"Winging It"

  The article I reviewed is about Drone technology that is currently in the prototype and testing stage by Google. For those who don't have a full understanding of this product the Drone is already being used for military purposes by the U.S. government so as to reduce the loss of human life, drones are unmanned flying machines that come in all shapes and sizes. The prototype Google is working with is dubbed the "Google X" and is a single-wing machine with four propellers. This is not the first arrival of commercial drone however; last year Amazon opened this discussion with the revelation that they have been testing small drones for the delivery of packages to their customers. 

  It will be at least 5-10 years before these drones would be able to clear all of the hurdles in its path for full commercial use however. Google has the responsibility of proving that this product is not only efficient but safe for air travel in the United States, also Google has to overcome what is expected to be many legal hurdles and air travel regulations. On top of that Google has to illustrate that the privacy of the purchaser will not be violated by these drones being intercepted or having technological issues with delivering the packages to the proper address. 

  Also to be noted with the "Google X" is the benefits these drones would provide may even outweigh any negative repercussions caused by widespread commercial use. The Drones would ease traffic in terms of less road traffic for delivering commercial packages and they may prove to be more environmentally-friendly than the typical road transportation. Google also envisions these drones being capable of delivering supplies to disaster ridden areas with ease and less congestion than the normal methods used which has been a recurring issue for the U.S. government.

  One question that I can raise is how Google would avoid these packages being intercepted on a regular basis, I envision scenarios where many people have packages taken from the drop location at their homes or even taken out of the sky. Also, one question that I pose for those reading is whether or not you think the government should spend more time/money investing in widespread drone use for postal services or the before mentioned use in times of disaster. 

Below is the link to the article from The Economist;

http://www.economist.com/news/business-and-finance/21614424-google-announces-its-own-delivery-drones-project-winging-it

The $2.4 Million-Per-Day Company: Supercell

http://www.forbes.com/sites/karstenstrauss/2013/04/18/the-2-4-million-per-day-company-supercell/

"Uber Continues to Operate in Germany, Despite Court Ruling"

The ride-sharing service, Uber and other similar services have been embraced positively by many across the world.  For those unfamiliar with Uber; it is a smartphone app where customers use the GPS in their phones to hail cars nearby. Payment is processed through credit card information programmed into the application.
A number of taxi companies as well as worried officials have issued complaints about the safety and licensing requirements of Uber's drivers.  The reality of these complaints can be summed up to Taxi companies being angered over Uber's popularity and success while cutting into the Taxi's revenues.

A number of court proceedings have been filed in many cities. The New Orleans City Council just gave Uber the ok to operate but many still feel it is dangerous. Germany has outright banned the company in the entire Nation but Uber continues to operate. Those against these types of services feel that many drivers for these services lack the requirements and licenses to be performing such duties.

There are a number of questions surrounding this situation. Should governments (local, state, and national) be involved in deciding whether or not these services should operate? Do the Taxi's have a valid argument or are they more concerned uber-like services pose a real threat of competition?

Source(s):
http://www.wdsu.com/news/local-news/new-orleans/council-gives-ok-for-uber-to-operate-in-new-orleans/27888042#!bPYCIL

http://bits.blogs.nytimes.com/2014/09/03/uber-continues-to-operate-in-germany-despite-court-ruling/?ref=international

Fed's Fisher sees hints of price pressures despite soft July data

http://www.reuters.com/article/2014/09/05/us-usa-fed-fisher-idUSKBN0H000L20140905?feedType=RSS&feedName=GCA-Economy2010

Reuters discusses Fisher's views on the "cooling" inflation rates. However, his views, which "[strip] out the most volatile price movements, showed fast increases in July in some the index's largest, least volatile components." While this does provide a more insightful overall look, allowing us to better see where in the economy inflation is increasing or decreasing, "the jury is out" on whether or not it will be enough; volatile goods are still a large portion of the economy. A continued decreased inflation rate, especially if the Fed plans to raise it's interest rates, could prove problematic.

Another thing to note is that, even if inflation were to continue at the same rate, wages are currently being kept flat for many businesses (http://econlog.econlib.org/archives/2014/09/yellen_is_a_goo.html and associated sources). Because of this, the current cooling of the economy could lead to the flattened wages remaining as such for longer. For businesses that rely on these heavily volatile goods (for example airlines), this could mean  wage cuts that aren't implicit or even more layoffs.

"Builders race to develop sky-high condo buildings"

"It's happening all over. I describe this as luxury estate becoming the new global currency", said real estate appraiser Jonathan Miller.

As the world's economy is sky-rocketing, the demand for super tall skyscrapers also increases rapidly. Because the available space keeps reducing, new condo buildings keep getting taller and skinnier than ever.

The major part of the demand comes from international buyers, businessmen, and billionaires that are looking to invest.

Even though technology advancements allow architects to go higher without affecting the physical health of the residents, there are certain problems that developers have to face. First the costs of making these high skyscrapers are twice that of shorter buildings. Also, city lots are extremely expensive, and there are tons of regulations and community opposition.

http://money.cnn.com/2014/09/04/real_estate/builders-develop-sky-high-luxury-condo-buildings/index.html?iid=Lead

Job Corps is Giving Underprivileged Youths Hope For Work

Source

50 years ago, a program named Job Corps was initiated, and since then it has become one of the largest job training program sin the country. It specifically targets youths who are either underprivileged, are low-income, old foster children or those who the education system couldn’t help. The labor secretary of the program, Thomas Perez, was interviewed to answer questions about the program, and it became clear how helpful this program is. 

There are over 125 centers for Job Corps nationally, and for some people involved in the program, they live there. The program runs very rigorous training for skills that are needed for jobs, but also the vital skills that are needed in life, since the majority of those in the program have had tough lives. The students are trained in mechanical and computer skills, and any other skills that can help them thrive in today’s economy.

The success rate for Job Corps has been very high, where at least 80% of the graduates find themselves employed, in the military or pursuing a higher education.  In such a competitive economy like the one we have today, this program can change a lot of lives for the better.

Hundreds of Fast-Food Workers Striking for Higher Wages Are Arrested

  Today, fast-food workers in about 150 cities nationwide organized a sit-in civil disobedience to protest their current minimum wage pay, about $7.50 an hour. Their demands were for their wage to be raised to a minimum of $15 an hour. Workers in these low pay, fast food jobs find it hard to make ends meet and support a family on a pay of $7.50 and hour. This one day sit-in is now the seventh one-day strike protested by fast food workers. After fast-food strikes began in 2012, pressure on fast-food chains to raise the minimum wage floor to $15 an hour has been increased. The fast-food workers were joined, in their organized civil disobedience, by many health care workers and janitors who also have hopes of their minimum wage being raised to $15.

  Though the strike has received support for many non-fast food workers, there are also many who are critical of the strike. Rob Green, the executive director of the National Council of Chain Restaurants, was quoted saying that the civil disobedience is not only irresponsible, but disturbing and illegal for the works to to choreograph the sit-ins, calling it trespassing. The company of McDonald's stated this morning, that they, "support paying our valued employees fair wages aligned with a competitive marketplace...We believe that any minimum-wage increase should be implemented over time so that the impact on owners of small and medium-sized businesses — like the ones who own and operate the majority of our restaurants — is manageable.”

Such a factual and logical statement to be made in this situation. It is important for workers to know and understand the reasoning behind their level of pay. $7.50 an hour is what the economy has worked out to be fair for the skills required by these jobs. If wages were to double over night, like what the workers are demanding, the businesses would have to greatly increase their  menu prices, creating frustration among their consumers, who, in turn would cut back on their consumption of the more expensive products. This decrease in sales creates a decline in profits. If the minimum wage floor were to be raised, a decline in profits would mean that employers have to decrease their labor force by double to be able to keep up with payroll, which then increases unemployment. 

Link: http://www.nytimes.com/2014/09/05/business/economy/fast-food-workers-seeking-higher-wages-are-arrested-during-sit-ins.html?_r=0

"European Policy Makers Should Study Their Peers"

           "European policy makers should study their peers," says The Economist because in recent years America and Britain have handled the economic crisis much better than Japan and Eurozone. America and Britain have taken two very crucial measures to stabilize their economies; they have deployed unconventional stimuli such as quantitative easing (QE), and used "forward guidance" to ensure markets they will not raise interest rates too quickly. Such stimuli have warded off deflation despite tight fiscal policies, and kept inflation at a reasonable 2%.

            Although the European central bank (ECB) reacted well to the global financial crisis initially, it has slacked off as of recently. Its main mistake has been underestimating the threat of deflation. Instead of introducing methods such as QE, the ECB has raised interest rates to fend off non-existant inflation threats. This mistake has caused inflation to drop to a low of 0.4%, far below Eurozone's target of 2%. Unfortunately, this low inflation has caused businesses, households, and governments to slash spending in order to fend off debt burdens. 

         However, there are reasons as to why the Eurozone has had troubles recovering from the financial crisis. Unlike its peers , the ECB lacks political support for QE, and Germany's influential Bundes Bank is quite against it. Similarly, many of the Eurozone's problems such as excessive regulation, burdensome taxes, and rigid labor markets aren't even results of monetary policy.

         So what does this all mean? Well in a nutshell, the Eurozone needs to be bold and take action just as its peers have successfully done. However, the ECB is very concerned with inflation rising and that is why no drastic moves have been pursued. If the ECB were to use Japan as a model it could possibly make a positive impact. However, this would require more support, political support, and rhetorical commitment in order to jolt the country and its mentality out of deflation.  

From "Be Bold, Mario," an article in the August 23rd edition of The Economist 

Atlantic City's Big Bet on Gambling Sours

Since 1975, Casinos have been the main source of attraction in Atlantic City, New Jersey. During the 1980’s through 1990’s, this casino haven surpassed the Vegas strip casinos in gambling revenue. Despite this early success, as of this week, all but a few casinos in Atlantic City have shut down. The remaining three casinos that are open today are expected to foreclose within the upcoming weeks.  The reason behind the closings involves basic supply and demand laws. The casino market is one that is international, ultimately supplying too many casinos for its demand to catch up. Las Vegas, alongside Atlantic City, are considered two hotbeds for casino gambling. At one point, people across the globe traveled to these hot spots to enjoy the market for what it is. Now, we see high end casinos more local to consumers in states such as Pennsylvania, Maryland, and New York. Gambling analysts say that there is simply not enough people gambling today to satisfy all these casinos. Moreover, Atlantic City feeds off of the casino’s property tax revenue, accounting for 65% of the city’s budget. With these three casinos shutting down, it roughly amounts to a $30 million loss in property tax revenue. Not only is tax revenue down but unemployment numbers are skyrocketing with 6,000 employees now jobless.

Atlantis City’s mayor, Don Guardian, announced that he will now have to eliminate additional city employees to offset the lost tax revenue. In addition, Mayor Guardian plans to also raise property tax by 29% for homeowners. Atlantic City is now in shambles while the unemployment rate is 13%, more than double that of the U.S. national average. Governor Chris Christie initiated a five-year plan to boost the economic distress of Atlantic City. He plans to develop a convention center that will enable people to fly into the city’s small airport. This money will be used to hold events such as wine tastings, beach concerts, and aerospace shows. Moreover, the governor plans to incorporate a Bass Pro Shop, hunting and outdoor-goods store. With all these projects on the table, the question rises of whether or not this will overcome the harsh losses of gambling revenue. 

Link : http://online.wsj.com/articles/atlantic-citys-big-bet-on-gambling-sours-1409329414

The Economic Price of Colleges’ Failures

Source: http://www.nytimes.com/2014/09/03/upshot/the-economic-price-of-colleges-failures.html?ref=economy&_r=0&abt=0002&abg=0

This article discusses a study of individuals who have received a four-year higher education. In the study, a sample of first-year students attending four-year universities was given a test on skills that all colleges promise to teach to all students of all majors called the Collegiate Learning Assessment (CLA). At the end of senior year, these students took the same test again. Results of the study showed that most students improved “less than half of one standard deviation”. However, many of these students still received good grades in their classes due to the low expectations set by universities. Students whose professors had higher academic expectations and who spent more time studying learned more, scoring higher on the test than others.

While the skills measured by this test are certainly not the only ones learned by college students, a follow-up study found that these skills make a significant difference in finding and keeping a job post-graduation. The students in the study were less likely to be unemployed than young adults without a college degree, but many of the college graduates who scored low on the CLA were working in positions that they are overqualified for. On the other hand, students with higher scores on the CLA were less likely to be unemployed and more successful in the workplace overall. The author sums up the study’s results, stating “Because [low CLA-graduates] didn’t acquire vital critical thinking skills, they’re less likely to get a job and more likely to lose the jobs they get than students who received a good education”.

While a college degree will likely open more doors post-graduation, the article asserts that most employers can tell those who learned useful skills in college from those who did not. Taking into account the rising cost of higher education, this study makes clear the long-term value in receiving a high-quality college education over a mediocre one.