"Creating Wealth Through Trade" Chart

"Creating Wealth Through Trade"

With the "Creating Wealth Through Trade," each individual in class had an initial product and within the different rounds, we were able to decide whether or not we wanted to keep a certain product or trade it. What played a big role in this project was our way of thinking. We had to see if we were comftorable with the products we had or if we wanted to trade, taking a risk. As we went through the different rounds, people were satisfied with their trades and some weren't, wishing that they had stuck with their original product. Obviously, some goods were more valuable and desired than others, while others seemed worthless. What can be seen very clearly with this chart is that with the fifth round, the overall satisfaction with products increased. There was more satisfaction in the first round before trade, because the satisfaction decreased steadilly, as well as with the second round but more people felt "OK" about the product in the middle of the trade. The chart isn't really consistent, but it shows people's actions are based on the way they think, how and whether they're going to create "wealth through trade."

"Infamous People"

'Fall From Grace'

Sam Leccima was held guilty of fraud in the A&E's reality series 'Flip This House'. This show takes run down houses and fixes them in order for them to go on the market. It was all a hoax and his friends and family members were 'planted' on the show as potential home buyers. The home repairs were fake and just planted to look good on television. Leccima didn't deny the report, he did mention that the t.v. production films knew what he was doing. Leccima didn't have a real estate liscense because it was revoked in 2005, taking the case a step further. Leccima had reportedly taken $100,000 from Dan Ward, an Atlanta-area youth minister to invest in real estate but Leccima didn't do anything with the money and it still hasn't been returned. Leccima has now been taken off air and has nothing to do with A&E.

http://uk.biz.yahoo.com/01062007/323/flip-house-star-accused-fraud.html

"Congress OKs minimum wage boost"

This artcile was about the rise of the minimum wage after 10 years, which was in1997. The wage was increased from $5.15 a hour to $7.25 an hour. What was also mentioned was a tax break for small businesses, which will be $4.8 billion in the tax breaks ou tof the $12 billion that was originally proposed. Along with this economical change, the future of the war in Iraq was also questioned.

http://money.cnn.com/2007/05/25/news/economy/minimum_wagedeal/index.htm?postversion=2007052512

"Workers pay dearly for health insurance, or do without"

This article is about the price of health insurance and how it is getting expensive. The price has increased a lot and people are realizing that it's getting harder and harder to afford. A health plan that was mentioned was the Health Savings Account (HSA), which is a health account held by a individul or an employee. What is stated about this health plan is that consumers will have to look more into their health plans, spending more time on looking for the best deals, money wise. Competitive prices will begin to appear and consumers will spend wisely. The minimun deductible for the HSA is 1,100 per person and some people argue that that much money isn't really needed for an insurance company when it could be going to health care.


http://www.thejournalnews.com/apps/pbcs.dll/article?AID=/20070318/BUSINESS01/703180337/1066

"Google Tests an Ad Idea: Pay Only for Results "

This article is about Google trying out a "cost-per-action" system. The "cost-per-action" system is directed towards adverstisers. If an advertiser on the google website gets results, meaning that a consumer buys their product, then the advertiser has to pay for it's "help". With this system, advertisers get to decide what they are going to pay for, whether it be for a purchase or a download. This is seen as a good move for companies because there is limited space for ads and there is need for more revenue.

http://www.nytimes.com/2007/03/21/business/media/21google.html?ref=business

"Once Again, Debt Is Miscast as the Villan."

The introduction of this article begins with a 1912 movie called “The Usurer’s Grip.” This movie is about a family that was tricked into borrowing money and the result was that the family is ruined economically because the loaner tricked them into borrowing at an interest rate of 180%. This then brings the article to its main focus, which is how families are tricked by moneylenders and buying houses they really can't afford, leading them into debt. What is said that would make the mortgage market better would be to allow for clearer details from the lenders beacuse there has been an increase in delinquencies and foreclosures. What sums this article up was Benjamin Frankiln's saying to not become "a slave to the lender."


http://www.nytimes.com/2007/03/21/business/21leonhardt.html?_r=1&ref=business&oref=slogin

"Analysts: $3 Gasoline Unlikely This Summer"

This article talks about the price of gas and how it isn't expected to reach $3.00. The highest will probably be around $2.70 and from then it will begin to decrease. What was stated, which is pretty obvious, was that when eneregy prices rise, consumers tend to spend less on luxuries and going out to eat. This in turn hurts stock prices of companies such as Wendy's and Applebees. This then hurts the economy. What is said is that the fuel will be corn-based. With this issue in mind, people feel that it is safer to have an increase in energy products because there would be more corcern with the housing market, if there would be an issue.


http://www.msnbc.msn.com/id/17650675/

"Six Flags Sheds 7 Parks for $312 Million"

Six Flags is reaching for economic stability after a battle over the control of the company. Six Flags is trying to recover from debt and it has recently sold four theme parks and three water parks, making $312 million. Six Flags will recieve $275 million in cash. The rest of the money will be a note recievable which is $37 million. A note recievable is a promise to pay a certain amount of money on or before a certain date and this note will be for specific parks. Six Flags' shares have been up 11 percent.


http://money.cnn.com/2007/01/11/news/companies/bc.sixflags.sale.reut/index.htm

Adam Smith's Wealth of Nations

1. Capitalism- an economic system based on private ownership on the means of production and the distribution of goods.
Mercantilism- a system based on the idea that a strong country is a country that holds a great deal of wealth with the intervention of the government.
2. The Wealth of Nations was published in 1776.
3. This changed the role of the government in business by stating that the govenment shouldn't interfere in business because business could benefit being on its own. It would be guided by an "invisible hand."
4. By the "invisible hand," Adam Smith meant that the people who seek wealth following their self-interest could help the economy naturally.

"Consumers Spending Up the Most in 5 Months"

This article was about how consumers are spending more money, which in turn helps the economy. Interest rates can remain the same because of the stabilized inflation, which is good for policy makers. The real estate business was also doing well because it rose 4.9 percent in December. This all falls hand-in-hand because with less income and more speding, there is a decrease in savings. This means that people are worried on spending and "dipping" into their savings.

http://www.nytimes.com/2007/02/02/business/02econ.html?_r=1&oref=slogin