Monday, May 26, 2008

Happiness Economics

I could not think of a great topic this week so I thought I'd do a little research on some more weird economic departments.
I came across "Happiness economics." This field analyzes the well-being of a country using both economics and psychology. At first, I thought this sounded a little ridiculous. But as I thought about it more, this seems to make sense. A lot of connections can be made between economics and psych. Both involve people make choices; one field analyzes the outcomes while the other analyzes the reasons for the choice made.
Happiness economics has also become of interest regarding the measurement of a country's well being beyond GDP and GNP. Some nations with lower GDP may also have a lower standard of living, thus their individual happiness is about the same, or even higher than that of countries with very high GDPs.
Though maybe not completely fair, some people use this argument to show possible benefits of sweatshops. Compared to workers compensation in the US, this is slave labor. However, many sweatshops in India are set up to give jobs to women abused in marriage assaults or burnings. Their individual happiness with their jobs is high, though many in the US would look at their jobs and see a very grim picture. I'm not saying this justifies slave labor, it's merely another way to look at it.

Sunday, May 4, 2008

Housing crisis

We've been hearing a lot all over the news and especially with the upcoming presidential election about the housing crisis our country is experiencing. I've done quite a bit of research about the issue, but was the reality of it was brought much closer to home just this past weekend.

There is a huge discrepancy in house prices depending on what part of the country you live in. I have a brother in Detroit, a sister currently in New York and moving to Madison, and a brother who just moved to Houston.

My oldest brother, who recently moved from Kansas City to Detroit did not personally have trouble selling his house as his work bought it for him. Detroit was recently named one of the best places to buy a home as they are cheap and are not likely to fluctuate much in prices. His house sold in KC for $180,000 and his new house cost around $200,000. My sister moved last year from Atlanta (also named one of the best cities to buy in) to New York. Her apartment there runs about $2000 per month! She is currently looking in Madison near the University. My oldest brother just moved to Houston. For a five bedroom, three and a half bathroom house with a pool in Sugarland it will cost him $288,000, without the pool is $233,000. This is about the same price as my sister's two-bedroom in madison.

Does this price discrepancy have to do with demand for the houses or more the prosperity of the local economies in Houston vs. Madison?

Sunday, April 20, 2008

Feminist Economics

While searching for a topic to write my blog about this week, I was struck by the title "Feminist Economics." I was curious as to why there was a need for an entire branch of economics just for females, but after doing a little research it is easy to see why.

To put it simply, this is the study of the relationship between feminism and economics in a society. The area points out that a country's GDP is not an accurate measurement as it cannot account for unpaid labor, mostly done be women. This can range from a stay-at-home mom in the United States to a water-gatherer and home-keeper in Bangladesh. Feminist economists have created models of many of the economic concepts we learn about, while accounting for added gender analysis in these models. They also propose that a nation's success is not measured in monetary quantity, but in a country's well-being; are the needs of its people being met?
They also focus on employment equity and ethical judgments. Not only do feminist economists study how gender affects an economy, but they also look into race, religion, and other categories of analysis.

I don't know if anyone else will find this interesting, but it caught my eye and I actually think it's pretty cool now.

Monday, April 7, 2008

Spring Break cont.

I am adding to this as I realized we didn't have to post that week, so I'll just add a little for this week's post.

Anyway, the economies of heavily trafficked areas would increase in the short run, but are not sustainable as the quantity of tourists buying stuff only lasts the season. Certain places that do profit from tourism will probably not profit at this time. People are looking for a place to sit back and relax on a beach, not trek all over mountains, etc. (for the most part).

Tuesday, March 25, 2008

Spring Break

This is a few days late...

I was thinking today about the effect teenagers going on spring break has on the economy. The prices for plane tickets must rise as there is an increase in demand for them, or at least an increase in demand for tickets to certain destinations. Local economies will also benefit from an increase in travelers. Places like South Padre Island, Miami Beach, and Palm Springs are popular destinations as well as countries outside of the US like Mexico, Aruba, and other Caribbean Islands. An increase in tourists means the economy will flourish as the tourists make purchases of goods.

Sunday, March 9, 2008

Illegal downloading, etc.

I'm not sure if someone else has done this as a blog yet or not, but I was just thinking about how much of an impact illegal downloading must be having on the entertainment industry so I decided to do a little research. A recent study has found that movie piracy and internet downloading costs major studios over $6.1 Billion per year. The entire economy loses about $20.5 billion per year including losses for theaters, renters and retailers, advertisers, lawyers, casts and crews, and other service workers.
I am not here to condemn all internet downloads. It is ridiculous to ask teenagers, and many adults alike, to pay twenty dollars for the remastered Thriller album, when they can easily access it at an online site for free. Why would a broke college student want to pay $8 to see Juno in the theater when they can find it online and watch it without even having to download harmful software?
iTunes had the right idea, allowing consumers to purchase just a few songs off of a CD at a reasonable price in a guilt-free manner. However, if a Milli Vanilli album is only $5 at a retail store and a Justin Timberlake CD is $15, why should each song be worth the same 99 cents? (This point doesn't have much to do with the grand idea, but its still interesting)

Anyway, piracy only causes the industry to lose more money, which causes the prices to go up, leading to a vicious cycle of loss for industries. According to the law of demand, however, if the demand for movie tickets decreases, the price and quantity of movie tickets will also decrease. Does this mean there will be less movie showings available, but they will cost less?

Does anyone have any ideas as to how this cycle can be diminished or any predicted effects of continued internet piracy?

Sunday, February 24, 2008

Universal healthcare

Because of the presidential race for the White House 2008, the idea of universal healthcare is at the forefront of many people's minds (it is also the only thing Hillary Clinton really ever talks about). Pretty much every industrialized nation offers a universal healthcare plan except the U.S.
Small businesses can benefit from a universal healthcare plan. Big companies can offer employees better coverage with more benefits, and thus have the advantage in the hiring market. With universal healthcare, however, a single government body provides coverage for basic needs. This means more small businesses will be able to be established which creates jobs.
Many people do not go to the doctor's office for routine check-ups simply because it costs too much. This makes early detection of chronic illnesses impossible. Paying for treatment of a long-term illness is much more expensive than paying for preventative treatment in most cases. Offering universal healthcare means more long-term illnesses can be caught early.
People will be able to put more money into markets, stimulating the economy. If bombarded by healthcare bills, consumers are not spending money in the market. With universal healthcare, medical bills will not force people in to bankruptcy, and consumer spending will increase, stimulating our dying economy.
Parents who cannot afford coverage for their children will now be nonexistent. Children will be born covered, creating a brighter and healthier generation of future workers!

Why do you think the U.S. hasn't employed universal healthcare already?

Sunday, February 10, 2008

Economic stimulus plan

I decided for my first blog to discuss the economic stimulus plan. The bill will issue out about $150 billion in tax rebates for middle-class Americans earning less than $75,000 or less individually. The hope is that everyone will get their $600 and run out and spend it. Many people ask "How will this help, won't it just further the national debt?" There is much truth to this notion, the national debt will increase once again by offering this package. There has also been a lot of criticism toward the president for not increasing food stamp, welfare, or unemployment benefits instead of proposing this stimulus plan. This may be more of a macroeconomics question but where does the government fit in in the market cycle? They give money to households to give to businesses and somehow get back to the government in taxes? This stimulus package seems like more of a quick-fix than anything. Eventually, households will have to pay the money back as national debt begins to diminish. Also, isn't it a bit of a gamble? People may decide to save their money instead of spend which will really not help a struggling economy.

Perhaps I'm just confused, but I'm not alone. Anyone got some helpful information for me?