Trouble Finding a Job in The States? Try Europe...

After spending five months studying abroad in Barcelona, Spain and traveling all over Europe, I am extremely happy to attend school and live in the United States.  Spaniards between the ages of 18-25 have an unemployment rate of over 50%.  So in a lecture of 80 people, less than 40 will have a job leaving college.  Compare that to U.S. rate somewhere in the mid-teens, and no American student should complain. In addition to the college student age group, overall unemployment in Spain is about 25% while the U.S. is 8%.  Most people wouldn't complain about an 8% unemployment rate, but everyone still sees the "American Dream" and expects perfection- a type of utopia.  But as we have seen primarily over the past four years, this view of America is dwindling as jobs are lost rather than created.

With so many differences culturally, politically and geographically, it is difficult to accurately compare America and Europe.  The point is: American citizens need to realize that their country is still in a much better position than most places in the world.  This should not be taken for granted as people must continue to work hard and not expect the government to clean up the mess and fix everything all at once.  Consumers must continue to consume and investors must continue to invest.

While America's current economy is weaker compared to previous decades, the government still has the ability to turn things around through "normal" reforms.  On the other hand, Europe, particularly Spain, has turned to some rather radical measures to turn around their economy.  For example, in a recent post on the blog "ThinkFast ThinkNow" the idea of a EuroVegas is outlined and discussed.  The basic idea involves constructing a Las Vegas-like area either in Madrid or Barcelona to create jobs and pump money back into the economy.  Certain barriers such as smoking laws and tax issues must first be figured out, but the fact that the government is building casinos to jolt their economy is quite scary. In the end, while the situation in the U.S. may seem bad, it is nothing in comparison to what Spain and the rest of Europe is going through.

Fertility Rates and Economic Change

What fifteen-year-old girl gets shot on the way to school?  Pakistani teen, Malala Yousafzai recently was by Talibani militants as she attempted to attend school for the first time.  The Taliban share a common fear: the more education a woman receives, the fewer children she will have- going against customary practices.

Population growth is rising.  Gaps between the rich and poor are widening.  Depletion of natural resources is rapid.  Something has to give. In order to increase education and development in poor, third world areas, fertility rates must decline providing women with the time and money needed to improve their lives as traditional rural families adapt to an urban lifestyle causing tremendous economic change.

My academic career revolves around business and economics.  As an accounting major numbers come easy to me as I naturally observe patterns and trends.  Recent issues regarding fertility rates and population growth provide an intriguing issue inline with my interests.  My father does business in developing areas known for these issues and I hear secondhand from him about their severity.

Looking specifically toward third world areas in India and Africa, the population is growing out of control.   India’s population is on pace to pass China’s within the next forty to fifty years.  Living standards will drastically decrease as the poor face increased economic hardships.  That is, unless something is done to reduce fertility rates.

In an article from the Economist, families have begun to move from the middle of nowhere, farming lifestyles into a town or village with schools, markets and factories nearby.  This process is referred to as “The Abandoned Hamlet.”  In the old lifestyle families were poor and could not afford to hire labor in the fields.  Children were born in order to provide labor at low cost and provide social security for parents.  Once their village changes or they move into a more civilized area, the cost of children rises due to education and taxes.  The state may even provide a pension, and families no longer need children as the primary form of social security.  In this scenario, the cost per child may outweigh the benefits, thus reproduction will slow down.

Where will population rise most rapidly?  In places that can’t handle the growth: developing nations stricken with hunger, political instability and environmental degradation.  These places have no family planning institutions in place and contraceptives are extremely rare.  In America family planning programs pop up everywhere at all times to prevent rapid population growth as seen in places like India and Africa.   According to Gopi Gopalakrishnan, the President of World Health Partners, women in India “are desperate for family planning services, to take control of their lives.”  The demand is there, the supply is not.

Of course there are benefits to high fertility rates and population growth.  Many ethnicities and religions call for large families and at least one son.  Governments view high growth rates as a positive due to an increase in labor force and a larger military recruiting pool.  As mentioned previously, more children for extremely rural families provide social security as the parents become older.

The economic benefits are much more promising and imperative.  With lower fertility and growth rates women will enjoy more free time and the opportunity to enter the workforce, earn an income and buy goods and services in the market.  More income per family will equate to more savings, which will turn into more investment to boost production and overall GDP.  Increased investment will also allow for more capital expenditures such as schools, roads and hospitals.  Overall if you want higher standards of living then reduce fertility. 

Driven by the desire to improve her life and future, Malala was determined to attend school and escape the typical role of a Pakistani woman.  Why did these Talibani militants attack?  For the fear of altering the status quo and dealing with the changes that educated females would bring.  These changes need to happen in order to preserve living standards in areas of high fertility rates.  Malala may not realize this now but her bravery might just spur activity leading to positive economic shocks in the future. 

Interesting 2012 Ballot Initiatives

http://www.cnn.com/2012/11/01/politics/ballot-initiatives/index.html?hpt=hp_t1

Concussions: Listen to the Doctor.

Since when did a little shaking of the brain become such a big issue?  Lawsuits regarding concussions and head trauma tear into the beloved physicality of professional football.  In a game destined for pain and potential injuries, the NFL can only provide so much protection to players who voluntarily put their health at risk.

With all of the lawsuits, too much blame is placed on the NFL while the players are the only ones who can prevent concussions.  The NFL commissioner has no way of slowing down the strongest athletes in the world.  Retired players and advocates for change need to recheck their arguments, not increase litigation.

I love sports, contact sports.  Through ice hockey and football, a large portion of my life has been spent inside a helmet.  My dad is in his forty-sixth straight year of ice hockey and his father played linebacker at Princeton.  My whole family knows contact sports and the associated health risks.  I have been knocked out, concussed three separate times.  Never once did I hesitate to return to the game, nor did my family or myself blame others for my head trauma. 

From my own experience and love for sports, I am sick with the actions of former NFL players.   First of all, I have no clue why retired players are surprised by the long-term effects of their past head injuries.  It comes as no surprise that a career full of blows to the head increases the chances of neurodegenerative diseases such as Alzheimer’s and dementia.  After all, a concussion is technically a type of shaking of the brain.  That can’t be good. 

The players are the ones who are voluntarily playing this brutal sport.  No one is forcing them to collide at full speeds.  It takes an incredible athlete to perform in the NFL.  Only the strongest, fastest and most violent get to start for a professional team.  It doesn’t take a neuroscience genius to acknowledge the high risk of injury in this situation.

Initially athletes play football for fun, for “the love of the game.”  It is their dream to play in the NFL.  This somewhat childish utopian view instantly changes once dollar signs are thrown into the mix.  Just like investing, higher risks equal higher rewards, or losses.  Despite having a concussion, players will lie and cheat on medical exams in order to get back on the field where performance is complimented with compensation.   

The NFL continues to implement mandatory medical tests to determine if a player is concussed.  Also, the NFL provides the absolute best material and technology in their helmets.  The NFL donated thirty million dollars to concussion research for players and military members. Finally, the NFL fines players for head-to-head contact and unnecessary roughness on defenseless players.  In short, the NFL has done everything in their power in an attempt to prevent concussions.

These mandatory tests are only effective if every player, coach and trainer honestly follows them.  In a recent ESPN article, rookie sensation Robert Griffin lll took a huge hit to the head and underwent concussion tests.  The Redskins training and coaching staff labeled Griffin as “shaken up” on the team’s formal injury report.  If labeled as concussed, Griffin would miss games.  The Redskins could not afford that.  Despite actually suffering a concussion, Griffin’s shaken up status prevented him from missing any playing time.

What good are these mandatory tests and regulations implemented by the NFL if teams don’t abide?  Picture this: you are sick.  You go to the doctor and he prescribes you medications and dietary adjustments.  You do not follow the doctor’s orders.  You become even sicker.  Can you honestly blame the doctor? No- you were given precise instructions and failed to abide.  Now substitute the Doctor for the NFL and the sick patient for the combination of players, coaches and trainers.  Bottom-line: listen to the doctor.

Retired players are suing the NFL claiming that information regarding head trauma was purposely withheld from the public.  Are you kidding me?  As cliché as it may sound, everyone is responsible for their own actions.  These players knew the risks of this physical sport and made their own decision to play.  Current players should try this: if you don’t remember the previous play, notify the trainer and keep your future in mind.  If time flies when you’re having fun, then time teleports when you don’t remember anything.

RIP BCS- You Will Not Be Missed.

This past summer brought hope to the world of college football.  Finally, a four-team play was put in place following the end of the 2014 season.  After the constant debate over the current and unfair Bowl Championship Series, or BCS, the right decision was finally made.  This BCS dominated for the past fourteen years in college football, which used a combination of formulas and various computers to determine the overall champion, or champions, after the final bowl games.  

Several obvious and key benefits come from the implementation of a playoff system.  The current BCS system gives no chance for a "Cinderella" type team, like a Boise State, to ever have the chance to play in the national title game, despite suffering zero losses in the regular season.  The playoff, despite only being four teams, gives more teams a chance to be crowned number one.  Losing one game in a season doesn't completely crush the national title hopes for teams.  If USC were to lose their second game of the year, they still have as good of a chance as anyone to make the playoff and potentially win the title.  Human bias will be largely decreased with this playoff system as the votes of experts weigh less and the actual performance of teams determine their fate.  Don't forget that most NCAA championships are determined through a playoff system already, such as March Madness, which is arguably the biggest sporting event of the year. 

What about money? The playoff system will provide schools with a higher percentage of the earnings of each game.  This money is used for academic purposes in a addition to some athletic upgrades.  According to a Huffington Post article regarding the new playoff:

"this new format figures to more than double the TV revenue of the current BCS and Rose Bowl contracts. Those pay out about $155 million annually. The commissioners want to lock in this format for 12 years with a television partner. The current four-year BCS deal with ESPN runs through the 2013 season. The new format will be presented to potential TV partners in the fall, starting with ESPN."

Of course money was a key contributor to the acceptance of this new format.  Any national TV partner would be stupid to pass up this deal for the new playoff system.  Doubling the current $155 million annual deal and multiplying it by twelve years brings the estimated TV revenue to $3.72 billion.  Now that is lotta money!  TV ratings for playoff games will be through the roof.  With these incredibly inflated revenue figures, the playoff system will be here for a long time and potentially increase in size in the future. 

While all of the benefits sound great, is there any downside to the playoff system?  The season becomes longer for those teams that continue to advance in the playoff.  Players will be kept out of school for longer periods and the chance for injury increases with an elongated season.  There could be a financial lose due to less advertisements and television contracts. 

To me the decision is obvious- the pros heavily outweigh the cons: bring on the four team playoff!  America was built on the idea of equality, so why not allow more college football teams a shot at the national title?  The NCAA already passed Title IX- forcing colleges to offer equal scholarships to male and female athletes.  It's time for college football to join other NCAA sports in the thrill, excitement and opportunity of a playoff. 

The Legacy of Lance

Lance Armstrong doped.  Its a fact.  He can never go back.  It will always be part of his resume.  But does that one mistake outweigh his success not only on his bike, but philanthropically as well?  Don't forget the man did win a battle with cancer and used his high profile status to raise and donate millions of dollars to charity and cancer research.  But wait- he used steroids! So he has to be a villain, right?

Yesterday was nothing short of a nightmare for Armstrong.  The series of unfortunate events started when he announced that he was stepping down as chairman of Livestrong- his beloved cancer-fighting charity.  Following this announcement, Armstrong was dropped by Nike, Anheuser-Busch and other sponsors.  This was all caused by a recent announcement from the anti-doping agency disclosing evidence of drug use by Armstrong.  Why did he step down as chairman? Armstrong wanted to minimize the damage caused by the U.S. Anti-Doping Agency's report that led to Armstrong being banned from the sport for life.  Armstrong was also stripped of all his Tour titles.  After his statement to step down as chairman Armstrong released the following to the Associated Press:

"This organization, its mission and its supporters are incredibly dear to my heart... Today therefore, to spare the foundation any negative effects as a result of controversy surrounding my cycling career, I will conclude my chairmanship."

In the report by the U.S. Anti-Doping Agency, Armstrong was apparently part of "the most sophisticated, professionalized and successful doping program that the sport has ever seen."
Not only did he just cheat, but he could be the biggest doper in the history of sports.  But it still takes one incredibly fit human being to win the Tour de France not once, not twice, but seven times!

Armstrong used performance enhancing drugs to help win all of those prestigious events and to become the best cyclist in the history of the sports, but what about all of his accomplishments off-the-bike?  Since Livestrong started in 1997, the charity has raised over $470 million for cancer research.  Armstrong was the man in charge, the chairman of this great charity that led way to many breakthroughs in the fight against cancer.  Beating his own testicular cancer was not enough, he used his high profile statues to increase the chances of survival for all others fighting the disease.  It is a shame that all of this information is now being overlooked as he is ridiculed for his usage of steroids.  Yes what he did was wrong but how can you hate a guy who raised nearly half a billion dollars for charity?  The future of Lance Armstrong is tricky to predict.  There will be haters.  There will be devoted fans.  But the most important thing, there will be thousands of lives changed due to his philanthropic achievements.  It is for this reason, that Lance Armstrong should not be seen as a cheat doper, but as a role model for all.

NHL Lockout: A Cold Road Ahead

What a surprise- there is another lockout in professional sports.  This time the National Hockey League, or NHL, has temporarily frozen the 2012-2013 season due to financial issues.  On September 14th the NHL's Collective Bargaining Agreement expired and the league was officially locked out.  The root of this terrible issue stems from the disagreement between the owners and the players on how to split up the $3.3 billion in total revenue.  The owners came out for blood over the summer with an initial offer to drop the players' percentage of the revenue from 57% to 43%.  Despite the large contracts, can you blame the players for getting upset? No- its human nature. 

After two of the most profitable, popular seasons of 2010-2011 and 2011-2012 the NHL was ready to break into the fan base of baseball and football this year.  Events such as the "Winter Classic" played every New Years Day and the excitement of shootouts has revamped professional hockey into one of the most exciting sports to watch and attend.  While the MLB, NFL and NBA have constantly had labor disputes and popularized financial issues, the NHL, until recently, seemed to be the only professional sport free of economic downfalls.  So much for that reputation, as once again the greediness of the owners separates the players from the ice.

The impact on the sport of hockey has already been drastic and will continue to get worse. Recently the NHL cancelled the first 82 games of this upcoming season.  According to a recent article from TSN the lockout has cost the league $100 million dollars to this point and the number continues to climb.  Looking beyond the dollar signs for a minute, the players are beginning to leave the country as well: 

"With the industry bracing for another long work stoppage, players have scattered around the globe. More than 100 have already found jobs in Europe -- roughly 15 per cent of the union's total membership -- and that number is expected to climb now that meaningful games are gone."

Not only will this be detrimental for the teams who are losing their superstar players, the fact that athletes are signing with European teams indicates that this lockout could be around for a while. 

Who is to blame? The owners? The players? I blame the capitalistic system and mindset that dominates American business.  Most corporations will go to extremes in order to maximize profits- including professional sports.  In a discussion of a more political topic, a recent blog post on That's Annoying highlights the issues of a tax loophole abused by California corporations.  The author states that, "corporations, whose goal it is to make as large of a profit as possible, they will choose whichever formula will result in a lower tax rate."  While the overall goal to make money by business and corporations will never go away, there needs to be a shift of primary focus to improve the world and lives of all citizens.  With dollar signs preventing the NHL season from happening, the league may lose much more than just one season of games- fans and respect for the sport.  Sorry hockey fans, this lockout looks to be a stage-5 clinger.