Article Link: http://www.economist.com/agenda/displaystory.cfm?story_id=11660270
Summary
The article I've chosen talks about the price change of electricity in South Africa. The government changes the price so that people will gain more benefits from the electricity. Since the price went up to 27.5%, the electricity could also cause more inflation. Food prices are currently rising faster than prices as a whole. Food is not the only factor though, because energy prices are also another cause of rising inflation to South Africa. With rising prices continuing to push the inflation, South Africa cannot continue to supply the cheapest power in the world and the new price change could make the demand go lower but it would become more reliable.
Connection
This article connects to the chapter because it talks about how the government changed the price ceiling for electricity. This price could become more of a problem for businesses or on households to make more savings. With this new price change the government set, it contributes to the inflation from other things as well such as the price of food. If the price ceiling was lowered, the public could be more happy because then the electricity could be more affordable, but the quality of the service the electricity companies give would be lower because they gain less profit.
Reflection
Electricity is one of those things that everyone needs. It is a good that is inelastic because the public can't find another place to find this electricity unless they make it themselves. To help prevent more inflation the government could issue some private companies that give electricity to those who maybe pay more. The people who pay more for their electricity could get better electricity that does not have as many blackouts that happen. By allowing privatization of electricity then they could keep the price of electricity for the public lower price ceiling so that inflation won't be caused. Many of the people don't mind the price ceiling going up because they feel that the benefit of having better electricity service is worth the extra cost.
Sunday, November 23, 2008
Monday, October 27, 2008
Chapter Two
Chapter 2: The effects of Supply and Demand
http://www.economist.com/world/international/displaystory.cfm?story_id=12380981
Summary
The article I have chosen talks about the increase demand of transplant surgery. As the demand increases for transplants, more and more money is being shifted to help support the many people who receive the surgery. Statistics and researches have shown that last year, there were more then 7,000 American deaths caused by the long wait for transplants. Many researchers found that people who need kidneys, the most demanded body part, only got one if there were the one in ten. The article also talks about how the kidneys are so demanded that a doctor in India even drugged people to get their kidneys even if they refused the $2000 offer. According to the humans-rights groups, prisoners in China who were to be executed were to give up their kidneys with "consent".
Connection
The article's connection to chapter 2 is that it is about supply and demand. People around the world really need kidneys when they have a kidney failure. The kidneys also have to have a certain match before being able to transfer. This makes the demand even higher because the chances of getting a corresponding kidney are lowered. Since there is a lower supply of kidneys, the price elasticity of demand for the organs is very close to being inelastic. Kidneys are also inelastic products because the kidneys can only be replaced with kidneys. Many people who need kidneys are willing to play a high price in order to get them. They are in such a need that people are willing to steal them to be sold.
Reflection
I feel that since the demand of kidneys is high, people should take kidneys from people who might die but still have a healthy kidney. They could also take the kidneys from convicts in jail because they won't need it anyways. This seems very wrong because these inmates are people too, but maybe the government can make it incorporated with some of the punishments for some crimes that are committed. There are many people in jail and this will help to lower some of the demand for kidneys. The stories of people having their kidneys taken while unconscious are very frightening. If I were in need of a organ I would hope to receive one as soon as possible because I would feel helpless and scared without one. I feel that many people are very selfish for example when people who are going to die, they want their organs to be left inside them. If someone close to you were in the situation of needing an organ, your perspective of giving up your organ would change dramatically. Imagine visiting a country and ending up being kidnaps and awakening to find out that your kidney has been kidnapped!
http://www.economist.com/world/international/displaystory.cfm?story_id=12380981
Summary
The article I have chosen talks about the increase demand of transplant surgery. As the demand increases for transplants, more and more money is being shifted to help support the many people who receive the surgery. Statistics and researches have shown that last year, there were more then 7,000 American deaths caused by the long wait for transplants. Many researchers found that people who need kidneys, the most demanded body part, only got one if there were the one in ten. The article also talks about how the kidneys are so demanded that a doctor in India even drugged people to get their kidneys even if they refused the $2000 offer. According to the humans-rights groups, prisoners in China who were to be executed were to give up their kidneys with "consent".
Connection
The article's connection to chapter 2 is that it is about supply and demand. People around the world really need kidneys when they have a kidney failure. The kidneys also have to have a certain match before being able to transfer. This makes the demand even higher because the chances of getting a corresponding kidney are lowered. Since there is a lower supply of kidneys, the price elasticity of demand for the organs is very close to being inelastic. Kidneys are also inelastic products because the kidneys can only be replaced with kidneys. Many people who need kidneys are willing to play a high price in order to get them. They are in such a need that people are willing to steal them to be sold.
Reflection
I feel that since the demand of kidneys is high, people should take kidneys from people who might die but still have a healthy kidney. They could also take the kidneys from convicts in jail because they won't need it anyways. This seems very wrong because these inmates are people too, but maybe the government can make it incorporated with some of the punishments for some crimes that are committed. There are many people in jail and this will help to lower some of the demand for kidneys. The stories of people having their kidneys taken while unconscious are very frightening. If I were in need of a organ I would hope to receive one as soon as possible because I would feel helpless and scared without one. I feel that many people are very selfish for example when people who are going to die, they want their organs to be left inside them. If someone close to you were in the situation of needing an organ, your perspective of giving up your organ would change dramatically. Imagine visiting a country and ending up being kidnaps and awakening to find out that your kidney has been kidnapped!
Wednesday, September 24, 2008
Chapter One
Article Link:http://www.economist.com/world/international/displaystory.cfm?story_id=12260907
Summary
The article that I have chosen is about the supply of water. People tend to drink an average or 2 or 3 liter of water a day, but people use way more water if the consumption of food is included. When meat is made for consumption, it requires way more water need then growing grain products. As the population and income raises, farmers will have to increase the amount of water used. The International Water Management Institute (IWMI) has said farmers will approximately use 2,000 more cubic kilometers or a quarter more then what they use today by the year 2030. In some parts of the world water is scarce, and as global warming worsens water gets scarcer.
The connection with this article with chapter one, is that they are both about scarcity. As the supply of water slowly diminishes, the cost of water will raise and the cost of things that require water will also increase. The supply of drinking water will decrease and the demand of water will rise. The human consumption of water from farming is 70%. Mr. Frérot, the head of the water division of Veolia Environnement, states that as up to 70% of the water used for crops will not even reach the crops perhaps because of leaky irrigation channels or drain into rivers and groundwater.
Reflection
I usually drink about 3 or 4 liters of water a day, even though doctors say it’s healthy to drink 8 cups of water daily. The fact that the price of water will increase sounds very sad because it’s such a daily necessity. There are many things that are cheap that farmers can do to save more water for corps like drip irrigation or fixing major leaks. When people brush their teeth, they can close the faucet when not using. The supply of water will diminish slowly because of global warming and world population, but we can do our own small part to help slow down the rate at which water is disappearing.
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