Oil Boom- who is the one getting hurt?

elastic or Inelastic ? 

Labels on : Jobs, people's Educations, Rent of Housing, affect in the society.
           

Earlier this year, in Glendive the epicenter of the hectic Bakken oil development has destroy the equilibrium of economic and the enrollment of colleges around.



After some investors found out there is plenty of Oil resource around Williston, a great number of  oil factories have built up.It was a development with unexpected, and the growth increased rapidly. 
it has provide people lots of jobs, but it also caused the lack of equilibrium.
it started destroy the way of housing, educations required, at that region, because the jobs required too much.

   that caused a one-bedroom apartment in Glendive that used to rent for $400 now goes for $800 to $1,000. Mobile homes rent for $1,000 or more. however, the motels and hotels are still full, some oil filed crew are living in Glendive; because there is no vacancies in Williston and Sidney. 



The high rents have made students feel hard to found places, also it makes difficult for school to hire staff members, because most of them are not willing to pay such price for a place to sleep.


it could affect the enrollments for students also for staff members. 
Not only because of the rent of house, also it affect student's ambition
because of this oil development increased too fast,  they need plenty of new workers,
some high school graduated kids who can earn $25 an hour in the oil field are going to work after graduation instead of going to college. 
Those people, who suppose get good educations and good futures, but they have decide not to, just because of 25 dollars, just because of some benefit for while.  


even though those firms are providing jobs for people,but base on the boom, it is not a good new for the society.

First of all, the housing  rent has gone up rapidly which people cant afford to pay. 
so let say people are paying most of their salary for the housing,
they will not get much money left after foods and some necessity product.  

So the Demand of other product(ex: clothes, foods,) would gone way down, but only the ( hotel, apartment, motel) housing's revenues are going way up.
and people will not live well. 
 what can those workers do after they finish this job, they didnt  go to universities, they dont have enough work experiences to do other jobs. It would lead a downturn to the economic development by loosing a massive of human resources, because there wouldnt be enough employees with well education.  That will cause the human resource loose, and company would seek  foreign high educated employees, which will lead the domestic  unemployment rate increase. 

Examination questions - Elasticity

1. with the help of examples, explain the determinants of price elasticity demand.

       PED- Price Elasticity of Demand : Measure how much does the quantity demand changes when the price changes.
    （ from wikipedia) 


  the value of the PED as : Inelastic demand is greater than 0, less than 1.
                                       elastic demand is greater than infinity.


For example, An inelastic product ( OIL) : A change in the price leads to a proportionally smaller change in quantity. Oil is a common and necessary product for living. so even the price changes higher 

Japan bans Fukushima rice shipment due to contamination

Japan has banned shipments of rice from an area near the nuclear power station at Fukushima after high levels of radioactive caesium were detected.

As people knows, at the beginning at 2011, Japan gots a horrible earthquake and tsunami which caused the damagae of Nuclear power plant. It is resluting in radiation leak.

   Luckyily, the material was detected during pre-shipment tests and the contaminated rice had not been sold to consumers.

   even though, the authorities has annouced that it is the first time they found from shipment. But still, the damage from eathquake has bring series of trouble about foods. 

it terrified people to export goods from Japan, , such as green tea, mushroom and beef. 

at the mean time, it hurting the incomes of farmers in some parts of Japan also affected the economic in Japan.

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Elasticity of Demand VS Inelastic demand

- What is the Elasticity ?
     Elasticity = A measure of responsiveness. ( MEASURE means measure how much of something changes when there is a change in/ of the factors that determine it.)

- Elasticity of Demand = PED ( Price Elasticity Demand)
      Measure how much the quantity demand changes when the P of product.
   
               The equation for it  PED = %ΔQd  /  %ΔP
        when PED = 0 it is perfectly inelastic
     

- Inelastic Deman : PED greater than 0,
                             PED smaller than 1.
         
      A change in the P leads to a proportionally smaller cange in the Qd. ( totally revenue gained by a firm will increase)
         Inelastic D + better Revenue = Raise the P

world news on 12nd of November

OECD warns that global economy is slowing

 The Organisation for Economic Co-operation and Development (OECD) says that every economy it monitors suffered a slowdown during September.

           The  OECD's Leading index for month highlight turningpoint in economis activity.

               this company representd developed economies including the US, UK,and Japan. And the data

 

Ryanair profits from higher revenues

Ryanair has reported a 23%  rise in second quarter profits, and said its full-year results will be better than previously expected.

The budget airline made a pre-tax profit of 463m euros ($637m; £398m) in the three months to 30 September, up from 378m euros a year earlier.
Ryanair said its annual profits would be 10% higher than its previous target.
It said it was continuing to see higher revenues per passenger offset high fuel costs.

Ryanair's chief financial officer Howard Millar, expanded on this point, saying: "So far we have not seen any impact from recession.

however, people knows that Ryanair is the cheapest fly company in euorpe, i personal think it  could be the only way that Ryanair is gathering more profits than before , while other companys are suffering from recession. ; because Ryanair is the cheapest and people are only afford it.

world news on 17th of October

Philips cutting 4,500 jobs as profits fall

Philips is the wolrd's leading manufacturer of lighting.
But lately, this huge company will cut 4500 jobs.

It made an anouncement as it reported a sharp fall in the profits as a result of lower margins, falling sales and a loss at its TV division. ( its group-wide net profit for the three months to 30 september was 74m eruos, compared with 524m eruos a year earlier.

Philips employs 116,000 people across the world, including 2,200 in the UK.
Of the 4,500 job cuts, 1,400 will go in the Netherlands. Where the remaining 3,100 jobs will be lost has yet to be announced.

Slovak news on 10th of October

Slovakia Can Lose €216 Million Over Emission Quotas Scandal

The Slovak emission quotas scandal can drag on and on, and without immediate legal steps being taken Slovakia could lose at least €216 million, said Rainer K. Wachter, the director of Vienna branch of the American law firm Skadden Arps Slate Meagher & Flom LLP on Thursday.

According to Wachter, it's necessary to have Slovak authorities co-operate more closely with American bureaux, in particular the FBI and Treasury Secretary, to learn more about the financial flows by scrutinising the way the Interblue Group USA taxed its profits. "Slovakia can meet other 'legal successors' of Interblue Group USA or Interblue Group Europe, as the emission sales contract doesn't require the legal entity to consult with Slovakia on any transfer of rights and obligations to a third party – and carrying out such a transfer is easy to do." He added that if Slovakia continues to pursue its current track, serious legal complications could ensue - not only regarding the civil suit to recover the €15 million (unpaid as part of an agreement on green projects), but there's also the risk of a multi-million dollar arbitration dispute.


Environment Minister Jozef Medved last week said for the record that he deems the contract with the U.S. company Interblue Group as having terminated after the Group folded in December – and Interblue Group Europe (based in Switzerland) has to date delivered no conveyancing papers to the ministry. Slovakia sold 15 million tons of CO2 emissions for €5.05 per ton, while the usual European price is more then twice bigger. Interblue is under the contract entitled to buy a further 35 million tons.

World Economic New 7th of October

US economy adds more jobs than forecast in September

The US economy added 103,000 jobs in September, ahead of many economists' expectations.






But the jobless rate was stuck at 9.1%, according to latest data from the Department of Labor.

Although the figures were boosted by the return to work of striking workers, the department also revised upwards employment data from August and July.

Last month, President Barack Obama unveiled a $450bn (£282bn) package of spending plans aimed at creating jobs.

The White House said that despite the new jobs, the unemployment rate remained "unacceptably high".

"Clearly, we need faster economic growth to put Americans back to work. Today's report underscores the president's call for Congress to pass the American Jobs Act to put more money in the pockets of working and middle class families," it said in its regular blog.

The private sector accounted for all the job gains, and the figures were boosted by the return of 45,000 Verizon telecoms workers who had been on strike in August.

Anyhow, base on this movement of USA government it would be good for the economic growth and helps people out from this difficult position. 

World Economic New 1st of October

Typhoon Nalgae batters flood-hit Philippines 

The second typhoon to hit the Philippines in less than a week has been battering northern areas, with ferocious winds and heavy rain.

At least one person died as Typhoon Nalgae hit regions still waterlogged by the earlier storm Nesat, and officials warned of flash floods and landslides.

Nalgae crossed the main island Luzon, but weakened as it headed west toward the South China Sea.

The Philippines suffers frequent typhoons, about 20 a year.

At least one person died as Typhoon Nalgae hit regions still waterlogged by the earlier storm Nesat, and officials warned of flash floods and landslides.

this time, typhoon crashed the dam.

most of people lost their home because of the typhoon.

Philippines government need a huge amount of capital to rescue people, clean up, rebuild housing, and the dam.

the reason to study Economic

i have choose economic are because i am interest on it, and  my parents are doing business, so economic actually is effecting my family. I have it in my life. So i want to get know the way how is goes. and learn more about economic and business. Economic and Business are important,they are changing the world. Things can be easier if I know it.