Why Gasoline Prices are High and Still Rising

 Why Gasoline Prices are High and Still Rising.

Gavin Nettesheim

In the last 12 months gas prices have jumped up drastically, they have roughly gone up $2.11 a gallon an estimated 61% increase from this exact time last year. The problem with gas prices rising so rapidly is that America has the highest amount of gasoline consumption in the world using roughly 369 million gallons or 8.8 million barrels of gasoline per day. Gasoline consumption also has a trend in America to rise every year so if this trend continues the prices on gasoline will increase and the supplies for gasoline will decrease.

Another reason why gasoline prices have risen is because the price of the supplies for gasoline production has increased due to supplies decreasing. According to Tom Klaza, global head of energy analysis at the Oil Price Information Service, “Gasoline you get at the pump is really containing eight or nine different elements, all of which have increased in cost in recent months.” The price of supplies needed for gasoline production is just one of the factors that plays into the cost of gasoline production, they also need the machinery to mix all the elements and refine it. Once everything is all refined and regular gasoline you get at your pump they then need to pay people to deliver it and advertise it to companies. 

Even though gas prices are terrible right now there are some solutions that could temporarily decrease the price of gasoline. One of those solutions is the release of more oil reserves, but at the same time oil is a very limited natural resource so we should try and save as much of it as possible worldwide for when it gets more scarce. On the other hand we can reopen some pipelines to extract oil so the price of oil decreases overall and decreases part of the cost for gasoline production. Another solution that hasn't proved to be sufficient yet is cutting the tax on gasoline, the Florida Governor cut the 35% gasoline tax which is used to fund the public transportation infrastructure, he argues that the federal infrastructure bill will be able to make up for the lost revenue but that has yet to be proven.

The main factor that plays into the rises and drops of gasoline prices are supply and demand, so if the elements used for oil production are very inflated due to limited supply then gasoline manufactures will also have a finite amount they can produce. The demand for gasoline is also increasing and gasoline is a very inelastic product so people will pay high prices for it because it's such a necessity to our everyday lives. Although gas prices might drop eventually that will not be the last problem due to natural resources being limited.

“Frequently Asked Questions (FAQs) - US Energy Information Administration.” EIA, 7 September 2021, https://www.eia.gov/tools/faqs/faq.php?id=23&t=10. Accessed 16 March 2022.

Sanicola, Laura. “Explainer: What is happening with U.S. gasoline prices?” Reuters, 24 November 2021, https://www.reuters.com/markets/commodities/what-is-happening-with-us-gasoline-prices-2021-11-24/. Accessed 16 March 2022.

Inflation across the US

 Inflation across the U.S 

By: Levi Koepp

There's no doubt that inflation has become a rising issue within the U.S economy. A lot of people have undoubtedly already noticed that gas prices are rising through the roof in many states throughout the U.S; but it's not just gas prices that are increasing, everything is starting to go up in price. Things like wood, metal, cars, houses/house utilities, land, even food from your local grocery store have had an increase in costs. Inflation has certainly become a hot topic in our economy, and not a lot of people seem to realize that it's not just gas that is increasing. It’s simple products that we use in our daily lives that have had at least a small increase in price difference. 

Materials that were being used in the trades, like metal, wood, sodder, nails, or building equipment, had a dramatic increase in price in the year of 2020. The year well known for the pandemic when Covid started. The pandemic had a huge impact on the market for building materials, from the supply chain, still to this day, is impacted by the effect of transportation networks that are relied on to move the lumber. With an issue to supply the materials, there was fewer products being distributed across the U.S, which has led to an increase in costs for building materials. Less of a product to be shipped to the public, and higher the price goes up. According to Construction Dive, it stated that, “The index price for plastic construction products, for example, climbed 1.3% for the month and 34% over 12 months, according to the release. The index for lumber and plywood rose 12.7% and 17.6%.” This really just shows that prices really did sky rocket when the pandemic of Covid really did take effect. Unfortunately, prices for lumber and other building materials don’t seem to show any signs of lowering in the year of 2022. According to Newsweek, it said, “The most recent producer price index report published by the Labor Department revealed that prices for softwood lumber shot up a whopping 25.4 per cent in the month of January alone.” It really is frustrating to see that prices for lumber and other building materials are still increasing instead of decreasing. Yet, it's not just building materials that are increasing, even car prices and parts are experiencing some kind of inflation.

It’s pretty obvious to a lot of people that car prices have been higher than ever before; car prices have gone up a staggering 40.5% from January 2021 to January 2022. Even used cars today are being sold for the same prices for what it would cost you to buy a brand new car just two years ago. The car market has definitely hit a tough barrier the last couple of years because of the pandemic. The demand for cars was still increasing but the quantity supplied wasn’t meeting the expectations for consumers. According to Fortune it stated, “Supply shortages, specifically semiconductors and microchips, are hurting the production of new cars. That scarcity has created surging demand for used cars, driving up their prices.” So because of a shortage in chips for cars being manufactured, there were shortages in new cars being manufactured. Resulting in a low amount of new cars being brought to the market, which ultimately left us with a car market full of used cars. With a car market full of used cars, their prices had gone up to the prices of what it would cost to buy a new car; and it didn’t leave consumers much of a choice if they wanted to buy a new car. They would have to deal with high prices no matter what because you couldn’t get a new car anywhere else for a low price. 

Lots of people aren’t seeming to realize that basic living expenses are starting to increase like the costs of food, utilities and the value of their land. Households are getting more expensive by the day, properties are becoming more valuable which is leading to higher bills and taxes to pay off. The government has started to increase the value of peoples properties, that way they can tax the owners of the property to pay higher amounts of taxes. The increasing costs of utilities like electricity and heat have really been leaving people with some nasty bills inside their mailboxes. According to Gothamist, “PSEG ratepayers on Long Island saw the price of electricity rise about 26% compared to February 2021, Central Hudson Gas & Electric Corp. says its customers in the Hudson Valley could see electric bills rise as much as 46% this winter, and some New York State Electric & Gas ratepayers have reported bills spiking 121% higher than the month before.” It’s just disappointing to see that the costs for housing increase, it just continues to make life more difficult when we're still trying to put away the past of the pandemic. 

Even the most basic necessities we use in out lives, like food has gone up in price. Most people may not even realize that their favorite box of cereal has gone up 50 cents to a dollar. But they're still buying because its just one of those inelastic goods. They keep on buying it because they can’t live without it. For example, according toYahooNews,”The cost of a pound of steak has gone up by $1.25-$2.00 in the last year. The cost of a loaf of bread has gone up by 50-75 cents. Cereals and bakery products had the largest increase of any food category at 1.8%, according to BLS’ January Consumer Price Index report, while dairy was up 1.1%. Produce items experienced similar price hikes, with fruits and vegetables increasing 0.9% while meat, poultry, fish and egg prices went up 0.3%.”It’s unfortunate to see such a basic necessity like food go up in price, yet we still buy it because we all need it. Tho not a lot of us are even realizing that the cost for food has increased. 

It’s these little things that had a change in price that we haven’t even known about. It’s not just food, gas, cars, and housing bills; everything is going up in price. If you take a look at almost product out there and compare the price to what it is now to what it was just a year ago, you’ll see the difference. Inflation is seriously become a problem within our economy and many not really see that’s it’s just more than gas, cars, and real estate. Everything around us and has gotten more pricy, and it sure isn’t going down anytime soon.

Works Cited

Shen, M. (2022, February 14). Used cars cost 40.5% more than last year as gas prices rise. 

new car prices also climbing. USA Today. Retrieved March 17, 2022, from 

https://www.usatoday.com/story/money/cars/2022/02/13/used-cars-cost-more/6778705001/#:~: 

text=According%20to%20data%20released%20by,has%20gone%20up%20by%2040.5%25.

Danny Lewis, Nsikan Akpan, Jon Campbell, James Ramsay, & Elizabeth Kim. (n.d.). The 

electric bill is too damn high: Here's why and what you can do about it. Gothamist. 

Retrieved March 17, 2022, from 

https://gothamist.com/news/the-electric-bill-is-too-damn-high-heres-why-and-what-you-c

an-do-about-it 

Yahoo! (n.d.). Inflation: Food prices are 'high and going higher,' strategist says. Yahoo! News. 

Retrieved March 17, 2022, from 

https://news.yahoo.com/food-prices-are-high-and-going-higher-strategist-says-214241618.html# 

:~:text=Cereals%20and%20bakery%20products%20had,egg%20prices%20went%20up 

%200.3%25. 

Alexander, I. (2022, March 8). Why lumber prices are so high-and latest on when they might 

decline. Newsweek. Retrieved March 17, 2022, from 

https://www.newsweek.com/why-are-lumber-prices-so-high-are-they-going-down-2022-1681105 

Thibault, M. (2022, January 14). Report: Materials prices soared 20% in 2021. Construction 

Dive. Retrieved March 17, 2022, from 

https://www.constructiondive.com/news/report-materials-prices-soared-20-in-2021/617198/ 

How to Prevent Impulse Buying

 How To Prevent Impulse Buying

By: Ava Tiutczenko

How To Prevent Impulse Buying

An impulse purchase is anything you bought in the moment that you weren’t intending to. Impulse shopping is probably something that you have done at least once before in your life. After a long day, it can be difficult to resist the urge to buy some fast food from your favorite place or go shopping for something you’ve been wanting to buy. Although making a $6 purchase may not seem like a lot at the time, these small purchases can begin to add up and make a huge impact on your bank account. Impulse purchases can become a bad habit and make a serious dent on your bank account. According to clevergirlfinance, “Americans are estimated to spend $182.98 a month on impulse purchases.” Doing this consistently to your budget is not a smart idea at all which is why it is important to learn some causes of impulse spending and how you can be able to prevent it in the future.

So the big question is how to prevent these impulse purchases? There are many different tips that can be used in order to solve this issue, however, here are the top 5 most important and effective ones.

1. Make a budget and stick to it

How you allocate your money plays a huge role in your savings and overall finances down the road. An important step that you can take to help save your money and prevent impulse purchases is by allocating your expenses and setting a budget. For example, if you take your paychecks and after allocating certain amounts for the more important expenses like savings, gas, insurance, etc. Then you can take the extra that you have to use for ‘extra purchases’. These would contain your impulse and unnecessary purchases for things such as fast food or clothing shopping for items that you don’t necessarily need. By doing so, you are still able to have a certain amount to go towards more fun expenses, but you are able to manage it a bit better so that you are not going overboard into your budget with all of these impulse purchases.

2. Wait a day (or longer) before making a purchase

In the moment, a product can seem very tempting to buy. However, a lot of the time your emotions can take control of your purchases and cause you to do things in the moment that you will regret later. According to ramseysolutions, “Once you have a cool head and a fresh perspective, ask yourself if you’ll actually use this thing.” By waiting 24 hours, you will be able to clear your emotions and think more straight to evaluate if you actually need the product or if it is more of an impulse purchase that won’t benefit you any other time but for the moment’s satisfaction. Instant gratification is a big component as well. A certain purchase may ‘instantly’ please you in the moment, but in the long-term will not serve much of a purchase. If you wait a day to make a purchase, you will be able to tell more clearly if it is something that you really need, or more so just wanted for instant gratification and pleasure in the moment.

3. Don’t shop when you are emotional

Going off of the point above, shopping when you are emotional can lead to making many unnecessary purchases. According to a psychology magazine by psychologs.com, “Shopping is a momentary pleasure. It gives happiness and satisfaction immediately. When you feel sad, you feel the need to enhance your mood. Materialistic shopping is a type where one feels happy by purchasing luxurious things. It gives them a sense of control and comfort at the same time.” This is a big reason as to why people shop when they are sad- it simply boosts their emotions and can be a coping mechanism for many. Many times, when you are emotional you may do things that you will regret later which is why shopping can lead to many regrets. If you are sad, put the online shopping away and instead try other coping mechanisms that do not involve your wallet.

4. Shop with cash instead of card

It can be so easy to swipe your card and not even realize how much you are spending. Purchases add up but the simple swipe of a card may not reflect how much you are actually spending in reality. When paying with cash, it is a lot easier to see a visual of how much you are actually spending as well as you have limited amounts of it so you can only spend as much as you have without going over into the negatives. According to a video by Ashlynne Eaton, “Start using cash so that you can really feel the purchases that you are making. When you are physically holding cash in your hand, you are a lot less willing to let it go on an impulse purchase than you are if you’re just swiping a credit card.” Try to use cash on smaller, less important purchases to really see how much you are spending to help limit what you end up buying.

5. Beware of joining too many email lists and advertising accounts

Especially in today’s society, we live through email and social media. There are thousands of advertising accounts nad email lists out there that are free to sign up for. Although it is a simple one click to do so, these email lists turn out to not be as ‘free’ as you would think. According to a marketing podcast called the Gold Digger by Jenna Kutcher, “people are going to be so much more likely to actually purchase because they’ve been getting information from you that has been priming them to be ready to purchase.” By having the constant reminder of a product or a potential deal that is being advertised, you are more likely to make a purchase because of how often you are being exposed to it. It is essentially a mind game. The phrase ‘out of sight, out of mind’ applies especially in a situation like this. When the product is constantly in your face in your inbox or your social media feed, it can be very hard to ignore and eventually you will want to give in. To prevent this, try unsubscribing and unfollowing these advertising accounts. This should get it out of your mind which can help to prevent an impulse purchase to be made.

It is important to learn about impulse buying because it is a bad habit that you may not realize but that you have more than likely fallen into at least once within your lifetime. It can be so easy to spend money on something that you want at the moment but it can have some severe impacts on your bank account consequently. I know that I myself have made plenty of impulse purchases, especially since having a debit card, and it may seem like a good idea at the moment, but the delayed gratification factor is much more worth it when I have more money saved for a more desired purchase later on. You are never too long to break a bad habit and I plan on implementing these tips into my life now so that I will be able to control them more for the future when I have a lot more expenses to pay


Works Cited

ABOUT KristyKristy Snyderis a writer for Clever Girl Finance and loves helping women work toward their financial goals. In addition to working for Bankrate, et al. “How to Stop an Impulse Purchase.” Clever Girl Finance, 7 Feb. 2022, https://www.clevergirlfinance.com/blog/impulse-purchase/.

Cruze, Rachel. “Impulse Buying: Why We Do It and How to Stop.” Ramsey Solutions, Ramsey Solutions, 14 Dec. 2021, https://www.ramseysolutions.com/budgeting/stop-impulse-buys.

“Goal Digger Episode 012: The Crazy Power of Email Marketing with Jenna Kutcher.” Jenna Kutcher, 6 Jan. 2017, https://jennakutcherblog.com/goal-digger-episode-012-crazy-power-email-marketing-jenna-kutcher/.

“How to Stop Impulse Shopping | 10 Easy Tips - Youtube.” YouTube, https://www.youtube.com/watch?v=JGapUeLdKXc.

“Why Do People Shop When They Are Upset?” Psychologs Magazine, https://www.psychologs.com/article/Why-Do-People-Shop-When-They-Are-Upset.

The Economics of the World’s Happiest Country: Finland

 The Economics of the World’s Happiest Country: Finland

Written by: Mitchell Smith

From a superficial perspective, the state of economic prosperity that a particular country possesses ties directly with measurable statistics such as GDP/GDP per capita, unemployment rate, and inflation rate. While it is true that these statistics offer a fairly concrete picture of a country’s economic state, that picture may be even more clear with the use of happiness as a measurement of economic prosperity. You see, happiness is considered to be an all encompassing statistic, accurately representing all demographics and psychographics of the people within a country. With that said, which world country is considered to be the happiest? And what are citizens in that country experiencing that citizens of other countries are failing to experience?

Though it may come as a surprise to some, there does exist one outstanding country in terms of monumentally high happiness metrics, that country, of course, being Finland. Yes, a country with a land mass smaller than that of Montana holds the undisputed throne of “the happiest country in the world.” This stunning development begs the question, what makes Finland citizens so happy, and how can other world countries apply Finland’s strategies to improve their general happiness levels.

https://i.insider.com/4eb027a5eab8ea146000002f?width=700&format=jpeg&auto=webp

Firstly, Finland’s happiness stems from the country’s continued pursuit of an economic goal that is oh-so important to the overall economic prosperity of a nation, equitable distribution of income and income inequality. In a world where income inequality only appears to be rising in developed countries such as the United States, Finland has consistently made strides against this detrimental trend, demolishing gender/racial barriers in the workplace and offering countless welfare benefits to the less fortunate. These strides have most certainly paid off, as pictured in the graph above, the nation’s percent difference between its upper and low class lies at the low 3.7 percent, dwarfing that of the US at 8.5 percent. What is debatably the most incredible statistic of any in relation to Finland’s happiness levels, the gender split between stay at home mothers and fathers is approximately equal, allowing all to be accepted with their economic decisions regardless of race, class, or gender. Additionally, Finland’s unparalleled welfare benefits from unemployment and housing to student financial aid, to even parental allowances ensure that people in all facets of their lives are supported through their financial struggles. This continued pursuit of an economic goal that many world countries have virtually ignored as of late has allowed Finland to become the happiest country in the world.

Secondly, Finland’s happiness and economic prosperity come from what many call the “Finish approach” to the internal workplace. This approach is otherwise known as the flat working model, a model that eliminates any and all hierarchy within companies. This promotes open communication, increased commitment from all employees, each of whom now have their own voices, and heightened flexibility. Without the second hand pressure that hierarchical levels impose on all employees within a particular company, Finland workers exemplify record setting productivity and most importantly, happiness.

https://img.dtcn.com/image/themanual/hossa-national-park-in-finland-getty-images-800x533.jpg

Lastly, Finland’s monumental happiness has direct ties to its sustainability and consumption values. The nation was an early adopter of the climate change movement, prophesying to keep deforestation to a minimum, to transition to sustainable innovations such as electric cars, and to implement various environmental policies to decrease the overall and per capita carbon footprint. As it stands now, Finland is one of the most forested countries in the world with some of the most outstanding pollution, carbon footprint, and biological productivity metrics. The culmination of this environment-first philosophy creates a beautiful scene for Finns to indulge themselves in on a daily basis, shooting happiness levels up as a result.

Conclusively, there are a multitude of both developed and underdeveloped nations throughout the world that can reasonably adopt at least one of Finland’s multiple practices towards raising overall happiness levels. Within the United States, I personally believe that moving forward, it would most definitely be in our best interest to work from the inside-out, prioritizing income inequality, welfare benefits/compensation, and progressive ideals. While it may be difficult to perfectly emulate Finland’s approach to these causes, putting forth effort to do so WILL result in happiness gains for the United States and all countries who follow in Finland’s footsteps.

What do you think the United States should do? Does it make sense to utilize Finland’s strategies or do you suggest a different approach moving forward?

Works Cited

Sousa, Gregory. “The Economy of Finland.” WorldAtlas, WorldAtlas, 25 Apr. 2017, https://www.worldatlas.com/articles/the-economy-of-finland.html.

Väänänen, Heikki. “What Makes Finland the Happiest Country in the World?” Forbes, Forbes Magazine, 10 Dec. 2021, https://www.forbes.com/sites/heikkivaananen/2020/05/26/what-makes-finland-the-happiest-country-in-the-world/?sh=12752ee175cc. 

Rise of Gas Prices in America

 Rise of Gas Prices in America

Written By: Lucas Nesthus

For most of 2022 thus far we have had a rise in the prices of gasoline compared to previous years. It seems that even more recently in the month of march that the average price for a gallon of gas has reached an all time high within just this past week. The rise in these gas prices are leaving consumers and residents in America questionable about the future of the economy within the U.S. Are we seeking a decline in the economy for future years? When will the gas prices go down back to the way they were? These are a few of many questions Americans have with how gas prices are influencing the economy. I will give you insight and present you research on why this is happening. 

The gas prices are starting to push just under 5$ a gallon on average as well as the inflation rate coming at 7.9%, it’s no doubt that us Americans are feeling overwhelmed and unsure about the future as this is what the economy is looking like as of right now. There are many predictions being made about what the economy will look like based on current numbers, Sam bullard, managing director and senior economist predicts that the “CPI (Consumer Price Index) Inflation will increase and average out at 7.5%,” this shows that Americans are going to have to pay more for products and services overall and not just gas prices. With all this happening, costs are expected to rise throughout the year. The real question is what is the root cause of all the inflation and the rise in gas prices? As many people know, more than one factor can be part of a contributor to the prices of gas, but more notibally, recently with the Russian invasion on Ukraine has played a big part in the rise in gas prices and inflation itself. It has caused the lack of imports with supply chain issues to decrease the amount of oil in our economy. The fact that unions and other intergovernmental organizations like the European Union are restricting Russia to sell its natural oil plays a huge part in the rise of gas prices and is one of the biggest ways that people get their oil, especially the United States. 

Above is an example of gas prices coming from Los Angeles, California in the month of march to show that this is genuine and fluctuating in different parts of the country. Obviously we know that there are more factors other than the main causes, the loosening of COVID restrictions and traveling, lifted mandates around the country to allow for more transportation, upcoming breaks that will cause people to require more gas when driving long ways, visiting family, etc. Now with that being said, there is going to be an increase in demand on gas with the shortened gas supplies or reduced gas supply which will contribute and be the cause of the rise in gas prices around the country and even the world. 

Works Cited

Mendoza, Jordan. “Why Are Gas Prices Rising so Quickly? and How High Are They Expected to Get?” USA Today, Gannett Satellite Information Network, 10 Mar. 2022, https://www.usatoday.com/story/money/2022/03/07/why-gas-prices-rising/9417091002/. 

Surging Gas Prices Drive Consumer Sentiment Even Lower ... https://www.usnews.com/news/economy/articles/2022-03-11/surging-gas-prices-drive-consumer-sentiment-even-lower. 

An Economic War: The Efficacy of Sanctions

An Economic War: The Efficacy of Sanctions

Written by: Alyssa Myers 

In an attempt to gain a political advantage over a situation where military action is uncalled for and diplomacy is ineffective, economic sanctions can be utilized to prohibit the targeted nation’s economic growth. The first noted use of economic sanctions was in the Athenian Empire, 432 B.C., as they banned traders from Megara in order to suffocate their economy and weaken the Empire’s rival city-state’s wellbeing. Similar strategies were taken throughout history, but the creation of multinational coalitions, predominantly starting in the 20th century, allowed for more widespread and effective economic sanctions where groups of countries could agree to restrict trade and economic relations with other nations. Yet, a deeper dive into the reality of these economic sanctions clearly highlights that oftentimes the most vulnerable groups of people are adversely affected by sanctions, creating a humanitarian and moral crisis. 

Despite the potential political gain sanctions offer, clear adverse humanitarian impacts should cause people to pause and think before immediately agreeing with the merit and efficacy of sanctions. Historically, sanctions have been mistargeted in such a way that primarily harms vulnerable populations within a given nation. As a result, the nation itself (along with its government and economy) may not be damaged whatsoever, but the lives of those living in fragile situations can be further worsened: extreme poverty, starvation, lack of economic opportunity, and far more detrimental impacts. Perhaps governments would see the harm these sanctions have on their people and make systematic changes so as to appease the nations imposing those sanctions; however, to make that assumption would be to put a lot of trust in the humanity of targeted governments, which historically is not a reliable decision.

https://tradingeconomics.com/russia/stock-market 

Presently, we see an example of the use of sanctions in the Russian-Ukrainian conflict and allows us to see if sanctions can, in fact, be used in an effective way in a modernized society.  The US and EU have both imposed economic sanctions which have been effective in the regard that they’ve shrunk Russia’s Economic growth. Pictured above is an image of the Moscow Exchange (MOEX) Russian Index, and there’s a sharp decline in its value after sanctions started being imposed on Russia and violence continued in Ukraine. The US is no longer importing Russian gas, and even international companies such as Nike and Apple are going as far as closing down their online stores in Russia. Airline and shipping companies have also stopped assisting Russia, which is greatly reducing their economic potential growth by limiting transportation. Due to financial restrictions, Russians are subjected to insane interest rates, rapidly declining value of their currency, and a bleak outlook on the future to come.

https://tradingeconomics.com/russia/stock-market 

Due in part to economic sanctions, stocks for Russian gas companies Surgutneftegas and Tatneft have fallen in value by over 40%. Additionally, Inter RAO, a company that profits from international energy trading, has fallen in value by 53.33%, and VTB Bank, which has had international sanctions imposed onto it has fallen by 53.36%.

https://www.theatlantic.com/photo/2022/02/photos-anti-war-protests-russia/622914/ 

Clearly, the sanctions on Russia have made a tangible impact, and in that sense, perhaps they’ve accomplished their goal. From the Western perspective, this likely seems as a good thing as the US/EU is finding a way to harm Russia without engaging in forthright military action. Yet, this impact has been most strongly felt by Russian citizens, who are still entitled to basic human rights, and of which a solid percentage do not even support the violence incited by Putin’s invasion of Ukraine. Above is an image of one of over 7,000 Russian citizens who’ve been detained for protesting the war. The conflict is being advertised to Russian citizens as a “special operation” in Ukraine, and mass protests show the fact that ordinary Russian citizens don’t agree with this operation. Russian citizens are subjected to financial insecurity, deflating value of their life savings, and even unforeseen impacts such as Russian tourists being stuck abroad as a result of these sanctions. This is not to say that the sanctions are directly bad -- at least we are taking some action rather than making futile diplomatic statements -- but now we are left to hope that something good may come out of these sanctions; that Russia would stop invading Ukraine to restore their economy and that Russian citizens won’t have to suffer at their behalf for nothing. 

Therefore, although sanctions can be effective in certain regards, they must be structured in a way that carefully targets the government rather than vulnerable groups of people, who are still entitled to basic human rights. A recent method of this is called targeted sanctions. These sanctions aim to reduce the negative impact that community members may face as a result of these sanctions who don’t agree with the actions their government is taking. This way, action still can be taken against the government (rather than doing nothing and condoning it) but the sanctity of human life is protected to the best extent possible. When addressing international conflicts such as this, one must stand strong to their beliefs and take action, but in doing so remember to view citizens of all countries as human beings first, more than identifying them by their nationality, especially when so many disagree with their government’s actions.

Works Cited

Abughris, Noura. “A Brief History of Economic Sanctions - Carter-Ruck.” Carter-Ruck, 30 Nov. 2021, https://www.carter-ruck.com/insight/a-brief-history-of-economic-sanctions/.

“Moex Russia INDEX2022 Data - 1997-2021 Historical - 2023 Forecast - Quote - Chart.” MOEX Russia Index - 2022 Data - 1997-2021 Historical - 2023 Forecast - Quote - Chart, https://tradingeconomics.com/russia/stock-market.

Selyukh, Alina. “How Everyday Russians Are Feeling the Impact from Sanctions.” NPR, NPR, 2 Mar. 2022, https://www.npr.org/2022/03/02/1083694848/sanctions-russia-ukraine-economy-war. 

Gas Prices are Being Raised…Again: How the War Between Russia and Ukraine Affects American Gas Prices

Gas Prices are Being Raised…Again: How the War Between Russia and Ukraine Affects American Gas Prices

Written by: Anna Syltie 

As the Russians continue to invade Ukraine, gas prices in the U.S. have skyrocketed once again. Although gas prices have been continually rising since the end of the first Covid-19 lockdown, they have begun to increase at a rapid rate due to the ongoing conflict overseas. The average global cost of a barrel of oil has risen to $115 per barrel, which is significant because this is the first time in seven years that the cost of a barrel has exceeded triple digits (Domonoske). As a result of these new prices, the average cost of gas per gallon across the U.S. as of February 28, 2022, is $3.701. Some experts even believe that gas prices will exceed $5 per gallon within the next couple of weeks across the United States. More populated areas, like Los Angeles, California, have already reached $5 per gallon, and are continuing up to $6 per gallon. 

The graph above from the U.S. Energy Information Administration shows recent increases in comparison to previous years. While the average is still below $4, we might see prices matching that of 2011 or 2014, or possibly even 2008 in the near future. 

Despite the U.S. only importing about 4% of its crude oil from Russia, it is still being impacted by this conflict as 35% of Europe relies on Russian crude oil and natural gas (Block and Koslof). In addition, about one-third of Europe's gas comes from pipelines that go through Ukraine, which could potentially be damaged in the conflict (FP Explainers). The U.S., along with 31 other countries, have agreed to avoid Russian energy supplies, including crude oil and natural gas, in an attempt to weaken Russia’s economy. By reducing the demand for Russian goods by use of sanctions, many countries are hoping Russia will end its invasion of Ukraine. In the meantime, many European countries have had to find alternative ways to obtain gas, including building more pipelines or borrowing from other countries.

In spite of everything going on, OPEC leaders met and decided that they will not respond to the situation at hand. This means that they will not reduce the price of an oil barrel, or increase their output of oil. They are attempting to stay neutral as “Russia is a key member of the OPEC+ alliance,” and other members are “enjoying the bumper revenues they get from high oil prices” (Domonoske).

As we’ve seen in the past, international conflicts impact more than just the countries involved, creating negative externalities for everyone else. Personally, I believe that the U.S. and other countries need to look for other sources of energy, as we have all seen the effects of a drastic cut to the current energy supply. We cannot always rely on oil to keep our nation running, especially when gas prices continue to rise. Moving forward, we need to invest in sustainable energy that can be developed here in the United States. With less of a demand for oil, we will be less reliant on OPEC or Canada—who we recieve most of our oil from—to support our energy-based needs. As the gas prices continue to rise, it becomes more evident that we need to invest in a more inexpensive and reliable energy source.

Works Cited

Block, Eliana, and Evan Koslof. “Fact check: Does the US buy oil from Russia?” WUSA9.com, 4 March 2022, https://www.wusa9.com/article/news/verify/verify-united-states-imports-crude-oil-petroleum-from-russia-not-major-source/65-ce3e3ff2-7078-4c40-b57f-3db1ca8e62a4. Accessed 5 March 2022.

Domonoske, Camila. “Oil prices surge as fears about Russian crude supplies intensify.” NPR, 2 March 2022, https://www.npr.org/2022/03/02/1083923886/oil-prices-gas-natural-gas-surge-russia-ukraine. Accessed 5 March 2022.

FP Explainers. “Russia-Ukraine crisis: What if Vladimir Putin cuts off gas supplies to Europe?” Firstpost, 2 March 2022, https://www.firstpost.com/world/russia-ukraine-crisis-what-if-vladimir-putin-cuts-off-gas-supplies-to-europe-10422171.html. Accessed 5 March 2022.

Horton, Jake, and Daniele Palumbo. “Ukraine conflict: How reliant is Europe on Russia for oil and gas?” BBC, 3 March 2022, https://www.bbc.com/news/58888451. Accessed 6 March 2022.

“US All Grades All Formulations Retail Gasoline Prices (Dollars per Gallon).” EIA, 28 February 2022, https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=emm_epm0_pte_nus_dpg&f=m. Accessed 5 March 2022.

Effect of Interest Rates on National Debt

 Effect of Interest Rates on National Debt

Written by: Aryaman Asthana  

Excluding the year of 1835 when the government’s interest-bearing debt was completely funded under President Andrew Jackson (Treasury Direct), the United States’ national debt has continually risen since the inception of the country. Currently, the United States sits at over $30.1 trillion in debt, rising at approximately $45.486 per second (U.S Debt Clock). We commonly associate a large national debt with prolonged recessions, higher inflation rates, and implications on the value of the dollar as the world’s reserve currency (National Affairs). But oftentimes we overlook the effect of national debt on investors, state governments, local banks, foreign nations, citizens, and other subjects. The United States federal government must do more to lower the national debt in order to prevent economic decline/future recessions and further promote investments and finance. Moreover, it is crucial for investors to be aware of the rising debt dilemma and thoroughly consider the long-term consequences on their investments. 

When the federal deficit of the United States accumulates over time, increasing the nation’s national debt, the federal government must issue more government bonds, or Treasury Securities, at high treasury interest rates in order to cover the budget deficit from the previous year. Due to the high interest rates, the newly issued government bonds appeal to investors because they provide high yields (earnings) over time and they increase the market supply of bonds while decreasing their price. The sale from these treasury securities allows the government to cover the debt/deficit and pay off creditors who hold older bonds. However, high interest rates are detrimental to the stock market and other potential investments. Combined with decreased consumer spending, high interest rates cause businesses to become more reluctant to acquire loans. Businesses also have to offer even higher interest rates for their own corporate bonds (due to the high demand for risk-free government bonds) in order to entice investors, leaving less money for the company to reinvest into other operations. Consequently, the prices of the stocks of businesses decrease and thereby stock returns diminish. Not only do businesses feel strains from higher interest rates, but so does the government. With higher interest payments, “more federal revenues must be directed toward debt repayment, leaving less money for other economically stimulating activities,” says David Primo, a professor of political science and business administration at the University of Rochester. A decrease in gross private domestic investments of businesses, consumer spending, and government expenditure can cause the Real GDP of the nation to decline, given Real GDP = C + I + G + (Xnet). Additionally, as Real GDP declines (economic growth slows down), the debt-to-GDP ratio increases. Currently, the debt-to-GDP ratio of the United States is around 125%, which is far higher than the stable debt-to-GDP ratio of 77%. If the national debt is higher than the gross domestic economic output of a country, then lenders will become more financially insecure and increase interest rates as collateral, further exacerbating the national debt problems. Financial insecurity can also incentivize foreign holders of the United States treasury bonds to sell them off; however, the buying/selling of securities has no impact on Real GDP because it is a non production transaction. Here is a chart showing the debt-to-GDP ratio of the United States over the past 11 years along with major events of that year that contributed to the national debt:

Source: The Balance

Here is a chart illustrating the positive correlation between national debt, interest rates, and percent of federal budget that interest on debt takes up:

Source: The Balance

So what can we do to lower national debt and treasury interest rates? With inflation rates spiking and interest rates rising to keep up with inflation, how can the federal government deal with the national debt? The most practical way to do so is lower the interest rate to as low as it can be held by the Federal Reserve. Otherwise, increasing tax revenues is a viable, short-term solution. Increased tax revenue will lower the accumulated deficits and thus positively contribute to the growing national debt. However, tax revenues slow economic growth because less money is reinvested into the economy and more money is invested towards the national debt and its creditors. Others suggest that Congress should shift its spending to economically stimulating activities that create the most jobs and keep Real GDP increasing. As for investors, those looking for a less risky investment than the government bonds but still one that is lucrative in time of debt, can explore municipal bonds. According to Rhea Thomas, senior economist at Wilmington Trust in Wilmington, municipal debt levels, “have remained steadier because state and local governments, unlike the federal government, have borrowing limits and that helps to control debt.” This allows investors to make less risky investments but still be involved in the market. Overall, the growing national debt is harmful for the economy in many ways, but it can particularly impact investors due to high interest rates and its implications. 

Works Cited

Amadeo, Kimberly. “Interest on the National Debt and How It Affects You.” The Balance, 

https://www.thebalance.com/interest-on-the-national-debt-4119024.

Chen, James. “Government Bond Definition.” Investopedia, Investopedia, 7 Dec. 2021, 

https://www.investopedia.com/terms/g/government-bond.asp.

Barnes, Ryan. “The Importance of Inflation and GDP.” Investopedia, Investopedia, 21 Sept. 

2021, https://www.investopedia.com/articles/06/gdpinflation.asp#:~:text=Over%20time%2C%20the%20growth%20in,than%20detrimental%20to%20the%20economy. 

Peter Wehner & Ian Tufts, et al. “Does the Debt Matter?” National Affairs, 

https://www.nationalaffairs.com/publications/detail/does-the-debt-matter#:~:text=These%20experts%20warned%20that%20large,holdings%20of%20U.S.%20Treasuries%2C%20a.

“Reports.” Government - Historical Debt Outstanding – Annual, 

https://www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt.htm#:~:text=The%20U.S.%20has%20had%20debt,1835%2C%20under%20President%20Andrew%20Jackson.

Team, offseo.com. “Irfi.org -> Website Value Calculator & Seo Checker.” Offseo.com, 

https://offseo.com/irfi.org/.

U.S. National Debt Clock : Real Time, https://www.usdebtclock.org/. 

The Economic Benefits of Renewable Energy

The Economic Benefits of Renewable Energy

Written by: Hailey Maynard

In regards to switching to renewable energy in the United States, you’ve probably heard that the prospect is economically inefficient and extremely costly. Despite the climate crisis, many people oppose this energy transition. However, since the U.S. relies heavily on fossil fuels (coal, oil, and natural gas) for energy, the question isn’t necessarily about whether we will switch to renewable energy, but when. Fossil fuels only form over geologic time -- the course of billions of years -- and we are burning them at a rate roughly a million times faster than they are regenerating. 

According to researchers at the Yale School of the Environment, it would cost roughly $4.5 trillion to replace fossil fuels and nuclear power with hydroelectricity, geothermal, wind, and solar power. To break that large price tag down, it would cost $1.5 trillion for a massive buildup of wind and solar electricity. $2.5 trillion would go towards adding 900 gigawatts of battery storage. And lastly, the U.S. will need to double its transmission lines from 200,000 to 400,000 miles in order to handle the new distributed power system, which would cost about $700 billion. 

While that’s a daunting price tag, it is logistically attainable to switch to one hundred percent clean energy in the next decade because the cost of switching to renewable energy is comparable to the cost of building new coal and nuclear capacity. 

The graph below shows the cost of each energy source as of 2019. Evidently, the cost of utilizing solar power plummeted by 2016, and the most expensive energy source is actually coal. While natural gas remains the cheapest, it’s important to recognize that the prices of implementing renewable energy sources are competitive with fossil fuel prices, without the extensive environmental and human health costs. 

Additionally, making the transition to renewable energy would stimulate the economy. According to science writer Bob Homes, “switching to renewables requires far less investment into your power sector than if you were to build new coal or nuclear power plants. That means a lower electricity price, and that has impacts on everything in the economy”. To elaborate, lower electricity prices equate to lower production costs, which increases profit. This helps families too because they can reallocate the money that they would have spent on power toward other necessities. 

Furthermore, this transition would create millions of new jobs from technological advancements and the implementation of new infrastructure. The solar and wind sectors show promising job growth, as they expanded by 24.5% and 16% from 2016 to 2017. Also, renewable energy jobs outnumber coal and gas jobs in 30 states. While the transition would cause frictional unemployment, if the world limits global warming to 2℃ (per the Paris Agreement), an estimated 8 to 14 million more energy jobs would be created by 2050. 

As you can see in the graph above, the use of renewable energy directly correlates with job growth. If employment in the renewable energy sector grew by roughly 5 million jobs between 2012 and 2020, it’s safe to assume that the creation of 8 to 14 million jobs from the energy transition by 2050 is entirely feasible. 

Lastly, as our population expands and consumption rises, total energy demand is expected to increase by 21% in the next 8 years. The monetary costs associated with the transition to 100% renewable energy aren’t small, but in the big picture, the implicit costs associated with fossil fuel use, like respiratory issues and global warming, are much greater.

Works Cited

Ferroukhi, Rabia. “Renewable Energy Benefits: Measuring the Economics.” International 

Renewable Energy Agency, 2016, 

https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2016/IRENA_Measuring-the-Economics_2016.pdf 

Hockenos, Paul. “Shifting U.S. to 100 Percent Renewables Would Cost $4.5 Trillion, Analysis 

Finds.” Yale Environment 360, Yale University, 28 Jun. 2019, 

https://e360.yale.edu/digest/shifting-u-s-to-100-percent-renewables-would-cost-4-5-trillion-analysis-finds 

Holmes, Bob. “Why green energy finally makes economic sense.” Knowable Magazine, 14 Jan. 

2020, https://knowablemagazine.org/article/sustainability/2020/cost-of-renewable-energy#:~:te

xt=Switching%20to%20renewables%20requires%20far,of%20production%2C%20and%2

\0increases%20profit 

Shenette, Ellen. “Clean energy is building a new American workforce.” Environmental Defense 

Fund, Jan. 2018, https://www.edf.org/energy/clean-energy-jobs 

Shreve, Dan. “Energy Transition: Deep decarbonisation -- the multi-trillion-dollar question.” Wood 

Mackenzie, 27 Jun. 2019, 

https://www.woodmac.com/news/feature/deep-decarbonisation-the-multi-trillion-dollar-question/?utm_source=gtmarticle&utm_medium=web&utm_campaign=wmpr_griddecarb 

Timmons, David. “The Economics of Renewable Energy.” Global Development and 

Environment Institute, 2014, 

https://www.bu.edu/eci/files/2019/06/RenewableEnergyEcon.pdf 

Forty Hours of This One Thing per Week can Kill You.

 Forty Hours of This One Thing per Week can Kill You. 

Here’s What You Need to Know About the 40 Hour Workweek

Diego Zibell

The typical, standard American works, on average, 34.4 hours per week. For people aged 25-54 however, the workweek consists of an average of 40.5 hours. This is the norm. What society has set up and what our economy deems is necessary to continue functionality and efficiency, but what if that's all wrong?  

The concept of a 5-6 day, 40+ hour workweek is stale and exhausted. Lessening the days or hours of work per week would lessen the misery of working-class citizens, improve productivity, and overall aid economic growth. 

Health and happiness are two factors that contribute extensively to the success of an economy. Working long hours and a packed work week heavily contributes to stress and unhappiness in workers. This in turn causes them to be less productive and lower the quality of their work. According to Cleveland Clinic, 5 common side effects of working too much include lack of sleep, not eating enough food throughout the day, lack of physical activity and exercise (especially in the cases of sedentary jobs), the neglection of relationships, and turning to unhealthy coping methods like drugs or alcohol. Another issue raised in this scenario is that turning to a coping method like alcohol causes the consumption of demerit goods. They create a negative externality because the harmful societal cost is vast while the profit is private, further harming the economy. 

Additionally, a study conducted by WHO (World Health Organization) and the International Labor Organization determined that working long hours (around 55 per week) is very common and can cause high attributable burdens to stroke and heart disease. Another example of the issue with high working hours is that the U.K. government reported that stress, depression, and anxiety are about 51% of all work-related health cases and 55% of all working days lost. When workers begin to suffer as a result of working long hours, it reduces the amount of time they can work, and maybe even willing to work if the consequences become too severe. This lowers the amount of work that employees can do and also the quality of the work that is performed.  

Although high working hours negatively affect health and happiness which can decrease productivity, how do they directly affect productivity?  

When discussing productivity a very important aspect is how often workers cannot attend work or how often they do work (part-time vs. full-time). Part-time workers are more productive hour-for-hour than full-time workers (Stillman 1). This indicates how part-time workers, who normally work significantly less than full-timers, benefit from working less and can work more efficiently. Sick leave and being absent can often be caused by working long hours and also having to balance working and domestic duties. As stated above, working long hours can have many effects on health, and sick employees are much less productive than healthy ones, further lowering productivity.   

According to a study conducted in 2017, call center agents were found to take longer to handle calls towards the end of the day which lowered the overall productivity of the call center. Additionally, when a car service station switched its workweek from 40 hours to 30 hours, the mechanics increased their productivity by 14% and the total profits rose by 25% (Coote 1). The relationship between productivity and hours worked is also supported by the data collected by the OECD which is presented on the graph shown below:

https://www.weforum.org/agenda/2016/03/does-working-fewer-hours-make-you-more-productive/  

The loss of productivity caused by overworking is bad for the economy for multiple reasons. A loss of productivity can cause supply to lessen because workers are not producing as much output which in turn lowers the goods supplied. If demand is high for goods but the supply is low, it causes a shortage and moves the market to disequilibrium. This then causes the equilibrium price to rise which hurts consumers because it costs them more money to purchase the goods which also increases their propensity to consume.   

Solely based on these reasons, it's clear that lowering the average hours worked per week would decrease adverse health effects caused by overworking, increase happiness, and increase productivity in the workplace. This greatly helps with economic growth because increased productivity and happiness increase output which increases supply and can fulfill the quantity demanded when it comes to specific goods or markets. Overall, the multiple benefits that would come from shortening the workweek, especially in terms of the workers, seem to make the change beneficial for the future of most economies. 

Works Cited

“5 Side Effects of Working Too Much.” Cleveland Clinic, 26 Oct. 2021, health.clevelandclinic.org/effects-of-working-too-much/.

Stillman, Jessica. “30-Hour Work Week: The Key to a Healthier Economy.” Inc.com, Inc., 4 Nov. 2013, www.inc.com/jessica-stillman/create-a-better-economy-work-less.html.

“The Time For a Four-Day Work Week Has Arrived.” In These Times, inthesetimes.com/article/four-day-work-week-economy-covid-climate.

“What Is The Average Work Hours Per Week In The US?” Zippia, www.zippia.com/advice/average-work-hours-per-week/#:~:text=The average American works 34.4,on household responsibilities, on average.

Written by Emma Luxton. “Does Working Fewer Hours Make You More Productive?” World Economic Forum, www.weforum.org/agenda/2016/03/does-working-fewer-hours-make-you-more-productive

Why Housing Prices vary from Place to Place

Elizabeth Kuhnen

You’ve probably heard people mention the comparison between the cost of homes in varying cities, states, and even countries. For example, a mansion in Texas is nearly a quarter of the price of a mansion in California. Or how a million dollar condo in NYC, is the size of your $100,000 house living room. According to Edward L. Glaeser's article, "Housing Supply," for the National Bureau of Economic Research, “The West Coast city of San Francisco has a median home cost of $500,000.” Contrary to that , CNN Money stated that in Minneapolis, “Median home price of $157,000 in 2011.” But what exactly determines the prices? Why do they vary from place to place? 

It is more than just the size of a house that affects the house price. One critical factor is supply and demand. For example the demand can go up if the wages increase for citizens with more employees people have a larger budget for their home. However, there can be a decrease in demand if the wages decrease, or if there are higher interest rates. On the other hand, if there are less houses being built, there is more competition, and there are not enough buyers to keep up the new houses. In particular, one large reason why California charges so much for their housing is because they haven’t built enough for it. There is such a high demand to live in California, and this pairing causes for more competition. People are willing to pay a lot of money for housing in California. 

But why is this? Why do people want to live in California, or other places with such high mortgages? Well another indicator for the pricing is location. According to Investopedia, what makes a good location is: centrality, neighborhood, development, and lot. Another thing is the number of shared goods. For example, NYC is filled with shared goods, but someone has to pay for it. Living in NYC is a lot more expensive than anywhere else. Not only that, but when there are pretty views, nice trails, efficient entertainment, and tourist attractions, there is a higher demand in the market. Places like NYC and California not only have efficient entertainment, but also stores and beaches right outside your back door. These things can really impact the interest rate in buyers, and because of this, they are willing to pay more. 

Access to cities in Texas is a lot harder for residents, compared to NYC. Texas also has a lot of land and space. Finally, Texas also has lower wages compared to other states. According to KVUE, the minimum wage in Texas is $7.25. But in NYC, “minimum wage rate of $15.00 per hour” (JDSPURDA). Overall, by looking at these statistics, you can gather that there are many different economic and environmental factors that result in the prices of homes across the world, even specific to the US. 

Works Cited 

“8 Critical Factors That Influence a Home's Value.” Opendoor, 19 Sept. 2019, https://www.opendoor.com/w/blog/factors-that-influence-home-value.

Comme, Author: Pamela. “Experts Say Texas Minimum Wage of $7.25 an Hour Is Not Livable.” Kvue.com, 29 Jan. 2022, https://www.kvue.com/article/news/local/experts-texas-minimum-wage-725-not-livable/269-49011d46-728d-4759-9341-1e8f3d3ae350. 

Levin, Matt. “5 Reasons California's Housing Costs Are so High.” KQED, 4 May 2018, https://www.kqed.org/news/11666284/5-reasons-californias-housing-costs-are-so-high. 

Olizarowicz, Brittany. “Why Are Houses in Texas so Cheap? (Top 10 Reasons).” Home Mindset, 30 June 2021, https://www.homemindset.com/why-are-houses-in-texas-so-cheap/. 

Why College should be Less Expensive

 Why College Should Be Less Expensive

For me and many others, it’s about that time to start thinking about colleges. Along with college, one of the main factors of deciding a college is its affordability. Since 2000, college tuition is up 33% and is only rising. This not only causes more debt for students but decreasing the tuition cost will allow more people to go to college. Lowering the cost of college will also level out the playing field for students. Giving students with less money a better opportunity to attend better colleges.

For many students, the main problems with college come after they graduate with student debt. According to nbcnews.com, “ One in every five adults carry student loan debt.” America has the 4th most expensive average college cost in the world. The average cost for a year of college is $20,770. This number is astounding which makes sense for all the student loan debt in America. Lowering this cost would allow students to have money for other uses. This could include investing, saving up for a house or even paying off student debt. According to uopeople.edu, “In the U.S, the average student debt per person is $31,172.” With the average starting salary after college being roughly $55,000, lower income students would be able to focus on their living expenses rather than on college. 

 With lowering college expenses, more student will be able to attend college. According to nasfaa.org, “Low-income students cannot afford 95% of colleges.”  This is a huge amount when you think that 11.8% of Americans can’t even afford college. This is hard for the students because they could think high school is not important if they know college isn’t even an option. With the tuition getting cut, these students would have something to work for and would make them able to go to college.  According to ed.gov, “ 1 in 10 people from low-income families attend college.” This proves how many people from low-income families don’t go to college. With the tuition cost being lowered, this number would go up and allow lower-income students to go to college. 

There are many reasons why college is so expensive. There is lower state funding, growing demand, and mainly the increase focus on financial aid. Although financial aid is great, it still limits students from getting into top colleges. Students shouldn’t be limited to what school they go to just because they can’t afford the school. I personally think there should be more state funding for college. I know this money would come from taxes, but a slight increase would still make a difference. These tax increases could also be only put on families labeled as middle class or high income. Countries with free colleges like Germany, Brazil, Finland, Sweden, and Denmark have all done this and the response and results have been positive. This shows that having a slight increase in taxes shouldn’t be too much of a problem. Overall, if college costs continue to rise, the investment in college might not be the right move and we might see better paths than college in the upcoming years. 

www.nasfaa.org/news-item/11623/Report_Low-Income_Students_Cannot_Afford_95_Percent_of_Colleges.

Chiwaya, Nigel. “These Five Charts Show How Bad the Student Loan Debt Situation Is.” NBCNews.com, NBCUniversal News Group, 24 Apr. 2019, www.nbcnews.com/news/us-news/student-loan-statistics-2019-n997836.

Drake, Jordan. “Free College for All Is a Bad Idea.” The University Star, universitystar.com/30626/opinions/free-college-for-all-is-a-bad-idea/.

Hochman, Allison. “5 Reasons Why College Should Be Free.” University of the People, 30 Jan. 2020, www.uopeople.edu/blog/5-reasons-why-college-should-be-free/.

“Should College Be Free: Pros And Cons - College Raptor.” College Raptor Blog, 5 Feb. 2020, www.collegeraptor.com/find-colleges/articles/affordability-college-cost/pros-cons-tuition-free-college/.

The Benefit of Bringing an NHL Team to Wisconsin

Ryan Hamell 

As of right now, the National Hockey League, also known as the NHL, currently has 32 teams across 19 states. Each one of those 32 teams brought in an average of 5.09 billion dollars before COVID hit and still brought in a total of over 4 billion dollars even when COVID was in full swing. On a different note, Wisconsin is ranked 13th nationwide for the highest concentration of hockey players and even though it has three professional sports teams including the Brewers, Bucks and the Packers, an NHL team is still missing. If a team was brought to Wisconsin, there would be no lack of fans. Just recently, the Milwaukee Bucks built a brand new stadium which has had an immense impact on the near by community. Jobs were created, restaurants and stores gained more customers, and because of that, the economy in general benefited. If a NHL team was brought to Wisconsin, the few costs would not be nearly as great as the many benefits.

The first reason that bringing an NHL team to Wisconsin would be beneficial to the economy is that there would be a large amount of jobs that would become available. The stadium would need people to help build it, people to design the interior of the arena, workers to run venders during games, and security members to stay within the arena at all times. Right now, the unemployment rate in Wisconsin is at 3.1 percent. Even though this is a pretty low number, it still means that there are people out there who do not have any job or sources of income. According to Chicagotribune.com, Building a sports stadium requires about 12,000-14,000 different people in order for it to be ready to hold games in and about 1,200 employees to maintain the stadium while games are going on. 

In addition to supplying jobs to people who don’t already have one, a professional sports team will help people in the community running restaurants or shops maintain their job. When people come to watch the game, they most likely will be doing something else while they are there. This usually includes eating at restaurants both before and after the game because food in the arena is expensive. As for other shops, they will have more traffic outside than they normally would have. Because there are more people walking by, more people will decide to stop in and buy something. Small business and larger businesses alike will thrive. As you can see above, the income of the Milwaukee Bucks skyrocketed around the year 2018. That same year is when their new stadium, the Fiserv Forum, was built. This shows that there will be a great amount of income right away after a new stadium is put up.

As I mentioned before, Wisconsin is ranked 13th nationwide for the highest concentration of hockey players. Along with the players, an additional 460,000 people tuned in regularly to watch hockey on television during the past season. Even though this might not seem like a lot, these people are watching teams that they might like, but they don’t have a connection to. If an NHL team was created, these same fans would watch more hockey along with other citizens that might not have previously watched. Many people that don’t know a lot about sports like football or basketball still attend games because they find that the stadiums are a fun environment to be in. 

With an addition of an NHL team to Wisconsin, we will see an increase job openings that will be filled quickly by citizens. Restaurants and small shops will be impacted in a positive way from the increased amount of customers, and fans will be brought together to support a home team. All of these different things will positively impact the economy of Wisconsin as a whole.

Works Cited

“NHL Teams By State.” NHL Teams by State,        https://state.1keydata.com/nhl-teams-by-state.php. 

Collier, Jamal. “Bulls and Blackhawks Will Pay United Center Employees - Approximately 1,200  People - through the Remainder of the Scheduled Season after Coronavirus Shutdowns.” Chicagotribune.com, Chicago Tribune, 15 Mar. 2020, www.chicagotribune.com/coronavirus/ct-chicago-bulls-blackhawks-coronavirus-united-center-20200314-767l7tkwlnga5kq2bfrk72zmwi-story.html. 

NFTs: Good Investment or Good Way to Go Bankrupt?

 NFTs: Good Investment or Good Way to Go Bankrupt?

By: Kyle Kaska

NFTs, or non-fungible tokens, have recently become a hot topic of discussion. Whether it be positive or negative, NFTs have occupied an ever-increasing amount of space on the internet. However, what an NFT is is just as hot of a topic. The Forbes Advisor article “What Is An NFT? Non-Fungible Tokens Explained (Links to an external site.)” defines them as “a digital asset that represents real-world objects like art, music, in-game items and videos.” What sets these assets apart from anything else on the internet -- and what makes them valuable -- is the non-fungible aspect, protected by the blockchain. Non-fungible means that one NFT is not worth the same as any other, and so can’t be exchanged like a dollar bill would be. Each NFT is one of one, like diamonds or a painting, and the owner can prove this with the blockchain which tells others that they are the sole owner of the NFT.

The blockchain protects the owner’s investment, acting as a list of records of who has bought what and when. In a video from CNBC titled “Can You Make Money From NFTs (Links to an external site.)?” ClubNFT CEO Jason Bailey states that the blockchain is secure because it is a decentralized system that exists across many different computers, making it nearly impossible to change or interfere with any of the records. Through this blockchain, it is possible to ensure that a buyer is purchasing the original copy of an NFT, as opposed to physical artworks in which the amount of prints or forgeries compromise the value and rarity of the artwork. Furthermore, through the blockchain, artists are able to make profits off of secondary sales, whereas with physical artwork artists often only profit off of the initial sale. These aspects make NFTs a very appealing new market, and with the amount of money being made through them, who wouldn’t want to take their chances.

However, in its current state, NFTs are still highly volatile. While headlines show that NFTs are being bought and sold for millions of dollars, that’s often not the case. Many young people believe that they can purchase an NFT for low and then sell it for much higher a few days later, much like stocks, but don’t succeed because the buyer market isn’t there. Despite it being a multi-billion dollar market with constant growth, as shown in the graph below, the amount of buyers is only in the thousands. In an article from Annuity.org, “From the Experts: 8 Pros and Cons of Non-Fungible Tokens and How They Compare to Traditional Investments, (Links to an external site.)” author Thomas Brock argues that, “Buying [NFTs] with the hope of achieving triple- or quadruple-digit price returns is not advisable. The real value of NFTs lies in their potential to transform the way markets function and enhance the way we manage and control sensitive information.” While NFTs may be profitable for some, they aren’t for everyone, and it certainly isn’t a smart decision to pour all of your money into a market which is constantly changing and may never show you any growth. Regardless of this, it is undeniable that the blockchain has applications in many other fields to protect information as it is incredibly safe and near impossible to falsify.

Although a volatile market, it is undeniable that NFTs are an ever-growing industry. The CNBC video states that the NFT market has shown year to year gains of a staggering 38,000%. The graph included below shows the rate at which the NFT market cap has grown just during the first two months of 2021, reaching a peak in March of 2021 with a market cap of just over $20B. As of right now, nearly a year after these statistics, the current market cap of NFTs is about $31.4B. It is very apparent that the NFT marketplace is continuing to grow, and with major companies like McDonald’s, Taco Bell, and others offering their own NFTs, that marketplace is only going to continue growing. Nonetheless, it still stands that one can not expect a guaranteed return on investing in NFTs, and so if you choose to go out and purchase or mint your own NFT, do so with financially responsible, low-cost investments to avoid bankruptcy at the hands of a poorly drawn monkey JPG.

Works Cited

“Are NFTs a Good Investment?” CNBC, CNBC, 9 Feb. 2022, www.cnbc.com/video/2021/11/28/are-non-fungible-tokens-a-good-investment.html.

Brock, Written By
Thomas J. “8 Pros and Cons of NFTs & How They Compare to Traditional Investments.” Annuity.org, 18 Jan. 2022, www.annuity.org/2022/01/14/from-the-experts-8-pros-and-cons-of-nfts/#:~:text=The most obvious benefit of,pockets of the art world.

Conti, Robyn. “What Is An NFT? Non-Fungible Tokens Explained.” Forbes, Forbes Magazine, 16 Feb. 2022, www.forbes.com/advisor/investing/nft-non-fungible-token/.

Young, Joseph. “NFT Market Rages On: NFTs Market Cap Grow 1,785% In 2021 As Demand Explodes.” Forbes, Forbes Magazine, 10 Dec. 2021, www.forbes.com/sites/youngjoseph/2021/03/29/nft-market-rages-on-nfts-market-cap-grow-1785-in-2021-as-demand-explodes/?sh=56270d477fdc.

Buying Houses at Different Income Levels in Pewaukee

     

Buying Houses At Different Income Levels: Pewaukee

By: Erin Berg 

As we may all know, housing in Pewaukee, Wisconsin is not very cheap. This is a higher/middle class community which results in higher housing prices. Therefore, I am going to teach you how to hunt for the house that fits your needs and your price range. To make it more realistic, I am going to be looking for houses that could fit a family of 4. 

According to US News, the average lower class income is anywhere between $32,048-$53,413, middle class is $53,413-$106,807, higher class is $106,807- $373,894, and lastly rich is considered anything higher than $373,894. In Pewaukee, the average household income is $104,645, according to the United States Census Bureau. 

First, I am going to be looking for a house that fits a family of 4 for an average income of $50,000. That would mean this family could afford a house between the price range of $190,000- $260,000. According to Mortgage Calculator, the monthly mortgage payment for this family would have to be below $1,500. So this house located on 364 Park Hill Drive, is a 2 bedroom 2 bath with a monthly payment of $1,303. Therefore, this house would be perfect for this family as long the children share a room.

The next income level would be a family of 4 who makes $80,000 a year. The average monthly income for this person would be around $5,000. Therefore a house that has a monthly payment of $2,500-$3,000, would be best fit for this family. This house on 445 High Street is a 4 bedroom 2 bath for $324,900 with a monthly payment of $1,700. So this house would be perfect for this family.

Lastly, to make things fun, let's have someone who makes $400,000 a year. This person would be having a monthly income of $33,000. So this house on Kopmeier drive which is on the lake, is $1.45 million with 3 bedrooms and 4 baths. The monthly payment would be $7,463 for this house so this is surprisingly under budget. 

Overall, everyone makes a different income so it's difficult to guide everyone reading this post. Although with the sources I provided it is very easy to assess how much you can afford. These websites could be: Zillow, Realtor, Mortgage Calculator, and Homes.com. 

Job Opportunities Entering the Economy Despite the Micron Variant Surge

 Job Opportunities Entering the Economy Despite the Micron Variant Surge

Written by: Grace Pasdera 

With the long lasting effect of the pandemic, many people were faced jobless because many occupations were no longer available showing growth or success during the pandemic. In the beginning of the pandemic, there was an increase of structural unemployment because industries were closing down and leaving workers behind with skills that aren't needed by other companies. Many occupations that thrived off of in person contact were no longer in use because of the intense health risk of Covid-19. 

Many people were discouraged to find work after being let go from industries they have been with possibly their whole career, although, the economy adjusted to new technological advancements and “norms” with the pandemic. Through the pandemic, the economy has shown how resilient the labor market is. According to Eli Rosenberg with the Washington Post in his February addition, “The U.S. economy added 467,000 jobs in January even as the omicron variant spiked to record heights.” New opportunities and occupations are being pushed into the economy to aid the structural unemployed and increase economic productivity during the long lasting effects of the pandemic. 

Additional job opportunities that spring from the pandemic’s long lasting effects increased frictional unemployment; unemployment which exists in any economy due to people being in the process of moving from one job to another. Rosenberg focused on the increase of job opportunities during the pandemic but he also looked at the effects it could have on inflation, “the labor market and economy have grown rapidly in the past year despite the pandemic’s delta and omicron variants, but rising inflation has caused a number of problems for businesses and households.” With adjusting to the pandemic job oppetunitendted entering the economy have to fluctuate their starting prices to attract workers, which create competition and strain for other competing companies. 

  

Source: Bureau of Labor Statistics

Works Cited

“All Employees, Total Nonfarm.” FRED, 4 Feb. 2022.

Rosenberg, Eli. “U.S. Added 467,000 Jobs in January Despite Omicron Variant Surge.” The Washington Post, WP Company, 4 Feb. 2022.