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. 

How is Russia's Invasion of Ukraine Impacting their Economy?

How is Russia’s invasion on Ukraine affecting their economy? 

Kaitlyn Leffler

In the past couple of days, Russia has invaded Ukraine due to the recent buildup of military on the border, causing tensions to rise in recent weeks between the two nations. Throughout this time, Russia has been experiencing declines in their economy. The economic carnages are becoming increasingly challenging to handle because of this invasion. Russia is being put under a significant amount of economic pressure due to countries like the United States attempting to take away some of their resources. 

The economic impact that is being held over Russia is huge. The Russian monetary unit hit their lowest ever level against a dollar, meaning that their economy is at a constant downfall. The Chief executive of one of Russia’s biggest electronic retailers stated that Russia was going to have to raise their prices up by about thirty percent, and possibly higher due to how much they are losing. All of this is causing Russia to have a decline in economic growth, and is not benefiting them in the slightest. 

There have been countries such as the United States, Britain, and the European Union who have been targeting Russian banks, critical technologies, and state owned corporations. The United States along with Britain and the European Union wanted to abolish the assets of Russia’s central banks. They took what Russia had been succeeding in before the war, and sabotaged it to make their economy worse. Those specific countries did this by knowing what they wanted out of them by taking away more and more of Russia’s resources. 

Countries within NATO are also tampering with Russian sanctions, specifically their energy, transportation, and economic services. It is not an instant solution, as the effects are not immediate and take time to abrupt the Russian economy. In the meantime, though, Russia has already been suffocating their economy with their surge in spending for the military. According to CNN Business, “Russia is already paying a price for its aggression. The country's stocks and currency tanked last week after Putin ordered troops into eastern Ukraine. Russia's stock market was closed Monday.

The Ruble hit record lows Monday, sliding as much as 30% against the dollar, while the Russian central bank more than doubled interest rates to 20%.”

Consequently, more and more countries are starting to become more involved with Russia’s economy, and doing what is possible to make their economy suffer. Europe has also made an attempt to reduce Russia’s capability to tap their financial markets. Russia has no way of protecting or saving their economy any time soon because of their invasion and conflicts they have going on.

Works Cited

Prince, Todd. “Russia To Pay For Putin's Ukraine Invasion With Higher Inflation, Weaker Ruble, Slower Growth.” RadioFreeEurope/RadioLiberty, Russia To Pay For Putin's Ukraine Invasion With Higher Inflation, Weaker Ruble, Slower Growth, 27 Feb. 2022, www.rferl.org/a/russian-economy-inflation-ruble-ukraine/31725302.html.

Toh, Michelle, et al. “The List of Global Sanctions on Russia for the War in Ukraine.” CNN, Cable News Network, 28 Feb. 2022, www.cnn.com/2022/02/25/business/list-global-sanctions-russia-ukraine-war-intl-hnk/index.html.

Unemployment

Unemployment 

Written by: Kaeden Osterman 

We all know that Covid was a big factor in people losing their jobs from January of 2020. That was the first case of Covid in the US. From there, Covid started spreading fast. All States were different when it came to reopening places to eat and shop etc. For instance, according to nbcnew.com, “Gov. Tony Evers directed the Dept. of Natural Resources to reopen 34 state parks and forests effective May 1. These include state parks and forests, hunting and fishing on open properties, boat launches in open state properties, and linear/rail trails. Strip-mall retail businesses reopened with a five customer limit on May 11.” This shows that in Wisconsin some things were able to reopen, but other places had limits. Which limits the staff in these places.

According to data from the U.S. Bureau of Labor “Statistics (BLS) Current Employment Statistics (CES) survey, nonfarm payroll employment in the United States declined by 9.4 million in 2020 The largest calendar-year decline in the history of the CES employment series.” This was from the US Bureau of Labor Statistics. Covid took out around 54% of all jobs. Mostly in Leisure and Hospitality. 

This image shows the huge decline in employment. Starting from January of 2010 to Jan of 2020. Once that first came to America everything started going downhill from there. From January 2020 to April of 2020 9.4 million jobs were lost. 

Since Covid, unemployment has been a problem in the US. According to bloomberg.org, “the U.S. economy added a record 6.4 million jobs in 2021, rebounding strongly from unprecedented losses in the year prior due to the pandemic.” This shows that jobs are coming back for citizens in the US but doesn’t fully make a recovery. 9.4 million jobs were lost and 6.4 million were to only be brought back in 2021. That still leaves 3 million plus people unemployed. 

This chart is from the U.S. Bureau of Labor. This shows the percentages of unemployment going back to May of 2002. That spike in April of 2020 (23,038,000 people). Which is at a high of 14.7%. Then looking at January of 2022, it is at 4% (6,513,000). As of now, 6.5 million people are unemployed. When thinking about it, that is a lot. 

The US is doing good for any type of unemployment. With only 4% unemployment, when back in 2020 it was at 14.7%. Having a 10% decrease in unemployment is good for the economy. Because people have jobs they will be spending more helping the economy grow. Also, having above 3.5% unemployment helps keep the US economy stay efficient. Anything under 3.5% unemployment in the US economy would become inefficient. So it's good to have some unemployment but not a lot. 

In conclusion, where the US is right now with the unemployment rate is good. It can be surprising that it is at 4% when 2 years ago it was at 14.7%. Covid played a big role in making more than half the US go unemployed. But since then people have been able to get jobs and can provide for themselves/their families. 

Works Cited

Bloomberg.com, Bloomberg, www.bloomberg.com/news/articles/2022-01-07/u-s-sees-record-job-growth-in-2021-after-millions-lost-in-2020.

“COVID-19 Ends Longest Employment Recovery and Expansion in CES History, Causing Unprecedented Job Losses in 2020 : Monthly Labor Review.” U.S. Bureau of Labor Statistics, U.S. Bureau of Labor Statistics, www.bls.gov/opub/mlr/2021/article/covid-19-ends-longest-employment-expansion-in-ces-history.htm.

“Reopening America: All 50 States Have Begun to Reopen. See What That Means for Your State.” NBCNews.com, NBCUniversal News Group, 12 June 2020, www.nbcnews.com/news/us-news/reopening-america-see-what-states-across-u-s-are-starting-n1195676.

Women in the Workforce

 Women in the Workforce

Written by: Lara Eisendrath

Every so often, we see articles or reports via the news that discuss the difference in pay between men and women in the workplace. Just recently on February 22nd, the US Soccer organization and women’s players on the US team agreed to settle the equal pay lawsuit, athletes received 24 million dollars and a pledge from the federation themselves to better equalize pay for men and women's national teams. While this headline is very monumental, it doesn’t account for the smaller businesses or leagues that don’t offer equal pay, not to mention women leaving the workforce all together. 

Since the start of COVID-19, roughly 3 million mothers either lost their jobs or took leaves of absence in order to attend to other circumstances that arose due to the pandemic (child care, housework, etc). Many of these absences remained permanent because the gap in burnout between men and women was nearly doubled, and they were frightened to adapt back to that unequal change, according to McKinsey & Co consulting firm. These women who had to leave the labor force temporarily (frictional unemployment) usually had just as much educational background and experience compared to men in their field, but because of these unwarranted circumstances, they had no choice but to leave. To add on, the gender pay gap is even larger when you take a closer look at groups of women and men who actually have identical levels of education. This gap causes significant struggle for these mothers who are coming back from a break that many months ago, they would not have guessed would take place.

In our current state as a nation, there is a record-high of job openings available in all different fields. And yet, the number of mothers with young children employed, more recently, was about 4% lower than pre-pandemic levels, for fathers, this number was less than 1%. You may be wondering, when are more women returning to the workplace? What’s stopping them? Well, the delta variant closing more schools back in the fall and early winter may have acted as another spot for mothers to delay returning to work further. Economists looking into this study are hoping that rising vaccination rates and fewer cases of any COVID variant will help bring back mothers to the labor force. However, after various studies, it’s evident that at first any change is going to be small, and from here on out it could still take several more months to reverse the effects of COVID on female/mothers’ employment.

Pictured above is a graph that represents the rise and decline of both men and women in the labor force since 1950. Men have always been significantly more populated in the workforce, even in 2020 when COVID hit the hardest and both categories dropped almost 10%. It's going to be harder for women to build back that percentage, not only with the difficulties of motherhood, but more generally, issues with the pay gap that still affect our nation drastically today.

Works Cited

Calvan, Bobby Caina. “Many Women Have Left the Workforce. When Will They Return?” AP NEWS, Associated Press, 4 Nov. 2021, apnews.com/article/coronavirus-pandemic-business-lifestyle-health-careers-075d3b0ab89baffc5e2b9a80e11dcf34.

Carlisle, Jeff. “USWNT, U.S. Soccer Federation Settle Equal Pay Lawsuit for $24 Million.” ESPN, ESPN Internet Ventures, 22 Feb. 2022, www.espn.com/soccer/united-states-usaw/story/4599482/uswntus-soccer-federation-settle-equal-pay-lawsuit-for-$24-million.

Fry, Richard. “Some Gender Disparities Widened in the U.S. Workforce during the Pandemic.” Pew Research Center, Pew Research Center, 1 Feb. 2022, www.pewresearch.org/fact-tank/2022/01/14/some-gender-disparities-widened-in-the-u-s-workforce-during-the-pandemic/.

Going For the Gold and Coming For the Economy: Is Hosting the Olympics Worth the Money?

Going For the Gold and Coming For the Economy: 

Is Hosting the Olympics Worth the Money?

Written by: Ashley Anderson

It is 2022 and the Winter Olympic Games have just concluded. Thousands of representatives from countries have made their citizens proud and many even took home a precious gold medal. No matter if it’s summer or winter, the Olympics has been a tradition for centuries to unite athletes and for them to exhibit the skills they possess in the sport they love the most. While the Olympics is truly a unique, exhilarating, and temporary experience, — for both athletes and observers — many fear that the costs of hosting the Olympics far outweigh the benefits.

​​

Let’s go back to an example that has sparked the argument of whether the Olympics is worth the money or not: the 2020 Summer Olympic Games in Tokyo, Japan. Before hosting the Olympics, many citizens acknowledged the decades of economic stagnation Tokyo, Japan had faced as well as their economic struggles due to multiple natural disasters. As a way to shake off this image of Japan, Tokyo decided to host the 2020 Olympic Games. However, this decision was bound to have negative economic consequences. According to the Asahi Shimbun newspaper, “Tokyo officials emphasized that the long-term economic “legacy effects” from the Olympics would total 27.1 trillion yen (roughly $234,413,645,000 USD).” It is important to note the long-term effects of hosting large events like the Olympics; thus, which can negatively take a toll on whether a country is truly allocating its money efficiently. People in cities, like Tokyo, who put their money towards hosting the Olympics Games, are throwing away money that could have been used towards a variety of more important things such as job opportunities, infrastructure, roads, etc. As well, since Tokyo hosted the Olympic Games in 2020, the health cost of hosting the Olympics skyrocketed, as many became ill from attending the Games – 436 individuals (including athletes) to be exact. As Jennifer Wills from Investipodiea stated, “Because most cities have ended up falling massively in debt after hosting the Games, cities without the necessary infrastructure may be better off not submitting bids.”

The graphical image above is a representation of the costs spent on the Olympics from 1968 to 2016. A common trend that can be observed from the graph is the increase in Olympic spending over the years. As the construction of venues, amount of spectators, incoming athletes, and the introduction of new sports is increasing, so does the price tag on hosting the Olympics. Some cities, over others, struggle with what many call “Olympic debt” and bid on hosting the Olympics before even realizing that they are in over their heads. Therefore, before hosting the Olympics, a country must evaluate its current economic situation and determine whether they have the funds to host such a large, monumental event.

In terms of the upfront cost, hosting the Olympics seems outrageous to many. However, in terms of the overall economy, the Olympics isn’t all bad news. According to Matthias Firgo from IDEAS, “In the short-run, hosting the Summer Olympics boosts regional GDP per capita by about 3 to 4 percentage points relative to the national level in the year of the event and the year before.” The Olympics has also been known to increase a host country’s global trade and stature levels tremendously. As we have learned in our Economics class, one of the goals that a country should focus on is economic growth. Well, hosting the Olympics does just that, as it promotes economic growth and limits unemployment by expanding job opportunities. In addition, hosting the Olympics gives individuals an incentive to invest in long-term infrastructure in order to attract more international tourists, businesses, etc.

While the costs of hosting the Olympics can be high, hosting the Olympics itself is an act that must continue to be done. In my opinion, I feel that the Olympics is much more than a price tag. The Olympics allows people around the world to connect with one another and come together at an event where they can showcase their true athletic abilities. The Olympics promote enthusiasm, as it motivates both viewers and athletes to partake in either observing or competing in the Games. It becomes increasingly clear that the social, cultural, and economic benefits of hosting the Olympics far outweigh its costs, making it a tradition that should be showcased around the world for years to come. For more information on the costs of the Olympics and ways around the costs, use this link to watch a video, “Are the Olympics Worth the Cost?”: https://www.cfr.org/video/are-olympics-worth-cost Works Cited Firgo, Matthias. “The Causal Economic Effects of Olympic Games on Host Regions.” WIFO Working Papers, WIFO, 23 Nov. 2019, https://ideas.repec.org/p/wfo/wpaper/y2019i59.

Hamburg, Andrew. “Going for Gold: The Impact Hosting the Olympics Has on National Employment Rates .” OBJ, May 2013, https://digitalccbeta.coloradocollege.edu/pid/coccc:8040.

Multiple Authors. “Tokyo Official: No Way We Can Assess Economic Impact of Games: The Asahi Shimbun Breaking News, Japan News and Analysis.” The Asahi Shimbun, 21 Sept. 2021, https://www.asahi.com/ajw/articles.

Settimi, Christina. “Olympics Hosting - Pros & Cons.” ProCon.org, 27 Jan. 2022, https://www.procon.org/headlines/hosting-the-olympic-games-top-3-pros-and-cons.

Ueno, Hisako. “Tokyo Was Promised Glory and Riches. It Got an Olympics in a Bubble.” The New York Times, The New York Times, 6 Aug. 2021, https://www.nytimes.com/2021/08/06.

Wills, Jennifer. “The Economic Impact of Hosting the Olympics.” Investopedia, Investopedia, 8 Feb. 2022, https://www.investopedia.com/articles/markets-economy/092416.