It’s nice to see that someone understands the value of time, or should I say, the marginal value of time. A recent article on Bleacher Report described Urban Meyer’s return to coaching football after health issues due to excessive work forced him to leave Florida, where his teams went 65-15 and won two nationals championships, after the 2010 season. Meyer is now the head coach at Ohio State, where he is reportedly in good health and happier than ever. According to Meyer the secret to his health and happiness is a balanced life. He’s replaced eighteen hour work days for Continue reading A Lesson in the Marginal Value of Time
Last week there was a massive recall on the Samsung Galaxy Note 7 phones after reports were filed of the phone overheating and “exploding.” Two and a half million phones were recalled, and one million of those phones were recalled from the United States. The call was made by the Samsung voluntarily, urging consumers to power down their devices and return them as soon as possible. This recall has had a large impact on consumers beyond just halting their social media presence. Airlines like United Arab Emirates and Virgin Australia have banned the use of the Samsung phone while flying. Continue reading Did Samsung just Lose its Consumers to Apple?
Econometrics an important tool for economists to explore relationships between different aspects in society and measure causality. I like to think it is more than a way to confuse new econ majors and scare off the less mathematical inclined ones. But by combining statistical and mathematical methods, econometrics can be used to answer economic questions such as the progress of African Americans. Russ Roberts and James Heckman discuss this topic as related to econometrics on Econtalk and how this method can be trouble for more than just undergraduates. Heckman sheds light on the African American progress measurement and brings up the issue Continue reading Econometrics: A Difficult Tool
In the National Football League, it’s not the safety of the players that comes first. Or the domestic violence and sexual assault problems that have increased across the past decade. Maybe it would be supporting social issues that go across sports boundaries? Nope. What Roger Goodell, the commissioner of the NFL, cares the most about is the revenue that the league brings in. It’s about constantly growing and promoting the brand. You’d think that the owners in the NFL would step in at some point as the supervisors of Goodell to make sure all of the issues in the first paragraph Continue reading In the NFL, Revenue Trumps All
For those of you who may not know, Venezuela is in the midst of a massive economic crisis that is leaving people without basic necessities. Inflation is expected to reach 720%, up from 275% at the end of 2015. GDP has been contracting since 2014. Drought has left the government to rationing out water, and because Venezuela relies on hydroelectric dams to produce much of its energy, the drought has caused power shortages. The government has been running huge budget deficits on social programs that they can no longer afford, as high as 29% of its GDP in 2014. Unemployment is at Continue reading The State of the Venezuelan Economy
Big companies and corporations are notorious for cutting corners and looking for innovative and creative ways to save money and maximize profits. Today we are seeing these types of job cuts in industries in which the task can be automated to some degree. For example amazon factories already have over 30,000 robots fulfilling orders 24/7. This tradeoff between convenience to a company and employing real humans is one that is widely debated. The banking industry is undergoing its own shift, with 30% of its jobs threatened in the last year. This type of automation differs from what we imagine as Continue reading Where are America’s Jobs Going?
Since the Great Recession rocked the U.S. and world economy in 2007, the federal funds rate in the U.S. has been at or near zero, falling from its pre-recession level of 5.25%. The hallmark of post-recession years has been the Fed’s strict adherence to low interest rates for fear that raising them could send the United States back into a recession. But now, this period may finally be coming to an end. For the first time in nine years interest rates may be set to climb as Janet Yellen announced at the Fed’s annual Jackson Hole meeting two weeks ago Continue reading What Increasing the Federal Funds Rate Means for the Stock Market
On September 9th, North Korea completed their fifth and largest nuclear test, just fifty miles from the Chinese border. The test was the second this year and a clear example of the increased pace in nuclear trials that Kim Jong Un has been pushing since he inherited power in 2011. The US has attempted to slow this rapidly increasing progression of tests by imposing sanctions and as of July 2016 deploying an advanced missile defense system in South Korea, however, the tests have continued to ensue and now the US is considering placing an embargo on North Korea. According to Continue reading The Game Behind North Korea’s Fifth and Largest Nuclear Test
It may be almost a decade after the 2008 financial crisis shook the US economy, but economists and financial managers are still trying to snuff out the causes of this pandemic. The idea of a “housing bubble” has been used to describe the confusion and ignorance around the risks of the housing market leading up to the collapse. This concept connects many different pieces within the US housing market, from borrowers to lenders to big players on Wall Street. But it is difficult for economists to pinpoint one key cause of this crisis. So the magnifying glass has been placed Continue reading 2008 Financial Crisis Under the Magnifying Glass
Yesterday, news came out that Wells Fargo Bank would have to pay $185 million in fines in addition to the $5 million they had to pay to their customers for accounts that were set up without their approval. Essentially, customers were being charged fees for accounts they had not set up on their own. Patrick Rucker and Dan Freed from the Huffington Post note that, “In a complaint filed in May 2015, California prosecutors alleged that Wells Fargo pushed customers into costly financial products that they did not need or even request.” $100 million of the fines went to the Consumer Continue reading Impacts of Wells Fargo Scandal