Economics and the Music Industry

 Economics in the Music Industry

Jameson Janoska

There are many factors that can help an economy become stronger, and one of those things is the music industry. It can help boost the economy in many different ways, for example, it can help push forward artistic and cultural growth, and it can help create more jobs. It’s common knowledge that economics is the production and consumption of goods and services, so music is an important factor to our economy. It provides us with music, which is classified as a good, and a music-streaming app, which is a kind of service. 

One way the music industry affects the economy is pushing artistic and cultural growth forward. Music is a form of art, and with all of the new genres, subgenres, and sounds that have been created over the years the industry has been able to move forward because the sounds have been changing, so people haven’t gotten sick of listening to the same kinds of music for the last 20 years. The constant change in music over the years has kept people on their toes for new kinds of sounds and music, which helps the economy because different sounds can come from different cities all over the country that can help promote music when it releases to increase the sales.

When making music, there are a lot of parts to play in helping create the song, which creates a lot more jobs to help the economy grow. In the process of making a song, you obviously need the artist to make the song, and most of the time there will be a producer to make the instrumentals of the song. The artist then sends the song to a recording engineer, who edits the track to make it sound smooth and good by editing the artists voice to make it fit better with the instrumentals. A few other big parts in the music industry are the artist and tour managers, these positions help bring new opportunities to the musical artist, whether it’s a concert at a festival or it’s an opportunity for business, like an advertisement or collaboration. There are many more jobs that are involved in the music industry, and that is a great thing for helping our economy grow.

The music industry can help the economy grow in many different ways. It helps with pushing artistic and cultural growth forward and it can help with the creation of more jobs. 

Works Cited

“Uncommon Ways the Music Industry Affects the Economy.” Omari MC, 12 July 2018, https://www.omarimc.com/uncommon-ways-the-music-industry-affects-the-economy/. 

Terrill, Amy. “How Cities Benefit from Helping the Music Industry Grow.” World Intellectual Property Organization, Sept. 2015, https://www.wipo.int/wipo_magazine/en/2015/05/article_0009.html. 

“Top 10 Careers in the Music Business (and How Much Money You Can Make).” Berklee Online, 29 Jan. 2021, https://online.berklee.edu/takenote/top-10-careers-in-the-music-business-and-how-much-money-you-can-make/. 

Performing Arts and Low Income, Why are People Attracted to this Lifestyle

 Performing Arts and Low Income, Why are People Attracted to this Lifestyle?

By: Layla Tank

With Christmas coming up, people love to attend the popular seasonal show, The Nutcracker Ballet. At this show, you see a variety of talent and creativity in a story told entirely by dance. Although, rarely do people consider the hours of hard work and dedication that those dancers put into these shows… sometimes without pay or any benefits. In the article, The Untenable Economics of Dancing, they describe the varying pay range for dancers. They stated, “an early career choreographer can expect to make anywhere from $100 – $500 for a 3 months development process”. This article states that the highest pay would be “if you go on tour, maybe $500-$700/wk” which is a rare instance.

In addition, low pay is not the only factor impacting dancers. A huge outside factor is the demand to see shows. Without shows, there is no need to supply performers. DanceUSA in their report on the effect of COVID-19 stated that, “the dance industry is extremely vulnerable to the slightest change in the environmental, social, or economic landscape”. In the chart, you can view the changes and effects of consumer spending on performing arts events. Looking at the dates, there is a rapid decline at the Q2 2020 mark due to the impact of the start of COVID-19. This correlates directly to the wages of dancers. Like most around the world, dancers were left without a job and the scary thought that they may never find a gig again. Many were left to question how long they were to stay in unemployment. Would it always be cyclical or would it later turn into structural?

With the prospect of knowing that you could earn so little and be in phases of unemployment for unknown amounts of time, why would anyone put themselves in this economic situation? The compromise of looking over all the opportunity costs comes down to what economists are calling psychic income. Psychic income is defined as the “rewards (as in prestige, leisure, or pleasant surroundings) not measurable in terms of money or goods but serving as an incentive to work in certain occupations or situations” (Merriam-Webster). To professional dancers, not being able to pay the month’s rent or get stable roles in performances is okay, because the benefit to do something they love and have passion for is greater than economic values.

As a dancer myself, I understand the desire to pursue a career so fulfilling, but I would rather have enough income to support myself. In the end, becoming a professional dancer is very risky if you care about having a stable job and being able to afford the cost of living, but due to the high amount of psychic income, it may be worth it to some.

Works Cited

“Dance Comeback: The Impact of COVID-19 on the Dance Field and the Future of Dance.” Dance/USA, 21 Sept. 2021, www.danceusa.org/ejournal/2021/08/13/dance-comeback-the-impact-of-covid-19-on-the-dance-field-and-the-future-of-dance.

Horwitz, Andy. “The Untenable Economics of Dancing.” Culturebot, 12 Nov. 2014, www.culturebot.org/2014/03/21361/the-untenable-economics-of-dancing/.

“Psychic Income Definition & Meaning.” Merriam-Webster, Merriam-Webster, www.merriam-webster.com/dictionary/psychic income.

Working Multiple Jobs

 Working Multiple Jobs

John Akins

Whether you’re trying to save up your money, pay off a debt, or increase your income, a second job could be highly beneficial for you. It may be the right move, but it will require a lot of work with time management and communication with employers.

“From the second quarter of 1996 to the first quarter of 2018, the multiple jobholding rate has averaged 7.2% of all employed individuals.” (census.gov) With a multiple jobholder being defined as “anyone who holds two or more jobs in a quarter and at least one of these jobs is a long-lasting, stable job.” Rates of multiple jobholders tend to follow a cyclical pattern. During an economic expansion, the multiple jobholder rate rises, while during a recession, the rates decline.

As you can see below, the number of workers in the United States with more than one job has been increasing with a few dips around 2001-2004 and 2008-2010

Additionally, the graph below shows the percentiles of total earnings for multiple jobholders with a stable job.

For those at or below the 18th percentile, a second job or jobs provided an average of more than 30% of their total earnings, and for everyone above that, multiple jobs provided over 25% of their total earnings. So whether you’re a high earner or a low earner, being a multiple jobholder could provide over a fourth of your total earnings.

Although money is the driving force behind getting a second job, there’s other considerations to be made. Another job can help with the development of skills in an area completely different from the first. It can also be used to test whether a career change might be the best course of action. This will also provide security just in case a fallback is needed after the first job doesn’t work out.

There is definitely something to be said about working a second job even with a full time job. An increase in pay can alleviate financial stress and overall income if it’s done right. Not everyone is willing to do it, but if you’ve ever thought about it and have the ability to do so, why not? The most important thing is to find a balance. If the idea of a second job does not sound appealing then choosing not to is completely fine. Just remember to do what’s best for you.

Works Cited

Buhl, Larry. “Moonlighting: Pros and Cons of a Second Job.” Monster Career Advice, www.monster.com/career-advice/article/moonlighting-pros-and-cons-of-a-second-job-hot-jobs.

Bureau, U.S. Census. “Using Administrative Data, Census Bureau Can Now Track the Rise in Multiple Jobholders.” Census.gov, 8 Oct. 2021, www.census.gov/library/stories/2021/02/new-way-to-measure-how-many-americans-work-more-than-one-job.html.

“Is a Second Job While Working Full Time a Good Idea?” IMDiversity, imdiversity.com/diversity-news/is-a-second-job-while-working-full-time-a-good-idea/.

Xbox Thoughts

Danny Lovas 

So I’ve been Having this debate with my friend Tyler, and he wants me to play the new Forza Horizon 5 with him but I no longer had Xbox Live or Xbox Game pass. I started to do the math of how much It would cost to either buy the game or buy Xbox Game Pass to play the game for free as long as I have the Subscription. I’m not always playing games so I didn’t want to get the 15$ a month subscription but I didn’t want to spend 60$ immediately on a game that I didn’t know if I was going to play it all the time. 

First I started to look at the ups and downs of both options. First I’ll start with the 15 a month, Xbox Live costs 15 a month by itself so the first month would be 30$ and would take only 3 months or less to match the cost of buying the game. The total cost at the end of the year would be 360$, that’s a major down. The Up part of buying Game Pass is the ability to play hundreds of games, this would include Ea Play Games and about 100-200 Games on Xbox all for the 15 a month. 

The second option was to buy the game and have the 15 a month Xbox live. That’s 75$ in just the first month but goes back down to 15$ for the rest of the year or however long I have Xbox Live. The benefit of this too is that I don’t need Xbox Live to play Forza, all I need is to have Forza Downloaded in order to play.

Home Prices and the Covid Affect

Lily Bierce

 When you think of the pandemic and everything that was influenced by it, what do you think of first? 

The demand for masks? Hand sanitizer? Toilet paper? While these are all right, there was also another huge product that was in higher demand. The housing market saw a huge increase of prices at the end of 2021. 

Between September 2019 and September 2020, homeowners accumulated a collective $1 trillion in additional home equity. The exploding demand of the past year, in conjunction with a historically low supply of housing, has led buyers to desperately bid up the prices of available properties, sending home prices soaring. This surge affected pretty much anyone in the real estate market. 

The S&P CoreLogic Case-Shiller National Home Price NSA Index, which keeps track of single-family home purchases, shows that in November 2020 the housing prices had gone up 9.5% from the previous year. There are some factors to this, of course. When the supply of houses is lower, potential buyers tend to bid more money to greater their chance of getting the house. When the supply of houses is higher, potential buyers will tend to bid less money because they have more options. But recently, Covid has affected both the supply and demand of houses. 

Daryl Fairweather, Redfin’s chief economist, stated that she believes the increase in home values is mostly affected by demand. She said, “People are scrambling to take advantage of plummeting mortgage rates that make the cost of buying a home much cheaper. Due to falling mortgage rates, the cost of borrowing money to buy a house is dropping.” In the past couple years, mortgage rates have dropped but last year, they really fell off. In 2020, they reached a record low of 2.65%. 

In the midst of the pandemic, people were forced to stay home (as we all know), which caused most people to go a little crazy. Most people got sick of their homes and went looking to buy a new one. But since the pandemic was going on, most businesses weren’t able to produce at the rate they once did, or at all. This drove the prices up because there was so little of most things. This is what caused the demand to go up. 

All in all, the pandemic affected pretty much everything in our daily lives, including the housing market. By the demand going up, the prices for houses were driven up as well. 

Sources: 

https://www.vox.com/22264268/covid-19-housing-insecurity-housing-prices-mortgage-rates-pandemic-zoning-supply-demand 

https://www.federalreserve.gov/econres/notes/feds-notes/housing-market-tightness-during-covid-19-increased-demand-or-reduced-supply-20210708.htm 

How Black Friday and Holiday Shopping Affects Economy

 How Black Friday and Holiday Shopping Affects Economy

Cadence Sjoberg

With the holidays quickly approaching, many retailers around the nation will reach their peak selling season. This peak begins with one of the most important retail events in the US, Black Friday. The day after Thanksgiving has been proclaimed the busiest shopping day during the holiday season and throughout the year as a whole. According to Micheal J. Boyle, about 186.4 people shopped sometime throughout the Black Friday weekend. Spending by consumers has been known to drive economic growth and activity, making Black Friday a crucial time for businesses and the economy in general. Not only do retailers benefit from the holidays, but the food industry has also seen a spike from a combination of food purchases for Thanksgiving and Christmas. The increased shopping seen during the holidays provides multiple benefits to the economy. 

The first benefit is stock growth. Companies and businesses who see high numbers during the Black Friday weekend, typically see a growth in stocks. With the stock market closed on Thanksgiving, not everyone sees a growth of stocks, but throughout the month of December, most companies tend to see a spike. Even in December of 2020, coming out of the COVID-19 pandemic, America saw it’s largest growth in retails sales of over 8.2%.

Another benefit that holiday shopping can provide is increased employment. With the abundance of shoppers, many job opportunities open up at retail stores and manufacturers. Many businesses tend to have available job openings during the months of November and December which can help decrease the unemployment rate of the economy. It has been found that nearly 1 million jobs open up each year with the anticipation of increased shopping. 

Although a weak economy can also have a negative effect on consumer spending, even during the holiday season, the economy always seems to show a rise (minus during the 2008 season) at the end of the year. Not only does spending increase for retail, but people tend to spend more money on gas and travel as well. 

Works Cited

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

Team, The Investopedia. “How Thanksgiving and Black Friday Affect Stocks.” Investopedia, Investopedia, 29 Oct. 2021, www.investopedia.com/ask/answers/102714/how-stock-market-affected-thanksgiving-and-black-friday.asp.

Unemployment

 Problems with the Government and their Stimulus Checks

Sam Riek

In April of 2020, we had an unemployment rate at 14.7% which was 23,109,000 people that did not have a job, the reason is that the Covid Pandemic just started and companies weren’t making enough money to keep people hired. Right now the unemployment rate is 4.6% which is really good from April, but that is still 7,149,000 people that are unemployed. Right now, companies need people to hire but some people are not going out and getting jobs because the government is giving the money away. 

On CBS58, they say “The federal government has pumped about $4 trillion into the US economy since the pandemic began in March 2020, sending cash directly to households, boosting unemployment benefits”.  When money is given out to people who need the money and are unstable they should get the money, but if there are families that are stable enough to get food and water, they shouldn’t be needing the check from them. 

TBut, guess where the money is coming from, the money is coming from the middle class and high class. They had them  pay the government for the money through taxes, and it isn’t right for people from the middle class and high class to be giving their money to people who get money for free. But some may argue that some people can’t work, if they can’t work, they can’t work. 

 

Work Cited

https://www.bls.gov/cps/

https://www.cbs58.com/news/6-trillion-stimulus-heres-who-got-relief-money-so-far

Fast Fasion

 Fast Fashion

Heather Sunderlage

Fast fashion has always been something you hear about but don’t fully grasp what it is or even understand how large of an impact it has in today's culture and society. Essentially, fast fast fashion is the designing, manufacturing and marketing of rapid and large amounts of clothing. Due to trend and designer garment replication, demand has skyrocketed in the fashion industry and to keep up, the supply has been met with cheap, low quality materials and mass production rates. Earlier in the year, there was a post on the blog titled “How Microtends in Fashion are Destroying the Environment” by Emily Eklund and she does a great job explaining how the high demand of trendy clothing  and heavy amount of consumption ultimately ends up quickly piling up in landfills and toxic chemical dyes in the ocean. However, I plan to inform people about the most known companies for fast fashion and how to spot them, their low moral and ethical standards, and how to stop contributing to them.

People make clothes whether it's hand sewing or sewing on a machine, and that is labor work that gets paid for their services. But it is different where fashion companies typically outsource that labor to lower class countries with very loose labor laws to undersell their workers and pay them significantly less. Sweatshops and industrial factories work long, restless hours avoiding health and safety concerns. In 2013, the Rana Plaza building collapsed which was home to a couple garment construction sites; workers had noticed serious cracks in the wall but were dismissed and even managers got an evacuation notice that got ignored--resulting in the death of 1,129 workers, and many more injured. Many of the work areas provide poor lighting which is harmful to the laborers’ eyes, as well as the possible toxic chemicals used on fabrics that they are exposed to. The University of Alabama at Birmingham’s Institute of Humans Rights blog discusses that, “As of 2016, the minimum wage in $67 dollars each month...More often than not, these workers cannot simply quit and find work with better circumstances.  They must be able to provide for themselves and their families and lack the education and qualifications for more favorable employment.” Fast fashion disregards human rights and abuses them, a sufficient standard of living can only be acquired by an adequate income and they already fall short.

Fast fashion companies can often end up very popular due to up and coming trends because of their quick turnaround times from the internet and the catwalk to stores. One of the biggest and well known companies is Shein; their products are sold through their own website but also other online stores like Romwe that are just second distributors. Yet there are also well-known, in person stores that are also guilty of fast fashion: H&M, Forever 21, Nike, Urban Outfitters, and many others. You can generally tell by the quality of the clothing, if the fabric is really thin, a lot of loose threads on hems, missing buttons, plastic zippers, or even bad, processed, chemical smells. Just a good rule of thumb is that if clothes don’t seem durable or made to last, they are most likely fast fashion. The same goes for suspiciously cheap clothing, you could look at the Shein website and most items will be under $20, like cami dress could be listed from somewhere around $8-15 when at a typical store it would be at least $30 to even $60. Nevertheless, there are also some fast fashion companies that can have good products but utilize sweatshops that undermine and abuse their workers or use toxic chemicals and don’t dispose of them correctly. Those take a little more research to find. It also just helps to look at reviews of other customers on the quality and reliability of the store and its products.

Though the low prices and hot, new styles are tempting, it's often not worth the contribution to the companies profits and poor working conditions of its employees, as well as the quality of goods you are consuming. Though, I must admit something, I have bought from Romwe once before, before I fully knew of fast fashion. I really loved the design on a pair of earrings that were $3 (first red flag for being so cheap), so I bought them along with another pair of earrings and a set of enamel pins. They took a long time to ship, which also happens sometimes with scammy fast fashion websites because packages get lost and they offer no type of assistance or refund (second red flag). And then the products themselves (final flag): the first pair of earrings were really nice yet after wearing for a while, they begin to feel a little irritated, the other pair look good too however felt a bit cheapy, and lastly in the set of pins, the enamel paint was a bit messy and went outside of the lines. Overall, I do like the earrings but the fact that all the goods were a little messed up made it still feel not worth the money. In addition, now knowing that its production endangers the environment and violates people’s human rights, I, to the best of my knowledge, am trying my hardest to not shop fast fashion again. It is easy to think spending maybe only $10 won’t make a difference in the grand scheme of fast fashion, but if everyone adopts that idea, numbers pile up and we make a larger contribution that makes profit for owners and persuade them to continue production. Currently the 90s and 2000s style is popular and is late enough where trendy clothing can be found second hand; preventing clothing from being thrown in wastes or landfills.

With the production and consumption rates of clothing continuing at this speedy rate, people will spend more money, time and time again, on low quality clothing that will constantly have to be replaced over fine clothes that can be worn more than 30 times over. Fast fashion over the last couple of decades has become more of the normal construct for clothing but slowly, it’s possible to get rid of it and return to a more stable supply and demand industry for the good of the laborers behind it and the environment. 

Works Cited

Eric. “A List of Fast Fashion Brands to Avoid Now.” The Sustainable Living Guide, 4 Nov. 2021, https://thesustainablelivingguide.com/fast-fashion-brands/.

Reid, Author Lindsey. “Fast-Fashion: Unethical and Unsustainable.” UAB Institute for Human Rights Blog, 22 Jan. 2020, https://sites.uab.edu/humanrights/2018/04/26/fast-fashion-unethical-and-unsustainable/.

Stanton, Audrey. “What Does Fast Fashion Mean, Anyway?” The Good Trade, The Good Trade, 14 Oct. 2021, https://www.thegoodtrade.com/features/what-is-fast-fashion. 

Scalping

Scalping

Ethan Stapleton

According to Investopedia, a scalper by definition is “a person who buys large quantities of in-demand items, such as new electronics or event tickets, at a regular price, hoping that the items sell out. The scalper then resells the items at a higher price”. These scalpers will often use bots to automatically purchase as much of an item as possible as soon as it’s available (netacea.com). An example of scalping in recent times is the Playstation 5. This is the newest Playstation model, and it has gained the attention of scalpers. Starting at a retail price of around $500, a consumer looking to purchase a PS5 would need to pay around $800-$1000 because of scalpers. It’s becoming a really big problem especially now with the chip shortage and supply shortage in general. Because of this, scalpers should face some form of punishment if they are caught. Below are the current prices I found on ebay for a PS5. 

Although it is very annoying that electronics like the PS5 and computer parts are becoming way more expensive and are becoming too expensive for a lot of people, at least it isn't putting people at risk, right? Wrong. At the start of the COVID-19 pandemic, some scalpers took it upon themselves to buy large quantities of $1 bottles of hand sanitizer and sold them for as much as $70 (breezejmu.org).This made hand sanitizer extremely hard to find and put many vulnerable people at risk because of it. Below is one of these scalpers who bought a very large quantity of hand sanitizer and had nowhere to sell them. 

One of the ways this scalping problem has affected me is the raised graphics card prices. A graphics card is a computer part that needs to get upgraded from time to time in order to run the newest games smoothly. They are already very expensive as is, but they are even more expensive because of these scalpers. Although my graphics card still works fine for most of the newer games right now, I know that it’s becoming an older and older model as time goes on. I'm torn between whether I should spend the extra hundreds of dollars to buy a graphics card now or to wait for who knows how long to buy a graphics card at a more reasonable price. 

Because of the detrimental effects scalpers have on the already poor supply chain and vulnerable peoples’ safety and wellbeing, and because of how frustrating they can be in general, scalping should be illegal or there should at the very least be some sort of consequence when a scalper is caught. 

Works Cited

“3,801 Results for Playstation 5.” EBay, www.ebay.com/sch/i.html?_from=R40&_trksid=p2380057.m570.l1311&_nkw=playstation+5&_sacat=0.

Breeze, Evan Holden | The. “Opinion: Retail Scalping Should Be Illegal.” The Breeze, 4 Mar. 2021, www.breezejmu.org/opinion/opinion-retail-scalping-should-be-illegal/article_776bbfac-7c60-11eb-8afa-c7bc2d3287f0.html.

Chen, James. “Scalper Definition.” Investopedia, Investopedia, 19 May 2021, www.investopedia.com/terms/s/scalpers.asp.

“Scalper Bots.” Netacea, 7 Oct. 2021, www.netacea.com/glossary/scalper-bots/.

Why is Gasoline so Expensive?

 Why Are Gasoline Prices So High?

Charles Bathke

Usually, gasoline prices will inflate in the spring as companies must switch to using a summer-blend fuel and then go back down to their normal prices as there is less of a demand for gas after summer. This has not been the case recently. Ever since May of 2021 gas prices have been over $3.00 a gallon and still are rising exponentially. In September of 2020, the price of gas per gallon was $2.248 but only a year later the price increased by over a dollar and now is $3.384 per gallon. This brings up the question why is it that gas prices are being inflated so much? Everyone has their own beliefs in which gas prices are increasing, but the real reason is that oil is becoming a scarce resource and the demand for gas has been rapidly increasing. 

As the price for oil keeps increasing, the gas price will increase with it. As you may or may not know oil is a necessary ingredient to make gasoline. “40% of a barrel of oil is used to produce gasoline,” states energy.gov. Oil is considered a scarce resource because there is less supply available than what is demanded. This will cause gasoline prices to rise so that the supply to demand ratio can be even. According to convenience.ord, “Oil prices have gone up 48 cents per gallon in the past two months. During this time gas prices have increased 15 cents—from $3.17 to $3.32 per gallon.” This proves that when oil prices inflate, gas prices inflate with it.

Covid is becoming less relevant meaning more people are willing to go places. This is increasing the gasoline demand. There is more demand for oil than there is to supply forcing the oil prices to increase. According to businessinsider.com, “The number of vehicle miles traveled measured by the Federal Highway Administration plummeted in spring 2020, but in the last few months, highway traffic was back up to what would normally be seen in midsummer.” As you can see in the graph, there were so many fewer people driving in April of 2020 compared to any other month. In April of 2020 gas prices were under 2 dollars per gallon. Now when you look at how many people are on the road it is the same as usual which inflates the gas prices to $3.384. This shows that when the demand for oil and gas is decreasing the price of oil and gas will decrease too. 

In conclusion, gasoline prices have been inflated insanely high but there is an obvious cause. The more scarce oil becomes and as the demand for gas keeps on increasing, the price for gasoline will continue to inflate. 

Works Cited

U.S. All Grades All Formulations Retail Gasoline Prices (Dollars per Gallon), www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=emm_epm0_pte_nus_dpg&f=m.

“The How's and Why's of Replacing the Whole Barrel.” Energy.gov, www.energy.gov/articles/hows-and-whys-replacing-whole-barrel.

Kiersz, Andy. “3 Reasons Why Gas Prices Are so High Right Now.” Business Insider, Business Insider, 9 Nov. 2021, www.businessinsider.com/why-are-gas-prices-so-high-right-now-3-reasons-2021-10.

“Why Gas Prices Are Rising When They Should Be Falling.” Convenience.org, www.convenience.org/Media/conveniencecorner/Why-Gas-Prices-Are-Rising-When-They-Should-Be-Fall.

Credit Cards vs. Debit Cards

 Cheyenne Kaatz,

All you see in this day and age are people purchasing goods, swiping cards, and paying using their mobile devices.

As checks and cash are quickly becoming a thing of our past, it is now more beneficial and convenient to carry

non-cash payment options around - which include both credit cards & debit cards. It is critical to know about credit and

debit cards as each have different purposes and are more beneficial or less helpful for different scenarios. In this blog,

you will learn about both cards, the major differences and when to use the right one. 

A debit card is the first payment option and can be used to obtain cash or to buy goods/services. The debit card draws the

funds immediately from your checking account which means that your spending amount is limited to what's available

in your checking account. When using your debit card, the exact amount of money you have to spend will change

from day to day along with your account balance. Debit cards are set up with PIN numbers that are used when making

transactions, this is a security measure and adds safety to your bank account. Debit cards are best to use on smaller, essential

purchases that you can quickly pay for from the security of your checking account while credit cards can be helpful for

making larger purchases or handling unexpected expenses that you either cant or don’t want to pay in full right away. 

Credit cards are another form of payment issued by your bank or financial services. This card allows the cardholder

to pay for goods and services based on their accrued debt, with the agreement that you will ultimately pay back the

card issuer for the costs of whatever you purchased along with fees and interest. In the end, a credit card acts like a loan

that enables you to make whatever purchase now and pay back later at a higher rate (usually with interest). 

 

When comparing debit cards to credit cards, it's important to know that they are both used in different instances, and one might provide more benefits than the other in a certain event. With a credit card, you are essentially borrowing money from your line of credit, as with a debit card you are making purchases and using money right out of your own bank account not having to pay back anyone. Using your credit cards for your purchases also guarantees you have a financial grace period - often between 21 and 30 days - after the close of your billing cycle to pay back any money without interest. If you are unable to pay it back within that time frame, you may have to pay interest depending on your card (promotional rates of interest depend on your bank), which you will be charged and expected to make minimum monthly payments until your balance is paid off. If you're wondering what the spending limit for credit cards are, you will be told that it is all determined by the credit cardholder’s credit scores and reports, which credit card companies will review before giving you a credit card. Credit cards also can help provide benefits for you as the bank technically pays for your purchases through your card with the exception that you pay it back at the same higher cost, they can help build credit, and you can earn card rewards and cash back! Although for some people you can have limited credit card opportunities due to poor credit history, things like a debit card with rewards does exist but not too often. Debit cards are also better for cash withdrawals and helping avoid overspending and debt.

Overall, both debit cards and credit cards play important roles in our day to day lives and are needed for making purchases

in our future. As each card has its own benefits and externalities of using each one in a certain situation. Finding out

which one, or both, fit best in your life is a decision you have to make as it will impact you and all your future spending decisions. 

Works Cited

Lamberg, Erica. “Here Are 4 Times You Should Reach for Your Debit Card over a Credit Card.” CNBC, CNBC, 23 Oct. 2021, www.cnbc.com/select/when-is-it-better-to-use-a-debit-card-over-a-credit-card/.

Pritchard, Justin. “Should You Spend With Debit or Credit Cards?” The Balance, The Balance, 12 July 2021, www.thebalance.com/should-you-spend-with-debit-or-credit-cards-315480#:~:text=A debit card is better,you stick to safe ATMs.

Working Out in the Pandemic

 Zoie Knisbeck

Throughout the pandemic the fitness industries have most likely changed forever. The biggest impact was for the livelihood

of the in person gyms. People could not go to the gym so companies did not have any revenue; this caused many clubs to close

and face bankruptcy. Another big impact would be how the pandemic caused many gym industry employees to be laid off.

The pandemic also affected the gyms and their futures, as many gym members are not playing to return to the in person workout facilities.

Throughout all of this it also opened a small window of opportunity for gyms that are online and companies that make at home equipment

like peloton. 

Many clubs and gyms had to face bankruptcy during the pandemic. Run Repeat states that “More than 38,000 gyms and health

clubs have been closed down because of the virus as of May 2020” showing how detrimental the pandemic was to these clubs.

And continuing on through the pandemic some of the few clubs that were able to survive might not do so well in the future,

according to CNBC “More than 56% of those surveyed say that the pandemic helped them find ‘more affordable’ ways to get exercise

and live a healthier lifestyle.’” Meaning that the gyms will not have as many members and might not be able to get back to where they were

before the pandemic. 

Many gym industry employees had to be laid off as a result of the pandemic. WESH states that “The fitness industry employed 3

million part-time and full-time employees prior to the pandemic, and as of Oct. 1 at least 480,000 jobs have been lost” explaining

how the pandemic affected the employees as well as the gyms as a whole.  

Yet throughout all of this many online gyms were able to thrive. Because of the covid lock down many people found comfort in

being able to work out again even if it was at home. Because the imperson gyms were shut down this created opportunities for at

home brands to grow. Brands like TRX, Bowflex, and Peloton were able to produce the equipment the consumers needed.

The Washington Post  states “Health and fitness equipment revenue more than doubled, to $2.3 billion” Showing how much of a

need there was and how the businesses were able to adapt in this time of uncertainty. This can even be seen past workout equipment,

the trends of bettering oneself expanded to bicycle, kayak, skis and snowshoe companies.  

Works Cited

Bloomberg.com, Bloomberg, www.bloomberg.com/news/articles/2021-01-19/fitness-industry-may-never-return-to-its-old-ways-after-covid-19.

JadeScipioni. “59% Of Americans Don't Plan to Renew Their Gym Memberships after Covid-19 Pandemic: Survey.” CNBC, CNBC, 12 Jan. 2021, www.cnbc.com/2020/07/23/many-dont-plan-to-renew-their-gym-memberships-post-pandemic-survey.html.

Rizzo, Nicholas. “COVID's Impact on the Fitness Industry [35  Stats and Facts].” Athletic Shoe Reviews, 6 Aug. 1970, runrepeat.com/pandemics-impact-fitness-industry.

Shaban, Hamza. “The Pandemic's Home-Workout Revolution May Be Here to Stay.” The Washington Post, WP Company, 8 Jan. 2021, www.washingtonpost.com/road-to-recovery/2021/01/07/home-fitness-boom/?outputType=amp.

Should You Invest in Stocks

 Isabelle Fowler

What is a stock actually? A stock is a share within a company that represents a piece of ownership equity in the company,

meaning shareholders get voting rights on company actions and claims on corporate profits. Stocks are exchanged within a

stock market, where individuals and companies come together to buy and sell shares. Shares are priced by supply and demand

in the market. Market flow and exchanges are monitored by specialists in order to maintain an orderly and fair market. These exchanges

have specific terms, bid and ask. A bid is the price buyers are willing to pay for a stock and an ask is the price that sellers

are willing to accept for a stock. There are two basic types of shares, common and preferred. While the two are almost identical,

the difference is that common shares generally have voting rights within a company - things such as voting in a board of

directors - while preferred shares do not. That being said, preferred shareholders have preference over assets and dividends in the event of a

liquidation. 

Why do businesses sell shares? Businesses grow at a rapid pace, going from being an idea in an entrepreneur’s head to a

functioning business, and in order to keep up with this, businesses need lots of capital. A business can raise capital through selling

shares or borrowing money. Borrowing money isn’t always the best route because startup businesses have fewer assets to pledge for a loan.

Loans also create interest which can end up being a bigger financial burden. 

How do I buy stocks? The best place to start is through an online stockbroker. Once you open and fund your account, you can

find and buy stocks through the website immediately. Alternatively, you could buy stocks from the company directly, or

use a full-service stockbroker. Opening an account on a stockbroker website is similar to opening a bank account, you provide

your information, proof of identification, and fund your account through electronic transfer or mail-in. Before you bid for a share,

do some research into the company, make sure it’s something you truly want to invest in. Having this background information will make

you feel more confident about your purchase. When first entering the world of stocks, it’s best to start small - with just one share.

This makes it easier to manage and monitor your money.

Of course, the stock market has its pros and cons. You could earn benefits including dividends or an average annualized return of 10%;

however the stock market is unpredictable so returns are never guaranteed. The company can decide to return money to its shareholders

via dividends - this is cash paid to you on a regular basis just for being a shareholder. As a business grows, the value of their stocks

increase, and when you’re ready to sell, you’ll pocket the difference. 

In order to become a successful investor, you should invest in a business that you will hold onto for 5+ years. This means the company

should be one you believe in. When you appreciate what the company is doing, you’re more willing to stick with them. 

Research:

https://www.investopedia.com/articles/investing/082614/how-stock-market-works.asp 

https://stockmarket.com/ 

https://en.wikipedia.org/wiki/Stock_market 

https://www.nerdwallet.com/article/investing/how-to-buy-stocks 

https://www.investopedia.com/articles/basics/06/invest1000.asp

https://www.thebalance.com/stock-investing-for-the-individual-investor-3306182 

https://medium.com/@jamesldunne/why-buy-stocks-9be722a2af47

Why Are Shoes So Expensive?

 Stephen Bittner

This is a fairly common question that people ask themselves. However, most of the people who ask this will still end up

buying shoes at a huge price. Why is that? Well it's simple; While shoes at its most basic form are normal goods, the name

brand pairs are luxury goods. It doesn’t matter your income, everyone reading this has at least one pair of shoes.

Most likely you have more. However, not everyone reading this has a name brand pair. 

Name brand shoes aren’t a necessary product. Rather, they are associated with showing off wealth and fashion. The truth is,

you can get a decent pair of shoes for under $25. On Amazon, there are a variety of different options. While you won’t be able to

try it on for yourself, you can look at previous buyers feedback to find if it is your fit. However, you won’t be able to find much below

that $25 price range. This is because of the production and other costs.

A typical $70 shoe will cost about $15 to produce. However, keep in mind that after production, the shoe will be in a factory in a foreign country. It will have to be shipped to the US for an additional cost of about 50 cents. Now it has to be legally imported into the US. This means the government will charge 8.5% of the cost. This adds $1.32 as well as $.32 for insurance and customs. This means that a 70 dollar shoe will cost about $17.10 to end up in the US. 

I will then end up being sold to retail stores which will buy at 50% of the retail price. The salesman takes 7% of that for commissions, meaning there is a profit of $15.45. Even that is not the end though. The company still needs to advertise, pay sales, product, and marketing managers, developers, and designers. However, smaller companies are able to bypass some of these stages to lower their costs. This is why some shoes are able to be less expensive than name brand shoes. The biggest contributor is being able to skip the 50% cut taken by retail stores by shipping from warehouses directly to the customer. 

However, name brands know that when it comes to shoes, most people prefer to try them out before buying. Because

we are willing to spend so much for our shoes, they gain a much larger audience by selling in stores. They also have to make

sure to keep their brand popular. This means advertisements, deals, frequent new designs to add variety etc. All of this comes at

the expense of profit. In fact, name brands like Nike and Adidas don’t actually make an absurd amount of money like many people think.

Nike only makes about 5$ on the sale of a $100 pair of running shoes and Adidas only makes $2. 

In the end, shoes aren’t actually very expensive. What is expensive is the upkeep of name brand popularity and the customer benefits that come with that. If you don’t want to buy an $80 pair of shoes, there are options. All you have to do is acknowledge that you won’t be getting anything name brand.

“How Much Does It Cost to Make a Sneaker? - How Much Does Nike Profit?” How Shoes Are Made: The Sneaker Factory, 12 Oct. 2021, https://www.sneakerfactory.net/2019/05/cost-to-make-a-sneaker/. 

Amazon - Official Site. https://www.amazon.com/. 

(It wouldn’t let me source the actual link 

https://www.amazon.com/s?k=men%27s+tennis+shoes&s=price-asc-rank&page=4&crid=3JCMM0NDZUU4O&qid=

1635270289&sprefix=men%27s+tennis+shoes%2Caps%2C221&ref=sr_pg_4 )

“What Does It Cost to Make a Running Shoe?” Solereview, 25 Oct. 2021, https://www.solereview.com/what-does-it-cost-to-make-a-running-shoe/. 

https://www.sneakerfactory.net/2019/05/cost-to-make-a-sneaker/

https://www.amazon.com/sk=men%27s+tennis+shoes&s=priceascrank&page=4&crid=3JCMM0NDZUU4O&qid=

1635270289&sprefix=men%27s+tennis+shoes%2Caps%2C221&ref=sr_pg_4

https://www.solereview.com/what-does-it-cost-to-make-a-running-shoe/