Hypocrisy in the Separate, but Similar Worlds of Sports and Entertainment.

Why is it that when professional athletes earn outrageous amounts of money, society is in an uproar? Doesn't society know that Oprah Winfrey, whom many laud as a great anthropologist, is the richest African American in the world?

Allen R. Sanderson, associate chair of the Department of Economics at the University of Chicago, addressed these questions and many more in his article, "The Puzzling Economics of Sports." Honestly, Sanderson had no idea why the economics of the worlds of sports and entertainment should be different. In my opinion, the economics of these two worlds should be very similar because they are based on three of the same very basic economic principles:

1. Scarcity
2. Supply and Demand
3. Human Behavior

The truth is that in the world of professional sports, there is a scarcity of players. Yes, there are many athletes out there that are talented, but relatively few are good enough to play professionally. Because there is a limited supply of such talented individuals, along with a huge demand, people are willing to pay them the big bucks.

It is the same way in the world of entertainment. With the exception of Keanu Reaves maybe, the majority of actors that we see in the movies are full of talent. But there aren't many actors out there that are good enough to be in the movies. Therefore, regular average joes like us are willing to spend $8.5o to see a movie in the theater.

When we see that Oprah is worth $1.4 billion, we say that she deserves it. Look at all the great things that she's done! But why doesn't Alex Rodriguez deserve to be paid $25 million per year?

I think that it needs to be looked at from a different position. A-Rod may not do as much good for the global community as Oprah does, so of course he doesn't need to be paid $225 million per year like she is. But...he does make the game of baseball more fun and exciting to watch. Is America willing to pay that kind of money to watch him play? Obviously, they are, because the Yankees almost sell out every game. If the public is so concerned about how much professional athletes are being paid, then it needs to stop paying so much money to attend their games.

What the public doesn't want to admit is that they love to watch sports! Human behavior shows that people will pay for what they want to see. It is irresistible. So, I agree with Sanderson. I don't see any reason why anyone should make a big deal about how much professional athletes are paid. It makes no sense when compared to the way the public treats movie stars. The truth is that it is the human tendency to pass judgment on situations without viewing them from the outside and looking at the "big picture."

WEEK THREE CURRENT EVENTS:
Ford Motor Co.

There are many factors that contributed to the financial decline of Ford in recent years. Such issues are competition, outsourcing, and product decisions.


Japanese competition is a huge factor. Toyota is one of the largest automotive company in the world. It is making good cars, for relatively cheap prices. The public likes the cars. They want to spend less on more efficient vehicles. Another reason for Ford's financial decline is that it didn't make the correct decisions in what cars to design.

Because of rising gas prices, the auto market has made a shift into more fuel-efficient, smaller cars. Ford has been spending a lot of money and time designing SUV-type vehicles. The engineers and designers of the cars just didn't look into the future and decide what they would do, if the gas prices raised as dramatically as they have. Other companies have outsourced many jobs, allowing them to lower prices, and in return gain more profit.

Assignment 1

1. The irony expressed by the letter is that the government is paying people to stop working in their present career. It would seem as if the government doesn't want farmers to be productive for some reason.

2. The government is attempting to rid the nation of the surplus of hogs. Or the government is possibly attempting to stop hog-raising in America, so that foreign investing may take place. Perhaps the government would prefer to import hogs. Or maybe perhaps the government is doing this so current hog-raisers will become more productive in a different trade which will be more useful to the government.

3. The critics of government used the literary tool of irony to convey their message. The letter is actually a form of satire to show the government the reality of their follies.

4. The social value that is being conveyed by the story is one of hard work. "There is no such thing as a free lunch!"

This lunch was definitely not free.

Scooby's expensive, don't you know?

Assignment 2: Cost and Benefit Analysis of College

I plan on attending Brigham Young University for college. Because The Church of Jesus Christ of Latter-day Saints is academically affiliated with the University, tuition for a member of that church for the academic year 2006-2007 was $3,620. Tuition for non-members of the church is $7,240. Since I'm a member of the church, I will be paying the member (LDS) tuition. Room and board for the year was $5,640. Books and supplies were estimated at $1,380. Other personal expenses were estimated at $1,740. So, total expenses for attending Brigham Young University for one year as a member of the church is $12,380. The university also has a great scholarship program. First of all, the tuition is relatively inexpensive due to the generous subsidy of The Church of Jesus Christ of Latter-day Saints. According to the Incoming Freshman Matrix (http://saas.byu.edu/depts/scholarships/matrix.aspx), I will receive full tuition for at least 2 semesters. Along with the typical expenses for tuition, books, and room and board, there will also be money spent for social activities and travel. I'll plan on coming home during the summer, and during Christmas, so plane tickets for that kind of travel will total around $900.

Yes, college is expensive, but there are many benefits. I will receive an education and a degree, which will in turn help me obtain a good job that is better than most not requiring a degree. I will have a more comfortable life because of my job and a better job atmosphere compared to others. I will form lasting relationships with friends and teachers which may be invaluable to me in the future. By attending BYU, I will be able to utilize the vast amounts of people and their networks to further my achievements in life. Doors of opportunity will be opened unto me.

In analysis of these costs and benefits of college, I would conclude that BYU would be the correct choice of a college for me, and that it is definitely worth it. Yes, I will owe some people some money when I graduate, but my standard of living and all the other benefits outweigh such debts. I see college as a necessary venture in this life, because of the so many experiences and learning opportunities that will arise from attending a university.

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