Chapter 2: Economics - McGraw-Hill Introduction to Business

America’s Minimum Wage Debate

January 19, 2014

Although the American economy is slowly recovering, the job market is not. Low and minimum wage work has driven much of the recovery while mid-level jobs that disappeared during the recession have failed to rematerialize. Confronted with this bleak “new normal,” many people in both the private and public sectors have called for an increase to the federal minimum wage. Advocates for change point to cases like that of Anthony Goytia, who must supplement his salary as a Wal-Mart clerk Continue reading →

Compensation, McDonald’s, Ethics, Walmart, Food, Minimum Wage, Labor Relations

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 10: Motivation, Chapter 11: Human Resource Management, Bonus Chapter A: Business Law

Non-Traditional Students Become the Norm

January 12, 2014

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When people think about the average American college student, their minds often wander to images of fresh-faced teenagers hitting campus right out of high school on their parents’ dime. But in reality, only one-third of the nation’s more than 20 million students enrolled in two- and four-year universities fit that description.

Though it may not surprise seasoned professors, the idea of the “traditional” college student is becoming increasingly outdated. According to recent data collected by the U.S. Department of Education, Continue reading →

Demographics, Veterans, Education, Seniors, Students, College

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization

Bartering for Health Care

November 11, 2013

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It’s a sad fact that nearly 49 million Americans live without health insurance while millions more scrape by with lackluster coverage. With the Affordable Care Act getting off to a rough start and months to go before its full implementation, the nation’s underinsured must often make due with the limited resources at their disposal. In fact, according to Consumer Reports one of the cheapest and most common ways for people to get the care they need is to barter Continue reading →

Benefits, Health, Bartering, Affordable Care Act

Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Bonus Chapter A: Business Law, Bonus Chapter D: Personal Finance

Who Does the U.S. Owe Money To?

November 1, 2013

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In the fall of 2013 the U.S. came perilously close to defaulting on its debt. Already reeling from a two-week government shutdown, lawmakers were able to come together at the eleventh hour to raise the debt ceiling through February 7, 2014. If it had failed to do so, then for the first time in history the U.S. would have been unable to pay the interest on Treasury bonds. This would have sent global markets into disarray while almost certainly setting Continue reading →

Government shutdown, Economics, Global, China, U.S. Debt, Debt ceiling

Chapter 2: Economics, Chapter 3: Globalization, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions

Lineup Changes on the Dow Jones

October 1, 2013

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The Dow Jones Industrial average is often considered a bellwether for the economy. This stock index of 30 large publicly traded American companies offers a snapshot of the nation’s fiscal wellbeing for analysts and day traders alike. Regardless of its popularity, however, the Dow is hardly perfect. Deciding which companies comprise the index is a delicate process that sometimes omits major players. For instance, a couple years ago we shared a story in the newsletter about Apple’s absence from the Continue reading →

Hewlett-Packard, Alcoa, Finance, Dow Jones, Stocks, Investing, Nike, Visa, Goldman Sachs, Bank of America

Chapter 2: Economics, Chapter 17: Accounting, Chapter 18: Financial Management, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions

How Foreign Investment Helps Emerging Nations

September 14, 2013

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For emerging economies, investment from foreign powers has long been a contentious topic. In fact, as recently as last year protestors lined the streets of India’s major cities against a series of reforms designed to open the country’s retail sector to foreign direct investment (FDI). The laws would allow companies like Wal-Mart and Tesco to buy up to 51% stakes in local businesses. The proposed reforms inflamed the fears of many Indians who felt that the economy would become Continue reading →

India, Finance, Foreign Direct Investment, Developing Nations, Walmart, Global, Brazil

Chapter 2: Economics, Chapter 3: Globalization, Chapter 18: Financial Management, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions

Tracking the Underground Economy

September 5, 2013

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A peculiar statistic has been puzzling economists ever since the economy began its recovery. Retail sales have climbed steadily over the last four years despite the fact that gains in reported income have stalled. So if people still aren’t getting paid more, where is this disposable cash flow coming from? According to some, one need not look further than the underground economy.

Then again, the sum total of unreported U.S. income isn’t a thing you can easily track on Continue reading →

Finance, GDP, Underground Economy, Regulation, Unreported income, Ethics

Chapter 2: Economics, Bonus Chapter D: Personal Finance

How Accurate Is GDP?

July 6, 2013

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In today’s modern economy, statistics are supreme. GDP, unemployment and interest rates all play dominant roles in the allocation of the government’s budget. No spending bill can hope to pass into law without a battery of statistics and figures charting how such legislation will benefit the country. But just how accurately do those numbers reflect the world we live in?

Take GDP, for instance. The famous figure has only been reliably collected in the U.S. since the 1930s and didn’t Continue reading →

Economics, Global, GDP, Financial Data, China

Chapter 2: Economics, Chapter 3: Globalization, Chapter 17: Accounting, Chapter 20: Money and Financial Institutions, Bonus Chapter B: Technology and New Media

Legislators Question the Penny’s Necessity

May 6, 2013

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There are many today who feel that the time has come to retire the penny even though it has been a mainstay of American currency for centuries. The venerable Abraham Lincoln-emblazoned coin has without a doubt seen better times. In 1913 it possessed 25 times more purchasing power than it does currently. The penny also used to be profitable to produce. In 1990 it cost 0.6¢ to make one of the copper-coated coins, resulting in a yield of 0.4¢ Continue reading →

Economics, Manufacturing, Pricing, Currency, Penny, Coins

Chapter 2: Economics, Chapter 17: Accounting, Chapter 20: Money and Financial Institutions

Corporate Job Security on the Decline

April 3, 2013

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In the eyes of many Occupy Wall Street sympathizers, the people who run America’s biggest companies are untouchably wealthy power brokers. However, this viewpoint fails to take into account the startling effect that the recession had on job security across the spectrum. One need not look further than the fate of former Groupon CEO Andrew Mason. After a string of failures, the board elected to part ways with the company’s founder. In his farewell statement to staff, Mason cheekily Continue reading →

Groupon, Management, Motivation, Human Resources, Job Security

Chapter 2: Economics, Chapter 3: Globalization, Chapter 7: Management & Leadership, Chapter 10: Motivation, Chapter 11: Human Resource Management, Chapter 12: Labor Management and Unions