Why the Music Industry is one of the most important industries

 Why the Music Industry is one of the most important industries

Written by: Jack Davis 

Everyone is aware that the music industry is quite a large industry. Through research, I discovered that it is actually quite larger and impactful than I had originally thought. Contributing a staggering 170 Billion USD to the annual GDP, as well as employing 2.5 million people nationwide, the Music Industry is one of the most important industries in the US. 

Starting off, the music industry contributes around 170 Billion USD to annual GDP every year. This is a massive amount of money, and it has been increasing due to streaming becoming more accessible and easier to come across. According to IFPI, there were 341 million paid music subscriptions by the end of 2019, which is slightly less than 11% of all smartphone users. These are massive numbers, with large amounts of money circulating due to streaming alone, not to mention concerts and the creative process. Spotify alone has 182 million Spotify Premium users worldwide, according to statista.com.

As you can see, Spotify's monthly active users has only increased since 2017, and has shown no sign of slowing down. This is how streaming plays into the massive GDP boost that the music industry delivers. This is one reason why I think the music industry is one of the most important industries in the US.

Aside from raking in the sheer amount of money that it does, the music industry also employs 2.5 million Americans, according to riaa.com, a well reputed company in the music industry. According to statista, there are 157.54 million people employed in the US. This means that 1.59% of all employed Americans are employed in the music industry. The vast majority of these employees come from live performances, distribution, travel, recording, and streaming. This just helps create an idea of how large the industry truly is, and why it is one of the most important industries in the US.

Works Cited

Götting, Marie Charlotte. “• Spotify users - subscribers in 2022.” Statista, https://www.statista.com/statistics/244995/number-of-paying-spotify-subscribers/. Accessed 30 May 2022.

Lewis, Jaron. “Uncommon Ways The Music Industry Affects The Economy.” Omari MC, https://www.omarimc.com/uncommon-ways-the-music-industry-affects-the-economy/. Accessed 30 May 2022.

“New Report: How Music Powers the American Economy.” RIAA, 9 February 2021, https://www.riaa.com/new-report-how-music-powers-the-american-economy/. Accessed 30 May 2022.

Stone, Jimmy. “The State of the Music Industry in 2020.” Toptal, https://www.toptal.com/finance/market-research-analysts/state-of-music-industry. Accessed 30 May 2022.

Reshoring Initiatives Impact US Economy

 Reshoring Initiatives Impact US Economy

 Written by: Logan Schill 

“Reshoring involves the return of the production and manufacturing of goods to the company’s original country. It is the opposite of offshoring, which is the process of making good overseas to try to reduce the cost of labor and manufacturing,” cited by Freight Waves.

American offshoring started in the 1970’s by prominent public US companies. In the early 2000’s, US manufacturing companies created another boom to the world economy with their offshoring initiative and efforts to save money by bringing in products manufactured in Asian-Pacific countries such as China, Taiwan, Sri Lanka, Malaysia, Indonesia, India and Vietnam to mention a few because they are low-labor cost countries. Building a stronger world-wide economy provided cost savings to US manufacturing companies for both consumer and industrial market goods. However, events such as worldwide Covid-19 pandemic and the Russian-Ukraine War, have created supply chain issues in the United States.

Companies did not have a balanced manufacturing plan for a massive world-wide pandemic that has created supply chain disruptions for raw materials to US manufacturing companies and finished goods for consumers. The complexity of the Russian-Ukraine war has magnified supply chain issues. With severe supply chain issues and significantly increased freight costs, several US companies are now looking toward a reshoring initiative. Products will be manufactured in the US creating jobs and an upswing to the US economy.

Reshoring efforts can add up to $443 billion dollars to the US economy according to Thomas Net.  In its 2021 State of North American Manufacturing Annual Report, Thomas found several shifts in domestics sourcing trends and supply chain demands in the post-pandemic world.  The survey found that 83% of North American manufacturers are likely to reshore products, up 54% in March 2020.  According to the findings, if manufacturers bring on just one single-contract domestic supplier, $443 billion could be added to the US economic value.

One key factor for reshoring are the increased costs of freight. Chart on the right indicates rising cost of containers from China starting in July ’21 to beginning of 2022. Costs were around $2,500 per container in August to a high of $20,000 per container in September ’21. Average cost from July ‘21 to start of 2022 was $14,487.09 per container.

One specific product in high-demand has been nitrile gloves. Post-pandemic the US government and distributors are sourcing domestically. Production for nitrile gloves is increasing with two manufactures in the states. Nitrile gloves are an important personal protective equipment (PPE) item used by workers in many industries including medical, laboratory, automotive, food processing and several other industries. More than 95% of nitrile gloves are manufactured in Asia and less than 1% have been manufactured in the US.

SHOWA Group and US Medical Glove Company (USMGC) are both domestic manufacturers of nitrile gloves. SHOWA Group is expanding operations in Alabama, and USMGC has leased a one million square foot facility in Illinois to ramp up production.

SHOWA Group is installing two new production lines to double their production to 800 million gloves per year. SHOWA plans to add two more production lines in the near future to increase their output to 1.2 billion gloves per year. Increase in production will add nearly 100 new jobs to the SHOWA Group team. 

Reducing carbon dioxide emissions is an environmental impact reshoring products back to the US as indicated by the artboard on the right from SHOWA Groups website.

According to Richard Hepell, President and COO of SHOWA stated in a CNN interview, “We are trying to make sure the US Government knows we have a facility here. We’re bringing in the latest high-speed monorail production lines that will product three times more gloves per hour. This will help bridge the gaps between costs differences in Asia and US. The key to this is making sure to continue to invest in new technology, keep an eye on what’s happening in Asia, and then try to stay ahead of the curve in the US to keep us competitive.

USMGC will house up to 80 American-made nitrile glove machines capable of producing up to 8.1 billion gloves per year. The vision to create four major manufacturing hubs will create more than 3,000 direct jobs and 10,000 indirect jobs created in the US. “American customer service, reliability and quality control can only be delivered by eliminating dependence on foreign made machines, not just foreign made gloves,” said US Medical Glove CEO, Dylan Ratigan.

According to Nick Mallinger, President of Tanis Incorporated, “We are seeing our business increase as companies continue the reshoring initiative. We do business with both SHOWA Group and US Medical Glove Company. We are also working with Peleton, who recently purchased Precor in North Carolina. Peleton was having freight and logistics issues getting their equipment made overseas, so they purchased Precor to have control of their products and logistics domestically manufactured in North Carolina.”

Offshoring will continue to be part of the US economy. However, reshoring initiatives will be an ongoing effort as US manufacturers continue to battle raw material delays or shortages, freight costs and logistic issues. Reshoring is necessary to rebalance costs and the supply chain, especially in the United States. Reliable, dependable, and quality manufacturing companies have an opportunity to thrive with the current reshoring initiatives. Manufacturers will have more control of their products and costs as well as having the ability to hire more labor.

Works Cited

“Artboard 1.” SHOWA Gloves, https://www.showagroup.com/wp-content/uploads/2021/02/Made-in-USA-glove-reduces-impact-on-environement.pdf. Accessed 30 May 2022.

“Made in America.” SHOWA Gloves, https://www.showagroup.com/us-en/showa-made-in-america. Accessed 30 May 2022.

Mahoney, Noi. “Can US cash in on reshoring manufacturing opportunities?” FreightWaves, 6 January 2022, https://www.freightwaves.com/news/us-cash-in-on-reshoring-manufacturing-opportunities. Accessed 30 May 2022.

“NEW REPORT: Reshoring Could Drive $443 Billion in U.S. Economic Value Over Next 12 Months.” Business Wire, 2 June 2021, https://www.businesswire.com/news/home/20210602005529/en/NEW-REPORT-Reshoring-Could-Drive-443-Billion-in-U.S.-Economic-Value-Over-Next-12-Months. Accessed 30 May 2022.

“US Medical Glove Leases Almost 1 Million Sq. Feet for Nitrile Glove Factory.” PR Newswire, 26 August 2021, https://www.prnewswire.com/news-releases/us-medical-glove-leases-almost-1-million-sq-feet-for-nitrile-glove-factory-301363781.html. Accessed 30 May 2022.

The Biggest Issue for Businesses Right Now: The Supply Chain Crisis

 The Biggest Issue for Businesses Right Now: The Supply Chain Crisis

Written by: Johnny Maasch 

Lately, we have been going to stores or gas stations sighing at the unbelievably high prices. We are paying so much more now compared to a year ago. And quite possibly, we could be paying even more another year from now. This is a big issue for us, but for businesses, an even bigger issue. Some may believe that higher prices should not be worse for businesses because they will make more money, right? Wrong! The prices are rising because there is a supply chain crisis, meaning that the steps it takes to obtain and sell a product are much more expensive. This leads to consumers being less willing to consume those products, hurting businesses. The supply chain crisis is the biggest issue for businesses right now because the pandemic led to slower transportation of goods, transportation has increased in price, and shipping containers are becoming extremely expensive.

Before diving into the reasons why the supply chain crisis is the biggest issue for businesses right now, it is important to provide context on what the supply chain is and how this crisis began. The biggest factor that began supply chain issues was the pandemic. The pandemic proceeded to cause layoffs, a decrease in productivity, and reduction in shipping. At the same time, China was sending shipping containers to any country, even if they did little trade with them, such as countries in West Africa. This led to empty shipping containers to pile up all around the world, resulting in a shortage.  Because there are now less workers and fewer containers to ship with, a supply chain crisis began.

First, multiple national lockdowns slowed down the transportation of raw materials and finished products. Because of this, the manufacturing process was largely disturbed. In addition, workers were getting quarantined left and right and some governments were closing factories, causing the number of producers to dramatically decrease. Recently, Shanghai has been in a total lockdown where “25 million people have been ordered to stay home.” (Brant). Many suppliers in Shanghai are being shut down because of this, meaning that many products are laying in factories instead of being distributed. All of this leads to a lack of workers, supplies for businesses, and sales. Many companies were not prepared for these tremendous effects. 

In fact, Ernst & Young LLP (company known for business consulting) conducted a survey on 200 senior supply chain executives in 2020. The survey looks at the pandemic’s impact on those companies. As shown in the picture below, most of the responders claimed that this had negative effects on their company. 

https://www.ey.com/en_us/supply-chain/how-covid-19-impacted-supply-chains-and-what-comes-next 

Second, transportation costs are insanely high, leading to the cost of products to increase. And if the cost of products is higher, less people will purchase them, and businesses will make less equity. From April of 2020 to April of 2022, a gallon of gasoline in the Chicago area has increased by about 42.5%. These costs have been increasing in the United States for several reasons, one being that we have discontinued the domestic production of oil. To add, a more recent reason would be since we have discontinued our imports of oil from Russia due to Russia’s actions against Ukraine.

https://fred.stlouisfed.org/series/APUS23A7471A 

Lastly, shipping containers are getting incredibly expensive while being in the wrong places. To dive deeper than explained before, in early 2020, China started to create half of the protective masks. Because there was such a high demand for masks during this time, China needed to meet that new sense of demand by sending more shipping containers to deliver these masks everywhere. Because some of these places were not too involved with China in trade, these shipping containers got stuck in the places they were sent. This ultimately led to a shortage of shipping containers for China, which is not great news because China needs shipping containers more than any other country. This hurts businesses because many countries get raw materials from China, and if there are no raw materials, there are no products to sell. And with shipping becoming more expensive and slow, companies will have to spend more, wait longer to receive products, increase prices, and less consumers will purchase.

Overall, there are many reasons why the supply chain crisis came to be. And, this is also the biggest problem for businesses because they need to wait longer, spend more, and increase prices while consumers will not consume as much. This will likely continue to be an ongoing issue for quite a long time, and some businesses may ultimately shut the doors if it gets too severe. So, do you believe the supply chain crisis is the largest problem for businesses right now?

Works Cited

“Average Price: Gasoline, All Types (Cost per Gallon/3.785 Liters) in Chicago-Naperville-Elgin, IL-in-Wi (CBSA).” FRED, 11 May 2022, https://fred.stlouisfed.org/series/APUS23A7471A. 

Gamio, Lazaro, and Peter S. Goodman. “How the Supply Chain Crisis Unfolded.” The New York Times, The New York Times, 6 Dec. 2021, https://www.nytimes.com/interactive/2021/12/05/business/economy/supply-chain.html?action=click&pgtype=Article&state=default&module=styln-supply-chain&variant=show®ion=MAIN_CONTENT_1&block=storyline_top_links_recirc. 

Harapko, Sean. “How Covid-19 Impacted Supply Chains and What Comes Next.” EY, EY, 18 Feb. 2021, https://www.ey.com/en_us/supply-chain/how-covid-19-impacted-supply-chains-and-what-comes-next. 

Baby Formula Bust: Shortages in Baby Formula Across America

 Baby Formula Bust: Shortages in Baby Formula Across America

Written by: Abby Rokus 

Over the past few weeks, baby formula has disappeared from shelves. This may initially seem like a COVID supply chain issue--and in part, it is. The center of the issue, however, surpasses typical shipping issues and ingredient shortages. Instead, it lies in America’s oligopoly over the baby formula market and refusal to trade with other countries.

Since the 1990s, baby formula producers have been the target of criticism. They faced lawsuits for creating barriers, such as fixing prices, to enter the market. The three largest manufacturers produced 90% of the formula consumed in the U.S., and their share has only increased as now 98% of formula consumed in the U.S. is produced domestically. As a result, consumers are overly reliant on producers and do not have many alternative options.

The problem is only exacerbated by government programs. For example, the WIC, or the Special Supplemental Nutrition Program for Women, Infants, and Children, provides grants that ensure access to food. According to the New York Times, this program “purchases more than half of all infant formula supply in the United States, with about 1.2 million infants receiving formula through WIC.” Not only are they the primary consumer of formula in the U.S., but state WIC agencies are also required to bid for contracts and WIC recipients are only able to buy formula from the single manufacturer the contract agrees upon. The producer then discounts the formula used by the agency. This results in a spillover effect to the general public as doctors and supermarkets are more likely to recommend and stock the WIC selected formula. WIC recipients should be allowed to choose from a variety of manufacturers in order to help diversify the market. This would break up the oligopoly and allow for more competition, ultimately benefiting families using the service.

Currently, only three brands are suppliers for the WIC. They include Abbot, Mead Johnson, and Gerber, which provide 47%, 40%, and 12% of formula for the WIC, respectively. Due to the WIC contracts, smaller companies do not have the financial incentives to enter the market. This has been a problem for decades, but we are currently seeing the effects due to one of Abbott’s plants closing on account of cases of bacterial infections. The closure resulted in recalls and stopped production of formula. They made the right choice as continuing manufacturing could have resulted in the deaths of more infants. On the other hand, when recalling the product, Abbott and the FDA should have planned for a substitute to be provided because families had no other options. This lack of foresight resulted in shortages as Abbott is one of the few formula manufactures in the U.S. and is the sole provider of formula for the WIC in nearly two-thirds of the country. Additionally, they are the main producer of specialized formula for young children who cannot consume regular products due to health conditions. Without Abbott, babies are currently being hospitalized due to not having access to the correct formula.

The government has also contributed to formula shortages by limiting trade with international companies. There are strict regulations on the labeling of formula and tariffs as high as 17.5%. This discourages trade amid the shortage despite European products being seen as equal to, or better than, American products. Canadian formula is also prevented from entering the U.S. due to low trade quotas, yet it would likely meet many of the FDA standards with minimal alterations. Thus, the U.S. should lower tariffs and remove quotas in order to prevent future shortages.

Due to few sellers and minimal trade, formula went out of stock in many stores. The out of stock rate for baby formula, according to CNN, was between 2% and 8% in early 2021. By April 2022, it reached 31%. Now, it lies at 40%, as seen in the first graph below. Some states are more affected by the shortages than others. For example, more than half of all formula was sold out in Missouri, Texas, the Dakotas, Iowa, and Tennessee at the end of April. The second image shows a map of which states have been the most affected by the shortages.

https://www.axios.com/2022/05/06/baby-formula-shortage-abbott-recall 

https://www.nbcnews.com/data-graphics/chart-baby-formula-supply-dwindling-months-rcna29475 

In response to the shortage, the FDA has allowed Abbott to start producing formula again. Although this is a beneficial step, it will still take the formula 6 to 8 weeks to reach shelves, and more needs to be done immediately. Waivers have also been granted to WIC recipients, allowing them to choose from multiple brands rather than just one. This lessens the problem of shortages, yet does not contribute to short term supply chain issues. The main strategy the U.S. is using to target this is reducing restrictions on international companies. A shipment from Germany last week included 35 tons of formula that would feed 9,000 babies and 18,000 toddlers for one week. While a significant amount, this was hypoallergenic formula for children who cannot tolerate regular formula. It was given to hospitals rather than supermarkets in order to assist a high risk population, so it will not be very helpful to the majority. There will, however, soon be a second shipment of regular formula that can be bought in grocery stores by all consumers.

Between families attempting to make their own formula and rationing the minimal amounts they have been able to buy in store, it is evident that the industry must change to avoid future shortages. Increasing competition, reducing barriers for imports, and preventing market consolidation are steps that must be taken to combat current issues. Hopefully with these changes, we will not see any sections of the supermarket barren in the future.

Works Cited

“Baby formula shortage turns 'terrifying': Out of stocks worsening.” Axios, 6 May 2022, https://www.axios.com/2022/05/06/baby-formula-shortage-abbott-recall. Accessed 24 May 2022.

Horsley, Scott. “Formula for trouble: How the US got into an infant formula mess.” NPR, 19 May 2022, https://www.npr.org/2022/05/19/1099748064/baby-infant-formula-shortages. Accessed 24 May 2022.

Kavilanz, Parija, and Ramishah Maruf. “The baby formula shortage is getting worse.” CNN, 11 May 2022, https://www.cnn.com/2022/05/08/business/baby-formula-shortage/index.html. Accessed 24 May 2022.

Ngo, Madeleine. “Baby Formula Shortage Has an Aggravating Factor: Few Producers.” The New York Times, 20 May 2022, https://www.nytimes.com/2022/05/20/business/economy/baby-formula-shortage-market.html. Accessed 24 May 2022.

Sandoval, Polo, and Samantha Beech. “Baby formula arrives in Indianapolis from Germany on US military aircraft to address critical need.” CNN, 22 May 2022, https://www.cnn.com/2022/05/22/politics/baby-formula-us-military-aircraft/index.html. Accessed 24 May 2022.

Wu, Jiachuan. “The Data Point: Baby formula supply has been dwindling for months.” NBC News, 19 May 2022, https://www.nbcnews.com/data-graphics/chart-baby-formula-supply-dwindling-months-rcna29475. Accessed 24 May 2022.

Used Car Prices Continue to Increase; why?, and when will they Return to Normal?

 Used Car Prices Continue to Increase; why?, and when will they Return to Normal?

Written by: Jake Sandlass 

Currently, the used car market in the U.S is breaking records… and not in a good way. As of November 2021, the average price for a used car was $29,011; a 21.4% increase in cost from the same time in 2020. Consumers looking for vehicles are paying drastically overpriced amounts or simply deterred from purchasing a car. The average price of used cars increased every month from February to November of 2021 and shows no signs of stopping anytime soon; but what's causing this?, when can we expect prices to return to normal, and what impacts is this having on the standard of living for a lot of Americans? 

For one, this is adding a ton of cars to the road that are dangerous, have outdated safety features, worn out parts, and in need of an upgrade as consumers choose to limp their car along until the market recovers. Personally, I have heard from several mechanics that my car is unsuitable to be driving on public roads and has several safety concerns… However, since the repairs are more than the vehicle is worth and I would need to pay upwards of $15,000 for a decent car I’m choosing to limp it along until it either quits on me, or the used car market returns to normal. Also, America is not very catering to people without motor-vehicles. Lack of public transportation can make it very difficult, even impossible to get to and from work, school, etc. Thus, people in sticky financial situations who may have had a vehicle quit on them can struggle to make an income and have a drastic decline in quality of life. 

But why is this happening? Well, the skyrocketing price of cars can be tokened to a few different root causes. For one, the worldwide shortage of microchips has pushed up prices for new cars thus increasing the demand in the used-car market. Early pandemic, microchip producers shut down to protect the health of workers, however consumer demand for electronics increased causing huge back-ups that microchip producers are still working to recover from. This then caused car manufactures to be unable to finish vehicles creating an 8 million car shortfall in 2021. Car manufacturers are also significantly underemployed, Kelly Blue Book said car manufacturers had more than 584,000 jobs in October 2021 they were unable to fill. With fewer new cars being produced, there are less people trading in their used ones causing prices to increase. Dealerships who previously had hundreds of new cars in their lots now have fewer than 10, according to KPMG. 

The question that consumers awaiting a drop in cost ask is when will the car market return to normal? While it's hard to say forsure, experts aren’t expecting much of a change until 2023. It is all dependent on the supply chain; when microchip production can catch up to demand and car manufacturers can reach full employment. Patrick Gelsinger, CEO of Intel, told investors in July 2021, that it will take another one to two years for the microchip industry to catch up to demand and we will continue seeing increasing prices in the used-car market through 2022. However, he is hopeful that we will begin seeing significant change early 2023. 

How has the Film Industry affected the economy and how has COVID-19 played a role in it?

How has the Film Industry affected the economy and how has COVID-19 played a role in it?

Written by: Gavin Long 

Many of you or I'm sure all of you have been to a movie theater or seen a movie inside of a theater at some point in your life. When you go to the movie theater it’s quite an experience. You go up to the counter, buy your tickets from the employee, get your snacks from the food service people And go and sit down and enjoy your movie. However in 2020 and 2021 this experience was taken away from us due to COVID-19. And like we studied in class, this was considered a recession. Prior to the COVID-19 pandemic, movie theaters and Hollywood contributed $504 billion to the U.S. GDP or 3.2% of the goods and services portion of GDP. This overall is a major reason why the Film Industry has affected the economy and the Film Industry has contributed a decent amount to total GDP

Here is a visual image of the Film Industry before COVID-19 and what happened during the pandemic recession. 

However something important to note is that when other countries produce a film that it does not count towards the U.S. GDP. A film can only count towards GDP if it is American produced. 

Furthermore, another reason why the Film Industry has affected the economy is because of positive externalities. Movies are filmed in many different locations of the world. For example, Harry Potter, a very popular film franchise, was filmed in the United Kingdom and Ireland. The positive externality of filming in those locations is that both of those locations have increased tourism by 50%. Also, some towns inside of the UK and Ireland have increased tourism as much as 200%. This is a positive externality because now those towns have more people going there and they have currency to spend. If they were to spend then that would contribute to the GDP. 

Overall these are just a couple of ways the Film Industry can impact the U.S. Economy. Through contributing to GDP and increasing tourism which is a positive externality, the Film Industry has a lot to offer for the economy even though it lost some revenue due to COVID-19. Do you think that the Film Industry has contributed a lot to the economy?

Works Cited 

 Name. “Popular Movies Can Increase Tourism to the Film's Location between 25%-300%.” Champion Traveler, https://championtraveler.com/news/popular-movies-can-increase-tourism-to-the-films-location-between-25-300/. 

Norah, Laurence. “The Top Harry Potter Filming Locations in the UK.” Finding the Universe, 8 Dec. 2021, https://www.findingtheuniverse.com/harry-potter-filming-locations-uk/. 

Rosal, Mel-Leo. “U.S. Film Industry Statistics [2022]: Facts about the U.S. Film Industry.” Zippia, Zippia, 11 May 2022, https://www.zippia.com/advice/us-film-industry-statistics/. 

The Financial and Economic Effects of Elon Musk Buying Twitter

 The Financial and Economic Effects of Elon Musk Buying Twitter

Written by: Evan Murphy 

On April 4th, 2022, Elon Musk announced he had purchased 9.1% of twitter. This news sent the stock prices soaring, and had people speculating. He was also offered a board seat by twitter’s board of directors, a move that would have restricted Elon to only owning a maximum of 15% of the company. Initially, Elon agreed, but later backed out. It was then on April 25th, 2022, that Twitter’s board of directors accepted Elon Musk's offer of $44 billion dollars for total control of the company, or $54.20 per share. Upon this completed transaction, twitter will likely also become a private company. Elon decided he wanted to purchase and control the entire company, and it looks like he is now doing so. But what financial effects does this major purchase have on not only the economy, but also on everyday consumers?

Although there has been an agreement for Musk to purchase Twitter, Twitter shareholders must approve the deal at the next annual meeting before it is finally official. So there is some chance that the deal could fall through, but the obstacles are seen as relatively insignificant, and Twitter expects the deal to close sometime later in 2022. But once the deal goes through, all stakeholders will be affected greatly financially. Twitter shareholders will receive $54.20 for each share of twitter stock they hold, as this is the price of shares after Elon purchased the company. This means a major cash influx for all stakeholders, especially those holding a significant number of shares. 

But Twitter’s switch to becoming a private company has other effects as well. With complete control over Twitter’s platform, Musk could make changes to put pressure on other tech companies, such as Meta Platforms Inc, the company behind the Facebook network, or other tech giants like Apple. Twitter could alter its approach to letting other companies on its platform, which could put pressure on other companies to take a similar path to Twitter.

Likewise, as a private company, Twitter would not be required to report on its financial performance in the same way that it does as a publicly traded firm. This means Twitter can be less transparent to investors in the social media and tech industries.

Elon Musk's purchase of Twitter, assuming it gets finalized, will have fairly substantial financial and economic effects. Whether more positive or negative, we’ll have to find out. But what we do know is that Twitter’s potential transition into becoming a private firm can have many effects on investors, as well as other firms. Musk will also be in full control of decision making, meaning he can easily implement new changes to twitter, revolving features, policies, etc. But to find out if these changes will have a more positive or negative impact, I suppose we’ll have to find out. 

Works Cited

Hawkins, Andrew J. “Elon Musk Buys Twitter: All the News You Need on One of the Biggest Tech Deals of All Time.” The Verge, The Verge, 16 Apr. 2022, https://www.theverge.com/23026874/elon-musk-twitter-buyout-news-updates.

jenn_elias. “Elon Musk's Deal to Buy Twitter Leaves Many Key Questions Unanswered.” CNBC, CNBC, 25 Apr. 2022, https://www.cnbc.com/2022/04/25/elon-musks-deal-to-buy-twitter-leaves-many-key-questions-unanswered.html.

Reiff, Nathan. “What Investors Should Know about Elon Musk Buying Twitter (TWTR).” Investopedia, Investopedia, 27 Apr. 2022, https://www.investopedia.com/what-investors-should-know-about-elon-musk-buying-twitter-5268075.