Economic News Investigation

Asia's biggest apparel store's profit falls as sales rise.

The article explains because of the saturated market in Japan, the apparel store has to run more ads and run more sales to get people to buy from their line of clothing and apparel. What they are finding out is they are actually losing money from all of the sales and ads. The store isn't making near enough profit from their sales to fund the company's advertisements and sales.

This related to economics by when there is too much diversity in the market, even though there is more options to choose from, the stores will lose money because of the diverse choices, and even when you try to get more business, you have to spend money to get your brand name out there.

April 10, 2014

Global Sugar Surplus Coming to an End

The sugar "economy" has been in a huge surplus for 3 years with smaller surpluses the years before, but it is now slowing down as the demand for sugar increases at about 2% a year. This rising demand and the lowered ability to keep up with it will balance the equation, but will lead to a small deficit in the next years. To add to the looming shortage, droughts have affected Brazil and have led to poor crop production and an El Nino weather pattern has been forming around the region which may lead to crop destruction and adding to the sugar deficit.

This relates to Economics as it talks about surpluses and shortages. It talks about how for many years the sugar supply has been high but may finally be slowing down. A surplus is when there is extra something left over from a year or certain time period and a shortage is when there is not enough left over, like extra and to little of something. May 16, 2014

Increase in Black Market for Organs

As kidney failure becomes an epidemic in the US, the need for kidneys increase. According to a study in 2012, a black market kidney is sold every hour. Due to better dialysis, transplants and testing the waiting list for organs is able to be longer as the people are able to live longer. Some people know the need for kidneys is high and can live just fine with one so they offer to sell them illegally on the black market.

This relates to Economics as it is part of the black market. Organ selling is illegal, but as some people see it, selling their kidney to someone in need helps both sides, they get money and the other gets the kidney they need. Black markets are usually when an illegal sale is made and can be bad because the money exchanged doesn't get counted for our nation's GDP.

May 20, 2014

2014 Federal Budget Deficit Not Looking Promising

The federal government stated that the country's projected budget deficit would be somewhere around $490 billion as of the middle of April. They predicted this as a tax increase from this year to last would be a 9% hike. With not much time left in the fiscal year, the increase has only been around 8% for a tax hike and they are projecting the budget to be over $500 billion this year.

This relates directly to economics as it is about our country and about our country's debt. The government isn't taking in as much tax as it is needed for us to be on a projected deficit. We are just going to keep going farther and farther into debt. A deficit is when a country doesn't make enough for the year to keep up with the governmental spending.

May 19, 2014

Cab Commission Monopoly?

The Metropolitan Taxi Cab Commission has been accused of running a monopoly which hinders other cab drivers from successfully starting their own business. The cab commission is said to pay other taxi cab drivers hundreds of dollars a month. This caused an outrage among many of the cab drivers that want to drive on their own and have their own business.

This relates to Economics as it shows how monopolies work. They essentially buy other smaller companies and use them to their advantage. The smaller companies bought by the larger cannot get away from this. The newly starting businesses cannot compete with the largely growing, strong and successful larger company, the monopoly.

May 21, 2014

Gross Domestic Product = Sex, drugs, rock and roll?

Not so much the rock and roll part, but Italy's GDP is expected to rise 11% as the country is allowing criminal activity to count in the yearly calculation. Without this new addition, the country would only have an increase in GDP of 0.5%. Even though this new increase dramatically bumps Italy up in the "rankings" of high GDP countries, it doesn't mean Italy is actually doing any better than before, but it may raise morales across the country.

This relates to Economics as it's talking about GDP. GDP is a country's gross domestic product which is how much revenue a country's government makes in a year. Commonly, the country does not count criminal activities as they can be hard to track accurately.

May 26, 2014