Economic News Articles
By: Cassie Kenney
The simple economics of supply and demand suggests oil will not be back at $100 soon.
As of now the price of oil is under $75 a barrel and gasoline is under $3 a gallon. But now this has begun to go away. The debate has changed to when oil prices will rebound. The economics of supply and demand says that the rebound probably won't take prices over $100 that quickly. Unlike before oil price collapses, this time both demand and supply moved and both prices have moved down drastically. The graph in the article shows the supply curve shifted outward to the right so that means more oil would be available in that range of prices. Demand D1 and the supply curve S2 meet at B, this is where price is lower and quantity is larger. The intersection at C has lower oil consumption than B because the demand is less. Prices would move to E. Demand would expand and return to D1 and prices would return to A. Reversing these put prices back to levels seen back in June and July of 2014.
JOBS FOR THE YOUNG IN POOR NEIGHBORHOODS
This article is taken from the New York Times. It is a very interesting article explaining the unemployment problems for African Americans in the run down parts of America that are common places for high amounts of violence. It is very common for black men ages 16-24 to be unemployed or not enrolled in school, this causes a high rate of acts of violence and arrests. In 2014 there was a study by the University of Chicago Crime Lab. They set up temporary summer job opportunities. The working students were assigned a mentor who taught them how to be successful in the working world. They found that students who are more involved in work are less likely to be arrested. I think this is a very good idea to help people in jobless cities get a job and stay out of trouble.
Black market for organs - Five arrested in Spain for trying to buy immigrant's kidney
What’s to blame for jobless spike?
Many were alarmed by the jump in the weekly unemployment with a high of 294,000 after April’s downfall in hiring workers. But some economists aren’t worried quite yet because of spring break that is taking place in New York says the article from CNBC. They say the dramatic drop in unemployment is from the non-teacher school employees like bus drivers, cafeteria worker, etc. All the non-teacher school workers are permitted to file for unemployment when schools are closed for a week or more. Of the 18k increase in initial claim nationally in April almost 15k comes from New York. The article also states that that Verizon workers could also be a factor but they believe the schools have a bigger impact. In the graph it shows that there was a dramatic increase of 23,000 in New York in the week of May 7, which was very close to the spring break taking place in New York’s public schools.
Zimbabwe’s new currency, who wants to be a trillionaire?
Taken from the article “The Economist” it states that Zimbabwe’s government claimed to have overturned the laws of economics during its own battle of hyperinflation about a decade ago. The governor of Zimbabwe stated that he was going to print more money so they can have more money to spend. But the result was an increase in prices; the estimate was that it peaked at 500 billion per cent. But in 2009 Zimbabwe finally got their inflation under control, when they abandoned their original currency the Zim dollar and they started using American dollars along with other foreign currencies instead. The US dollars converted at a rate of $1 for every 35 quadrillion Zim dollars. This brought instant relief to the country.