The Minimum Wage Movement

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New developments in the debate of minimum wage increase have revealed themselves and this time it’s the whole state of California to become apart of this movement. I have discussed in one of my previous posts about the predicted advantages and disadvantages of hiking up the minimum wage. As I previously reported, San Francisco and Los Angeles were among the cities to be outlining plans to drastically increase the minimum wage over the next few years. San Francisco was one of the cities to pioneer the way for minimum wage increase as citizens voted in Proposition J in 2014 which Continue reading The Minimum Wage Movement→

Everything You Need to Know About Bitcoin

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In the past few years you’ve probably heard the term bitcoin tossed around, which is hard to grasp for most who are unfamiliar with non-tangible currency. So here’s the rundown on everything you need to know in order to understand the world of digital currency. Bitcoin is a payment system as well as a digital asset invented by someone who operates under the name “Satoshi Nakamoto”, which was released in 2009. Bitcoin is whats known as a P2P (peer to peer) system which essentially means that you can send bitcoin from your computer, tablet, smart phone or other device, to Continue reading Everything You Need to Know About Bitcoin→

GDP is a Bad Indicator

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GDP,  we hear about it all the time, and whatever it is makes nations cry when it (technically, real GDP growth) decreases and celebrate when it chugs along at 3%. But what the heck is it really indicating? And is it even good at its job?? In short, GDP is a measure accumulating all of a nation’s production to indicate the nation’s wealth, and, also in short, it’s not that accurate or helpful. See GDP was developed during the great depression to help take stock of what was actually going on in the American economy – so that people could Continue reading GDP is a Bad Indicator→

The Robotic Future of the Job Market

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Recently there has been a lot of talk about the ever rapidly growing market for machines that can replicate what used to be a human run job. According to Autodesk CEO Carl Bass, “The factory of the future will have only two employees: a man and a dog. The man will be there to feed the dog. The dog will be there to keep the man from touching the equipment.” Economists predict that this type of automation will make the human jobs that we know today obsolete in the near future. Just in the US manufacturing jobs have fallen from 25% Continue reading The Robotic Future of the Job Market→

What is Capitalism Really, and Why Do People Hate it So Much?

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Why do people hate capitalism so much? What’s wrong with the freedom to exchange private goods and services without major intervention by the government? What are people really saying when they denounce capitalism? First, a definition: Capitalism: an economic and political system in which a country’s trade and industry are controlled by private owners for profit, rather than by the state. Synonyms include free enterprise and the free market.  I take two issues with the “fuck capitalism” attitude. 1. People don’t seem to know what socialism is (but love it anyway). 2. They’re confusing capitalism for income inequality and/or commercialism. Capitalism is Continue reading What is Capitalism Really, and Why Do People Hate it So Much?→

How the Recycling and Oil Markets are Connected

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When someone thinks about markets being connected, the oil and recycling markets aren’t the ones that usually come to mind. Yet, the oil market is significantly damaging the recycling market right now and it won’t get any better until oil prices rise again. According to a New York Times article from February, Waste Management (the main company that collects recycling) could sell a bale of plastic last year for $230. Now, the price is down to $112 for each bin. Why is this happening? Here’s an excerpt from the NYT article mentioned earlier: New plastics are made from the byproducts of oil and gas Continue reading How the Recycling and Oil Markets are Connected→

Middlemen: Connecting Consumers and Producers

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Most of what people think about when the term “Middleman” is brought up, is somebody who doesn’t provide much value. Why hire a middleman when you could do the job yourself? Even today when the internet has lowered search and transaction costs, it seems as if the job of a middleman would soon disappear. But this notion may not be true. Middlemen provide a service of efficiency which does have value in itself, but some argue that this job will become obsolete as the internet is more widely available today. The cost of searching for an item has gone down Continue reading Middlemen: Connecting Consumers and Producers→

Thesis Corner: Zander Biro

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Alex Shaw (AS): First off, what is your thesis topic? Zander Biro (ZB): My thesis topic is essentially looking at developing social capital while in the institution of higher education and how the role of alcohol can actually be beneficial in lowering relationship costs in order to establish a more broad base social network. AS: I’ve heard there is a bit of a story from how your thesis started to what it ended up being, could you elaborate? ZB: It has definitely been quite the process. Starting in the fall, it started very broad as everyone says it will, and Continue reading Thesis Corner: Zander Biro→

Public Opinion on Trade

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The way that candidates on the campaign trail bat around the issue, one might think that trade is near universally accepted as a bane of the American economy. It is well known that a large majority of economists favor trade. I was surprised to discover that a slight, but not insignificant, majority of Americans currently favor free trade. NPR recently put up an article discussing data from Gallup that follows US public opinion on free trade matters over the last few years–what percentage of Americans many saw trade as a threat versus as an opportunity. Here is the chart NPR published: The chart suggests that public opinions Continue reading Public Opinion on Trade→

The “Anything” You Can Do With an Economics Degree Part 2:  Economic Consulting

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Consulting is another popular career path for recently graduated economics students; Puget Sound econ grads often go to work for firms like Hitachi Consulting.  So, what does a consulting position entail? wiseGEEK provides the following perspective on economic consulting: In general, economic consulting firms are founded by academics, usually in the fields of economics and business, who wish to apply their knowledge to real world situations by providing corporations and the public sector with research and advice on matters pertinent to their area of expertise. Essentially, economic consultants can apply their knowledge of economic theory and concepts directly to real Continue reading The “Anything” You Can Do With an Economics Degree Part 2:  Economic Consulting→