Sound Economics – Page 51 – Everyday economics from the University of Puget Sound

Who is Worth More to your Autonomous Car?

Posted on September 22, 2016 by Alex Shaw — 1 Comment ↓

This past week, the US Department of Transportation released safety guidelines to auto manufacturers regarding the production of autonomous and semiautonomous cars. This is broken down by the New York Times here. One of the points that caught my eye was the “Ethical Considerations” section, and an example it gave, “should a car be programmed to better protect its occupants or other drivers in a crash?” In this situation, the autonomous car supposedly would have to be able to calculate the worth of the people inside and outside the car, and then based on those values, make a decision on Continue reading Who is Worth More to your Autonomous Car?→

How Much it Will Cost to Stop the Zika Virus

Posted on September 20, 2016 by Tesha Shalon — 1 Comment ↓

The World Bank has stated that it estimates that Zika will cost the world $3.5 billion dollars in 2016. Although as of June 2016 there have only been 341 confirmed cases of Zika among pregnant women in the US, there are more than a million people who are infected in Brazil. What factors go into calculating the cost of an enormous, widespread virus that also has many externalities on the economy, and how is this calculation done? The methods of putting a price tag on an epidemic involve extrapolation, history, statistics, science, and many other methods. The first piece of the Continue reading How Much it Will Cost to Stop the Zika Virus→

A Lesson in the Marginal Value of Time

Posted on September 19, 2016 by Geremia Lizier-Zmudzinski — 1 Comment ↓

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→

Did Samsung just Lose its Consumers to Apple?

Posted on September 19, 2016 by Megan Waldo — 1 Comment ↓

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?→

The State of the Venezuelan Economy

Posted on September 15, 2016 by Alex Shaw — No Comments ↓

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→

Where are America’s Jobs Going?

Posted on September 13, 2016 by Tesha Shalon — No Comments ↓

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?→

What Increasing the Federal Funds Rate Means for the Stock Market

Posted on September 12, 2016 by Geremia Lizier-Zmudzinski — No Comments ↓

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→

The Game Behind North Korea’s Fifth and Largest Nuclear Test

Posted on September 12, 2016 by Megan Waldo — No Comments ↓

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→