxone, but just deliver it in different ways.

In many cities around the US, organizations are receiving grants to buy devices like Narcan to distribute to citizens. Dr. Jennifer Plumb, a Utah pediatrician and founder of Utah Naloxone hands out overdose kits to people in the Salt Lake City are to prevent overdoses. Utah has the 4th highest rate of overdoses in the US, causing its citizens to be at one of the highest chances of overdosing (Utah Naloxone). Naloxone companies operate in the way that allows first responders and cities to purchase the drugs at half the price the average consumer would pay (CBS). But, that means Narcan, in a pack of 2 still costs around $63. Many cities now have to weigh the opportunity cost of purchasing these lifesaving drugs. The money spent on these devices could be going towards new roads or buildings, but instead must be spent on saving their citizens. Some cities see the benefits of purchasing Narcan or Evzio, but some do not and leave their citizens without easy access to overdose reversing drugs.

Since Narcan has been legalized to be used by the public in 2017, many doctors have begun co-prescribing naloxone with opioids (IHS). By co-prescribing, the patient has access to the naloxone, in case of an overdose. This has caused a deeper look into what patients are paying for the lifesaving drug.  Pricing for the products can vary based on many factors. Many insurances, including Medicaid and Medicare will pay for naloxone, but not Narcan (Prescribe 2 Prevent). This causes patients to have to be trained how to administer the drug, how to use the needle and the medicine in the correct way. Kaleo has looked at the situation very differently and has created a price discrimination method that can give the medicine free to many patients. If an insurance company will not pay for the auto injector, Kaleo will step in and give the product free to the consumer (CBS). Kaleo also uses their own pharmacy that mails the product to the patient, allowing doctors to go through minimal paperwork and an easier process. But, if your insurance company does agree to cover the cost, all the consumer has to do is pay for the copay. This process causes price discrimination to come into play because people are being charged different prices, based on the insurance they have or the access to medical care they have as well. Kaleo makes money from the insurance companies that will pay for the product, which eventually covers the cost of the free auto injectors they give out, since the cost to produce Evzio is $80 (CBS).

Naloxone is very important, as it plays a large part in saving the lives of Americans who overdose. With drug companies taking advantage of this new need in our world, something needs to be done to make sure people are not paying outrageous prices for life saving needs. Oligopolies and price discrimination need to be addressed to make this industry fair for consumers.

For additional info on using the Evzio, check out this video:

https://www.youtube.com/watch?v=mtdPk__7xlc

Works Cited

Caldwell, Tiffany. “A Doctor Focused on Preventing Drug Overdose Deaths in Salt Lake City Now Plans to Run for Jim Dabakis' State Senate Seat.” The Salt Lake Tribune, 11 Mar. 2018, www.sltrib.com/news/politics/2018/03/12/doctor-focused-on-preventing-overdose-deaths-in-salt-lake-city-now-plans-to-run-for-jim-dabakis-state-senate-seat/.

“FAQ.” Prescribe To Prevent, prescribetoprevent.org/faq-2/.

“Pain and Opioid Use Disorder .” Indian Health Service, www.ihs.gov/opioids/.

“The Rising Price of Naloxone - Risks to Efforts to Stem Overdose Deaths | NEJM.” New England Journal of Medicine, 8 Dec. 2016, www.nejm.org/doi/full/10.1056/NEJMp1609578.

Stahl, Lesley. “Evzio: The Overdose-Reversal Drug with a $4000+ Price Tag.” CBS News, CBS Interactive, 18 Nov. 2018, www.cbsnews.com/news/evzio-the-opioid-overdose-reversal-drug-naloxone-with-a-4000-price-tag-60-minutes/.

“Utah Naloxone - Home.” Utah Naloxone - Home, www.utahnaloxone.org/.

The Economic Impact of Giannis Antetokounmpo

The Economic Impact of Giannis Antetokounmpo

By: Kaustav Saha

Giannis Antetokounmpo was drafted by the Milwaukee Bucks with 13th pick in the 2013 NBA Draft. When Giannis was drafted he was seen as a prospect who had the potential to one day turn into a quality NBA Starter. No one could for see Giannis, who was rated a 60 out 100 in NBA2k14, to become the walking highlight reel superstar that he has become today.

When a franchise comes into possession of a superstar, the whole city benefits. For example, look at the city of Cleveland and Lebron James. People from all over Ohio and the Midwest came to see one of the All-Time greats play for the Cleveland Cavaliers. After Lebron’s departure Cavs tickets sold for $2 for a game! A superstar greatly increases the demand in for to visit a basketball game for anyone in the region. Last year I was unable to make it to a single NBA game but this year I have already gone to 2 games. When a superstar is able to bring in fans, not only does he bring revenue to the stadium but also for the businesses in the city. When fans come to games they have to pay for parking, most people go out for dinner before or after in the cities restaurants, and hotels depending on how far they come from.

 The Milwaukee Bucks should be very thankful that they were able to draft a superstar like Giannis. Often it is very unlikely that a superstar would choose to go play for a team located in Milwaukee compared to Los Angeles, New York, or Boston. By drafting Giannis the Bucks were able to have a superstar that would benefit the Organization and the city of Milwaukee.

So far this season Giannis is dominating the competition. Currently, Giannis’s probability to win the NBA MVP award sits at roughly 40%(approximately 4 times greater than any of the other contenders). Last year Giannis did not finish top 3 in the MVP voting. Giannis and the Bucks performance have been outstanding this year and this is incredibly noticeable in the revenue brought in by the team last year compared to this year. In 2017, the estimated value of the Bucks was 785 million. This year, the value of the Bucks is at 1.08 Billion. Since the value of the Bucks as grown immensely since Giannis began is rise to superstardom it is safe to assume that he is able to bring revenue to arena and the businesses in and around the Fiserv Forum.

Works Cited

“All Of The NBA 2K14 Player Ratings.” NBA2K4LIFE, 26 Sept. 2013, nba2k4life.com/2013/09/25/all-of-the-nba-2k14-player-ratings/.

“Basketball Statistics and History.” Basketball-Reference.com, www.basketball-reference.com/.
“Milwaukee Bucks Franchise Value 2003-2018 | Statistic.” Statista,
www.statista.com/statistics/194662/franchise-value-of-the-milwaukee-bucks-of-the-nba-since-2006/.

Wells, Adam. “Nets-Cavaliers Tickets Sold for Just $2 in Post-LeBron James Era.” Bleacher Report, Bleacher Report, 25 Oct. 2018, bleacherreport.com/articles/2802817-nets-cavaliers-tickets-sold-for-just-2-in-post-lebron-james-era.
“r/Nba - [OC] Top 5 MVP Candidates According to Basketball-Reference.com and Their Probability to Win If Season Ended Today.” Reddit, www.reddit.com/r/nba/comments/a0l5r0/oc_top_5_mvp_candidates_according_to/.

Baby Boomers Needing Health Care

Baby Boomers Needing Health Care
Taylor Rosencrans

1946 began an era of new beginning after a long stretch of war followed by the Great Depression. After escaping these troubling times, America was ready to start a new era. Now that the country was in a more stable condition everyone was finally ready to start a family. With everyone having the same idea in mind there was a massive amount of babies born in a short period of time. Babies born in this time are known as the Baby Boomers and now as that generation is reaching retirement, there are many ways that are economy is going to be affected. One of the biggest is areas that will affect the economy is the health care that these Baby Boomers will need.

The biggest concern is the fact that the amount of money needed to provide for their health care will drive the national debt to a point of no return. By the year 2035, there will be an 8% increase on Medicare spending which is directly impacted by the Baby Boomers (Gigante). That is almost double from what it currently is. In order to ensure this doesn’t happen, there needs to be some planning now that will solve this before it even becomes an issue. 42% of the people who live until 70, will live in a long term care facility before they die (Knickman, James R, and Emily K Snell). The cost of being in a long term care facility is already expensive and won’t be getting any cheaper.  Especially with all the technology advancements, it is allowing more people to make it to this age and will need help paying for long term care.

New technology allows for new research which allows for better medical care. But with the new technology, there is an increase in the price that it costs. Since getting sick normally isn’t something that’s planned, most people go into retirement expecting some but not typically all of their medical bills. This also includes that most don’t take into account for the inflation that there will be when saving for long term care. There are also many unexpected costs that many of us wouldn’t even think about but that come up when dealing with health. Especially as new treatments come out, the costs of affording them will continue to climb. This means there is going to be more that Medicare will need to cover for as the population of elders increase and the new medicine keeps coming out.

There will be a huge increase in demand for healthcare professionals in order to be able to account for the care needed. Over the next few years, the elderly population is predicted to go from 35 million in 2000 to more than 80 million in 2050. All healthcare professions are predicted to increase in job opportunities in the coming years because of the number of Baby Boomers that are coming. This will help the economy as there will be many job opportunities but on the other hand, getting people the education they need is a whole other challenge. But even the fact that there are so many job opportunities for people who are willing to put in the time for that education will help the economy and provide them with new opportunities. Although the amount of Baby Boomers needing health care seems like it’s going to hurt the economy, this is one way that the economy will benefit from the increase in job opportunities.

People that are classified as Baby Boomers range from 54-72 years old. They are already in the age of retirement and are beginning to need more help from the government to pay for medical care. Over the next few years, the government needs to formulate a plan in order to ensure that the impact of Baby Boomers needing help paying for healthcare doesn’t hurt the economy as much as it currently will. Without any sort of action, so much money will go into healthcare that the demand will hurt future generations with higher taxes, higher inflation or both (Gigante). But with proper government involvement, there is hope that there will be a solution that can benefit everyone.



Works Cited
Gigante, Shelly. “How Boomers Will Impact the Healthcare Industry.” CNBC, CNBC, 17 Mar. 2010, www.cnbc.com/id/35524106.

Knickman, James R, and Emily K Snell. “The 2030 Problem: Caring for Aging Baby Boomers.” Health Services Research, www.ncbi.nlm.nih.gov/pmc/articles/PMC1464018/.

PacSun's Path to Success

PacSun’s Path To Success
Jake Olson

             PacSun, for the ones who don't know, is a Pacific Sunwear clothing brand based on Teen and urban clothing from the sunny side of California. Although this brand was founded in 1980, the brand has been an increasing sensation in the teen market so far, as their sales have been randomly improving, but for what reason? Most clothing brands like to do collaborations with another branding of clothes, to spice up the market for competition.

        PacSun, since they have been around for a while, almost went out of business in the year of 2016 due to a small number of customers they would get per year. Most of the problems PacSun would run into would be their pricing. A lot of people were using the "Customer's objection" method whenever shopping at this local store, as the prices were way too high set and needed a price floor for their products. The customer objection definition was when customers and even other business were ripping on PacSun's overall prices being set too high for most customers. T-shirts had a low cap price of $30 each, while some of their outdoor wear of anoraks were reaching prices up to $80. This made the competition for other companies around mall areas of cities, to have a better advantage due to lower prices and better offers on their apparel.


        When PacSun's company and officials realized that their products were being matched by other competitors, they wanted to try and find a new way to make their sales a surprise come up. By reaching out to other brands and clothing apparels, PacSun was able to start the collab project on their clothing. Kylie Jenner and Kanye West both were big idols around the teenage atmosphere during the time of 2016 and for a great idea, PacSun collaborations chose woman clothes to be sponsored by Kylie Jenner, and then a unique style of Kanye West for the men. The theme most unique about the collaboration was for young kids and adults to visualize a good interpretation of Kanye's style. The fit was very loose on the cuffs of all long sleeve shirts, and also varieties of cuts, and holes made into the ridges of shirts. Kanye believed that these styles brought out the texture of clothing, and simply made young teens want to go out and buy that certain product. Kanye was a very good persuader with his clothing brand at this point in time as well, to help PacSun raise their sales back up after a huge loss of 2016.



          After a very long drought, PacSun's sales rose by nearly 30% of the beginning of 2017. They have continuously been thinking and adding new collabs to the store. For example, Guess jeans for the t-shirts, Travis Scott clothing, and the most affected brand to PacSun, Champion clothing which is a fan favorite by most. 

New Orleans Saints Big Income Increase

New Orleans Saints Big Income Increase
Written By: Logan Evers

The New Orleans Saints are a National Football team located in New Orleans, Louisiana. The New Orleans Saints bring in a net total revenue of 1.97 billion dollars this year. The profit that this organization makes is astonishing. The New Orleans Saints have an operating cost of 370 million. 1.97 billion dollars was made this year that is greater than last years total by 36%. (BIZNO)


I am sure some of you don’t even know who the New Orleans Saints are or what even professional football is, so here's a little backround on the Saints franchise. In 1966 the team was founded by John W. Mecom Jr., David Dixon in the “Big Easy” New Orleans. They developed a way of doing things down in New Orleans that created a winning tradition entering the 21st century. The teams most valued player and the top jersey seller, quarterback Drew Brees who has broken and continues to set all-time NFL records is now leading a 8-1 team in the 2018 season.

The Saints have made a 36% increase in revenue this year, thats a huge jump that was made from last year but it’s because there has been an increase in demand this year because of the success of their franchise so far in 2018. The Saints only have one loss and eight wins, when you’re winning the fans are entertained and tickets sales will increase in demand. The revenue made by the Saints is from the success of their team. 

Works Cited 

Price, Chris. “Forbes Values Saints at .52 Billion.” Biz New Orleans, www.bizneworleans.com/The-Pennant-Chase/September-2015/Forbes-values-Saints-at-152-billion/.

A Monopoly in Milwaukee

A Monopoly in Milwaukee
By: Maria Pesick

Artificially manufactured monopolies in the US are illegal as they are a threat against local businesses, and thus would allow the market price to be raised dramatically to a price that would be hard for consumers to pay. However, in some industries, natural monopolies can occur when resources are limited and the products being produced are far superior to those of competitors. (Beattie 2018)

An example of a modern day monopoly in the US would be WEC Energy Group, or what we know as We Energies. Most utility companies today are monopolies locally because the services they provide require resources that can be limited to a region once they are bought up by a firm. In the case of WEC Energy Group, the brands of We Energies, Wisconsin Public Service, Peoples Gas, North Shore Gas, Michigan Gas Utilities, Minnesota Energy Resources, and Upper Michigan Energy Resources cover the electricity and natural gas production over four states. (We Energies 2018)


Because this company owns such a complete part of the market, if another company were to attempt to open in this same market, they would face barriers to entry. It would be expensive for another firm to match the prices set by We Energies and still make a profit, and this could cause them to shut down. Also, We Energies is in control of a lot of the resources that go into electricity and natural gas production. It would be difficult for a new firm to come into possession of enough resources to keep up with quantity demanded. We Energies themselves have been raising the price for their services as natural gas is becoming a harder product to come by, which is affecting other local businesses. (Milwaukee Magazine 2017)

The industry of electricity and natural gas seems to be covered, at least in the Wisconsin area. It would be unwise for a new firm to try and enter this market unless government intervention was to take place. However, since We Energies is a natural monopoly and has not created one with licenses, patents, or other forms of intellectual property, the government cannot accuse them of violating any antitrust laws. (Kramer 2018) Because We Energies has been in business for a long time now and is in high demand as a necessity, they are aware of what consumers are willing to pay and what is the highest they can charge without changing that quantity demanded. If for whatever reason, the firm had to raise their prices and would lose quantity demanded, only then would it maybe be possible for a new firm to enter the market. 



“About We Energies Foundation.” We Energies, We Energies, 2017, www.we-energies.com/foundation/aboutus.htm. Accessed 12 Nov. 2018.

Beattie, Andrew. “A History Of U.S. Monopolies.” Investopedia, Investopedia, 17 May 2018, www.investopedia.com/insights/history-of-us-monopolies/. Accessed 12 Nov. 2018.

Kramer, Leslie. “What Are Common Examples of Monopolistic Markets?” Investopedia, Investopedia, 19 Oct. 2018, www.investopedia.com/ask/answers/041415/what-are-common-examples-monopolistic-markets.asp. Accessed 12 Nov. 2018.

“Monopoly Power.” Milwaukee Magazine, 21 Mar. 2017, www.milwaukeemag.com/monopolypower/.

Is College Worth Your Money?

Is College Worth Your Money?
Miriam John

As the four year timer set on our high school career slowly ticks to a close and a new four year timer is set in place, it would seem that the majority of our peers will move on to attend college at either a two year or four year university. The pressure for kids to go to college these days has only gotten higher, and we have all been indoctrinated to prepare ourselves for it, so of course it seems frightening when what has been in our distant future is now so near. But while the personal and individually focused benefits of college are still debated, we can at least look at the economic benefits--and losses--of going to college and decide if it is indeed worth your money.



It is no secret that tuitions prices have been rising steadily over the past few decades and that is clearly seen, especially in private colleges, which do not receive grants from the government as public institutions do, thus the cost of their service is far more expensive. In 1988, the cost of attending a four year private school, four year public school and a two year public school was $17,010, $3,360, and $1,700, respectively. On the other hand, those numbers have increased to $35,830, $10,230, and $3,660 for four year private schools, four year public schools and two year public schools, respectively. Those numbers are even larger now including room and board. But what could warrant such a drastic increase? Steve Odland, contributor to Forbes, writes that this is due to the fact that instead of increasing at the average rate of inflation, which is expected, the inflation rate of college education has risen %500. But everything is subject to inflation, even education, so there must be some other reason. Odland goes on to state that in the past few decades it has not just been the inflation of necessities and maintenance, but the salaries of college administrators as well that have increased.

Now that we know why the prices are as they are, we can now look at college and a college education’s effect on the economy and compare them to see if it worth the price. According to research conducted by the Brookings Institution, the average holder of a bachelor’s degree contributes $278,000 more to the economy over their lifetime, and a the holder of an associate’s degree contributes $81,000 more over their lifetime as opposed to the average holder of a high school diploma. But this makes sense as we know the greater the knowledge to a specific and indispensable you become to an employer while anyone can be found and filled to perform menial labor. Because of the need for specified skills or specialization, employers are willing to pay more for someone with a higher education, therefore, those people in turn have more to contribute to the economy when they spend. This brings us to how college itself affects the economy. Expanding job opportunities, increasing America’s competitive nature and supports the ability to increase income are all positive aspects that stem from investing in college education, according to the U.S Department of the Treasury. And while the cons of attending college include accessibility and affordability, strategies such as “income based repayment” have grown increasingly relevant and we see that in an education’s effect on the individual in the long run. Therefore, since the wages for those with a post high school education are higher, they not only combat the temporary struggle of paying for college, but also allow for the economy to grow as America gains an increasingly educated workforce.

So while there may personal and individual reasons to not attend college, it has definitely been proven that there is economic value to attending college if you choose to do it.

Works Cited

Eberly, Jan and Martin, Carmel. “The Economic Case for Higher Education” Treasury Notes, U.S Department of the Treasury, 13, Dec. 2012 https://www.treasury.gov/connect/blog/Pages/economics-of-higher-education.aspx.

Odland, Steve. “College Costs Out Of Control” Forbes, 24, Mar. 2012, https://www.forbes.com/sites/steveodland/2012/03/24/college-costs-are-soaring/#59617f781f86.

Rothwell, Jonathan. “What colleges do for local economies: A direct measure based on consumption” Brookings, 15, Nov. 2015 https://www.brookings.edu/research/what-colleges-do-for-local-economies-a-direct-measure-based-on-consumption/.

“Tuition and Fees and Room and Board Over Time” Trends In College Pricing, CollegeBoard, 2018, https://trends.collegeboard.org/college-pricing/figures-tables/tuition-fees-room-and-board-over-time.

How the Saying “If the Price is too Good to be True, it probably is,” is Now Prevalent in the Cosmetic Industry

How the Saying “If the Price is too Good to be True, it probably is,” is 

Now Prevalent in the Cosmetic Industry 

Written By: Dana Low 

When you walk into a big name retailer such as Target, you also have the security of satisfaction that comes with this big name. Whether it be the cosmetics or grocery aisle, customers know the goods they purchase will perform as marketed. These expectations however become dangerous when unregulated retailers begin to sell counterfeit makeup and toiletries. Often the price is low and customers will purchase the item with excitement only to wake up the next morning with allergic reactions, chemical burns, skin rashes and swollen eyes/lips (CBS News). Not only is this a threat to the health of the consumer, but also impacts the makeup industry and the economy.

In the beginning of 2018, police in Los Angeles seized $700k in counterfeit makeup from a market downtown known as “Santee Alley”. The colorful marketplace however is more than meets the eye, in the makeup confiscated it contained 15 times the amount of lead as normal lipstick, along with arsenic, aluminum, mercury and high levels of feces in many of the products. Additionally, U.S. Customs and Border Protection were able to prevent $1.6 billion in 2016 from being sent into the United States, while this number is reassuring, the Santee Alley investigation shows that their initial inspections were not enough.

Another place that shows a prevalence of counterfeit items is Amazon and it extends further than just toiletries. While many do recognize and trust the Amazon name, it is easy for an online retailer with many sellers and of that size to have slip-ups in product quality. The large number of Apple iPhone chargers on the site lead to an investigation where it was uncovered that 90% of the products that claimed to be of Apple brand, were not. Unfortunately for customers, sometimes this means paying full price, and ending up with a negative impression of the company due to a low quality product.

This all impacts the economy because when imposter products are in the mix it leads to a lower demand for the products sold by the real brand. The low quality counterfeit items cause consumers to feel like the item is not up to par, where in reality they are unaware they using a fake. Then the company can suffer which can lead to very high inflation or a worsening in the quality of products sold. Overall the counterfeit toiletry industry can end in serious health complications as well as deteriorating the economy.

Works Cited

Castañon, Kelsey, and LAPD. “$700K Worth Of Counterfeit Makeup Was Seized For The Scariest Reason.” Marijuana Legalization State Vs Federal Law, Scheduling, Refinery29, www.refinery29.com/en-us/2018/04/196518/counterfeit-makeup-tested-for-human-waste.

CBS News. “Fake Makeup Can Be an Easy Buy – and a Health Hazard.” CBS News, CBS Interactive, 29 Dec. 2017, www.cbsnews.com/news/fake-makeup-health-hazard-us-customs-and-border-protection/.

Watson, Patrick W. “Counterfeit Products Hurt The Consumer And The Economy.” Forbes, Forbes Magazine, 13 Nov. 2016, www.forbes.com/sites/patrickwwatson/2016/11/13/counterfeit-products-hurt-the-consumer-and-the-economy/#68a399823a7c.

The Shift to Online Retailers

The Shift to Online Retailers
Written by: Yash Bansal

Earlier yesterday, Sears, Roebuck and Company filed for bankruptcy protection, closing about 142 stores around the country. They, along with Kmart, are trying to liquidate their assets in an attempt to stabilize their holdings and their deteriorating sales. Today, the Sears Holding Corporation stock dropped to their all-time low, at about 0.31 dollars per share.

Sears started its major decline in 2011, where it failed to make a transition from an essential shopping catalog to an online retailer, like its competitor Amazon. Fairly recently, Amazon reported its quarterly sales to be about $52.4 billion and their stocks raised by 4%. This seems just like average numbers, but if you compare it to other retail competitors, it shows you how Amazon is crushing the competition. Due to the large presence of the internet in much of the world, many people started to shift toward business online from shopping catalogs. Such is the case for Sears. In comparison, much of the retail business still has not moved their business online.

Over time, our technology has certainly improved. We have a computer-accessible network in which we are able to purchase and sell goods. Because of this, the market shifts toward the online shopping. To keep up with the industry, producers must be able to adapt to the new change otherwise their platform will start to become inferior. It just goes to show that you must be able to improve and meet the standards of the consumers as a seller, otherwise business will drastically decrease.



It’s a shame to see the legacy of one of the “companies that changed America” -a superbusiness- to go to bankruptcy. Luckily for them, they are not completely bankrupt. If I were them, I would try to re-invigorate the company and its way of sales before time runs out. For other retailers that have yet to move part of their business online, I would advise the same thing.

Works Cited:

Ladd, Brittain. “Is Amazon A Monopoly? Donald Trump Thinks So.” Forbes, Forbes Magazine, 30 July 2018, www.forbes.com/sites/brittainladd/2018/07/29/amazon-is-not-a-monopoly-president-trump-yet/#373833d74735.

Monica, Paul R. La. “Sears Landlords Eager for New, Better Tenants.” CNN, Cable News Network, 15 Oct. 2018, www.cnn.com/2018/10/15/business/sears-kmart-real-estate-reits/index.html.

Nathan, Bomey. “Sears Store Closing List: 142 More Sears, Kmart Locations Closing in Chapter 11 Bankruptcy.” USA Today, Gannett Satellite Information Network, 15 Oct. 2018 www.usatoday.com/story/money/2018/10/15/sears-holdings-bankruptcy-store-closures/1645971002/.

Rizzo, Lillian, and Suzanne Kapner. “Sears Files for Chapter 11 Bankruptcy.” The Wall Street Journal, Dow Jones & Company, 15 Oct. 2018, www.wsj.com/articles/sears-files-for-chapter-11-bankruptcy-1539579819.

“The Rise and Fall of Sears: A Timeline From Its Founding to Its Bankruptcy.” Fortune, fortune.com/2018/10/15/the-rise-and-fall-of-sears-a-timeline-from-its-founding-to-its-bankruptcy/.

Amazon Raises Minimum Wage

Amazon Raises Minimum Wage
Marley Wozniak

I’m sure most high school students want to get paid more at their jobs, at least I know I do! Amazon recently took initiative and decided to raise their minimum wage for all employees to fifteen dollars per hour, when the current Wisconsin minimum wage is $7.25 per hour. This is a substantial increase, that has potential to spark changes in the US economy.

The managing director of GlobalData Retail, Neil Saunders, believes Amazon has a better chance of recruiting workers with the higher minimum wage they offer at the company. With more people wanting to work at Amazon because of the higher pay, it lessens the amount of employees to work at other companies such as Target and Walmart. Without a sufficient amount of employees, it is harder for a business to function and make profit.

An article published by Investopedia alluded to the increase in minimum wage potentially causing inflation. They believe that when minimum wage is increased, the company will have to charge more for the goods and services they offer. This would cause a change in quantity demanded of a product. In addition, many small businesses would suffer from an increase in minimum wage because the market value and prices would increase, therefore putting them out of business (Ed Rensi).

One of the additional questions people have been asking is regarding the opportunities to move up in the company. With a starting wage of fifteen dollars per hour, will it be harder for people to get pay raises and new opportunities at Amazon? Will people even strive to go for the higher positions at the company? People are also wondering what happens to the people who have worked at Amazon for years and have just made it to fifteen dollars per hour, will their wage stay the same or increase even more to accomodate for the raises they have previously received? All these questions are things that will be answered with time as Amazon transitions into the new, and higher minimum wage.

If a company like Amazon is offering a higher starting wage, people will be more likely to work for that company. The graph below shows some of the major chains and their trends in the number of employees they have. We often think of Google as a very powerful company, comparable to Amazon- but based on the graph and their amount of employees, people obviously want to work for Amazon more. As you can see, Amazon trumps all and is on a very positive increase while other companies either maintain the same amount of employees, or slowly increase or decrease in numbers.


As Amazon changes their rates of pay, they also have the potential to change the economy. An economic change can change the way we live our daily lives, in ways such as prices of basic goods, or even job openings available. With Amazon’s bold move, the most we can do for now is wait and see how this change impacts the economy.




Works Cited
“Amazon Now Has Twice as Many Employees as Apple.” Fortune, fortune.com/2016/02/08/apple-amazon-hiring-spree/.

Investopedia. “Does Raising the Minimum Wage Increase Inflation?” Investopedia, Investopedia, 25 Jan. 2018, www.investopedia.com/ask/answers/052815/does-raising-minimum-wage-increase-inflation.asp.

Pisani, Joseph, and Michelle Chapman. “Amazon Raising Minimum Wage to $15 an Hour for U.S. Workers.” Chicagotribune.com, 2 Oct. 2018, www.chicagotribune.com/business/ct-amazon-raising-minimum-wage-20181002-story.html.

Wiener-Bronner, Danielle, and Chris Isidore. “Amazon Announces $15 Minimum Wage for All US Employees.” CNN, Cable News Network, 4 Oct. 2018, www.cnn.com/2018/10/02/tech/amazon-minimum-wage/index.html.

Fitness Centers and their Cost

Maggie Maki
Mr. Reuter
Economics- A1
11/4/18

Fitness Centers and Their Cost
Many people of all ages like to take some time out of their day to exercise to stay healthy or shed a few extra pounds. A luxury that many citizens of the United States have come to use is private fitness centers or workout facilities because those places have a large rage of equipment to use and provide many accommodations that most people do not have at home. Additionally, it has been found that if one works out around others they will be more motivated to continue to workout. Personally I agree and find that statement to be true. I feel that I am held more accountable for actually completing a workout when I am at the gym, rather than just in my basement alone. In the last 18 years there has been an increase in the amount of people who use these facilities, but there has also been an increase in the cost of them.

According to Statista there has been nearly a double in the amount of gym memberships since 2000. This graph shows the number of gym memberships in millions each year since 2000. Clearly, there is a large population of Americans that spend the money to belong to the gyms and there is a demand to have them in all communities, but like all things the supply is limited, so the memberships tend to come at a high cost.

According to Carlo Dellaverson from CNBC the average cost of gym membership in the US is 40-50 dollars a month. As seen by the constant growth of memberships, people are willing to pay the high price. Also because of the constantly increasing demand, the price fitness centers have almost entered a price war with each other based on their offerings and plans. Centers know that there is a demand so they take advantage of it and try and lure the memberships in at what may seem to be a lower price, but then they add many additional fees to their plans. For example, you may have a basic membership, but then fitness classes or specific times at the facility cost more.
This is essentially a good thing for the United States because of the high rates of obesity that America tends to be known to have. More memberships across the board mean that more people are taking initiative to become fit. However, that is where the social inequality comes in. There are still very high rates of obesity in children and adults in lower income areas, that may be due to the fact that these fitness center memberships are pricey. The higher rates of obesity in lower income areas is most definitely due to many other factors besides the high cost of a fitness center, but it is still a factor since the people do not have the access to the equipment to help stay fit.
The fitness center industry is definitely a growing one because of the demand across the country placed on citizen by doctors and just the want to be fit and healthy. Many people do find it helpful to have the membership to hold them accountable for their workouts, so they pay the high price. Also, since the supply of nice fitness centers is limited the companies are able to increase their prices and make members pay quite a bit. This increase is a good thing but the question is the price worth it, leaves many pondering.


Works Cited
“Gym Memberships in the U.S. 2000-2017.” Statista, www.statista.com/statistics/236123/us-fitness-center--health-club-memberships/.

“Raising the Federal Minimum Wage to $10.10 Would Lift Wages for Millions and Provide a Modest Economic Boost.” Economic Policy Institute, www.epi.org/publication/raising-federal-minimum-wage-to-1010/.

Image URLs: https://static1.squarespace.com/static/585450ee03596e4e1e255f28/t/58d32179be65943deeee1d52/1490231744248/125624.jpg

https://cdn-images-1.medium.com/max/1600/1*GwOfRgB7Mr_8BCntUr9GiA.png

The Packers

Timothy Haga

The Packers have recently been on a losing streak, not playing so good against good teams and mediocre teams. This has affected a lot of Packer fans watching the game on TV, evn at the games. With coming into the year, everyone predicting that it was Aaron Rodgers comeback season, you can see why everyone is disappointed by the losing record.

Their bad playing is affecting the economy, because many viewers are not watching as much as they used to. There aren’t as many people coming to lambeau field to watch the games, or even just regular events that are held at the field. Lambeau field is making as much money as they have in the past, as their viewers, and visitors are going done.

This is affecting the economy because not only are they losing money, but places around them are losing money and shops that sell any type of merch supporting the Packers. These shops are losing profit because they are buying jerseys and other packer merch that don’t get sold, and they lose the money that they spent on the clothes.

It is also making a big impact on places that the Packers sponsor.  The Packers sponsor many businesses such as Fleet Farm, and Johnsonville brat, and it becomes harder for them to sponsor these companies because they are sponsoring over 50 businesses while they aren’t making as much as they should.
“News.” Old Wisconsin, www.oldwisconsin.com/news/green-bay-packers-sponsorship.

“The Local Economic Impact Of A Packers Game? $9.1 Million.” Wisconsin Public Radio, 25 Aug. 2014, www.wpr.org/local-economic-impact-packers-game-91-million.

Fiserv Forum

Gina Paszkiewicz

Fiserv Forum Expected to Boost Milwaukee’s Economy
In August 2018, the Fiserv Forum officially opened to the public as a new sports area that was to replace the BMO Harris Bradley Center. Located in downtown Milwaukee, the new arena is predicted to boost the economy with new jobs and a new neighborhood, despite critiques of how the arena was paid for.
The Fiserv Forum is expected to bring around 1200 new jobs in the arena as well as the surrounding area with wages starting at $12.50, thanks the the Milwaukee Area Service & Hospitality Workers Organization (MASH). Peter Rickman, executive director of MASH, gave his opinion of the new area by saying “Jobs that comprise a disproportionate share of employment and disproportionately employ workers of color include those in food service, hotels, retail, janitorial, and the like. Our community must transform these jobs into family-supporting jobs to rectify the racial and economic injustices and inequality that ravage our city.” The new arena is also the epicenter of a new 30 acre mixed-district that the Bucks owners plan to develop over the next 10 years as a means to provide more business to Old World Third Street as well as provide the highest quality entertainment to locals and visitors alike. However, this arena is not just about sports but will also host concerts, comedians, and possibly the Democratic National Convention, should Milwaukee win the bid. All these events are expected to boom business in the downtown Milwaukee area with its restaurants, gas stations, and shops.

However, not all are pleased with the new Fiserv Forum because $250 million of public funds was used to paid for the new arena. In 2015, the state Legislature approved a deal and the deal was signed into law by Gov. Scott Walker to use public funds from the Wisconsin Center District, the state, the City of Milwaukee, and Milwaukee County. Many taxpayers were displeased with the fact that they were paying for a new arena they potentially will not use; especially when the money could have been used for education or infrastructure. State senator Tim Carpenter believes that the $250 million could have been put to use in more helpful was, stating that other public buildings and attractions, such as the Mitchell Park Domes, Milwaukee County Zoo, and Milwaukee Public Schools, have a greater need for public funding than the arena project did. The taxpayer dollars used for the arena were a “missed opportunity,” he said.
Despite complaints from some taxpayers, the new arena is here and is expected to boost the economy of the City of Milwaukee and Wisconsin as a whole. The state government had to weigh out the trade offs and ultimately made the decision to fund the $250 million to help construct the innovative arena. Only time will truly tell if the decision will pay off by greatly improving the economy and boosting business in the greater Milwaukee area.


Works Cited
Meyer, Maredithe. “Welcome to Fiserv Forum.” BizTimes Media Milwaukee, BizTimes Media Milwaukee, 21 Aug. 2018, www.biztimes.com/2018/industries/arts-entertainment-sports/welcome-to-fiserv-forum/.

Newcomb, Tim. “Milwaukee's Fresh Design Of New Fiserv Forum.” Forbes, Forbes Magazine, 4 Sept. 2018, www.forbes.com/sites/timnewcomb/2018/09/03/milwaukees-fresh-design-of-new-fiserv-forum/#3fa179b224eb.

How Cleveland hosting the 2022 All Star Game will impact Cleveland’s economy?

How Cleveland hosting the 2022 All Star Game will impact Cleveland’s economy?
By: Justin Krause

On Thursday, November 1st the NBA announced that 2022 All-Star Game would be hosted in Cleveland, Ohio by the Cleveland Cavaliers. This struck as a major surprise to the public since the Cavaliers lost their major star (LeBron James) and are left without much talent in the upcoming years. The city of Cleveland lost a lot of hope with LeBron leaving and really affected the economy. But hosting the All-Star game in 2022 could greatly impact Cleveland’s economy in a positive manner.

The NBA just thought that’d it would be fitting for Cleveland to host another All-Star game to not only show off Cleveland to the world but also boost Cleveland’s economy. Even with the announcement just occurring three days ago they came out with a prediction that the all-star game “will make an economic impact of $100 million in Northeast Ohio” (Dammarell).

This $100 million isn’t exclusively for the Cavaliers, it’ll be spread out throughout Northeast Ohio. Since so many people will be coming to Cleveland to watch their favorite All-Stars to dual it out the demand for hotels will increase, for the week and weekend the demand for food and drinks will also increase because it’s a necessity for people to live. With this, it’ll increase the restaurant’s total revenue, and most likely increase the profit of the restaurants too.

Now it’s not only restaurants and hotels that’ll feed into the $100 million impacts to Cleveland. The ticket prices, merchandise, and concessions sales. Again the concession stands part is fairly explanatory the food is a need and at NBA games they can charge a hefty price tag on that food because people will get hungry over a four-hour time span.

Ticket prices will most likely increase last year according to Forbes “the average price at Staples was $2,638 for tickets” (Badenhausen). Which would be a huge increase from the Cavaliers price tickets this year “According to TMZ, Cavaliers tickets were reselling on third-party sites for Wednesday’s game against the Brooklyn Nets for $2” (Delgado). Even if the Cavaliers 2022 All-Star game isn’t around $2,600 anything will be an increase from ticket revenue. The demand will increase for tickets, supply won’t change but demand increases significantly. Which then will obviously increase the price for tickets, and will increase the Cavaliers revenue.

Cleveland has had a little worse of an economy than what they’ve had over the past four years. However, when the NBA announced that Cleveland will be hosting 2022 All-Star Game, that definitely brought hope to not only the Cavaliers but all of Northeast Ohio. An estimated $100 million economic impact will help out Northeast Ohio through tickets, food, hotels, etc.

Works Cited

Ap. “AP Source: Cleveland to Host 2022 NBA All-Star Game.” FOX Sports, Fox Sports Interactive Media, LLC, 30 Oct. 2018, www.foxsports.com/nba/story/ap-source-cleveland-to-host-2022-nba-all-star-game-103018.

Badenhausen, Kurt. “Ticket Prices For The 2018 NBA All-Star Game Are Up 220%, To Record $1,900 Average.” Forbes, Forbes Media LLC, 15 Feb. 2018, www.forbes.com/sites/kurtbadenhausen/2018/02/15/ticket-prices-for-the-nbas-2018-all-star-game-are-up-220-to-record-1900/#5e439e111657.

Dammarell, Evan. “Cleveland Cavaliers and NBA Bring Hope To City With 2022 NBA All-Star Game.” Forbes, Forbes Media LLC, 2 Nov. 2018, www.forbes.com/sites/evandammarell/2018/11/02/cleveland-cavaliers-and-nba-bring-hope-with-2022-nba-all-star-bid/#51b24a0d4d6a.

Delgado, Dane. “Tickets to Cavaliers Games Are Selling for $2 on Third Party Sites.” ProBasketballTalk, NBC Universal, 26 Oct. 2018, nba.nbcsports.com/2018/10/25/tickets-to-cavaliers-games-are-selling-for-2-on-third-party-sites/.

Is this the beginning of the end of oil?

Is this the beginning of the end of oil?
Written By: Nate T.

Colorado, a state that produces almost half a million barrels of oil a day, is looking to expand its regulations on how far oil retrieval facilities have to be from housing, schools and water supplies. This proposition will expand that distance from 500 feet from homes and 1000 feet from schools to half a mile away from both of those, severely cut into the land that these companies can frack in, including 90% of the land used by 3 companies: Anadarko Petroleum, Extraction Oil & Gas (XOG) and PDC Energy (PDCE). This would make it much harder for companies to obtain land in Colorado that they can use to retrieve the oil, increasing their marginal and average total cost, but due to oil companies outside of the state of Colorado, they have very little control over the market, meaning that the marginal revenue remains constant and, in conjunction with an increase in both marginal cost and average total cost, companies would be forced to leave the state of Colorado for their production or leave the market entirely and could cost the state of Colorado almost 150,000 jobs (current estimate is 147,800). Data also shows that the proposition would lower the overall oil production of the state by 54% over the next 5 years. Now this is relatively unimportant should the phenomenon stay within the state of Colorado but if other states or even countries were to begin instating similar policies with similar effects, we could see a drastic decrease in oil supply, driving prices much higher for consumers. However, this proposition is up for vote and may not even pass, let alone serve as the first domino in a chain of similar policies, should the people of Colorado vote against it. All in all, Proposition 112 will likely only affect oil companies in Colorado, if anyone at all.

Works Cited

Egan, Matt. "Will Colorado Deal the Shale Oil Boom a Blow?" CNN. Cable News Network, 05 Nov. 2018. Web. 06 Nov. 2018. https://www.cnn.com/2018/11/05/business/colorado-oil-proposition-112/index.html

The Effect of Natural Disasters on the Economy

The Effect of Natural Disasters on the Economy
Written by: Marie Kane

There’s a select group of people who believe natural disasters are good for the economy because they increase the demand of certain goods such as necessities like water, and services, like construction. Overall the occurrence of natural disasters aren’t good, but is the effect on the economy a good thing? No. Natural disasters hurt more companies than they help. They destroy tangible assets to companies, like buildings, equipment, and even human capital. Natural disasters also have negative impacts on income and employment. These factors are clearly going to lead to a decrease in output, which could affect more than just local companies. For example, in 2011 when the tsunami hit Japan, a Japanese company was forced to halt the production of auto parts. The halt in production meant a US company wasn’t receiving their necessary input, which had an impact on their output. Japan’s natural disaster reached even further than the local companies it directly impacted.

In theory, natural disasters could help companies thrive because there would be an increase in demand for goods necessary to survival. The demand for these goods would be relatively or perfectly inelastic, so companies could drive the price up and consumers would continue to buy their goods. In reality, the act of raising the price on certain types of goods and services to an unfair level, especially during a state of emergency is called price gouging, and it’s actually illegal in most of the US. for more information view this Price Gouging Example Video. The blue states in the graph to the right shows where price gouging is illegal, and the yellow shows were there are no restrictions on it. Prior to Superstorm Sandy in 2012 a lodge in Egg Harbor Township in New Jersey charged just under 80 dollars a night for a room. A state of emergency was declared and prices rose 250% to about 200 dollars. Although the price was unfair people didn’t really have a choice in whether or not they stayed at the lodge, it was literally a matter of life and death. Eventually, the lodge was investigated and found guilty of 545 instances of price gouging and had to pay a settlement of $25,000 in refunds to customers, as well as a fine. In the event of a natural disaster the government may impose an effective price ceiling to prevent price gouging.

Works Cited

Cruz, Justin. “Ready for Disaster Part 4: Hurricanes and Tsunamis.” KHON, 21 Aug. 2018, www.khon2.com/community/ready-for-disaster-part-4-hurricanes-and-tsunamis/1020718467.

Giberson, Michael. “List of State Anti-Price Gouging Laws.” Knowledge Problem, 18 Nov. 2012, knowledgeproblem.com/2012/11/03/list-of-price-gouging-laws/.
“Home.” KHON, KHON, www.khon2.com/.

Ono, Arito, and Mizuho Research Institute. “How Do Natural Disasters Affect the Economy?” World Economic Forum, www.weforum.org/agenda/2015/02/how-do-natural-disasters-affect-the-economy/.

“Price Gouging - Definition, Examples, Cases.” Legal Dictionary, 14 Jan. 2016, legaldictionary.net/price-gouging/.

How FoxConn Revolutionized Wisconsin’s Economy

How FoxConn Revolutionized Wisconsin’s Economy
Written by: Braden Kozlik

“This is something that will say to the world, ‘we have arrived.”

This is what Governor Scott Walker told FoxConn chairman Terry Gou back in July of 2017 after finalizing terms of the highly anticipated Foxconn electronics manufacturing plant coming to Kenosha, Wisconsin. Sounds too good to be true, however it started when President Donald Trump found Kenosha as a great place to establish a manufacturing plant that FoxConn had been waiting to determine. That month, Foxconn and President Donald Trump announced at the White House that Foxconn will build a US $10 billion flat screen TV manufacturing plant in Racine county. “This will be a high-tech facility that will attract workers of various skill levels to produce products that will really define where the economy is going to go for years to come.” said Tom Still, president of the Wisconsin Technology Council. This was an opportunity he knew would revolutionize Wisconsin’s economy,

Walker included that part of “wooing” Foxconn to Wisconsin included meetings with chancellors from the University of Wisconsin-Madison and UW-Milwaukee and the president of Gateway Technical College to talk about training opportunities so graduates would be prepared to work at the plant. Being the company’s first U.S. manufacturing plant, the majority of Foxconn's factories are located in Asia, with others in Brazil, Europe, and Mexico. Introducing the country with its first FoxConn plant would add $51.5 billion to Wisconsin’s gross domestic product over the 15 years the state pays incentives to the company, a new analysis by the Metropolitan Milwaukee Association of Commerce concludes.

Kenosha consists of mostly farm fields that FoxConn will utilize to set up its brand new plant, however with that comes public infrastructure, including water and sanitary sewer services, road improvements, electric and natural gas services, fiber optic lines, and much more. Promising 13,000 high paying jobs, the manufacturing plant is the largest corporate attraction deal in U.S. history, in terms of pure number of jobs. Now, you begin to think about where are these employees are going to live, where they’re going to eat, and how they will be entertained. Hotels, restaurants, hospitals, apartments, banks, and many stores will be and have currently been in the works.

In the past, FoxConn has struggled to meet high safety and other standards expected of consumer electronics brands while keeping costs low. As you may know, this is a big concern for its chinese manufacturing plants making Apple products which have drawn attention for worker suicides, accidents, and labor disturbances that Foxconn CEO Terry Gou has tried to reduce by raising wages and pledging to prevent more deaths. With the opening of Kenosha’s new plant, not only will you be attracting people to FoxConn on a national scale but an international scale as well, making the environment safe and sufficient for everyone.

Taking into consideration all of the data and economics that comes with this great project, we also begin to think about the basics in terms of what this means for these potential FoxConn employees and for high school students like us. Foxconn is currently recruiting in Wisconsin for several hundred positions that cover a variety of areas and skill sets in human resources, hardware, software and firmware engineering, finance and accounting, legal, business analysis, graphics and interior design, construction management, and sales and marketing.

Foxconn director of U.S. strategic initiatives Dr. Alan Yeung mentions “Wisconsin offers a talented, committed workforce, with the strong employment ethic and culture in the Midwest, and a long track record in advanced manufacturing, all of which presents an extraordinary opportunity in achieving our AI 8K+5G vision and supporting the state’s transformation into a global high-tech hub.” Yeung goes on to say that as a long-term partner of the local community, they are committed to the shared goal of attracting and nurturing talent, and working with their Wisconsin partners to build a workforce of the future.

As juniors and seniors approaching college in 1-2 years, FoxConn will be in the development stages as they comes time to reaching out to interns that are interested in engineering, accounting, or any of the other several hundred positions that are open. Because of such a large variety of positions, employment is crucial and nothing drags in an intern like a good paycheck that will set them well on their way. Since these employees will be making such great money, they of course will need something to spend all their money on. This is the opportunity of a wide variety of companies to get involved to further give Kenosha and the state of Wisconsin a better economy, by opening up store, restaurants, hotels and more around the city to bring more people to Wisconsin.

In conclusion, establishing this FoxConn manufacturing plant will not only be beneficial to the company itself, but also to the state’s economy. A great company like FoxConn will invite national and international people looking for high paying jobs, a great place to stay, and a booming economy to popularize the city of Kenosha and ultimately the state of Wisconsin.

 Sources

Lawson, James. “Foxconn Chooses Racine County.” Kenosha News, 5 Oct. 2017, www.kenoshanews.com/news/local/foxconn-chooses-racine-county/article_33f23e55-7b8f-57a0-bd5b-579245c7bcf7.html.

Romell, Rick, and Jason Stein. “Foxconn Factory to Be Built in Mount Pleasant; Announcement Set for Wednesday Morning.” Milwaukee Journal Sentinel, Milwaukee, 3 Oct. 2017, www.jsonline.com/story/money/business/2017/10/03/foxconn-factory-site-unveiled-wednesday-expected-mount-pleasant/726546001/.

Shepardson, David. “Foxconn Announces U.S. Manufacturing Plant in Wisconsin.” Reuters, Thomson Reuters, 27 July 2017, www.reuters.com/article/us-apple-foxconn-wisconsin-idUSKBN1AB258

“Things to Know about Foxconn Plant Coming to Wisconsin.” Fox Business, Fox Business, 27 July 2017, www.foxbusiness.com/markets/things-to-know-about-foxconn-plant-coming-to-wisconsin.

The Impact of Fiserv Forum on Milwaukee’s Economy

The Impact of Fiserv Forum on Milwaukee’s Economy
Written by: Bennett Grzeszczak

After a long 26 months of patiently waiting Bucks fans and Milwaukee natives alike are set to experience one of the best and most intriguing venues at the newest NBA arena in  North America, Fiserv Forum. Its sleek contemporary exterior and interior narrate a story of Wisconsin's pastime. The hard, wood like shell resembles the expansive deep woods of the north, while the sleek bright interior points toward the east with the rolling whitecaps of Lake Michigan. Fiserv Forum will not only provide a beautiful building to the skyline, but rather jobs and income for the surrounding area.

The Past
Although there is this new and exciting building just downtown, it came at a cost. According to Maredithe Meyer of BizTimes, a whopping $524 million dollars was spent to complete this project with about $274 million coming from the owners Mark Lasry, Wesley Edens, Jamie Dinan and from former owner Herb Kohl. The rest of the 250 million dollar investment ,however was put on the state to provide. Along with the extra cost that the state agreed to supply, some of the cost was put on residents in the form of taxes. So, the taxes were placed both on firms and customers alike. The construction of the new arena also brought in plenty of jobs. The construction alone allowed there to be a creation of 4,000 jobs throughout the 2 year and 2 month project (Silver). This increase in jobs available in the community allow for a decrease in the unemployment rate. Click here to watch a timelapse of the construction of Fiserv Forum.

The Present
The new and improved home of the Bucks has given so much value to the team. In 2014 when the new owners had purchased the team, season ticket sales were at a league low under 2,500. A couple of months ago in late September, the 10,000 season ticket was sold which rank the team at 11 in the association (Rovell). It shows that the demand to watch entertainment at this new venue is greater than originally expected. This is huge for a small market team like the bucks simply due to the fact that Milwaukee is one of the smallest cities in the nation to house an NBA team. In fact, the NBA threatened to relocate the franchise years ago due to the lack of a new stadium as the Bradley Center was the oldest in the league. But, the new group of owners came in at exactly the right time to save the Bucks from being exported to a different city. On the other side of the spectrum this new arena is rumored to bring in nearly 1,000 more hospitality and service jobs alone. These jobs will also benefit the workers as the Bucks are working with MASH (Milwaukee Area Service and Hospitality Workers Organization) to help potential employees find a job sooner than later. With a new arena comes new pay as well. Workers will be paid high above minimum wage at nearly $15 an hour, which beats out many businesses in the Milwaukee Area.

The Future 
Even though construction on Fiserv Forum has reached its end, there are countless more opportunities for the surrounding area as a whole. Alex Lasry, senior VP of the Milwaukee Bucks, said he's confident everyone will find something they like on the nearly 30 acres of space surrounding the team’s new home (Perry).The opening of the Fiserv Forum Entertainment Block has already brought in two businesses, Punch Bowl Social and GoodCity Brewery have already built or began to build on the entertainment block. These two business are set to benefit greatly off of this location as it is only a short walk from the arena. With the several events happening at the forum throughout the winter there are 100-150 events planned to occur in the plaza around the warmer months (Perry). Overall, this entertainment district and the arena will bring in countless vendors around the area to make it the true entertainment capital of the city and quite possibly the state. Fiserv Forum has already set the most amount of season ticket holders with only about 2 months of full operation, and is set to break countless more in the future. Just like the Bucks slogan, Fiserv Forum is read to Own The Future.

Works Cited

Perry, Ted. “Fiserv Forum's Entertainment Block: Making a Connection with the Community.” FOX6Now.Com, 19 Sept. 2018, fox6now.com/2018/09/18/fiserv-forums-entertainment-block-making-a-connection-with-the-community/.

Meyer, Maredithe. “Welcome to Fiserv Forum.” BizTimes Media Milwaukee, BizTimes Media Milwaukee, 21 Aug. 2018, www.biztimes.com/2018/industries/arts-entertainment-sports/welcome-to-fiserv-forum/.

Rovell, Darren. “Bucks Sell Team-Record 10,000 Season Tickets.” ESPN, ESPN Internet Ventures, 9 Oct. 2018, www.espn.com/nba/story/_/id/24942314/bucks-sell-team-record-10000-season-tickets.

Silver, Maayan. “Milwaukee Bucks' Fiserv Forum Opening Receives Mixed Reactions From Unions.” WUWM, www.wuwm.com/post/milwaukee-bucks-fiserv-forum-opening-receives-mixed-reactions-unions#stream/0.

The Recent Economic Growth of Anytime Fitness

Nick Howard
AP Economics A4
Mrs. Straub
10/30/18

The Recent Economic Growth of Anytime Fitness

In 2002, three men by the names of Chuck Runyon, Dave Mortenson, and Jeff Klinger founded the now extremely popular fitness club franchise “Anytime Fitness”. The specific niche service they wanted to give clients was the flexibility of hours and quality of service provided so they could succeed as a company. In every club, Anytime Fitness is open 24 hours per day, 365 days per year and accommodates well to clients that way. They can fit the schedule of any prospective client no matter what time they want to work out. I believe that the flexible and quality hours and services of Anytime Fitness has led to their ultimate economic growth and success in the recent years.

There are many factors that have led to the entire fitness industry growing rapidly throughout the past 50 or so years; for example, multitudes of scientific studies by companies, universities, governments, and so-on have proven cigarettes, drugs, high-sugar, high-sodium, high-artificial fat diets to be harmful to the human body and literally cause people to live shorter. New cultural norms of personal fitness and attractiveness have impacted people as well to make fitness centers more popular. However, why has Anytime Fitness grown such an extreme amount itself since its opening in 2002?
Anytime Fitness struck big on the idea of discovering customer wants and capitalizing on them. We all know that customers have unlimited needs and wants but the key for Anytime Fitness was installing programs and services that the most people want, or that there was the most demand for. By being open all day, every day, it attracts more clients. By offering free video-classes for clients to take, it attracts more clients. By offering personal fitness training and having a large amount of readily-available equipment available, it attracts more clients. Also, while they are franchised, most Anytime Fitness clubs look extremely similar on the inside so pretty much wherever somebody goes, they know exactly what to expect out of this club - consistency. All of these factors are tailored to customer needs/wants increase the demand as a whole for Anytime Fitness. With the introduction of new, nice programs and services for members, there was a change in expectations out of consumers in that they want and expect more quality out of fitness clubs and more equipment to use while they’re there. They expect good service and a clean environment. All of this meets new expectations, and attracts more consumers, therefore increasing demand. There was also a change in tastes over the past 50 or so years where health and fitness has grown so much more popular in the world that the introduction of Anytime Fitness gave another option for people interested in fitness. The numbers show this as well. From 2012 to 2017, the total annual revenue for Anytime Fitness increased from $484.4 million(2012) to $1.45 billion(2017). That is almost 1 billion dollars worth of revenue growth in 5 years! In 2014, Anytime Fitness was rated the fastest growing health franchise by Forbes Magazine. As of 2018, Anytime Fitness has over 4,000 fitness clubs, with over 3 million clients in over 30 countries. The amount of growth for them has been insane and due to the shifts in demand from consumers. Also, Anytime Fitness is tailoring more to their customers than other franchise chains in the fitness industry - they are outperforming their substitutes. Consumers expect more out of Anytime Fitness than they do the substitutes such as Snap-Fitness or Planet Fitness.


Also, over the years, there has been an extreme change in technology in fitness equipment that Anytime Fitness has kept up with. From the invention of TRX straps to advances in cardio machines, weight machines, and free weights, working out has become more efficient, safer, and cleaner and Anytime Fitness has kept up with that. In an industry that’s demand is extremely elastic, meaning very sensitive to a change in price, Anytime Fitness still keeps on attracting more clients even though new workout technology has become more expensive, driving the price of memberships up. When the price of gym memberships increases, the quantity of gym memberships demanded shrinks at a more rapid rate due to people always looking for a cheaper alternative when seeking a club to belong to. However, from 2007 to 2014, Anytime fitness had an average of 625 members per club(2007) increase to 811 members per club(2014). Even with the industry’s demand being extremely elastic, Anytime Fitness’ demand has proven to be less elastic due to high customer satisfaction that outweighs the increase in price.

Overall, the recent rapid growth of the Anytime Fitness franchise has been due in major to their flexibility and quality of programs and services. Their business decisions have caused increases in demand for memberships and an increase in total revenue as well. This company keeps hitting milestones, because they know their target market and consumers very well. And they continue to thrive. In 2017, Anytime Fitness became the first United States-based health chain to be granted a franchising license in China. They’re obviously doing something right.

Works Cited

“20 To Watch: What's Trending in 2016.” Franchise Times, www.franchisetimes.com/January-2016/20-to-Watch-Whats-trending-in-2016/.

“Anytime Fitness.” Wikipedia, Wikimedia Foundation, 24 Oct. 2018, en.wikipedia.org/wiki/Anytime_Fitness.

“Anytime Fitness Ranked As The Top U.S. Franchise.” Twin Cities Business, tcbmag.com/news/articles/2013/anytime-fitness-ranked-as-the-top-u-s-franchise.

“Anytime Fitness Revenue 2012-2017 | Statistic.” Statista, www.statista.com/statistics/348458/anytime-fitness-revenue/.

Fitness, Anytime. “For The 7th Year In A Row, Anytime Fitness Is The ‘World's Fastest-Growing

Fitness Club.’” PR Newswire: Press Release Distribution, Targeting, Monitoring and Marketing, 10 July 2014, www.prnewswire.com/news-releases/for-the-7th-year-in-a-row-anytime-fitness-is-the-worlds-fastest-growing-fitness-club-266562561.html.