T HE P ENNSYLVANIA S TATE U NIVERSITY E CONOMICS A SSOCIATION P RESENTS :

T HE O PTIMAL B UNDLE
F ALL 2013:
WEEK OF

N OVEMBER 21 ST

E DITOR : C OLE LENNON P RINT EDUCATION COORDINATOR C ONTRIBUTORS : B EN R OWLES , C ADY B OUCHER , C OLE L ENNON , L EAH G ALAMBA , R YAN S OSNADER

Upcoming Events: General Body Meeting: 11/21

FOMC Minutes: 11/20

Psuea.org EA Homepage psueaeducation.blogspot.com Education Blog

U.S. GAS PRICES BARRELING DOWN

Travelers this Thanksgiving will gladly see that gas prices have fallen to their lowest levels in two years. This is also excellent news for the economy. Gas prices impact on virtually every sector due to businesses dependence on transportation and electricity. When gas prices increase faster than profits or wages, businesses hire less and consumer consumption decreases. Additionally, high gas prices after 2008 exacerbated the recession but also led to increased demand for substitute fuels such as natural gas, which the US is abundant in. Researchers project the US will become the top oil producer by 2015, giving its economy a huge boost.LG CHECK
OUT THE ARTICLE: BIT.LY/1BA3SUK

This sign certainly is a welcome one for this Thanksgiving.

GETTING HYPER ABOUT GERMAN INFLATION

Because of its history, Germany fears inflation more than it probably should. The mark-to-dollar exchange rate was 4.2 to 1 in 1914 and then increased to 4.2 trillion to 1 in 1923. This hyperinflation destroyed Germanys output and destabilized its economy, allowing for the rise of the Nazi Party. Today, however, inflation qualms prove unfounded. Given the Eurozones depressed state, it could benefit from monetary easing with little risk of inflation, let alone hyperinflation. Germany, nonetheless, fears a return to the economic troubles of its past. As the most powerful country in the EU, what it says tends to go. BR

This money, pictured here, cant buy much of anything.

Check out the Article: econ.st/177Tmw0

U NDER A RMOUR F LEXING T ECH M USCLES

Last week, Under Armour announced its acquisition of the fitness app creator MapMyFitness for $150 million. This company makes applications such as MapMyRun, MapMyRide and MapMyWalk, which have a combined 20 million users worldwide. Acquiring the firm is an attempt to remain competitive as other fitness industry giants such as Nike and Reebok add large tech components to their products. Under Armour has already worked on new technologies like their signature moisture-wicking fabric in 2006. Their recently failed chest band fitness tracker, Armour39, shows Under Armour turning to alternatives to remain technologically relevant. CB
Check out the article: on.wsj.com/1bqvnpT

They need to do the heavy technological lifting.

M AN Y OUR P LAYSTATIONS
Sonys PlayStation 4 went on sale last Friday, selling 1 million units in the first 24 hours of availability. Sony, which posted an unexpected third quarter loss just two weeks ago, desperately needs a boost. That will depend on how the PS4 fares against Microsofts Xbox One, its main competition. The Xbox One is $100 more expensive, but offers additional streaming services and more initial games. Though shares of Sony dropped 11% after they announced third quarter earnings, they are up about 60% year to date. This is mostly due to high sale expectations for the PS4, which most analysts predict will sell well. RS CHECK
OUT THE ARTICLE: CNNMON.IE/1ACS2BZ

Theyre heeding the call of duty.

A N E CONOMIC S TORM B EFORE THE C ALM

Typhoon Haiyan struck the Philippines recently, and new research measures the economic impacts of typhoons on the region. Storms like Haiyan dampen the areas economic growth. Data show that these storms reduce household income by 6.6 percent and household expenditures by 7.1 percent, with future spending on education and medicine particularly likely to fall. More deaths result from post-storm malaise than from the storm itself, with most of these deaths being female infants. These results grimly suggest that most of the economic damage occurs after typhoons; the worst of Typhoon Haiyan has yet to come. CL
Check out the Articles: slate.me/1cZrdME ; bit.ly/17TXjHx

There are two storms then, but the calm will come.