Coffee vs. Cocaine

Peyton discusses the production possibility of coffee and cocaine in Columbia.

The Colombian coffee industry is at risk because the opportunity costs of production are increasing. Rising temperatures, unpredictable rainfall and the intensive labor that goes along with producing coffee is making it more and more undesirable to farmers.

Please read her full post here.

Outsourcing

Brayden discusses the cost and benefits of outsourcing.

On the flip side, bringing all these jobs back to America--the call centers, the factories, the production lines--would cost a fortune for these companies and for the consumer. Consumers benefit from outsourcing in that they enjoy the deflated prices of the products they spend money on.

Please read his full post here.

College vs. Jobs

Gage discusses how the decision to attend college or get a job post high school affects employment opportunities.

In a recent article by Leah Konen, she states how a majority of college graduates are unsuccessful in finding a job after receiving their degree. I find it interesting because it made me contemplate whether or not going to college immediately after finishing high school was going to benefit me later on in life...

Please read his full post here.

Example Post With Example Comment

This article says that most people plan to retire when they're 70 or older instead of 65. Some even speak of waiting until they're 80 to enjoy their golden years. People simply can't afford to stop working any earlier than that, especially since most don't expect to get anything from Social Security. But those people staying in the work force longer could have a negative effect on unemployment. It would reduce frictional unemployment (voluntary unemployment), and that may seem like a good thing on the surface. But frictional employment is natural and will always be present to some degree, so it's not a big deal if we have it. The problem is that if people wait longer to retire, they make it harder for others to get jobs. In recessions and troughs, the younger and more inexperienced are going to be layed off first unless they're needed. If the more experienced potential retirees hold on to their jobs, the younger people (who may have to provide for a family) won't be needed and will have a harder time finding work. That will increase the cyclical unemployment, which is the type of unemployment we want to minimize the most. But if Social Security is going to run out soon, the older people don't have much of a choice.

Example Post With Example Comment

As we all have noticed, gas prices have been rising significantly. However there are a lot of factors that go into the price of oil. There is a lot of manipulation by Wall Street that goes into the prices of gasoline, which can lead to the quick changes in prices. There is also competition in the market. If one station lowers their price, the station across the street will too so that they customers will still come to their station. The hardest thing about this for consumers is that they can't really avoid buying gas. If you need to fill up your tank there are no substitutes. Sure you can go to the station down the street that is a penny cheaper because of the competition in the market, but you can't fill up your tank with water or peanut butter.
I also thought it was interesting that there is so little profit for stations on gasoline. Instead they want to draw customers inside to purchase beverages and snacks. It never occurred to me that the lowest priced gas station could also make a profit this way. If you lose a penny per gallon on gasoline to draw customers in but then sell the customer two sodas and a bag of chips, you are going to make more money than you would have with a higher price of gasoline. It's also interesting that shop owners realize this and are willing to take the chance that people might just buy gasoline. However if they don't take that risk they may end up with much lower profits. If gas prices continue to rise I think it will be interesting to see if consumers continue to purchase goods inside the convenience store, or if they feel the need to cut back because of the high prices at the pump and to see if this also has an effect on gas prices.

Seasonal Employment

Victor discusses FedEx's seasonal employment.

With the holiday season fast approaching FedEx is hiring temporary drivers to meet the increased demand for shipping.

Please read his full post here.

World Series vs. Olympics

Deven discusses how the World Series and the Olympics help to temporarily stimulate local economies. 

There has been much talk about how the World Series is boosting the economy in both St. Louis and Arlington. Thousands of people are buying merchandise and tickets to the games that are selling at over $1,200. With the 2012 Summer Olympics taking place in London; many people are speculating the same kind of economic boost in Europe.

Please read his full post here.