LB's Economic Times

My Blogging Experience: Cost-Benefit Analysis

2006-11-30T23:16:00.000-08:00

When I first learned the medium for displaying my class writings would be a blog, I was a bit hesitant. I do not consider myself to be a technologically savvy individual. My only previous experience with blogs came from celebrity gossip sites like celebspin.com or jossip.com . My professor recommended that the blog center on my major or an area in which I have a strong interest. I knew, then, that my blog would be the perfect opportunity to more fully explore my newly selected major of economics. Economics is the study of choice and decision-making in a world with scarce resources. With that in mind, I wanted my blog to focus on applying the knowledge I was learning in class to events happening currently in society. There are so many blogs out there that it is difficult to make one’s own blog stand out above the rest. I had no previous experience working in a blog environment so I was unsure of what was required to make my blog stand out and receive some attention. I think if I had named the URL of my site something different it would have gained more attention form those interested in the field of economics. Overall, I think the focus of my blog remained true to this initial concept, changing slightly from assignment to assignment.

At times I had difficulty picking a topic for an assigment that addressed economics and that I thought would be both academically competitive and interesting to readers who were scanning the blog. I think the topics I chose to discuss were relevant to current events. I struggled, however, with the voice of the blog. I wanted to foster an engaging argument based on the confines of the assignments but still be informative and inviting. This confusion was often reflected in my writing which at times was congested and wordy. I learned new things while researching for topics to write on. For example, in one of the essays the focus was to write about an award winning sight. I chose to discuss the World Bank’s outreach sight entitled “Youthink!”. I think it is important to expand my knowledge about what economic organizations are doing beyond their designated parameters. Many organizations are making an impact on the world by helping to educate others in addition to the normal economic purposes their institutions serve. I hope that by making a posting on my blog more people will be aware of this great site. Awareness was one of my main goals. I wanted to be able to write about something I was interested in learning about while helping to educate others too. In the end, I enjoyed the blogging experience and believe it helped deepen my understanding of the field of economics.

Humanitarian Activist: Prized Economist Joseph Stiglitz Takes on the IMF

2006-10-25T12:33:00.000-07:00

Every year universities across the United States award honorary degrees to reputable intellectuals who are making an impact on the world today. One field of study not normally thought of when crediting individuals for great achievement is the profession of economics. Many people find economics to be a dying profession, but this year has proven that the study of economics is alive and flourishing. There have been a number of critical advances in economic policies most notably the winner of the Nobel Peace prize’s work with the concept of micro-credit brought economics to the forefront in the public eye. The University of Southern California has a strong economics program and when bestowing an honorary degree would serve its purpose by selecting candidates whose accomplishments highlight an area of study in which the University has developed exceptional strength. Joseph Stiglitz is an economist who has won a number of awards for his influential work. He is a well-known figure on the topic of globalization and of the growth of individual economies around the world as well as a promoter of social justice who continues to provide new ideas about the world today. While he has his critics, Joseph E. Stiglitz is deserving of an honorary degree from the University of Southern California because Stiglitz takes the knowledge he learns from his individual research and applies it to improving the lives of those less fortunate.

The honorary degree to be proposed for Joseph E. Stiglitz is a Doctor of Science. He is a renowned economist who has distinguished himself as a major contributor to the field of microeconomics. There are a variety of criteriaMeaningful Work: Rethinking Professional Ethics for judging accomplishment. Mike Martin in his book categorizes professional achievement into three categories: craft, compensation, and moral. Each category defines an individual’s motives for seeking and realizing success. For Martin, craft motives are “desires to achieve expertise and desires to manifest technical skill, theoretical understanding, and creativity.” (Martin 22) Expertise comes from higher education and skills acquired from having a career. Joseph Stiglitz is a graduate of Amherst College, has a PHD from MIT, and has taught at a number of universities including Yale and Princeton and is currently University Professor at Columbia University. One of the classes he teaches there Development Policy: Multidisciplinary Roads to Reform “focuses on a selection of salient economic policy issues that confront the developing countries today …clarifying the controversies that have dominated the policy debate.” He has written numerous articles and books detailing his studies and research. His books include The Roaring Nineties and Globalization and Its Discontents.

When bestowing an honorary degree, USC seeks to “elevate the university in the eyes of the world by honoring individuals who are widely known and highly regarded for achievements in their respective fields of endeavor.” Joseph Stiglitz has done a great deal of work on market economies and the characteristics that are associated with them. He stresses the role of governments in fostering economic growth. Stiglitz has been quoted as saying, "Inequality [in incomes] is the most serious problem with globalization." He addresses globalization from all sides focusing in on the influence rich nations have on poorer countries. From schooling and research, Stiglitz developed advanced ideas. He began to see “an incongruity between many of the models that were being taught and the policy positions that our teachers (and we) believed in.” The questioning of these held beliefs allowed Stiglitz to deepen his research to levels never before touched upon. Joseph Stiglitz was the recipient of the John Bates Clark Medal in 1979, an award given out biannually by the American Economic Association. He is also won the Noble Prize in Economics in 2001. Stiglitz’s research was on the theory of information asymmetries. Stiglitz "clarified the opposite type of market adjustment, where poorly informed agents extract information from the better informed." Joseph Stiglitz has made numerous advances to the theories of microeconomics and has helped in the implementation of many governmental policies. These personal gains put the individual in a position where he or she is able to give more fully to the concerns of others.

The recognition from these awards gave Stiglitz credibility and elevated him in ranking among fellow economists. In Martin’s criteria for professional achievement, he finds “professionals typically receive above-average social rewards in the form of income and prestige because compensation motives are desires for social rewards including money, power, authority, recognition, and job stability.” (Martin 23) During the Clinton Administration, Stiglitz served as the chair of the President’s Council of Economic Advisors. After that he went on to serve as the Senior Vice President and Chief Economist at the World Bank. Stiglitz’s time at the World Bank was very memorable because of his remarks regarding the International Monetary Fund. According to one individual, “Particularly concerned with the plight of the developing nations, he [Stiglitz] became increasingly disillusioned as he saw the International Monetary Fund and other major institutions put the interests of Wall Street and the financial community ahead of the poorer nations.” Never one to back down in the face of adversity, Stiglitz held strong to his beliefs even if that meant losing his job. These are important lessons that the students of USC who are embarking on professional paths could take with them and apply to their new careers. Fame is also a factor when a university wants to select an honorand. According to James Freeman, president emeritus of the University of Iowa and Dartmouth College, in his book Liberal Education and the Public Interest, honorary degrees are a way for universities to advertise themselves and thereby generate certain publicity. (Freedman 125) Stiglitz is one of the top economists of modern times. The notoriety he possesses would bring a great deal of positive attention to USC.

Prominence within a field draws attention to the individual. With attention, the individual is able to bring awareness to notable causes. In choosing honorands Freedman emphasizes “intellectual distinction and public service.” (Freedman 118) Because of the fame and recognition, Joseph Stiglitz is able to use his academic achievements for the betterment of others. In recent years, Stiglitz helped found and is currently the Executive Director of the Initiative for Policy Dialogue at Columbia University, implementing first hand his knowledge of policy alternatives for developing countries. The IPD “provides overviews of policy alternatives to inform government officials, represents an international collaborative effort aimed at enhancing the quality of policy dialogue in developing countries over key economic issues, and contributes to the kind of policy analysis that is required if developing countries are to forge strategies that will promote… growth.” Stiglitz is also the chair of the University of Manchester’s Brooks World Poverty Institute, a “multidisciplinary centre of global excellence researching poverty, poverty reduction, inequality and growth.” Poverty issues are gaining increasing attention so it is vital that accomplished individuals like Stiglitz are working on solutions.

The last of Martin’s criteria, moral concerns, provides “opportunities to make ongoing contributions to the well-being of others and places special responsibilities on professionals.” (Martin 23) Stiglitz is making a difference in the world by doing what he loves. The topics Stiglitz analyses are ones that he has personally grown passionate about. He chooses to research these ideas because he wants to; not because a university is paying him to, an admirable quality that students can learn from if they every find themselves in a position of power. According to Freedman, “each honorand’s character and attainment is worthy of emulation and admiration.” (Freedman 132) Stiglitz is a strong individual who does not back down in the face on controversy as seen in his involvement in the World Bank and the IMF. He does not mold into the person others want him to be. “A life is more than outward events, and we understand persons only when we grasp the value commitments embedded in their motives, character and worldview,” says Martin. (Martin16) A number of successes have transpired for Stiglitz, but what makes him worthy of an honorary degree is his person--looking at how he views the world, his motives stimulate his actions and his character.

Despite all the positive things Stiglitz is doing, everyone has his or her share of critics. Joseph Stiglitz may be considered too controversial an individual to be receiving an honorary degree from a notable university. His departure from the World Bank was anything but amicable. Stiglitz is famous for his critical view of globalization. Globalization involves the mobility of goods and services brought about by advances in capital and technology combined with free-market ideology. Stiglitz has been quoted as saying, “Despite all the promises of globalization, the developing countries of the world don’t seem to be, well, developing.” The idea that globalization is not helping poorer countries is contrary to the beliefs of the International Monetary Fund. The IMF aims to help impoverished countries and believes globalization is making an impact. Many conservative individuals may be against hearing the views of Stiglitz. They have confidence in government created institutions like the IMF and may view Stiglitz’s comments as merely a liberal tirade. Some of Stiglitz’s critics argue that the staffs of the World Bank and IMF are committed to bringing growth to impoverished, developing countries. One in particular, Kenneth Rogoff asserts “I, too, came to my position in Washington from the cloisters of a tenured position at a top-ranking American because I care. Unlike you, I am humbled by the World Bank and IMF staff I meet each day.” Rogoff believes that by discounting the IMF as a whole, Stiglitz is disparaging the men and women who do not have misplaced motives.

Stiglitz’s comments regarding the IMF were not a personal attack on the employees who work there. Stiglitz was speaking out against misguided macroeconomic policies. His ideas may be viewed as radical or controversial, but ideas like these are what drive thought and force people to think beyond their personal bubble. The individual chosen to receive the honorary degree delivers the commencement speech at the graduation ceremony. A college commencement is a time of reflection. As an honorand of USC, Stiglitz would share his insights with the students on what it is like working with so many different political personas and the rewards to using the knowledge on learns in the classroom to help others. The University of Southern California in its mission statement asserts that the university “strives constantly for excellence in teaching knowledge and skills to our students, while at the same time helping them to acquire wisdom and insight, love of truth and beauty, moral discernment, understanding of self, and respect and appreciation for others.” Stiglitz, through his acts of community service, demonstrates that he does not lack knowledge of the hardships faced by others. He is an accomplished individual who has used his academic success to fight for the truth and to put a stop to the injustices facing those less fortunate. In his new book Making Globalization Work, Stiglitz comments on his aversion to inequalities saying, "Those who are concerned about inequality see much of it arising out of luck — the luck of being born with good genes or rich parents or the luck of buying a piece of real estate at the right time," he writes. "Those who are less concerned feel that wealth is a reward for hard work." (Stiglitz 129) Throughout his work, Stiglitz aims to improve the environment, reduce poverty, and create a more open and tolerant society. People who are often unknowledgeable about an area of study tend to leave it up to the professionals to make the appropriate decision. Stiglitz is a qualified individual who can be trusted to make a well-informed, fair decision.

In giving an honorary degree the university tries to “elevate the university in the eyes of the world by honoring individuals who are widely known and highly regarded for achievements in their respective fields of endeavor.” Stiglitz is highly esteemed for his work in the field of economics. Stiglitz’s organizations are helping to foster growth of others in accordance with the mission of USC. Mike Martin very astutely defines the concept of a professional—“advanced expertise, social recognition, and service to clients and community” (Martin 22) Joseph Stiglitz has the expertise, the authority, and the integrity of a successful professional. Though some do not agree with his ideals, Joseph Stiglitz is worthy of an honorary degree from the University of Southern California for his ability to employ his technical skill with his desire for justice for the less fortunate. In his commencement speech to the graduating student, Stiglitz will address the concerns of the moment using the hindsight he has gathered from all his experience. He has an influential message for the current generation and is a role model they should choose to emulate. Joseph Stiglitz would bring even more prestige to an already affluent university.

More Than a Government Institution: The World Bank is Making a Difference for Youth Today

2006-09-25T11:38:00.000-07:00

In today’s money driven economy, it is important to go beyond profit margins and data lines and reach out to those suffering and less fortunate. With most people spending a large portion of their day on the internet, a main way to preach activism and spread involvement is to put the content on the internet. One institution doing that is the World Bank. The World Bank is “one of the world’s largest centers in development economics conducting research in the areas of poverty, trade, globalization, and the environment. It has specialized departments that use this knowledge to advise countries in such areas as health, education, nutrition, finance, justice, law and environment.” The World Bank’s affiliate website Youthink! provides information on global issues and ways to get active in making the world a better place. Coincidentally the site was this year’s Webby Award Winner for Activism. The Webby Awards are “the leading international award honoring excellence on the Internet presented by the International Academy of Digital Arts and Sciences." A site should be consistent and goal driven, innovative and true to its word, and powerful so people will take notice. Youthink! provides readers with accurate and dependable information while applying the bigger idea that individuals, no matter their age, are able to make an impact on the world today. The Youthink! website, although at times swaying from the specified criteria of the Webby Awards, is truly award winning because it remains focused on its mission of educating others about important causes ands what they can do to get involved and stop injustices from occurring while remaining technologically competative in the internet medium.

Being informed about global issues and how to get involved is very important to people searching the internet. According to Pew Internet and American Life Project, 91% of people online use a search engine to find information and 18% use the internet to make a donation to a charity online. Keeping figures like this in mind Youthink! has created a website that presents the facts, allows people to share their points of view, and shows ways to act and make a difference in their communities. If a person is interested in the topic of corruption, they go to the section labeled ISSUES and can easily locate the topic and the content related to it. Once an individual has become informed, they are able to leave a response to the information they have read. For example in the GET INVOLVED section youth from all over the world have the opportunity to submit their commnents on current affairs. Mazoo from Pakistan commenting on corruption says, “If we change the word conflict with love and eradicate corruption from our life on individual basis then this world become more beautiful than heavens above."The section also offers a link to the Get Involved Resource Page which offers suggestions on volunteering, speaking out, donating, and working for a change.The Web Style Guidestates that “Corporate intranets, training sites, educational sites, reference sites, and many well-known news and information sites benefit from audiences that know what to expect at a particular site and arrive there with a specific goal in mind.” The site's main audience is youth, but the relevance of the content spans from little children to adults. The main purpose of the site is clear, and readers know when they look at the page it has content appropriate to world involvement and global issues.

Youthink! is structured so that even if a user is unsure about the site when he or she first arrives, after looking at the site for a few moments the user knows what information is going to be presented and the direction it is going. According to the judging criteria used by the Webby Awards, “Good navigation gets you where you want to go quickly and offers easy access to the breadth and depth of the site's content.” If the structure is unclear the user may go to a different nonprofit site that more clearly presents the information. The consistent and predictable navigation buttons on the Youthink! website allow the user to easily move through the variety of information the site offers without getting lost or feeling that the content is no longer relevant to what initially intrigued them about the site. For example, under the ABOUT heading the user learns the mission of the World Bank “Our goal is to help you stay in touch with the issues that shape our world. We’re not telling you what to think; we’re offering another perspective and the latest facts. You need to decide how you are going to make a difference in your community and your world.” A direct link to the World Bank homepage allows users to learn more about the World Bank and how it is helping to benefit economies around the world. There are also accompanying links to the issues that may be of importance to the user, to the ways he or she can become involved, and to where the user can post comments, all content consistent throughout all the pages on the website. Consistency allows visitors to gain knowledge of the site structure and become comfortable with format, causing them stay around longer and frequent the page more often.

Having a multimedia component is a key feature of what differentiates the internet from other mediums of information and keeps people coming back to it as a source for information. According to the Web Style Guide “Interactive elements are what separate the Web from other media.” Youthink! has a multimedia section that provides videos, photos and games on a range of topics includes AIDS, the environment, political corruption, health, and globalization. A user can view galleries or videos, hear audio clips or play a game to learn more about different issues.A recent topic of focus was “Asia Through My Eyes.” The gallery of images “speaks volumes on how young people perceive the world of contemporary Asia today and their hopes for its future.” Keeping its target audience in mind and the different ways to gain their attention, the Youthink! site has sections on its website especially for 4KIDS and 4TEACHERS They want teachers to integrate the material from the Youthink! website into their daily curriculum. “Thank you teachers for boldly moving toward two exciting areas in education: multimedia and international development.” It is important for the World Bank that youth feel like learning is fun and not a chore; education at a young age allows these topics to remain with children as they grow into adulthood and become prominent figures in their communities.

Youthink! has managed to gain award winning status while bending at times the Webby Awards criteria because it remains fun and is not too serious even though the information being presented is educational. Good visual design, according to the Webby Awards, is “high quality, appropriate, and relevant for the audience and the message it is supporting.” The color selection is conflicting. The colors do not complement each other well and at times take away from the content being presented. For example, on the home page a beautiful picture is placed next to a putrid green information box. The content in the box highlights the site's featured issues, and a bold color would draw reader's attention to the box and its contents. There are also a variety of graphics within the site which can be overwhelming to anyone who remains on the site for a long period of time. The audience is youth so the site wants to grab their attention by using different coloring and graphics, but at times the site becomes cluttered and confusing. Involvement for future generations is very important to the World Bank so it should not let something small like color selection and graphic placement deter readers from exploring the plethora of enlightening information the site has to offer. It is difficult for a website to follow all the guidelines perfectly; however, it is imperative that the site remains focused on its mission to inform and educate others.

The World Bank’s website demonstrates a message of activism and involvement in world affairs in a concise and virtually engaging manor. The Web Style Guide believes by “sticking with simple language and navigation applied consistently throughout the site everyone will benefit.” Looking back at past years pages it is easy to see how much Youthink! is expanding and developing. A clean and clear format has not been sacrificed to include advancements in technology. The site has come a long way and will continue to grow and improve-- possibly making the site available in more languages. The internet is a business like any other, and it is important to grasp users’ attentions. There are a variety of nonprofit organization websites. In order to distinguish the World Bank’s site from the others, Youthink! offers a variety of knowledge in an interactive interface.

Zune: the Tune of Microsoft's New Song

2006-09-18T00:53:00.000-07:00

The portable music player industry is expanding once again. Apple, who for a long time now has had nearly complete control of the market with their product the I-pod and their music downloading software I-tunes, may have cause for concerns as well as other competitors in the industry like Sandisk who recently has been in the number two position. Microsoft, looking to expand its already flourishing empire and capture profits available in the music industry market, has given notice that they will soon release their version of the mp3 player called Zune. Competitively priced and offering new features, Zune is in position to change the way music is being heard and shared. Currently, Zune does not offer enough advantages to sway I-pod users and gaining ground in the competitive market will be slow.The threat of competition and gossip surrounding the next big thing are very intriguing to people. I was curious to hear what other people were saying about Microsoft’s attempt to close the gap with Apple. One blog Engadget, a gadget centered blog, speaks of how unsure they are about the situation. I, too, am uncertain about the what the implications of the introduction will mean for music sharing. Another blog CyberNet, a technology news blog, at first was uncertain about Microsoft’s latest creation, but now has the opinion that Microsoft has come up with a great product to challenge Apple and the I-pod market. I am left guessing the effects on the market economy.

Social Shopping: Combining Your Favorite Online Pastimes into One

2006-09-11T11:40:00.000-07:00

You are checking your Facebook profile, scanning pictures of your closest friends’ latest excursions, when you come across a picture of a friend in a shirt that you would love to have. What if you could? That may soon be the case. A new kind of e-commerce called “social shopping” is putting a new twist on things. Social shopping combines online shopping with online social networking.

The idea of “social shopping” is a way for companies to manage the billions of dollars generated annually in online sales. Features of the system include product ratings, reviews, "best of" lists, and other people's recommendations. An example of such a program is Pick Lists from Yahoo. It lets users create personalized pages listing their favorite products with reviews or descriptions of each product. Others can make comments, and integration with the Yahoo 360 social networking service allows members to see whether the author of a Pick List is connected to them. You would be able to buy the shirt your friend was wearing in her Facebook picture without having to spend countless hours searching aimlessly for it online."We're taking e-commerce and making it user-centric," said Chris Saito, senior director of product for Yahoo Shopping. "Finding a great review written by a friend you trust is a powerful combination." Companies can combine what they know of consumer spending habits online with what they know about social networking to increase profits.

Social shopping provides further opportunity for the realm of affiliate marketing. Merchants may begin compensating individuals for the sales they are helping to drive. A person would receive a payment from a merchant when someone clicks on the comment on their site to the product for sale on the merchant’s site. There is also the availability to gain revenue from advertising by allowing merchants to place ads on the individual’s site. It is unclear for certain how large of an increase in sales companies will experience from this exposure, but they know that exposure drives sales, and sales increase profits.

The outcome of the new commerce would be to increase consumer spending and consequently foster growth of the economy. In recent years, social communities like Facebook and MySpace have been providing new outlets for companies and individuals to get exposure to the masses. As the New York Times comments, “These sites are hoping to ride the MySpace wave by gathering people in one place to swap shopping ideas. And like MySpace, the sites are designed for both browsing and blogging.” Companies have links to their products beyond their base website. They receive the wanted attention they desire and are able to compete with companies who have a much larger marketing budget.

Flipping the Housing Market: the Economic Effect on the Real Estate Business

2006-09-05T16:25:00.000-07:00

When a person watches TV today, he or she is overwhelmed by the number of programs that are focused on buying homes, fixing them up, and reselling them. The trend of flipping houses for a profit, however, may slowly be coming to an end. As The Economist explains, the pace of existing home sales in

America

fell by 4.1% in July, the lowest it has been in three years. As the economy continues to slow, housing prices too begin to slow. The make-it-rich scheme of investing in real estate may be a thing of the past.

House prices are a good measure of the US economy. If house prices are extremely high, it shows how the economy is exploding, and if house prices are low, it may be a sign of a recession. House prices have a large effect on consumer spending. House prices were valued relatively high to reflect the housing market explosion; people began increasing spending. If people think their houses are worth less, though, they will decrease spending. A decrease in spending has negative results on the economy—jobs are lost and interest rates rise. Home improvement stores that felt a positive affect from all the do-it-yourselfers who wanted to fix up the homes on there own, may see a decrease in sales consequently affecting the number of jobs the stores have available. Construction companies may also see a decrease in the number of jobs because there is not the same amount of work to be done doing repairs or building new homes. Increasing interest rates is an attempt to curve onset inflation.

However, to combat the decrease in spending, the Federal Reserve may decide to decrease interest rates to prevent a recession. Given the current state of the economy decreasing interest rates is not the best alternative. Instead, the United States should turn to increasing personal savings. The Office of Management and Budget Director Rob Portman thinks that polls show a "disconnect" between how people feel about the economy and how they feel about their own personal situation. People need to be aware of how their individual actions affect the economy so they in return see how the economy affects them personally. Individual should not be discouraged, other parts of the world, like Russia, are seeing a soaring boom in real estate. Economies go through cycles; the good times cannot last forever. Currently, the U.S. is experiencing a downward trend, but the economy will begin to balance out. Investing in real estate will be replaced with investing in the next big thing.