Government Shutdown

By Brad Nagel

As of right now, the United States is in the midst of an economical crisis: the government shutdown. The shutdown of the government in the United States occurred due to a lack of an agreement in congress on the budget to fund the government. Now some people hear government shutdown and think that the United States is currently in a state of anarchy with no government at all, but that’s not the case. The government isn’t completely gone, however there are many workers affected by the shutdown, and the economy is being impacted greatly.

In the past, the government has been shutdown in the same way it is shutdown right now, but usually only for a few days. The last time the government was shut down for an extended period was in 1995 when the government was shut down for 21 days. That 1995 shutdown proved to cost the United States 2.1 billion dollars. Currently the government has been shut down for 14 days and counting, and it is estimated that it is costing the United States 1.6 million dollars a day. Because the government is shutdown for this prolonged period, the economy is suffering more and more each day.

First of all, many people who work for the government are not being paid. Some government employees are still working, but they aren’t receiving their paychecks. Furthermore, some employees who work for what is considered ‘non-essential’ parts of the government are not even allowed to show up to work. For example, national park workers can’t work because all of the national parks are closed! In total, the shutdown has already caused a leave of absence to 350,000 people who work for the federal government.

http://www.youtube.com/watch?v=NIo7llkPneE

With this many people not being paid, this is where the economy comes into play. There are now more people with less money, so the United States is going to see a decrease in demand of many products. Many small businesses who specialize in more specific products will suffer because there simply are less people who are going shopping and who are willing to buy luxury type items. This may result in a large surplus of products because suppliers were not expecting this sudden decrease in employment. Also, businesses who sell goods or services to the government are going to feel the negative impact of the shutdown. The government won’t be buying the goods or services, and therefore these businesses will not be able to make money, resulting in even more job losses.

Another reason why the economy will suffer from the government shutdown is because the United States is coming across as unreliable. Many large businesses and the CEO’s of these businesses are going to start looking other places than the United States to generate revenue. If the United States has a government that can’t agree on a budget, CEO’s of the large businesses are going to want to avoid relying on the United States to make money. This will greatly impact the economy of the United States because now some of the major businesses that help build the economy of the United States are going to be gone.

Overall, the government shutdown has only hurt the economy of the United States, and each day that the shutdown continues it’s only going to get worse. America can only hope that congress can make a deal and end the shutdown before the economy gets further destroyed.

Video Link:

http://www.youtube.com/watch?v=NIo7llkPneE

Picture Link:

http://mediad.publicbroadcasting.net/p/hppr/files/201310/government_shutdown_2013.jpg

Bibliography

Alex. "Government shutdown would threaten fragile economy - POLITICO.com." Politics, Political News - POLITICO.com. N.p., n.d. Web. 14 Oct. 2013. <http://www.politico.com/story/2013/09/government-shutdown-2013-economy-97541.html>.

Curry, Tom, and NBC News. "Government shutdown, day 14: Where does it go from here? - NBC Politics."NBC Politics. N.p., n.d. Web. 15 Oct. 2013. <http://nbcpolitics.nbcnews.com/_news/2013/10/14/20948247-government-shutdown-day-14-where-does-it-go-from-here?lite>.

"Economic effects of the government shutdown - YouTube." YouTube. N.p., n.d. Web. 15 Oct. 2013. <http://www.youtube.com/watch?v=NIo7llkPneE>.

"Government Shutdown: Some Regional Lawmakers Are Refusing Pay | HPPR."HPPR | In touch with the world, at home on the High Plains. N.p., n.d. Web. 15 Oct. 2013. <http://hppr.org/post/government-shutdown-some-regional-lawmakers-are-refusing-pay>.

Zambell, Nancy, and 2013. "The Government Shutdown's Long-Term Effects - Money Morning." Money Morning - Only the News You Can Profit From. N.p., n.d. Web. 15 Oct. 2013. <http://moneymorning.com/2013/10/08/the-government-shutdowns-long-term-effects/#>.

Did Sony beat Microsoft at E3 2013?

By Bijoy Babu

The reign of the seventh-generation video game consoles is finally coming to an end. After a staggering 8 years with Sony’s Playstation 3, Microsoft’s Xbox 360 and Nintendo’s Wii, it seems like a perfect year to start a new generation. With the Playstation 4 and Xbox One (sorry Nintendo, you came too early to the party:) right around the corner, it looks like there will be a close tie between these 2 iconic game systems. After years and years of preparation, these 2 enormous tech giants are silently waiting for their profits to skyrocket, but from what we have seen at the Electronic Entertainment Expo (E3) 2013, did Sony steal the show by unveiling it’s distinctive, consumer friendly and competitively priced game console that goes head to head with Microsoft’s Xbox One? Many critics, especially hardcore gamers have given their honest beliefs in saying that the Japanese-based company is the clear winner of the next installation of video game consoles.

        Like most people, sales and profits are what they look at closely to determine who is going to have the upper hand once these systems launch. Given the fact that Nintendo has already released its latest console, the Wii U, back in November of 2012, the company’s shares had fallen about 10% (nintendolife) immediately after release, followed by a huge 51% drop in sales three months later. It seems that not only gamers, but the average consumer was not impressed by the new additions and features that Nintendo had put into their system after they released the globally acclaimed and original Wii, which is still the highest selling seventh-generation video game console to date with over 100 million units sold. With the sales of the Wii, which dwarf the Wii U, we can respectfully say that Nintendo was hit extremely hard this time. Nintendo, what happened?

        Following the sales of the Xbox One on the other hand, is a little bit easier and clearer to visualize. Taking a moment to look back at Microsoft’s previous sales with their previous consoles, the original Xbox and Xbox 360, they have been fighting for a long time with competitor Sony to bring more of their product to consumers. Microsoft released the original Xbox back in 2001 with a plan to get the U.S. into the video game console industry. The sales had been successful and the reviews were positive, and Xbox had become a full-fledged brand name in the world of consoles. It was where Microsoft had beaten Sony by unveiling the Xbox 360, one full year before Sony’s Playstation 3. Microsoft had learned from the original Xbox that even though sales were solid, they were nowhere near that of Sony’s Playstation 2, which is to this day the highest selling video game console in history with over 150 million units sold compared to the Xbox’s 25 million units sold. Leading the current generation of consoles is the Xbox 360 with about 77 million and about 75 million units for the Playstation 3. Even though Microsoft sales have soared over the past couple of years, thanks to its Windows operating system and Xbox consoles, the company has been reporting gigantic falls in the recent months, which critics say is the fault of their newly redesigned operating system Windows 8. (CNET News) Sony though, is keeping it together with a solid growth pattern.

        So, what it ultimately comes down to was the presentation that these two companies had put together at E3. Many people can argue, but most would say that Microsoft had put on a rather frustrating and disappointing (Forbes) show as they showed off the features and price of their Xbox One. While the features of the Xbox One were unique and interesting in their own way, many gamers stated that Microsoft was aiming at a broader demographic, which led many people to believe that Microsoft was focusing more on streaming entertainment as apposed to video games, something the Xbox One was made for. Sony on the other hand, had taken the complete opposite approach. They had talked specifically to their core audience, the gamers, stating that this is the best place to play games period. Sony had even raised the limits by announcing some features that are either absent or restricted on the Xbox One that have actually something to do with games rather than online T.V. services. Sony definitely knew what they were talking about once they unveiled the price for the new Playstation 4 was $100 less than the Xbox One. That had many people turn their heads to Sony and therefore not only to respect, but to believe in Sony to bring what their audience desires.

        So after these two unlike presentations, most people have already a good sense in their head, not only which of these companies will release the best video game console of the next-generation, but also which company will lead the sales. Most people are defending Sony, but will Microsoft make a surprise comeback into the video game industry?

http://www.gizmodo.co.uk/2013/07/wii-u-a-global-flop-as-nintendo-sells-just-160000-in-a-quarter/

http://www.nintendolife.com/news/2011/06/following_wii_u_unveiling_nintendo_shares_drop_10_percent

http://www.wired.com/gamelife/2013/06/e3-2013-analysis/

http://news.cnet.com/8301-1001_3-57578914-92/pcs-hit-by-an-ugly-quarterly-drop-as-windows-8-flops/

http://www.forbes.com/sites/insertcoin/2013/05/21/microsoft-stumbles-through-xbox-one-announcement-shows-little-answers-less/

The Crash of Hostess

By Emily Jansen

The Hostess brand, and the famous Twinkie have been around for almost one hundred years. However, last year, Hostess went bankrupted, and affected the lives of every Twinkie lover around. Not only were the consumers affected, so were the producers. 18,500 Hostess workers lost their jobs when 33 factories were shut down.

Everyone knows the outlook on Hostess products, and with the new fad of healthy foods sweeping the nation, the want for deep-fried junk food quickly diminished. The demand for these products has decreased greatly over the past few years. With the combined factors of losing business and the unionization of factory workers (creating much higher wages) the Hostess Company had a net loss of 1.1 billion dollars.

How could the debt possibly become this large? According to Forbes, they say the greatest mistake of Hostess, was the fact that they did not change to meet the demands of the consumers. Instead of creating healthier products, they tried to keep the products they already had, popular. They made a slight attempt to delve into the 100 calorie fad, and made Twinkie Bites, but obviously they did not become very popular. It is very possible for companies like these to change. Like Coca-Cola and General Mills, who created new products that prospered, maintain to stay in high demand with a higher array of products.

Because of these conditions, Hostess filed for bankruptcy in 2009. After this, the unions agreed to lower labor costs, saving a total of $220 Million, and Hostess lenders loaned a total of $360 Million. Unfortunately, this still could not save the company, leaving them overwhelmed with debt.

The two biggest problems Hostess suffered from was the issue of high labor costs and small margin for error. If these problems had been solved, the company could have had the possibility of never going bankrupt in the first place.

Of course, Twinkies still exist today, through all of the nonsense. Luckily, due to the factors of the economy, Hostess products can live on. Once the Hostess Company went bankrupt, they were able to sell their products to the next highest paying company willing to buy the products.  When Hostess went up for bid, it sold for $410 Million, for the products alone. “Hostess chose a joint offer from Apollo Global Management LLC and C. Dean Metropoulos & Co. as the lead bid for Twinkies and other cake brands.” Thankfully for us, we can now still go to the nearest grocery store to buy our favorite brands.

Because of the loss in these products, the demand spiked. Once the consumers could no longer buy the products, they wanted them more. Luckily, we can now have them again and the demand has decreased slowly over the past few months.

This all relates to the process of economy, through the factors of supply and demand. The demand decreased at a severe rate, and the Hostess Company did not broaden its supply, causing a failure in the system, leading to the bankruptcy and closing of Hostess products.  

http://www.bloomberg.com/video/hostess-stalking-horse-bids-at-858-mln-ceo-says-0SxTgkWMTPWrP0riA~Tx6w.html 

http://www.huffingtonpost.com/2013/03/12/twinkies-sold-hostess-brands_n_2861601.html

http://www.forbes.com/sites/quora/2012/11/21/did-hostess-go-bankrupt-in-2012-because-people-no-longer-find-twinkies-appealing/

Should Minimum Wage be raised?

By Dakota Lenske

            A major topic of discussion across the country right now is minimum wage. With a lot of families in America surviving off of a minimum amount of income it would be a great help to have minimum wage raised. According to an article on the website Reuter,”the number of poverty stricken families in America rose from 46.2 million to 46.5 million in the last year.” That is a huge increase in poverty, especially when our economy was just starting to make a comeback.  An increase in minimum wage would allow these families to have a better income and help get America as a whole out of poverty. One of the biggest issues is that if the minimum wage is raised, workers hours would be cut to make up for the pay increase. But as Jared Bernstein from CNN states, “Even if employers give workers fewer hours, worker’s hourly wages would be higher so they could still come away with higher earnings.”

            Though a raise in minimum wage is a good thing for most, it also has its negatives. Teens and even adults who haven’t had a job yet need somewhere to start and that somewhere for most people is a low paying job, such as flipping burgers. But with a high paying minimum wage the question is, will employees want to hire new inexperienced workers. It is a big risk that most companies probably won’t want to take. The wage of new workers has a big impact on the financial market and economy. It plays the biggest role on determining poverty in our country. With a raise it could either help or become an even bigger disaster. With a raise in minimum wage we could see a rise in the economy with families having a better income, and also boost the financial state of our economy. Making more money a year, people have more money to spend on things such as clothes or household products thus putting more money back into the economy. But at the same time we could see a huge job loss because of people being unable to attain a good paying job. That could result in a huge growth in poverty and a loss in the economy because there wouldn’t be any money put into it.

            There is also a third opinion in this topic, and that is having minimum wage stay where it is. Doing this would give people getting into the work trade a good starting income. If people out there want more money than they should prove themselves and work for it. In my opinion there are too many people nowadays who want to get rich for doing nothing and that is why there are so many broke people out there. Minimum wage was made for teens so they had something to start with and then could work up from there as they went through college and gained experience and knowledge.

            This video does a good job explaining the ups and downs of minimum wage:

http://www.youtube.com/watch?v=siW0YAAfX6I

http://money.cnn.com/infographic/pf/low-wage-worker/

http://www.reuters.com/article/2013/09/17/us-usa-economy-poverty-idUSBRE98G0PN20130917

(Money) Raining from the Heights

By Nolan Fahey

Everyone wants to be tall. Ok, maybe not everyone, but you can’t say you never

thought it would be nice to have a couple more inches. There are many advantages to

being tall. You can reach high things easier, when running or participating in other

sports you don’t have to take as many steps. But studies have shown that there are

more advantages than that. For years economists have known that being tall means

you get paid more. Not only that, but tall people are more likely to fall into positions of

leadership. As of 2004, out of the last 13 elections, 10 of the winners were the taller of

the two candidates. Out of the 43 Presidents, only 5 had been more than just a tad

below the average height. Why is that? There are many possible reasons as to why

Being tall shows that evolution favors you, historically taller people are able to

reach more resources, and therefore are subconsciously more attractive and appealing.

Is it that then? Do they just tend to be hired over an equally qualified, shorter individual?

A 2004 study by Nicola Persico, Andrew Postlewaite and Dan Silverman shows that

adults who are shorter now, but were tall in high school, earn similarly to generally tall

adults. In addition to that, adults who are tall now, but were short in high school earn

similarly to shorter adults. So there is no subconscious attraction there, at least on the

physical appearance side. So what else could it be then, are taller people better

nourished and educated? Therefore making them more appealing to employers on a

strictly qualification standard? Nicola Persico, Andrew Postlewaite and Dan Silverman

have eliminated these hypotheses. All that is left now is self esteem.

There is a certain vibe to being tall, especially, as studies show, in your

adolescent years, around 16 to be specific. Taller kids tend to exude higher levels of

self confidence. A British National Child Development Survey shows that for every

extra inch of height corresponds with a 2.2% increase in wages. An American survey

(National Longitudinal Survey of Youth) shows that kids who were relatively short

during those adolescent years were less likely to participate in extracurricular activities.

These extracurricular activities are associated with the development of productive

skills and attributes. This all suggests that being taller leads to more self confidence

and higher levels of participation in extracurricular activities. In addition to that,

Persico, Postlewaite and Silverman, report that “participation in high school athletics is

associated with an 11.7% increase in adult wages. Participation in every additional club

other than athletics is associated with a 5.1% increase in wages.”

In short, it pays to be tall; but not because of sheer physic, but because of the

boost in self confidence, and development of essential interpersonal skills. Being tall

isn’t what is going to get you that extra 2.2 percent. Being confident in yourself, and

engaging in extracurriculars, is going to give you that edge over your competition.


Landsburg, Steven. "It pays to be tall.." Politics, Business, Technology, and the Arts. N.p., n.d. Web. 8 Oct. 2013. <http://www.slate.com/articles/arts/everyday_economics/2002/03/short_changed.html>.

Persico, Nicola, Andrew Postlewaite, and Dan Silverman. "The Effect Of Adolescent Experience On Labor Market Outcomes: The Case Of Height." Journal of Political Economy 112.5 (2004): 1019-1053. Print.

Is College worth it?

Written By: Courtney Stanczak

Today, there are more Americans going to college than there was ever before; even though only 57% of Americans think college is a worthwhile investment. As parents are mortgaging their homes, tapping into their retirement funds, and co-signing loans, they are beginning to question if the pay-off is worth the investment risk. The plain and simple facts are that college graduates income during their first few years of work doesn’t begin to recoup their annual cost of attending a private college. With inflation increasing every year, many people decide to attend college in state or use financial aid programs to help pay for college. Even though the average income has been falling, college prices continually rise.

 Currently in Wisconsin, the average price tag for college is $8,690; in one year this is a five percent change from 2011-2012 to 2012-2013. The overall major factors of increased cost are inflation and demand.

            College prices didn’t start sky rocketing until the 1980’s, due primarily to inflation. Usually annual inflation is around 2%; however, for college tuition, it is 4-6% annually. To put this in perceptive, monetarily, a college education costing $10,000 will cost $400-$600 more the next year. “In a nutshell, this means that college costs are doubling every 12-18 years, compared to everything else in the economy, which is doubling in cost every 32 years” (Saving for College).  As seen, colleges typically have a larger inflation rate than the rest of the economy. This inflation is a result from colleges doing constant renovations, replacing technology, and insurance costs for running large institutions.

            In addition, demand is a constant factor that drives tuition prices. Since everyone wants and needs a degree it is easy for colleges to raise the tuition cost. Colleges won’t have to worry about losing students because there is such a high demand for a higher education degree.  

On the other hand, money isn’t the only factor having people questioning whether to go to college, it is the famous people. For example, Bill Gates or Steve Jobs, who both are college drop-outs that represent highly successful people without having their college diploma.

All in all, students go to college to get a degree and to make sure they are financially stable; however, “in 2010, recent college graduates left school owing an average of 25,250 in student loans – the highest amount ever” (Debate Club). Students are usually better off with a college degree nonetheless, but the amount of debt people graduate with is constantly increasing; making people question: Is college worth it?

Personally I feel that college is worthwhile. You are able to further your education, meet new people, open doors for job opportunities, and ultimately earn a degree. In addition there are numerous financial aid programs, scholarship opportunities, and there is the army that tries to make college affordable for everybody. Even though there is a hefty price tag that comes at the end of your college life, you see the benefits down the road. However, in the years to come I don’t know if I can continue to say that you should go to college. The reason being is because if you think of the grand total of college for a four year degree now, then think of the total 20 years from now – well I can’t even imagine.

http://net.educause.edu/ir/library/pdf/ffp0005s.pdf

http://collegesavings.about.com/od/understandingcollegecosts/a/risingcosts.htm

http://www.usnews.com/opinion/articles/2013/05/09/why-a-college-degree-no-longer-guarantees-success

http://www.usnews.com/debate-club/is-a-college-degree-still-worth-it

Costs of Colleges are Skyrocketing

By Abby Tucker

“Getting into college isn't as tough as many families fear, as 76 percent of freshman were accepted into their number one college” (CBS News). But getting accepted into college isn’t the real issue anymore, cost is. The average cost for a public college nowadays is around $22,261 and the average cost for a private college nowadays is around $43,289. (College Data) College is only getting harder to afford, even as it becomes more necessary. According to Daily Finance, “Over the last 30 years, tuition has increased 1,120 percent; by comparison, even the "skyrocketing" cost of health care only rose 600 percent, and housing costs have gone up a paltry 375 percent.”

            Even though college is a necessity to make a good life for yourself in today’s age, it is now being considered an unaffordable luxury. Since college is an elastic good, most students aren’t willing to pay for college if the price rises too high. Most would rather go to a technical college or get a two year degree just to avoid the escalating costs of college.

According to “The Guardian: Reasons Why the US Economy is Stuck,” the cost of a college education is now 50% higher than it was 30 years ago. Public colleges and universities are cheaper, but not cheap enough. As states cut funding, the cost of attending a four-year public institution has risen by 5.2% each year of the last decade. Student loan debt in this country now exceeds $1trillion and will continue to rise every year.

Although college degrees are exorbitantly expensive, they're increasingly necessary to even get in the door for a decent job. There are alternatives to help pay for college such as applying for as many scholarships as you can and by taking out student loans or getting financial aid. Most private schools will give students a good amount of scholarships if you attend their college. Private schools can sometimes reduce the costs of college by almost half with just academic scholarships.

A huge decision for many people right after high school is to decide to go to college or just start working full-time right away and not go to college. Some people believe that by working right after high school and not attending college you will earn more money because you aren’t having to pay thousands and thousands of dollars on education. But today, nearly 60 percent of all jobs in the U.S. economy require a higher education. “Educated workers are becoming increasingly valuable for two reasons: Many lower-skilled jobs are being shipped overseas, and computers do much of the mundane, repetitive work now. What's left are more complex tasks that require people to solve problems and work together.” (Georgetown University)

Money is very scarce but so is time. The best time to go to college is now because it isn’t going to get any cheaper. By getting a college degree it increasingly raises your chance of getting a stable job that will be able to support you and your family. College-educated people not only tend to have higher earnings than people without degrees, they are also more likely to have health and retirement benefits with their jobs, and they are far less likely to be unemployed.

"Why college tuition keeps rising - CBS News." Breaking News Headlines: Business, Entertainment & World News - CBS News. N.p., n.d. Web. 8 Oct. 2013.

<http://www.cbsnews.com/8301-505145_162-57517032/why-college-tuition-keeps-rising/>.

"CollegeData - Pay Your Way - What's the Price Tag for a College Education?." CollegeData: College Search, Financial Aid, College Application, College Scholarship, Student Loan, FAFSA Info, Common Application. N.p., n.d. Web. 8 Oct. 2013. <http://www.collegedata.com/cs/content/content_payarticle_tmpl.jhtml?articleId=10064>

" 10 reasons the US economy is stuck | Moira Herbst | Comment is free | theguardian.com ." Latest news, world news, sport and comment from the Guardian | theguardian.com | The Guardian . N.p., n.d. Web. 8 Oct. 2013. <http://www.theguardian.com/commentisfree/2013/jul/24/10-reason-us-economy-stuck>.

"The High Cost of Higher Education Explained in One Simple Graphic - DailyFinance." DailyFinance - News and Advice for a Lifetime of Financial Decisions. N.p., n.d. Web. 8 Oct. 2013. <http://www.dailyfinance.com/on/college-costs-tuition-rising-student-debt-infographic/>.