Sound Economics – Page 84 – Everyday economics from the University of Puget Sound

Faculty Feature: A Workshop on Reflexivity

Posted on March 5, 2014 by Andrew Monaco — No Comments ↓

[From time to time, Sound Economics will feature contributions from across the economics faculty at the University of Puget Sound. In our first Faculty Feature segment, Wade Hands discusses his recent participation in a conference on reflexivity and the work of George Soros. -Andrew] In October, I attended an interesting workshop in Budapest that may interest readers of Sound Economics. The topic of the workshop was George Soros’s Theory of Reflexivity and Its Relationship to Economic Methodology. Most readers know George Soros as a successful investor and philanthropist and probably do not realize that he has written a number of books on Continue reading Faculty Feature: A Workshop on Reflexivity→

The Fantasy Industry

Posted on March 4, 2014 by Matthew Moreno — No Comments ↓

Fantasy sports has gained significant mainstream popularity over the last few years. In 2012, fantasy leagues reaped over $1.5 billion in entry fees. They’re so popular, in fact, that they’ve inspired offbeat spin-offs like a fantasy economics league (which I wrote about last week). Just like any other big ticket industry, a number of firms have popped up to cater to its needs. One example: Say the star quarterback of your fantasy team suffered a season-ending knee injury. Or, if you’re more disposed to participate in a fantasy economics league, your star department member unexpectedly developed an allergy to coffee. Either Continue reading The Fantasy Industry→

An introduction to the Farm Bill

Posted on March 3, 2014 by Jared Soares — 1 Comment ↓

The 2014 Farm Bill (which was signed into law in February) can be a mess to understand. From food stamps to farm subsidies, the bill helps to shape the way America grows, processes and consumes foods. This video gives an introduction to the Farm Bill. It can be interesting to find out the mechanisms involved in such a massive bill (nearly $1 trillion). This is a relatively unbiased view of the bill and the market incentives that drive it. In particular it discusses the new crop insurance program and the decisions producers will face in the coming year. Before we Continue reading An introduction to the Farm Bill→

Thesis Corner: Making Sure We Are “Dam” Confident with Water Infrastructure

Posted on February 28, 2014 by Holly Ross — 2 Comments ↓

What were you doing when 9/11 happened? If you’re like me, you have a vivid snapshot of what you were doing and where you were when this tragedy struck. Not only is it a moment imprinted in our memories, but in history it represents a transformative event effecting almost every facet of American daily life. Fear and awareness of terrorism impacts everything, even (to some degree) the glass of water you gulped at the Sub. In his Economics thesis, esteemed UPS senior Alex Shannon testifies how the heightened perception of terrorism embodies significant political and economic ramifications with an unlikely commodity: water. His topic Continue reading Thesis Corner: Making Sure We Are “Dam” Confident with Water Infrastructure→

Keystone XL Economics Part II

Posted on February 27, 2014 by Tom Merritt — 2 Comments ↓

Following up on Collin’s article yesterday, I want to add an additional perspective on the economics of the Keystone XL pipeline. First off, while the State Department report on the Keystone XL pipeline suggested that the pipeline will probably not increase greenhouse gas emissions, a report by the nonpartisan Congressional Research Service found that the pipeline would increase greenhouse gas emissions anywhere between 3 and 21 million metric tons annually, assuming that the pipeline will accelerate tar sands oil production. This is mainly due to the fact that refining tar sands oil is far more energy intensive than refining normal crude oil. Another environmental Continue reading Keystone XL Economics Part II→

The Keystone XL Pipeline

Posted on February 26, 2014 by Collin Hoover — No Comments ↓

The Keystone XL pipeline is a proposed pipeline construction project that would funnel crude tar sand oil from Alberta Canada to refineries along the Gulf of Mexico in Texas. As this is a construction project that is both international and revolves around environmental issues, many interested groups are involved. Environmental activists argue against the project, saying that the construction is contradictory to progressive environmental standards. Canadian Prime Minister Stephen Harper and corporation TransCanada would see the pipeline put in tomorrow and say that construction will create jobs for and attract investment to the US. Ultimately, the decision is up to Continue reading The Keystone XL Pipeline→

Many Mouths to Feed

Posted on February 24, 2014 by Jared Soares — No Comments ↓

Those that live in poverty spend differently than those with a higher income. In general, poorer individuals have a higher marginal propensity to consume and spend a majority of their income on food. The ability to afford food provides greater health and well being. Poorer countries often use subsidies to make food prices artificially low, but governments may find that subsidizing food costs for buyers can have significant benefits. Subsidizing food costs can push the supply or demand side of the market. When food subsidies go to farmers supply is pushed out; when they go to consumers, demand shifts out. Continue reading Many Mouths to Feed→

Thesis Corner: YouTube’s Impact on the Video Content Market

Posted on February 21, 2014 by Holly Ross — 1 Comment ↓

Flashback to the Super Bowl in 2004. Remember who was playing? Neither do I. But this was a historic Super Bowl because it was when Justin Timberlake indecently exposed Janet Jackson’s breast during the halftime show. The day after, Chad Hurley, Steve Chen, and Jawed Karim, heard all commotion about the incident but missed it. Unfortunately, none of them could find a video of the episode, so they were out of the loop. This miniature tragedy helped plant the idea of YouTube, a realm allowing easy sharing of video content among users. Perhaps YouTube’s history gave you a chuckle, but Continue reading Thesis Corner: YouTube’s Impact on the Video Content Market→

More Evidence on the Effects of Raising the Minimum Wage

Posted on February 20, 2014 by Tom Merritt — 1 Comment ↓

Following up on Collin’s article “$15 Minimum Wage.. It’s Happening Now”, the CBO has recently released it’s report on the economic impact of raising the minimum wage to $10.10 an hour. A New York Times Economix Blog article pulls a few nuggets from the report: -An estimated 16.5 million low-wage workers will see their wages increase as a result of the minimum wage increase. -900,000 people who are currently impoverished will move above the poverty threshold. -Raising the minimum wage will reduce low-wage employment by roughly 500,000. The article even questions the employment loss estimates as being too high, noting that the most precise Continue reading More Evidence on the Effects of Raising the Minimum Wage→