Air Pollution in South Korea

Julia Darling
Economics A2
7 March 2019
Mr. Reuter

Air Pollution in South Korea
Over the years, many countries like South Korea and China have suffered from the exponential growth of air and dust pollution. This year, South Korea has reached its highest point of pollution that it has ever had. Their levels of pollution have hit a high of 157 AQI (air quality index) which is in the unhealthy range and may cause serious health effects and maybe even death. In past years, many citizens would wear face masks to help filter the air before they inhaled, but studies say that they might not be enough for them anymore.

As the years progress, the air has gotten worse due to the amount of automobile pollution and smoking. Seoul, South Korea is a very busy city in which there are streets filled with cars, busses, and motorcycles exhausting polluted air. On top of that, there are also underground and above ground subway systems. All of that build on top of each other collectively affects the air. Although South Korea’s air is not as bad as India’s or China’s, there needs to be a change.
 


According to export.org, the Korean Ministry of Environment regulates/ monitors the air pollutants put out under the Clean Air Conservation Act. Although the pollution is slowly decreasing, the pollution is still harming the citizens. Just a mere 15 minutes outside with a face mask, the health of the citizens are harmed. Many schools have canceled recess for their students and try to minimize the amount of time spent outside for everyone. As years go by, almost every country’s air quality has been improved yet some are still in bad condition. Scientists and car brands are finding new ways to have more environment friendly automobiles like Tesla to help prevent and improve the air quality. Slowly, but surely, the air pollution will decrease and the air quality will increase creating a cleaner world for upcoming generations.

Al Jazeera. “South Korea Plans Artificial Rain to Reduce Seoul Air Pollution.” News | Al Jazeera, Al Jazeera, 6 Mar. 2019, www.aljazeera.com/news/2019/03/south-korea-plans-artificial-rain-reduce-seoul-air-pollution-190306095309023.html.

Hu, Elise. “Armed With NASA Data, South Korea Confronts Its Choking Smog.” NPR, NPR, 10 Oct. 2017, www.npr.org/sections/parallels/2017/10/10/552264719/armed-with-nasa-data-south-korea-confronts-its-choking-smog.

The World Air Quality Index project. “Air Pollution in South Korea: Real-Time Air Quality Index Visual Map.” Aqicn.org, aqicn.org/map/southkorea/

“Korea - Air Pollution ControlKorea-Air-Pollution-Control.” Korea - Air Pollution Control,

Has Operation Varsity Blues Broken the Trust in the College Admissions System?

Has Operation Varsity Blues Broken the Trust in the College Admissions System?
Written Dana Low

Last week news broke of the largest college admissions scam in history where over 50 people were indicted and charged on counts of racketeering conspiracy, conspiracy to commit mail fraud and honest services mail fraud. Among these 50 people are wealthy parents, who are employed as Hollywood actresses, CEO’s, and a fashion designer. As well as college test administers, Division I college athletic coaches, and the organizer of it all William Rick Singer. His company, The Key, allegedly helped prepare wealthy students for college admissions and college exams. However, as discovered, he instead would secure a student’s admission in one of two ways: by bribing the test proctors to correct the student’s answers to the exact score he specified or by bribing college administrators and coaches to designate the students as athletic recruits. Both of which would guarantee the student admission to their chosen university and in turn left the students of America rejected from schools they spent years working towards.

This scam is not only a disappointment for the future of college admissions but for every student who earned their merit and was rejected on behalf of the people who were able to bypass university standards. While there is a $5 million class-action lawsuit against all involved schools, the time and effort put into an entire high school career is something that can never be repaid. Andrew Lelling is the US attorney for Massachusetts and on the topic he said, “There can be no separate college admission system for the wealthy, and I'll add that there will not be a separate criminal justice system either.” This statement gives hope that things will be sorted out, and immense action will be taken to combat situations like this in the future.

According to the New York Times, elite college turn away up to 95% of their applicants. This is monumental considering that can account for US as well as international students. The effect this has on the economy will be tremendous as well. Many colleges are need-blind during the admissions process, which means a student’s financial standing is not taken into account when deciding whether they are accepted or denied. However, there are many colleges who claim to be need-blind that were among the top schools involved in this scam. These schools include: Yale University, Georgetown University, Stanford University and the University of Southern California (USC) and more. This can cause a distrust in the admissions system and may prevent students from applying to these heavily sought after schools in the future. While admissions to top schools are never guaranteed, we can hope that there will be a system in place to prevent this issue in the future.

Works Cited

Balingit, Moriah, et al. “The People Charged in College Admissions Scandal Operation Varsity Blues.” The Washington Post, WP Company, 13 Mar. 2019, www.washingtonpost.com/local/education/actors-designers-distillery-owners-here-are-some-of-those-charged-in-the-college-admissions-scheme/2019/03/12/3c2f5316-4500-11e9-8aab-95b8d80a1e4f_story.html?utm_term=.17645927bbb7.

Berler, Nina. “Has the Economy Affected College Admissions Offices?” Unigo, www.unigo.com/admissions-advice/has-the-economy-affected-college-admissions-offices/70/1.

“Colleges with Need-Blind Admission for U.S. Students.” College Search & Scholarships: College Decision Resources, www.cappex.com/articles/match-fit/need-blind-admission-colleges.

Levenson, Eric. “Wealthy Parents, Actresses, Coaches, among Those Charged in Massive College Cheating Admission Scandal, Federal Prosecutors Say.” CNN, Cable News Network, 13 Mar. 2019, www.cnn.com/2019/03/12/us/college-admission-cheating-scheme/index.html.

Medina, Jennifer, and Katie Benner. “Actresses and Business Leaders Charged in College Admissions Bribery Scandal.” The New York Times, The New York Times, 12 Mar. 2019, www.nytimes.com/2019/03/12/us/college-admissions-cheating-scandal.html.

Newburger, Emma. “USC Blocks Students Embroiled in Admissions Scandal from Registering for Classes.” CNBC, CNBC, 19 Mar. 2019, www.cnbc.com/2019/03/19/usc-blocks-students-in-admissions-scandal-from-class-registration.html.
Perez-Pena, Richard. “Best, Brightest and Rejected: Elite Colleges Turn Away Up to 95%.” The New York Times, The New York Times, 8 Apr. 2014, www.nytimes.com/2014/04/09/us/led-by-stanfords-5-top-colleges-acceptance-rates-hit-new-lows.html.

Should Investors Ride with Lyft’s IPO?

Should Investors Ride with Lyft’s IPO?

By Sidney Keene

People have been “ridesharing” ever since the creation of the vehicle. With initial intentions of saving the planet by reducing gas emissions, ridesharing has evolved into an industry of its own with two dominant companies: Lyft and Uber. Already exceedingly successful, both have decided to go public with an initial public offering (IPO) within the next year. As IPO represents the first time a private company issues stock to the public, there are bound to be new effects on the economy. But are these worth it, or should an investor avoid Lyft/Uber IPO? 

An IPO can serve as a great economic stimulator, especially an IPO for companies such as Lyft or Uber. For one, new revenue can be generated for the business to expedite growth. Lyft and Uber are a part of a unique market, where their survival relies on customer reviews. In order for a prospective customer to choose one over the other, credibility needs to be established. Referrals, relating to reviews left online, are their main method of competitive advantage. Generating more profit for the company not only helps the business, but also the customer (the investor who is putting money into bettering the business). With the newly obtained wealth, these companies have the opportunity to make the experience better for the rider, including technological advancements in the app or implementations in the vehicles.

Investing in this IPO can also help Uber or Lyft employees financially. Often times, start up companies must hire at a low wage, but, to succeed in employee retention, state in a contract that when they decide to go public, the employee will receive a cash-in opportunity. Lyft is giving its employees this exact option as “those who have completed more than 10,000 rides are eligible for a cash bonus of $1,000, which can be used to purchase stock at the IPO price,” (Shaban, Hamza). Those who have completed more are eligible for larger payouts. Often, those who receive this gift move on to start their own businesses, further increasing the GDP within our nation and giving consumers more innovative options.

Lastly, the Lyft and Uber IPOs give investors new opportunities. Within the past decade, technological innovations have skyrocketed, and with that, opportunities to invest in new concepts has become very popular. Since there is such a large demand for more efficient and cost effective public transportation, the chances of the stock increasing in value in the future are high, and therefore, gives buyers more of an incentive to purchase.


While there are many great reasons to invest in an IPO, there has been recent hesitation regarding investment in the transportation market, Lyft specifically. New information has been released that the company may be slow to make profit in the future, especially since they “generated a net loss of $911 million in 2018, compared with losses of $687 million and $683 million in 2017 and 2016, respectively” (Bary, Emily). Losses have been sharply increasing since 2017. This gives investors less of an incentive to purchase their stock, as its value may depreciate in the future, and they will not obtain a return on their investment. Additionally, there are low barriers to entry in this market. While it is true that Lyft has been able to stand its own against Uber, this probably means traditional car companies like General Motors and Ford could enter the market in the near future. Lastly, Lyft has explicitly stated that they will giving only 50% of votes to shareholders. This turns prospective investors off, as most buy shares to voice their opinion on how to change something within to make the company more successful.

To conclude, stock plays an important role in our economy. While it is not counted towards the money supply in our economy, it can determine how much money somebody has in the future. This is similar to an interest rate that appreciates money over time, except more risky as the investor does not know whether or not the stock will go up in value. However, with all being said, it would be smarter to invest in Lyft or Uber IPO, rather than not, because it can stimulate our economy by generating cash for the company, giving employees the opportunity to go off on their own start-up businesses, or give new options to investors.

Works Cited

Bary, Emily. “Lyft IPO: 5 Things the Ride-Hailing Company Just Revealed.” MarketWatch, 4 Mar. 2019, www.marketwatch.com/story/lyft-ipo-5-things-the-ride-hailing-company-just-revealed-2019-03-01.

Egan, Matt. “Lyft Is Losing a Lot of Money. And It Might Not Turn a Sizable Profit until 2023.” CNN, Cable News Network, 19 Mar. 2019, www.cnn.com/2019/03/19/investing/lyft-ipo-uber-profit/index.html.

Shaban, Hamza. “Lyft's IPO Is Set to Give Drivers a Chance to Cash In.” Chicagotribune.com, 1 Mar. 2019, www.chicagotribune.com/business/ct-biz-lyft-ipo-bonus-for-drivers-20190301-story.html.

How would a Universal Healthcare System impact the Economy?

How Would a Universal Healthcare System Impact the Economy?
Hailey Antczak

In 2016, the Center for Disease Control reported that the average American spends $9,700 on health care annually. In the United Kingdom, among multiple other countries, that number comes out to zero. Of 195 countries in the world, 152 of them offer free or universal healthcare to its citizens, and of 33 developed countries, the United States is the only one that doesn’t offer universal healthcare for its citizens, as reported by the New York Department of Health.

 In essence, universal healthcare is a healthcare system that provides quality healthcare to everyone, paid for by the government and the people. The United States currently has systems in place that do provide healthcare for the underserved, such as Medicare or Medicaid, as well as the Affordable Care Act, or more commonly known as Obamacare, yet it still comes at a cost. The United States healthcare system has been flawed for decades, but even more recently select lawmakers and various citizens have been advocating for universal healthcare, but the question is, how great of a toll would that take on our economy?

There are multiple different ways that healthcare can be paid for, including government funded, paid for by taxes, or a combination of different ways. The current healthcare system that the United Kingdom has, for example, is a single payer healthcare system in which the government pays for it all. All appointments, treatments, medications, etc. are paid for by the government, albeit the citizens are still taxed. While British patients are able to receive luxurious care free of cost, uninsured Americans, on the other hand. are often left with massive medical bills looming over their heads. Just a mere ambulance ride can cost upwards of two or three thousand dollars if the patient isn’t insured.

The likelihood of the United States achieving universal health care can be characterized as slim to none. Reports from Forbes indicate the Senator Bernie Sanders’ single payer healthcare plan would add up to a staggering $32 trillion over a ten year span, which would only contribute to the massive deficit our country is already experiencing. Not to mention, the United States is already struggling to provide “Medicare for some,” as we spend nearly $700 billion on healthcare annually as it is, so unfortunately a status of “Medicare for all” is practically out of reach.

Sanders has long pushed for the United States to adapt a system similar to those of both Canada and the United States, in which patients would be provided with comprehensive coverage of doctors visits, medications, among other necessary treatments. Yet the costs would be astronomical as taxes would increase, and the government would have to allocate nearly $42 million annually if we were to use Sanders’ plan. While universal healthcare would definitely be a beneficial thing, the economic factors may possibly outweigh the ideologies of a perfect healthcare system. The United States has had a flawed system for years that only extreme funds and dedication from those who care about creating a better system would be able to help mend.




Works Cited
Amadeo, Kimberly. “Why America Is the Only Rich Country Without Universal Health Care.” The Balance, www.thebalance.com/universal-health-care-4156211.

Pipes, Sally. “Choking On The Cost Of 'Medicare For All'.” Forbes, Forbes Magazine, 6 Feb. 2019, www.forbes.com/sites/sallypipes/2018/07/09/choking-on-the-cost-of-medicare-for-all/#351ba21356f3.

Sen, Amartya, et al. “Harvard Public Health Review: A Student Publication.” Universal Health Care: The Affordable Dream | Harvard Public Health Review: A Student Publication, harvardpublichealthreview.org/universal-health-care-the-affordable-dream/.

Vermont Senator Bernie Sanders is not giving up on his desire to extend Medicare to all Americans. He is set to unveil legislation on Wednesday that would likely jettison private health insurance, and Create A Government-Run Program. “Bernie Sanders' Last 'Medicare for All' Plan Cost Nearly $1.4 Trillion.” CNNMoney, Cable News Network, money.cnn.com/2017/09/12/news/economy/sanders-medicare-for-all/index.html.

“What Is Universal Coverage?” World Health Organization, World Health Organization, 8 Mar. 2019, www.who.int/health_financing/universal_coverage_definition/en/.

“Which Countries Offer Free or Universal Health Care.” International Travel Insurance Group, www.internationalinsurance.com/health/countries-free-healthcare.php.

Chemotherapy Cost

Chemotherapy Cost
By: Nathan Carerros

Chemotherapy is a drug that can not only say a life and help treat cancer, but it is very costly. Chemotherapy has many different ingredients that are within the chemical compound. It's a very significant issue because it's one of the few treatment plans that are out there. No matter what, chemotherapy has many different costs too it. Not just health and emotionally, but price wise.

Within our economics class we have studied opportunity cost, this relates to chemotherapy in multiple ways. Within chemotherapy it comes with a lot of health issues including fatigue, drowsiness, and nausea. This is very significant because a patient needs to figure out if the longevity of their life out ways the short term illness. According to British Journal of Cancer 124 deaths in 30 days was related to diseases out of 161. You can argue that this is such a huge risk to take, yes it is. But all of those patients were receiving treatment for at least 6 months prior from this study occurring. This is significant because the patient needs to take into account whether it's worth it to them to take this risk. If no action is taken, the patient will fall victim to cancer. The opportunity cost here aren't as super significant but they're there. The cost is the right to life being how much longer they will live after treatment, and the other cost is being the right to quality of life this being what you are able to do.

Finally, the cost of  chemotherapy is very high. Just for a surgery to get a tumor removed on average it's $39,891. Karen Selby who is a RN and has a significant presence at Metholima Center in Florida stated the cost. She also stats that over an 8 week period the cost is $30,000 for chemotherapy. This needs to be lowered significantly. The issue is so many people need chemotherapy because it's one of the only ways to treat cancer, but it's way to expensive for everyone to try and pay. A way we can solve an issue like this is trying to find solutions constantly and working on a national effort to adjust the treatment plan to find a cheaper alternative. The National Comprehensive Cancer Network (NCCN.org) is a significant contributor to this conversation in setting the standards of what is needed in a successful treatments. Lastly, think about this, what is more important quality of life or lifespan? Why as a global effort can't we come together to come up with better chemotherapy treatments? If a better and cheaper way is created, more money would be added into the market but more people would pay for this product along with saving lives.

“Costs of Chemotherapy & Other Mesothelioma Treatments.” Mesothelioma Center - Vital Services for Cancer Patients & Families, www.asbestos.com/treatment/expenses/.

O'Brien, M E R, et al. “Mortality within 30 Days of Chemotherapy: a Clinical Governance Benchmarking Issue for Oncology Patients.” British Journal of Cancer, U.S. National Library of Medicine, 18 Dec. 2006, www.ncbi.nlm.nih.gov/pmc/articles/PMC2360753/#idm139623249682704title.

The Ineffective Response to Venezuelan Hyperinflation

The Ineffective Response to Venezuelan Hyperinflation
Katelyn Rokus
3/12/19

With a predicted inflation rate of over 1,000,000% in 2018, Venezuela continues to suffer from dramatic hyperinflation that began in late 2013. For more information on the impact of the hyperinflation on the citizens, please watch this video. The rapid inflation in Venezuela resulted from a combination of increased government spending under former President Hugo Chavez and a decline in the price of oil, the chief export of Venezuela. Unfortunately, the economic actions taken by a new administration under Nicolas Maduro have done little to improve hyperinflation due to Maduro’s refusal to peg the bolivar to a more stable currency.

The Venezuelan hyperinflation crisis originated from humble administrative intentions. Seeking to reduce unemployment and poverty rates, Hugo Chavez increased government spending to provide new job opportunities. While these programs succeeded in reducing the poverty rate from 50% in 1999 to 31.9% in 2011, they also resulted in an inflationary output gap by shifting aggregate demand past potential output. Instead of increasing taxes or cutting government spending to reduce inflation, Chavez continued to lay out large sums of money to maintain popularity among voters, accumulating a foreign debt of $106 billion by 2013. This forced the government to print more money in order to repay debts, depleting the federal reserve. When oil prices dropped in 2014, the government had little ability to subsidize goods, leading to shortages of food and other essential consumer goods.

In response to skyrocketing inflation, current President Nicolas Maduro enacted three measures: devaluing the bolivar by 95%, tying the value of the bolivar to the oil-backed petro (a cryptocurrency similar to bitcoin), and raising the minimum wage by 300%. While raising minimum wage theoretically could shift SRAS to the left to close the inflationary gap, prices continued to rise at a much greater speed than wages, doing little to remedy the issue. Additionally, the changes to the bolivar failed to restore customer confidence in the currency, resulting in continuously unpredictable wages.

So what can be done to curb hyperinflation? When faced with a similar problem from the late 1990s until 2009, Zimbabwe decided to abandon its currency in favor of more stable foreign currencies, particularly the US dollar. In fact, citizens of Venezuela have already shown favoritism for foreign currencies, often electing to cross the border into Colombia to withdraw money in the form of Colombian pesos.

While switching to the US dollar may seem like a relatively simple solution, Nicolas Maduro has taken an uncompromising stance against such proposals. He has gone as far as accusing the United States of initiating an “economic war” against him and his legislation, blaming capitalistic market structures for the hyperinflation and resource shortages in Venezuela. While Maduro continues to deny calls for a more stable currency, Venezuela remains trapped in a tumultuous state of hyperinflation, resource scarcity, and political unrest.

Works Cited

Coppola, Frances. “Why Venezuela's Hyperinflation Problem Is So Difficult To Solve.” Forbes, Forbes Magazine, 31 Dec. 2018, www.forbes.com/sites/francescoppola/2018/12/31/why-venezuelas-hyperinflation-problem-is-so-difficult-to-solve/#2fb7d1a1373c.

“Hyperinflation Is Hard to Grasp, Harder Still to Tolerate.” The Economist, The Economist Newspaper, 13 Sept. 2018, www.economist.com/finance-and-economics/2018/09/13/hyperinflation-is-hard-to-grasp-harder-still-to-tolerate.

Osborne, Samuel. “Venezuela's President Increases Minimum Wage by 300% to Fight Inflation.” The Independent, Independent Digital News and Media, 15 Jan. 2019, www.independent.co.uk/news/world/americas/venezuela-minimum-wage-nicolas-maduro-bolivars-inflation-a8728716.html.

The Infographics Show. “Why Are People In Venezuela Starving (Hyperinflation Explained)?” YouTube, YouTube, 19 Dec. 2018, www.youtube.com/watch?v=ah9i3R9pRpg.

Young, Rob. “Can Venezuela Halt Hyperinflation?” BBC News, BBC, 21 Aug. 2018, www.bbc.com/news/business-45258262.

Should we get rid of the Penny?

Should We Get Rid of the Penny?
Joshua Holzhauer

Have you ever been walking down the street and pick up a penny off the ground? DId you get good luck? I’ll tell you one thing you didn’t get is wealth. Penny’s are quickly becoming more and more useless and many people believe the U.S. should get rid of them entirely including Representative Jim Kolbe from Arizona who introduced bills to remove the penny from circulation multiple times. Even President Obama said in and interview in 2014, “Pennies are obsolete and a symbol of government waste” (moneycrashers.com).

One of the biggest arguments against pennies is that you can’t buy anything with a single penny anymore. Back in the day children would run to the candy shop and buy a piece of candy with a penny but now you can’t buy anything with pennies. Vending machines don’t accept them, not even parking meters take pennies. You can’t even buy a penny with a penny. According to the 2014 Annual Report from the U.S. Mint, “it now costs about $0.017 – or 1.7 cents – to make one cent.” That means that every time the government makes a new penny, they are losing money.

So with all these negatives, why keep the penny? One reason is that it keeps prices lower. The elimination of the penny leads to the “rounding tax.” This means that if there is no penny, the nickel will become the coin with the lowest value and businesses will have to round up to the nearest nickel, thus raising prices. Of course this only affects customers who pay in cash as those who pay with credit will still be able to pay to the cent.

There are many arguments for both sides and it is still and ongoing debate all over the country. With that being said, however, I’m still going to pick up pennies that I find on the sidewalk because a little good luck never hurt anybody.


Works Cited
“The Great Penny Debate: Should We Keep Producing the Penny?” The Spruce Crafts, TheSpruceCrafts, www.thesprucecrafts.com/the-penny-debate-768872.

“Should We Get Rid of the Penny? - 8 Reasons to Keep It vs Eliminate It.” Money Crashers, 17 May 2017, www.moneycrashers.com/get-rid-penny-reasons/.

“What Can You Buy with a Penny?” Citizens to Retire the U.S. Penny, www.retirethepenny.org/.

Images
https://i0.wp.com/coincollectingenterprises.com/wp-content/uploads/2015/07/profit_and_loss_us_making_penny_coincollectingenterprises.png

https://moneyinc.com/wp-content/uploads/2018/09/Pennies-750x408.jpg

Should the United States have paid Maternity Leave?

Should the United States have paid maternity leave?
Elizabeth Laning

As you may be aware, the United States has 0 weeks of paid leave for parents. This is comparable to Estonia who has a remarkable 87 weeks of paid leave. However, Estonia is not an outlier-- as you can see in the figure to the right, Bulgaria, Hungary, Japan, Lithuania, Austria, Czech Republic, Latvia, Norway and Slovakia all offer over a year of paid leave as well (Livingston, 2016). It isn’t like citizens don’t want this policy, in fact, “93% of Americans agree that mothers should receive some paid leave after new babies arrive” (Gillett, 2017). So if all these other countries have paid parental leave and United States citizens are proving to want it, why doesn’t the United States have any mandatory paid leave?

Ultimately, the reasoning is because of our sense of individualism. As a country we are so focused on the “American Dream.” With this, people have the mentality that being successful is not compatible with parents spending time off of work. There is no paid parental leave in the United States as without it, taxes remain low and individuals are responsible for themselves and their families.

There has been a shift more recently of politicians starting to address the issue. In President Barack Obama’s State of the Union Address he discussed paid leave. Two years later, in 2016, this became a mutual goal in politics, both democrat and republican candidates creating plans and discussing the consequences of not having a policy. Furthermore, Ivanka Trump advocated for paid family leave on Capitol Hill. Recently, more light has been shed on such an issue (Gillett, 2017). This shift has caused Americans to start to change their individualistic mentalities--the shift will result in nonexclusion, important to providing all citizens with this opportunity if they plan to have a child. Currently, only certain jobs and companies provide paid leave. It does not kill a business to have paid leave, in fact, a study by the Center for Women and Work at Rutgers University concluded that women who had taken parental paid leave were 39% less likely to receive public assistance and 40% less likely to receive food stamps in the year following a child's birth compared to those who didn't take any leave (Gillett, 2017). Therefore, paid parental leave will likely not be as significant of a tax burden as the opposition may believe because of the reduction of governmental assistance provided to women and families in other areas of living.

Even a short paid leave would be beneficial rather than 0 weeks of paid leave for American parents. Ultimately, there will always be tradeoffs, however this is something that will overall benefit United States families rather than be a treacherous economic burden. California, New Jersey and Rhode Island have all got on this economic issue, state mandated leaves put in place (“Estimating Usage and Costs of Alternative Policies to Provide Paid Family and Medical Leave in the United States,” 2017). Therefore, because of their success, paid parental leave should be nationally mandated.
Works Cited

“Estimating Usage and Costs of Alternative Policies to Provide Paid Family and Medical Leave in the United States.” Institute for Women's Policy Research, 19 Jan. 2017, iwpr.org/publications/estimating-usage-costs-alternative-policies-provide-paid-family-medical-leave-united-states/.

Gillett, Rachel. “Most People in America Want Paid Parental Leave - Here's the Real Reason the US Is the Only Developed Nation That Doesn't Have It.” Business Insider, Business Insider, 1 Oct. 2017, www.businessinsider.com/why-america-doesnt-have-paid-leave-2017-9.

Livingston, Gretchen. “Of 41 Countries, Only U.S. Lacks Paid Parental Leave.” Pew Research Center, Pew Research Center, 26 Sept. 2016, www.pewresearch.org/fact-tank/2016/09/26/u-s-lacks-mandated-paid-parental-leave/.

Image link:
http://www.pewresearch.org/fact-tank/2016/09/26/u-s-lacks-mandated-paid-parental-leave/

This is a Woman's World?

This is a woman’s world?
Lila Kothari
3/11/2019

On Friday, March 8th, we celebrated International Women’s Day. International Women’s Day is celebrated annually on March 8th and it became an annual celebration after the Socialist Party of America organized a Women's Day on February 28, 1909. Then, in 1910, the International Socialist Women's Conference suggested a Women's Day be held annually and adapt a theme each year. This year’s theme is “#BalanceForBetter”. This holiday is meant to acknowledge women, but what are we really acknowledging? A wage gap?

Although the scarcity of women in the workplace has significantly decreased, there is still an unbalance. Acknowledged by Harvard University, there is still a significant gap in the workforce between the contributions being made in countries such as the United States and Japan. According to the Harvard Business Review (or HBR), “the increase of women in the paid workforce was arguably the most significant change in the economy in the past century. In the U.S., women’s participation in the labor market has nearly doubled, from 34% of working age women (age 16 and older) in the labor force in 1950 to almost 57% in 2016.”
The education gap has already closed and now there is equality in that realm, the next step is to push for a closed gap in the workplace. As we have seen throughout the past decade or so, there is an increased demand for women to be in the workplace. According to unwomen.org, “when more women work, economies grow. Women’s economic empowerment boosts productivity, increases economic diversification and income equality.” These positive externalities are reasons as to why there is such a large push to balance the workplace and the wage gap in addition to overall equality.
According to the World Economic Forum, “Empowering women to participate equally in the global economy could add $28 trillion in GDP growth by 2025.” That is HUGE economic growth and would impact both countries close the gender gap in the workplace and positively benefit the economy both nationally and globally. Some statistics found by CBS News include, “The U.S. lags other developed nations in both pay and gender policies, with the average S&P 500 board including just one woman for every four men,” and, “women who work outside the home are paid an average of $11,000 less per year than men.” That’s insane! Wouldn’t you think that in more developed countries that the gender gap would be closed or almost completely closed?

Although many agree that women are supposed to have more of a part in the workforce, many fail to acknowledge the other duties that a woman is supposed to hold as well. For example, a motherhood set back is in place. According to CBS News, this means that, “the gender pay gap sharply widens for women with children, rising to 30 percent less than what men earn compared with 10 percent less before they had kids, a study from the U.K.'s Institute for Fiscal Studies found.” This is a major negative externality taking place when women are expected to participate in benefiting the economy and juggling motherhood and family as well.
It’s crazy to think that a gender gap is still creating a pay gap. We can see that women would make a huge impact in the future stability of the economy if more work yet they are still being underpaid and underrepresented due to all of the issues that they still face to this day. It’s 2019, drop the gender gap and increase the pay for women so our economy can flourish.

Works Cited
Abney, David, et al. “This Is Why Women Must Play a Greater Role in the Global Economy.” World Economic Forum, www.weforum.org/agenda/2018/01/this-is-why-women-must-play-a-greater-role-in-the-global-economy/.

“About International Women's Day.” International Women's Day, www.internationalwomensday.com/About.

“Facts and Figures: Economic Empowerment.” UN Women, www.unwomen.org/en/what-we-do/economic-empowerment/facts-and-figures.

Inspires, Everything. “International Women's Day 2019 Campaign Theme | History & Facts.” YouTube, YouTube, 18 Feb. 2019, www.youtube.com/watch?v=Pp7Uk09leU0.

“International Women's Day 2019: The Sorry State of Women in America's Workplaces.” CBS News, CBS Interactive, www.cbsnews.com/news/international-womens-day-2019-gender-pay-gap-and-inequality-comes-at-a-high-cost/.

Josh. “Gender Inequality and Women in the Workplace.” Harvard Summer School, 15 Nov. 2018, www.summer.harvard.edu/inside-summer/gender-inequality-women-workplace.

Weinstein, Amanda. “When More Women Join the Workforce, Wages Rise - Including for Men.” Harvard Business Review, 23 Apr. 2018, hbr.org/2018/01/when-more-women-join-the-workforce-wages-rise-including-for-men.

Nutrient Pollution Causing a Declining Economy

Nutrient Pollution Causing a Declining Economy
By: Paige Bathke

Nutrient pollution is the process where too many nutrients such as nitrogen and phosphorus are added to bodies of water and can act like fertilizer causing excessive growth of algae. As you can see in the picture to the right, the nutrients and fertilizer is running off into the body of water causing excessive algae growth. Nutrient pollution affects the economy in many different ways, from the tourism, property values, commercial fishing, and recreational businesses. The factors of production of seafood and crops are also being affected because of the nutrient pollution. The land is actually increasing and becoming more effective because the fertilizer being used and running off into the oceans, is boosting plant growth in farms because the fertilizer is killing the weeds. The labor for fishing industries would continue to decrease. As the pollution keeps spilling into the ocean more species are being killed, leading to a smaller fish and seafood population. This makes it harder for the fisherman to catch fish and sell the fish to restaurants which is how they make their money. Physical and human capital is increasing because there are more successful machines being used to spread the fertilizer or nutrient pollution that allows for a greater crop production. Entrepreneurship of fishing industries would struggle since there can only be a limited amount of fishing industries since there are not many fish to catch.

Furthermore, commercial fishing industries lose business and people lose jobs because they cannot make a sustainable income by being in the fishing industry. Fishing industries are failing because of the nutrient pollution in the oceans. Fishing and shellfish industries are hurt by algal blooms that kill fish and contaminate shellfish. As you can tell from the graph on the left there is a projected decline of seafood species. This dramatic decline is causing fishing industries to not be able to fish effectively. Annual loses to these industries are estimated to be tens of billions of dollars. When there are high levels of these algal blooms and the fish become contaminated customers of the fishing and shellfish industries become afraid to eat the seafood, because consuming the nutrient pollution can cause stomach pain, vomiting, and stomach rash.
Next, clean water can raise the value by 25 percent. Waterfront property values can decline because of the unpleasant sight of algal blooms. Additionally people would not want to have a property on the coast because they wouldn’t be able to swim in the water so the house would not be worth the expensive cost. The opportunity cost of not purchasing the waterfront property would be the great ocean view.

Additionally, the cost of drinking water is affected. Nitrates and algal blooms can drastically increase treatment costs. Nitrate removal systems in Minnesota caused supply costs to rise from 10 cents per 1000 gallons to over $4 per 1000 gallons. The scarcity of clean water is starting to increase so the cost of the clean water is going to continue to rise since it is harder to get the water and clean the water.
There is also a major loss in tourism in areas where nutrient pollution is prominent. Boating and fishing activities cannot take place in these areas because of the health affects nutrient pollution has on humans. These human health issues include; stomach rashes, stomach pain, respiratory problems, and lung alignments. Parents who are touring these areas where there is nutrient pollution would not feel confident taking their children on boats or on the water because children’s development is at risk when they are exposed to this pollution.

To conclude, businesses that are located near the ocean that are polluted by the nutrient pollution are at risk and the economy is going to continue to decrease drastically. Production of fishing industries is going to continue to decrease and fish will continue to die off so there will be less fish available to catch. The producers in the fishing industries will not be able to make an income because they will not be able to sell freshly caught fish. This will cause lots of jobs to be lost to those who rely on fishing as their way to make money. Waterfront property values will decline because of the unpleasant sight of algal blooms and the consumers cannot swim in the water or perform any water activities. Drinking water will increase in cost because treatment costs will rise. Tourism will start waning in areas where nutrient pollution is. In order to save the economy water sources will need to be cleaned and humans will need to stop polluting the water. 



Works Cited
Charles Clover, Environment Editor. “All Seafood Will Run out in 2050, Say Scientists.” The Telegraph, Telegraph Media Group, 3 Nov. 2006, www.telegraph.co.uk/news/uknews/1533125/All-seafood-will-run-out-in-2050-say-scientists.html.

“The Effects: Economy.” EPA, Environmental Protection Agency, 27 Mar. 2018, www.epa.gov/nutrientpollution/effects-economy.

“Nutrient Pollution Definition.” Assignment Point, 1 Oct. 2015, www.assignmentpoint.com/science/agriculture/nutrient-pollution-definition.html.

“Smithsonian Environmental Research Center.” Introduced Crab Parasites Hijack Mud Crab Reproduction in Chesapeake Bay, serc.si.edu/research/research-topics/environmental-pollution/nutrient-pollution.

US Department of Commerce, and National Oceanic and Atmospheric Administration. “What Is Nutrient Pollution?” NOAA's National Ocean Service, 1 Sept. 2009, oceanservice.noaa.gov/facts/nutpollution.html.

Trade War with China: What you need to know

Trade War with China: What You Need to Know
Julia Truog

There has been a lot in the news about the “Trade War.” And today I saw a headline saying the U.S. and China are close to a trade deal (USA Today). Hold on—let’s back up a minute. What’s a trade war, anyway, and why did President Trump start one?
 
A trade war begins when one country imposes tariffs or quotas on goods imported from foreign countries. There have been two main arguments behind the trade war with China that began last year (Washington Post). The first is that President Trump started it in retaliation for the Chinese government stealing proprietary technology data from the U.S. The U.S. has always been a great innovator, especially in the area of technology, and many believe the Chinese government is not above stealing to get what it wants. The second reason President Trump started the trade war was to deliver on his campaign promise to “Make America Great Again.” The U.S. imports lots of steel from China, so if the U.S. slaps a 25% tariff, or tax, on steel imported from China it makes domestically produced steel in the U.S. more competitive from a price standpoint. If the U.S. can sell more of its steel here at home, that means more jobs for steel workers, which is one of the industries Trump wanted to revive in his “MAGA” campaign.

President Trump said “Trade wars are good and easy to win” and lots of people like the idea of taking care of jobs at home. But there are consequences to starting a trade war. First, China will of course respond by placing tariffs on goods they import from the U.S. As an example, after Trump started the trade war China responded by cancelling all of its soybean contracts with the U.S. China imports $12 billion of soybeans from the U.S. annually to feed pigs, their primary source of meat (The Balance). That has a negative effect on U.S. farmers that could last for years. China has other options for getting soybeans, like from Brazil, for example, who is more than happy to take our place.

Trade wars also eventually lead to inflation. If the price of steel is higher, that impacts car manufacturers who now have to pay more for the steel they buy to manufacture vehicles. That increase is eventually going to be passed along to the consumers who buy those vehicles. So while there may be more jobs for steel workers, the auto industry will be hurt because of higher prices for the materials they need.
 
Right now the U.S. imports more from China than it exports to China. It’s reasonable to want to find a trade balance and to protect U.S. intellectual property. But a trade war is not easy to win and not without consequences. We’ll have to stay tuned to see how this plays out.


Works Cited
Amadeo, Kimberly. “Why Trade Wars Are Bad and Nobody Wins.” The Balance Small Business, The Balance, www.thebalance.com/trade-wars-definition-how-it-affects-you-4159973.

Snider, Mike. “US, China Reportedly Close to Trade Deal Lifting Most Tariffs on Chinese Goods.” USA Today, Gannett Satellite Information Network, 4 Mar. 2019, www.usatoday.com/story/money/business/2019/03/03/us-china-reportedly-near-trade-deal-lifting-tariffs-chinese-goods/3050340002/.

Waldman, Paul. “The Real Reason Trump Wants to Start a Trade War.” The Washington Post, WP Company, 2 Mar. 2018, www.washingtonpost.com/blogs/plum-line/wp/2018/03/02/the-real-reason-trump-wants-to-start-a-trade-war/?noredirect=on&utm_term=.a13bde79a08d.

The Explosive Growth of Mobile Gaming

The Explosive Growth of Mobile Gaming
Eric Coursin

In recent years, with new phone developments and upgrades releasing once, maybe even twice a year, mobile phones are able to do a lot more than they could even five years ago. With these vastly upgraded technologies, the mobile games industry has been able to skyrocket, and that growth doesn’t seem to be stopping anytime soon. Games are such an interesting enigma within the subject of economics, due to its ability to wiggle out quality products, even when the market is seemingly saturated. As long as there is an idea for something new, games will always be able to grow.

The growth of the mobile games industry isn’t as exponential as it had been back in 2014, but that doesn’t mean the growth is minimal. The growth most certainly comes from the fact that, in in U.S., at least 72.3% of mobile phone users are mobile gamers, in some way or another (IAB (Trends)). The graphic at right doesn’t predict past 2019, but it is estimated that just by the year 2021, two years from now, the mobile games industry could bring in annual revenues close to $100 billion (Finance Magnates).

Interestingly enough, the mobile games that bring in the highest revenues are the apps that are free to download. Sure, that’s not much of a shock by today’s standards, thanks to the widespread popularity of in-app purchases, but it is fascinating to see just how these companies are able to play the market in order to bring in the most money. Additionally, although to the dismay of many traditional console and PC gamers, other games companies have taken note of mobile games’ strategies and implemented similar in-game purchase models (Finance Magnates). Games companies that have adopted these types of business models haven’t done any worse financially, but their reputations as decent games companies have definitely been harmed thanks to their decisions.

So, how will the enormous growth of the mobile games market impact the rest of the games industry? It won’t. There are plenty of sources that have claimed the takeover by the mobile games market, that traditional games will die, but that just can’t be true. Sure, there are definitely way more people playing games on their phones now more than ever, but they’re tailored to a specific audience. There will always be gamers who would prefer to spend their money on a one-time purchase and enjoy a full gaming experience relaxing on their couch, rather than uncomfortably hold their phone for hours on end. Economically, the strategies of mobile games aren’t even acceptable to most traditional gamers, and companies like EA could be left behind while the competition actual listens to the demands of the market.

Overall, mobile games have their purpose in one’s life, as well as in the economics of video games. The increasing quality of mobile games will allow the industry to continue to grow in the coming years (Kooistra), and traditional video games will still remain strong in their own growth.


Works Cited
“2018 Video Game Industry Statistics, Trends & Data - The Ultimate List.” WePC.com, 10
Jan. 2019, www.wepc.com/news/video-game-statistics/#mobile-gaming

3599. “Gaming Industry Sees Strong Growth Heading to 2019 | Finance Magnates.” Finance
Magnates | Financial and Business News, Finance Magnates, 17 Sept. 2018,
https://www.financemagnates.com/thought-leadership/gaming-industry-shows-impressive-grow
th-leading-up-to-2019/

Kooistra, Jelle. “4 Mobile Gaming Trends to Watch in 2019.” Applift, 14 Feb. 2019,
https://applift.com/blog/4-mobile-gaming-trends-to-watch-in-2019

Amazon Go: The Future of Grocery Shopping

Amazon Go: The Future of Grocery Shopping
By Kasey Schlicht

Everyday there seems to be some sort of new innovation that is released into our society, especially since our generation is the most technologically advanced yet. One of the newest ideas that is skyrocketing all around the U.S. is Amazon Go, a grocery store through the dominating company, Amazon, that is run without any cashiers. With new software, Amazon has made it possible for consumers to purchase goods without having to make a physical transaction. Panels are located at the entrance/exit to wirelessly connect to your Amazon account, permit entrance, and track purchases. Rather than having to wait in long, inconvenient lines, or frantically fish for your money/credit card, the wireless tracking sends the payment directly to your account. While some may say that this is the future of grocery shopping, or even shopping in its entirety, it does lead to some potential threats to employment.

Amazon Go currently has 9 open stores, is planning to open 3,000 more by 2021 in the U.S., and is even expanding its idea to London, which is just an example of this company once again taking over another industry (Cheng). If this technologically based grocery store becomes the new revolution of shopping, there could be a significant increase in the unemployment rate. While the current unemployment rate is the lowest it has been at 3.5%, in the upcoming years it is projected to rise to 4.9% by 2026 (Unemployment). Therefore, the unemployment rate is already rising, and if Amazon Go stores were to expand and thrive, this rate would only get higher. Also, while this idea impacts the employment of cashiers for grocery stores, if it becomes very popular and efficient, all other platforms of shopping such as retail may utilize this method as well. To reiterate, this would yet create more unemployment.

This innovation creating unemployment for grocery store workers would fall under the category of structural unemployment, as the machinery and technology is preventing those in the labor force from working at the stores. For example, North Carolina showed that many of its youth in the labor market took job opportunities at grocery stores, as they had about 75,000 people working in the grocery store industry within the state (Snapshot).  Now imagine if the future beholds Amazon Go’s concept of eliminating cashiers; this takes away 75,000 jobs from citizens in the state! Not only can Amazon Go decrease employment, but it is also exceptionally expensive, as "Mahaney estimated that the hardware for each store cost about $1 million on average and that it would take about two years for Amazon to break even,” (Cheng). Therefore, many wonder if the efficiencies Amazon is providing is worth the risk of a potential large employment drop.

While the supply of grocery store workers may decrease within the next couple of years, it is projected that the demand for Amazon accounts will consequently rise. Potential consumers all around the U.S. are going to see the positive feedback that Amazon Go has received, intriguing them to become a customer. With an increase of demand for technology such as Amazon, and a decrease in demand for store workers, the prospective future truly looks like it is beyond what we can imagine as far as endless possibilities of technology.

When examining both the positives and downfalls of Amazon Go, I believe the average household will receive benefits that outweigh the potential negatives of unemployment. While the industry for cashiers may progressively decrease in employment, there are plenty of other industries that are sure to open up to balance out the unemployment rate due to the ever changing economy we live in today. The risk of structural employment could even motivate the labor force to get a better education, as this incentive could drive employees to attain a better job and avoid losing it to new innovations in technology. Therefore, Amazon Go seems like a concept and business that is sure to expand all around the world and change the way shopping is done forever, and I for one cannot wait to experience it.

Click here to watch a captivating advertisement for Amazon Go. 

Works Cited

“: Amazon Go.” Amazon, Amazon, www.amazon.com/b?ie=UTF8&node=16008589011.
Cheng, Andria. “Why Amazon Go May Soon Change The Way We Shop.” Forbes, Forbes Magazine, 13 Jan. 2019, www.forbes.com/sites/andriacheng/2019/01/13/why-amazon-go-may-soon-change-the-way-we-want-to-shop/#447b13d36709.

“Snapshot-Grocery Stores.” The State of Low-Wage North Carolina, www.lowwagenc.org/snapshot-grocery-stores.

“Unemployment Rate in the U.S. - Forecast 2017-2028 | Timeline.” Statista, Statista, www.statista.com/statistics/217029/forecast-to-the-unemployment-rate-in-the-united-states/.

The Demand For Tanning

The Demand For Tanning
Written by: Skyler Allen

As all of us know, and many have a countdown for, spring break is right around the corner. With that, there is so much changing in the economy. Many examples, are fluctuation in the prices and demand of plane tickets, hotels, activities, and much more. Although, today we are going to focus more so on the changes within the tanning business, there’s a lot more changing in the economy than we would think.

Majority of people like to travel during the time frame of spring break. In change, raises the demand for tanning to insanely high numbers.  This is because people like to build up a base tan and prepare their skin for the sun on vacation to prevent themselves from burning when they are there. Tanning salons often times make good sales for packages or purchases in general around this time, their busy season, so that customers are more likely to come to their salon than a competitors salon.

The tanning business is present all year round and makes decent money. When consumers buy sessions or packages from a salon there is more to the business side than people may think. For example the owner/manager has to decide what sales they want to have to get the most business due to the season or time of year. Every salon has their regulars just like a restaurant or other business which is why it’s important that the salon provides sales that please them. In general there’s customers that make decisions about purchases based off of how much they need to prepare their skin or how tan they want to be and then there's customers who make their decisions based off of their change in expectations, changes in wealth, and government policies. These directly relate to the causes of shifts in the aggregate demand curve.

The government did place a 10% tax on tanning since it’s considered to be bad for you, that’s the same tax that there is on cigarettes. When that tax was placed did the demand for tanning change? According to Did The ACA Tax Kill Demand For Indoor Tanning? It’s complicated, “A quick search turned up only a handful of studies on the subject. In a 2012 survey of about 300 tanning salons in Illinois, Northwestern University researchers asked proprietors how customers responded to the tax. Nearly all salons said they passed the tax on to customers and informed them about it. About 80 percent reported that business was down, but roughly the same percentage said that customers “did not seem to care” about the tax.” So, since that many people said they didn't care, yes they are still tanning and purchasing from a salon but overall the demand was affected at least a little bit.

In conclusion we can see that spring break is a time of the year where a lot of businesses are able to generate more profit since there will be more tourists, more students on break and other just taking off of work. This directly affects the economy because prices may become more expensive since there will be more purchases made during this time period. Like stated earlier there is so much changing in the economy all of the time and we don’t realize it but this is one time of the year in which the economy can change a lot as far as prices, demand and supply go.

Works Cited

Gleckman, Howard. “Did The ACA Tax Kill Demand For Indoor Tanning? It's Complicated.” Forbes, Forbes Magazine, 24 Aug. 2017, www.forbes.com/sites/beltway/2017/08/24/did-the-aca-tax-kill-demand-for-indoor-tanning-its-complicated/#3391157a2049.

Economic Impact of High School Girl’s Tournaments on Green Bay Area

Economic Impact of High School Girl’s Tournaments on Green Bay Area
Written by: Cameron Kaehler

As many of you may know, the Pewaukee Girls Basketball team was just one win shy of making it to the state tournament to be held at the Resch Center in Green Bay, WI. Not only is the WIAA Girls State Basketball Tournament held at the complex, but the WIAA Girls State Volleyball Tournament is also played there as well. In return for hosting these statement sporting events, the city of Green Bay is able to benefit economically from the added tourism.

Over the years, the girls basketball tournament has averaged around 40,000 fans per year as well as a $2.5 million economic boost. Similarly, the girls volleyball tournament has averaged around 20,000 fans with a $700,000 economic boost (Venci). By drawing in new crowds of people to the Green Bay area, more money is able to be generated as seen from the prior statistics. Having the players, coaches, parents, referees, and spectators potentially spend multiple days and nights in the city serves as a huge incentive for local businesses. In addition, due to the increasing popularity of girls sports in the recent years, the girls basketball tournament in particular “is expected to bring $3 million dollars to the area” for the 2019 season. This just goes to show that when venues create an inviting atmosphere and offer a lively city, they are able to reap the rewards economically for their efforts.

Furthermore, to spice things up, the Resch Center created a promotion to get high schools competing against each other before the teams even take center court. The promotion is called the ‘Rush to the Resch’ and schools compete to see who can sell the most tickets to members of their community. The winning school receives a check as a reward for all of their hard work and dedication which can go toward anything of their choosing (Mays). This promotion gets the schools in the spirit of friendly competition while also serving as an aid for the city of Green Bay to earn more revenue by drawing larger crowds. Competitions always seem to get more people involved; after all, more people equals more needs which equal more money.

In the end, one thing is crystal clear. . .  the city of Green Bay was very smart in extending their contract with the WIAA, keeping the girls tournaments there until at least 2025. All of the economic benefits to the city far outweigh the actual costs to operate the tournament. These tournaments are also a great way for the city to maintain a constant stream of revenue when their professional sports team, the Green Bay Packers, are in their off season. As long as people keep attending and event coordinators keep utilizing interesting ways to attract spectators, the Resch Center will continue to serve as a popular economic booster for the city of Green Bay.

Works Cited

Mays, Gabrielle, and Fox. “State Tournaments to Stay at Resch Center through 2025.” WLUK, fox11online.com/sports/high-school-gametime/wiaa-announcement-on-future-state-tourney-locations

Venci, Scott. “WIAA Extends Contract for Girls State Basketball and Volleyball Tournaments.” Press Gazette Media, USA TODAY NETWORK-Wisconsin, 7 Mar. 2018, www.greenbaypressgazette.com/story/sports/2018/03/07/wiaa-extends-contract-girls-state-basketball-and-volleyball-tournaments/403835002/.

Wearegreenbay. “Green Bay Savoring Economic Impact from WIAA Tournament.” WEAREGREENBAY, WEAREGREENBAY, 11 Mar. 2016, www.wearegreenbay.com/news/local-news/green-bay-savoring-economic-impact-from-wiaa-tournament/394826113.

What If We Raised The Wage Rate?

What If We Raised The Wage Rate?
By: Maria Pesick

As high schoolers just entering the labor force, we are unlikely to find a job in terms of skilled labor that will compensate us with large paychecks. Most of us would be lucky to earn much more than minimum wage. However, unskilled labors alike are all aware that $7.25 an hour is hard to get by on. Many have called for a minimum wage raise. (Click here for an article about what demographics are in favor of a federal minimum wage raise.) In fact, over 52% of people have favored raising the federal minimum wage to $15.00 (Pew Research Center, 2017). People would like to believe this would solve all our problems. More money should mean more purchasing power, right?

Actually, this is not true. If employers were to raise what they paid their employees in any case, unskilled or skilled worker, this could lead to an increase in the price of the products they are producing and selling. This is because employers would require more money in order to compensate their labors. This is known as wage push inflation (Investopedia, 2018). Now in a single firm or even industry, the consequences would not necessarily be inflation as there can be ulterior suppliers (unless the market is an oligopoly or monopoly) and the workers might not buy from the company they work at. However, the federal minimum wage affects many firms and industries, meaning workers’ raised wages will be going toward raised prices. This can nullify the effects of a higher minimum wage or even lower the unskilled labors’ purchasing power.

Another factor leading to the rising wage rate is the extremely low unemployment rate. As of January 2019, the unemployment rate rests at a meager 4.0% (Trading Economics, 2019). This means that there are few people in the labor force that are out of a job. In fact, only “23 percent of companies reported they are not have any trouble hiring, down from 42 percent a year ago” (National Association for Business Economics, 2018). In order to compete against other companies for laborers or possibly entice people back into the labor force, firms will need to raise the wages they offer. This could subsequently lead once more to wage push inflation.

Still, with the resultant inflation, rising wages are not necessarily redundant. The rate is rising, though not as dramatically as some think. Looking at the graph, “the starting point is June 2009 at $334 per week, with the end measured in 2018 at $351. That is a 5.1% increase over nine years, or about 0.57% a year. [So,] it is true that the growth rate for nominal wages is better than it was” (Forbes, 2018). As well, though the media exaggerates the “2.9% wage growth” that we have recently experienced, accounting for inflation, the wage rate has still risen by 1% (Forbes, 2018). Thus, the question then comes down to how much, if any counteractive methods, should be taken against this future possible inflation.

Works Cited

DeSilver, Drew. “5 Facts about the Minimum Wage.” Pew Research Center, Pew Research Center, 4 Jan. 2017, www.pewresearch.org/fact-tank/2017/01/04/5-facts-about-the-minimum-wage/. Accessed 5 Mar. 2019.

Kenton, Will. “Wage Push Inflation.” Investopedia, Investopedia, 13 Dec. 2018, www.investopedia.com/terms/w/wage-push-inflation.asp. Accessed 5 Mar. 2019.

Long, Heather. “U.S. Wage Growth Is Getting Wiped out by Inflation.” Los Angeles Times, Los Angeles Times, 10 Aug. 2018, www.latimes.com/business/la-fi-wages-inflation-20180810-story.html. Accessed 5 Mar. 2019.

Long, Heather. “U. S. Workers See Fastest Wage Growth in a Decade, but Inflation Takes a Toll.” The Washington Post, WP Company, 31 Oct. 2018, www.washingtonpost.com/business/economy/us-workers-see-fastest-wage-increase-in-a-decade/2018/10/31/3c2e7894-dc85-11e8-85df-7a6b4d25cfbb_story.html?utm_term=.c1b98d531154. Accessed 5 Mar. 2019.

Sherman, Erik. “That 2.9% Wage Growth Is 1% After Inflation: What The News Doesn't Tell You.” Forbes, Forbes Magazine, 10 Sept. 2018, www.forbes.com/sites/eriksherman/2018/09/09/as-some-cheer-wage-growth-rate-median-income-is-only-up-by-5-1-since-2006/#310075a65dce. Accessed 5 Mar. 2019.

“United States Unemployment Rate.” Kenya Government Debt to GDP | 1998-2018 | Data | Chart | Calendar, TRADING ECONOMICS, Jan. 2019, tradingeconomics.com/united-states/unemployment-rate. Accessed 5 Mar. 2019.

California Economy: High Tech Jobs Affect the Standard Cost of Living

California Economy: High Tech Jobs Affect the Standard Cost of Living
By: Mya Pham

Throughout the United States one of the most expensive areas to live in is the Silicon Valley. Within the past year the cost of living in the area has increased by 5.7 percent when renting a primary residence. One key factor to the expensive cost of living in the area is the high tech companies, such as, Google, Youtube, and Apple. Because of these companies and the new technology created, the median yearly income in the area is $125,233. With the high paying jobs, this leads to a higher cost of living.

Unlike the majority of the United States, making around $100,000 a year in the Silicon Valley is middle class. There are many factors that lead to the Silicon Valley being expensive, the location, weather, jobs, popular cities, and most of all, the high tech companies. A typical home within a 20 minute commute from these companies’ headquarters costs around $1.2 million. Because of the companies’ popularity this has been a leading factor in the high price of the housing market.

Furthermore, owning a home in the Silicon Valley for most of America is nearly just a dream. Some leading components to the costly living is the area is the high population. Around 3 million people live in the region. With the large population comes a number of people moving in and moving out. In the Silicon Valley this is a sellers market because as long as more people move into the area the more the sellers make. Because of the high tech companies and the cost of living, this has forced the lower class to move out and wealthier to move in and take over.

Overall, living in the Silicon Valley has become one of the most expensive places to live in America. One of the leading components to the costly living is the tech companies. With the higher salary careers in the region this leads to a high expense when it comes to the price of housing. High tech jobs have greatly affected the standard cost of living in the Silicon Valley.



Works Cited
Avalos, George, and George Avalos. “Bay Area Cost of Living Spikes in 2018.” The Mercury News, The Mercury News, 12 May 2018, www.mercurynews.com/2018/05/10/bay-area-cost-of-living-spikes-in-2018/.

Cao, Sissi, and Sissi Cao. “Study: Silicon Valley Housing Prices Baffle Google, Facebook Engineers.” Observer, Observer, 26 Feb. 2018, observer.com/2018/02/google-facebook-engineers-cannot-afford-silicon-valley-houses/.

Hess, Abigail. “The 10 Cities Where Tech Salaries Go the Furthest.” CNBC, CNBC, 29 Sept. 2017, www.cnbc.com/2017/09/29/the-10-cities-where-tech-salaries-go-the-furthest.html.

“Moving to Silicon Valley? 2018 Living Costs & Relocation Tips.” MoverDB.com, moverdb.com/moving-to-silicon-valley/.