Economics of Sports

In an article, titled "The Puzzling Economics of Sports", by Allen R. Sanderson, (http://www.econlib.org/library/Columns/y2004/Sandersonsports.html) he asks the question, "why are professional athletes villified about their salaries, when many other industries earn much more money?"

While people have numerous different opinions on the subject, I personally agree with Sanderson. To answer his question economically, it all comes down to consumers, their decisions, and supply and demand. Consumers are fickle people, and always want to be satisfied. They are always looking to get more for their money. So, why are they willing to spend more for movies and shows than they are for sporting events? Actually, it beats me. If they think they are guarunteed entertainment with a movie, they are risking that money they spend just as much as if they were watching a sporting event. Actors and actresses, who are proven to be paid more than athletes, are just as inconsistent as athletes. Just as Phil Mickelson blew his last tournament by a silly mistake, Tom Hanks can deliver a poor performance in a movie. "The demand for players, or actors or writers, is a derived demand and thus their salaries stem from higher demands on the part of fans for the final good or service they produce." Both athletes and actors are at a high demand, so how can people complain about paying for one and not the other?

I think that athletes are looked upon as the bad guys when it comes to their salaries. Sometimes its rediculous how much money some athletes earn, but usually its minute compared to some actors like Ray Romano who makes about $50 million a year for only a half hour, once a week, for a couple of months. People need to examine both sides of the spectrum before criticizing. For example, people look down upon athletes who use steroids. Steroids, which improve their play, are the equivalent of an actors plastic surgery.

Ultimately, the answer to Mr. Sanderson's question is that people's opinions and objections are false because they are ignorant to the truth, and blinded by the economy,wants, and desires. Consumers need to speculate different options, and consider things they haven't before. You can not measure the importance of value from athletes and actresses, because for all of us the value is different. Thus, the author does an amazing job of making the reader think, and consider things they have never before.

Ford Offers Huge Workforce Buyout

Ford Offers Huge Workforce Buyout

UAW President Ron Gettelfinger said its members have made hard
choices under difficult circumstances. "Now, it's Ford Motor Co.'s
responsibility to lead this company in a positive direction - which means
using the skills, experience and dedication to quality that UAW members
demonstrate every day in order to deliver quality vehicles to customers,"
Gettelfinger said in a statement. http://www.cnn.com/2006/BUSINESS/09/14/ford.cuts.ap/index.html

As Ford Motor Co. prepares to announce another huge restructuring plan, a key component has become clear -- buyout and early retirement offers to the company's entire U.S. hourly workforce of 75,000. This move is drastically designed to drastically chop Ford's labor costs was announced Thursday afternoon by the United Auto Workers union. Ford has been battered by the auto market's shift from trucks and sport utility vehicles to more fuel-efficient cars and crossovers. Its market share and sales have dropped while its Japanese competitors have gained. This gain in overseas market is due to the cheaper labor and out-sourcing. Japanese companies recognized the high price of oil and gasoline and made snarter decisions faster than American companies, such as Ford. Because the demand for more fuel fuel-efficient cars is high, the sales of Ford's SUV's and nonfuel-efficient cars have gone down greatly. Due to Ford's poor product decisions until now, they were forced to make this restructuring plan.

El Nino In the Pacific!

El Nino in the Pacific

The U.S. National Oceanic and Atmospheric Administration has announced that El Nino has formed in the Pacific Ocean and will last until year 2007.

What is El Nino? El Nino, which means "little boy" in Spanish, is an extreme warming of equatorial waters in the Pacific Ocean that wreaks havoc with world weather conditions. It usually hits about once every three years.

You may wonder why hurricane season hasn't been nearly as bad as everyone had been expecting-- thank El Nino. It will also will spur warmer-than-average temperatures this winter over western and central Canada and the western and northern United States.It said El Nino also will cause wetter-than-average conditions in the U.S. Gulf Coast and Florida, and spark dry conditions in the Ohio valley, the Pacific Northwest and most U.S. islands in the tropical Pacific.

Although, you may not be thanking it for long. The last severe El Nino killed hundreds of people in Asia and South America, and it caused millions of dollars in damage. This El Nino has caused drier-than-average climate across Indonesia, Malaysia, and most of the Phillipines, causing crops to fail.

This will affect our nation's economy greatly. Indonesia is the most populous Muslim country with over 200 million people, while nearly 90 million live in the Philippines. Both are major importers of U.S. grains and wheat. Both the crops failing and people dying will affect us. The food supply and food production to people all over the world will be affected. If there is less of a supply of grains, the demand for grains will grow, and prices will become higher. People of America may also have to eat less grain-products.

While the current El Nino is mild, it may grow more severe towards the winter. The phenomenom usually peaks in December. As for now:huricanes will be hindered. Also, the U.S. Northeast, the top heating oil market in the world, is in for a milder winter. Taking it's effects on our ecnomy even further, a more mild winter will put a damper on work for townsworkers with plowing roads. The winter will also call for less road salt, and hopefully less automobile accidents.

While we can estimate the future effects of El Nino, only time can tell for sure. As for right now, enjoy the lack of natural disasters and hope for a good winter.

Costs and Benefits of a College Education

The Costs and Benefits of a College Education

Assignment #2

You make it through High School, and receive your diploma. For four years, High School was the "real world" to you. You are then faced with numerous decisions, all of which could decide the rest of your life. Some of these decsions consist of continuing your education, what type of education you want to receive, how many years more, you will attend school, and what college to go to. The truth is that these decisions will affect your entire future.

Costs

-Tuition* -- Tuition is the amount of money that colleges charge for instruction and for the use of some facilities, such as libraries. Tuition can range from a few hundred dollars per year to more than $30,000. The least costly option for postsecondary education is typically a local community college where the average tuition and fees are under $1,700 per year. There are also many four-year colleges and universities that are relatively inexpensive.
-Fees -- Fees are extras students may have to pay, such as costs of school events, athletic activities, and clubs.
-Room -- Dorming or living in apartments near or on-campus can be very pricy, but can also save you loads of money on transportation.
-Board -- Generally Room & Board are put together, Board is what students get while living on campus: public bathrooms, showers, etc.
-Books -- College books can easily cost a student $1,000.
-Food
-Supplies
-Transportation
-Miscellaneous Expenses
-Time Away from Family

While the costs may seem scary, extremely high, and overpriced, the benefits of college could make debts and student loans well-worth it. http://www.forbes.com/forbes/2006/0327/039.html
The link above shows an in-depth discussion of whether or not college is worth it.

Benefits
-More Job Choices
-Career necessity in today's business world
-Workers 18 and over with a bachelor’s degree earn an average of $51,206 a year, while those with a high school diploma earn $27,915. Workers with an advanced degree make an average of $74,602, and those without a high school diploma average $18,734.
-Learn more about the world you live in
-Expansion of social horizons
-Networking
-Provides everything you need to be all you can be

Looking at the expenses and benefits of college, it is easy to see that there are many pros and cons. While college is not for everyone, it's shown to pay off in the long run. Although the money coming right out of college by getting a job sounds appealing, the money you would make in 4 years after receiving a diploma and for the rest of your life is known to be as much as, or more than 30% more. College does not have to be extremely expensive, either. There are many options out there, such as Community Colleges. You need to choose the right decision for you, but never sell yourself short.

Andrea Sauers - Green Class Economics - Mr. Aroune
Assignment #2

Assignment # 1 - HogRaising

Andrea Sauers
Green Class ~ Economics

1) The basic irony or dilemma expressed by this leter is that the Government is paying hog raisers more money not to raise hogs, than to do the actual work of raising them. The irony is in the no work being done, yet getting paid.
2) By paying people not to raise hogs, the government is attempting to improve the market of hogs. During the time of the letter, there was an excess amount of hogs, making their values decrease. By paying people not to raise hogs, there are less, making the amount available less, and the amount that they're worth more.
3) The literary tool the critics of big government used is indirect criticism of the US Government. He does it indirectly by using the analogy of hog raising, but means it actually represents the economy in general. Therefore, the article also uses symbolism.
4) The social value this story conveys is dishonesty and manipulation. The story points out a practice of the government which is hid from the people of America, which affects our nation's economy.