-More Spending-

Article: Consumer Spending Rose Slightly in August

Author: THE ASSOCIATED PRESS

Date of article: September 27, 2013

News Source: USA Today

                This article explains the rise of consumer spending from the month of July through August as due to a rise in income and economic growth. As of July, consumer spending on goods and services rose from 0.2% to 0.3%. Now this might not seem like a huge jump, or even a jump worth discussing, but it is. This small increase in percentage shows that the economy is growing, slowly but surely. This is proof that people are getting back on their feet, that families are able to spend more and people are coming up with higher income. Nothing shows health in an economy than a rise in consumer spending.

                The article continues to praise consumer spending saying “Consumer spending drives 70% of economic activity. Many analysts say the increases are not enough to accelerate economic growth in the third quarter from the 2.5% annual rate in the April-June quarter. Still, the pickup in August spending could signal stronger growth in the final three months of the year.” Although the rise is not that significant, it shows that our economy is headed in the right direction. It goes on to say “There are some signs that consumers may be better positioned to step up spending soon. The number of people seeking unemployment benefits has sunk to its lowest point in six years because few companies are laying anyone off anymore. That has led some economists to predict that employers added 200,000 jobs or more jobs in September, the most since February.”

By looking at the consumer spending, one can figure out the state of the economy and even the state of the country. Think about it, if consumer spending is low, that mean people are not buying things, the economy is rough, and people are not buying what they want or perhaps what they need. This could be due to a high unemployment rate, a low standard of living or a shrinking economy that cannot support its people. The most likely cause for this rise though, would probably be the Back-to-school purchases by families as students get ready for school. Either way, higher consumer spending is a very good thin so when examining these numbers, economists see nothing but good news.

-Breaking Bad Economy-

Article: How Walt made $80 million

Author: Chris Isidore  

Date of article: September 27, 2013: 5:24 PM

News Source: CNN Money

                This article explores the economics behind the meth system in context of the best show over, Breaking Bad. Now, as a huge fan of the show, not so much of meth, I was excited to read this article. For those people who live under a rock, Breaking Bad is a 5 season long series on AMC which follows a high school chemistry teacher, Walter White, on his slippery slope of cooking meth to support his family after he is diagnosed with lung cancer. We never actually get real numbers of his profits, just that they are big, until the last season.

                In the last season, we discover that Walt made a total of $80 million in profits off the meth scheme. This article ponders on how this was possible. In the episode "Hazard Pay," Walt sells a 50 pound batch of his high quality blue meth for $1,379,560. After doing the math, that comes out to about $60 per gram which, according to this article, "is not at all unreasonable, especially for meth of a very high quality."It goes on to say "The price of meth varies wildly from one part of the country to another and from one time a year to another, depending on supplies. It can go from $50 a gram to $150 a gram. It makes oil prices look stable."

                With that in mind, I began thinking about the factors of production that were needed to supply this drug ring. First land; as far as land goes, Walt and his partner Jesse, use various facilities to cook, one being homes that were closed during a bug infestation extermination. Next we need labor; again labor is basically Walter and Jesse, although throughout the season minor people come and go. Capital; of course all the equipment they need for the lab, the methylamine they stole, and the sheer man power to drive this operation. And last but not least, entrepreneurship; which goes all to mister Walter White himself.

                As I look back on all five seasons of one of my favorite shows, and hours of my life dedicated to this phenomenal piece of art, I can’t help but frown a little when I know today, the last episode, the series finale, will air at 7 pm. But if ever I need to deal meth to support my family after my death, I will remember Walt’s economic techniques.

-Japan's Most Precious Resource-

Article: Women hold key to fixing Japan's economy

Author: Sophia Yan  

Date of article: September 19, 2013: 10:39 pm

News Source: CNN Money

As a huge feminist in a male dominate world, this article sings an anthem for me and my generation. It argues the point that Japan is not using its most precious resource- its women. Traditionally, Japanese women leave the work force after having the first child and usually never come back, but by strategically placing these new moms into positions that are suitable for working moms, Japan’s economy would flourish. This would solve Japan’s deafening deflation issue which is mostly due to an increasing number of the population entering retirement age and a low birth rate.

            Now, it’s no secret that men dominate the work force, from the most developed economy to the least, men make the majority of the employment. In Japan, there are 20% more men working than women, which isn’t so bad compared to other countries but the fact that there are women in the country who completely drop out of the work force after the average age of 30, proving useless economically, is frightening. If this 60% women employment rose just by two or three percent, it would be beneficial to the Japanese economy.

            I questioned why the women of Japan would feel the urge to leave the work force so early and I found that the incentives are not as enticing as they could be. Japanese men get paid 28% more than women, comparing grimly to U.S.’s gender wage gap of 5%. Even for younger workers in Japan, the gender pay gap is 15%, and it increases to around 40% for those over 40. Also women pay a high price for motherhood, with steep childcare costs, availability or access to such facilities, and taxes deterring many from working more. With women having to choose between having a child and keeping their job, the birthrate suffers. Japan’s birthrate as of last year was 1.3 children per woman compared to the US’s 2.2. Also as a married Japanese woman, the work force looks doubtful. The economy does not allow women and mothers to work suitably, Instead of excluding women; Japan can use them to its advantage to grow it economy.       

Japanese workplaces should ensure that women have access to regular employment and career track systems in the same way that men do. Pay systems in Japan should have a greater role for performance-related pay, so that mothers are no longer punished for taking time-off from work. Regular employees should also have access to flexible working hours and part-time employment opportunities. Workplaces need to give mothers more opportunities to return to regular employment.

-Next Generation Begs for Economic Growth-

Article: Labor Participation Lowest since 1978

Author: Steve Hargreaves

Date of article: September 6, 2013; 3:01 pm

News Source: CNN Money

I chose this article because it pertains to what we have been talking about in class for the past week. Basically, it elaborates on the principle of the production possibility curve in terms of labor and participation in our economy. The article points out that labor force participation has fallen to its lowest percentage since August of 1978, meaning that the percentage of people over 16 who have or are searching for a job has fallen. This means that people are not searching for jobs anymore because the market is full. This number steadily rose after World War II as more and more women entered into the workforce but has been declining ever since. People, right out of college for example, who are entering the job force for the first time, are left in the dark because there are no jobs for them. The lack of jobs is also due to the baby boomers generation nearing retirement age.

 Now this would have been somewhat understandable in 2009, the dreadful year of the great recession, where big banks like AIG and Lehman Brothers were going under and the unemployment rate had reached almost 10%. For the college students graduating that year, the job market looked quite grim and to think almost five years later, we still only have 63% of the population working. That means 37% of the population are not in the work force, this list includes children under 16, the retired, the disabled and a wide variety of other people and demographics. 

These numbers tell us that our economy is not performing at its highest potential that people are skilled and ready to work but the economy is not ready for them. It has not bounced back from its fall in 2009 therefore their skills and ideas are not flourishing as they had the potential to. Our economy is behind, the coming generations will have to settle for jobs that pay less and require less skill than they are capable of. The great minds of tomorrow will be stuck in janitorial positions, mopping up spilt milk, if our economy does not catch up with its people.

                -Hana G.