Work, Management, and Outsourcing Project

In order to get a grasp on the concepts of work, management, and outsourcing, my group (comprised of Matt Jimenez, Thomas Siejak, and I) decided to gather information from our three fathers, all of which have 3 very different jobs in different markets. We all asked our fathers the same questions, and gathered imformation based on their personal experiences and opinions. Through their ideas and base information from Economics class and the internet, I now have a general idea of the market, work, managment, and outsourcing. Below is the information gathered from my interview with my dad, Craig.

My father is the head coordinator of shipping and receiving at MOOG Inc. There coordinates everything Moog ships--hardware built by Moog, and everything Moog receives--raw materials, accurately.
OUTSOURCING:When I asked him if he fears his job being outsourced in the near future, he was quick to reply with a "no" because there must be a person on-site in the country at the companies making sure things are arriving to where they belong at the right times. While his job is not outsourced, Moog does outsource and has many companies internationally. He said, "Moog does outsource...It has to in order to stay competitive in this day and age." I agree with my dad here-- why not send work to people who will do it for a small fraction of the cost Americans will do it for? While I believe this is a great way to save money and make a profit, it also results in the loss of jobs for Americans. The line needs to be drawn somewhere; a medium needs to be reached.
WORK AND MANAGMENT: According to my dad, at Moog managers make a fair amount more than the workers. When I asked him if he agreed with this, he responded: "They make a lot more, but they went to school a lot longer. If managers do their job well-- yes, I agree with the difference in pay, they've earned it." After I said this I asked him the question: "Do you believe labor, managment, and outsourcing are the major factors in the diminishing of the middle class?" Immediately following this question, he refined his previous response in saying, " Yes, many big CEO's are overpaid. While I agree with managment making more, some of the salaries managers make are ridiculous and unnecessary. With a portion of society making unnecessary amounts of money, it is creating a huge gap between the wealthy and poor, with no inbetween." While I realize filthy rich CEO's aren't willing to give up a few mill a year to help out in paying his worker's salaries, I do not understand what a single human being could possibly do with billions of dollars.

So what is the solution to these issues? I believe a new technology before any country could develop it would do the trick. For example-- finding a substitute for gasoline. If we could eliminate the billions of dollars spend on oil from Middle Eastern countries, our country would not only gain money in not buying it, but everyone in the world will want to either buy the substance from us or adopt the idea. In conclusion, Craig stated, "The whole country needs to get together to try and keep as many jobs as possible here, if not our countries economy will continue to decompose."

Research Project

Our assignment is to choose a sector of the market and formulate a hypothesis as to which product in that market will fair the best during the holiday season. In this project we will use the "deep-net" by researching in ways many of us have never done before. I will use new tools such as Firefox and Delicious in aiding in my research. I will also blog along the way, about my findings, sources, and ideas.


My group's market to research and hypothesize about is Electronics. We have all chosen different sectors of that market, mine being Cell Phones. The cell phone market is extremely competitive and will raise millions of dollars in this holiday season. In my project, I will research how the cell phone companies advertise, what age group they target, which phones the company produces, the different perks of each phone from the company, what the consumer is looking for, and which company will sell the most phones.

The phone company I believe which will fair the best is Motorola due to two of the most popular phones on the market-- the Motorola v3m Razr Bluetooth Phone and the Motorola Q PDA Smartphone. Both phones appeal to both young and old. While the Razr is a favorite because of its modern, thin appearance, the Motorola Q allows you to browse the internet, email, take pictures, make phone calls, and plays music. This is my initial hypothesis and I look forward to researching to form my final theory.

Nuclear Testing in North Korea

Tensions Are Stirring

Sept 2005: At first hailed as a breakthrough, North Korea agrees to give up nuclear activities. Next day, N Korea says it will not scrap its activities unless it gets a civilian nuclear reactor. US imposes financial sanctions on N Korea businesses

July 2006: N Korea test-fires seven missiles UN Security Council votes to impose sanctions over the tests
Oct 2006: N Korea claims to have carried out nuclear test

http://news.bbc.co.uk/2/hi/business/6033079.stm

North Korea's testing of its first nuclear weapon was carried out in the defiance of international warnings. If the test was succesful as said, it would make Notrth Korea the ninth known nation obtaining nuclear power. Described as a "historic event that brought happiness to our military and people" by North Korea, their action has actually has angered many nations.

This act has and will affect the world.

North Korea's nuclear test last week showed that policies of isolation and threats of regime change will not prevent the spread of nuclear weapons. The US's relations with North Korea have deteriorated since 2002. The US' greatest fear is that North Korea will sell them to other nations, such as Iraq and Iran. With our current situation in The War on Terror, this could cause major disruption in our activities in rebuilding Iraq. The last thing the world wants right now is a nuclear-arms race. Following North Korea's claimed nuclear test, the US pushed through a UN resolution that calls for a series of sanctions against Pyongyang. These include a ban on the imports and exports of military hardware, nuclear and missile-related items and luxury goods, as well as the travel of anyone involved in North Korea's missile and nuclear programmes. The resolution also allows for the inspection of North Korean cargo, but, in a bid to ease Chinese and Russian concerns, stresses the need for a new resolution if further action is sought.

China is also affected, because it is North Korea's largest trading partner. Nuclear testing will affect not only North Korea's economy, but China's and many other neighboring countries' economies. While Beijing supports the sanctions approved in the resolution, it has indicated it still has reservations about carrying out inspections of North Korean ships, especially when they are still at sea, in case it triggers a flare up with the North's navy.

After the missile tests, South Korea has cut off regular humanitarian aid, including rice and fertilizer to the North. Despite it's feelings about the weapons testing, they are fearful to raise tensions with its neighbor to the North. It also fears political or economic collapse in North Korea since this could lead to millions of refugees crossing its border. South Korea has been reluctant to join the sanctions, yet has agreed to now join on a "partial and case-by-case basis."

As you can see, North Korea's nuclear testing has deeply angered these, and many other nations around the world.

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.