Friday, February 2
Health care costs are rapidly rising in China. The government has taken control of the cost of some medications within the past couple of years in a desperate attempt to try and help the population of China with medical expenses so more can afford to take care of their health.
Last Tuesday, China's highest economic planning body announced to the people that they "will slash the price of more than 240 drugs by twenty percent on average while increasing the price of about 100 other medicines that are in high demand." These cuts went into effect on Friday.
It seems to me that prices of medicines in China are out of control. People there seem to have gotten out of control economically, and they were not balancing the costs evenly with the demands of certain medicines. Several years later, the goverment is rushing around trying to make decisions about what should be what cost and who it will benefit, either the citizens or the market.
A NDRC official was quoted, stating "'We will continue to lower the cost of overpriced drugs. We will stop price cuts of low-cost drugs that are widely used to encourage production and we will properly raise the price of medicines that are in high demand and often sold out.'"
Medicine is a very serious market, and people need it to survive. The article also discussed slashing the prices of 67 cancer drugs by an average of twenty-three percent last June. China is very populated, and since there are so many people, I am sure that sickness is common. In a situation like that, I feel there is no place in error with the economy of medicine. It is good news it is being corrected, but even poor people grow sick with cancer, and it is not fair that they were overpriced at one time. Hopefully the medical economy balances itself out and hopefully remains this way for the good of the citizens and their health.
http://www.chinadaily.com.cn/china/2007-01/23/content_790618.htm
Tuesday, January 30, 2007
Wednesday, January 31- European Union
Wednesday, January 31
Between January 10 and January 22, a poll was conducted in Italy, France, German and Spain asking the people of these countries if they prefer the euro to their previous currency. These are the four biggest countries using the euro. I was surprised when I learned that "more than two-thirds of the French, Italians, and Spaniards, along with a majority of Germans, said the euro has had a 'negative effect' on their country's economy."
When these people were asked how they thought their change of currency effected the economy of the European Union, five percent of the French citizens polled, and a majority of the citizens of Germany, Italy, and Spain polled admitted that it did have a positive impact.
All of these countries, though they admit that the change in currency has a very positive effect on the regional economy, wish that they still used their previous currency.
I think that this has to do with the fact that people just do not like change. In history, different countries have trust issues with one another about the spread in power, and now that they all share the same currency, they are relying on each other more than before. However, there are many positives. The trade world will greatly improve, travel will be easier, and it will give them a reason to communicate more with each other, especially in the economic world. I found it interesting that so many people are so negative about the change.
http://www.eubusiness.com/Euro/euro-poll.27
Between January 10 and January 22, a poll was conducted in Italy, France, German and Spain asking the people of these countries if they prefer the euro to their previous currency. These are the four biggest countries using the euro. I was surprised when I learned that "more than two-thirds of the French, Italians, and Spaniards, along with a majority of Germans, said the euro has had a 'negative effect' on their country's economy."
When these people were asked how they thought their change of currency effected the economy of the European Union, five percent of the French citizens polled, and a majority of the citizens of Germany, Italy, and Spain polled admitted that it did have a positive impact.
All of these countries, though they admit that the change in currency has a very positive effect on the regional economy, wish that they still used their previous currency.
I think that this has to do with the fact that people just do not like change. In history, different countries have trust issues with one another about the spread in power, and now that they all share the same currency, they are relying on each other more than before. However, there are many positives. The trade world will greatly improve, travel will be easier, and it will give them a reason to communicate more with each other, especially in the economic world. I found it interesting that so many people are so negative about the change.
http://www.eubusiness.com/Euro/euro-poll.27
Saturday, January 27, 2007
Monday, January 29- Local/State/National Affairs
Monday, January 29
The business in the Downtown Crossing shopping district will decrease later this year, when the original Filene's Basement discount store will close for renovation. The building that houses the retail outlet will be closed for construction for the next two years. This is not only a very popular clothing and accessories discount outlet, but it is one of Boston's largest tourist attractions, stated the article entitled "Flagship Filene's Basement to Shut for Makeover," published by the Boston Globe on January 27th.
The article reads, "Smaller merchants, such as the owners of the pushcarts that line the streets, are particularly concerned about the basement's temporary disappearance." The closing of this store is a fine example of something that will affect the city's economy greatly, yet no one would ever expect this or think that it would have such a great impact. However, the closing of this store will effect the business of all of the stores in the area and the carts that rely on the business of Filene's Basement to attract their own business.
Carts and smaller retail stores may end up closing, unfortunately, due to the renovations of Filene's Basement. Downtown Crossing may suffer. This effects the retail economy of Boston in a large way. Friends and I often take trips to the basement store, and I would not think to visit Downtown Crossing if it did not exist. I'm sure this holds true for a great deal of people.
Information taken from:
http://www.boston.com/business/globe/articles/2007/01/27/flagship_filenes_basement_to_shut_for_makeover/
The business in the Downtown Crossing shopping district will decrease later this year, when the original Filene's Basement discount store will close for renovation. The building that houses the retail outlet will be closed for construction for the next two years. This is not only a very popular clothing and accessories discount outlet, but it is one of Boston's largest tourist attractions, stated the article entitled "Flagship Filene's Basement to Shut for Makeover," published by the Boston Globe on January 27th.
The article reads, "Smaller merchants, such as the owners of the pushcarts that line the streets, are particularly concerned about the basement's temporary disappearance." The closing of this store is a fine example of something that will affect the city's economy greatly, yet no one would ever expect this or think that it would have such a great impact. However, the closing of this store will effect the business of all of the stores in the area and the carts that rely on the business of Filene's Basement to attract their own business.
Carts and smaller retail stores may end up closing, unfortunately, due to the renovations of Filene's Basement. Downtown Crossing may suffer. This effects the retail economy of Boston in a large way. Friends and I often take trips to the basement store, and I would not think to visit Downtown Crossing if it did not exist. I'm sure this holds true for a great deal of people.
Information taken from:
http://www.boston.com/business/globe/articles/2007/01/27/flagship_filenes_basement_to_shut_for_makeover/
Tuesday, January 23, 2007
Friday, January 26- India (Other)
Friday, January 26, 2007
On Tuesday, January 23, 2007, The Hindu's Business Page featured an article titled "Berggruen to Launch Chain of Budget Hotels." An Indian corporate office, Berggruen Holdings, Inc., will be in charge and build thirty eight hotels within the next five years, the first with its completion date set for June of 2008. It will be called "Keys," and it is described to be "a chain of category defining boutique gotels in India, providing a stylish, cheerful and cutting edge experience..."
As an interior design major, I would be curious to see what these hotels may look like. Most hotels (as I think of them in typical American, commercial design at low expense with bulk-purchased material), especially on a budget, do not turn out "stylish" in the least. I would be very curious to see what these stylish, budget hotels look like and how comfortable they may be. Berggruen Holdings, Inc. has an equity capital of $100 million. Rooms will cost between Rs. 1,400 and Rs. 2,200, which is between $31 and $50. This is quite inexpensive, even for India I believe which has an overall well balanced economy.
I may have my chance to see what one of these hotels will look like, as the company plans to expand this chain of Key's across the world. As we speak, they are "looking at marketing tie-upd with airlines, travel agents and even retail outlets." Perhaps the Holiday Inn will have a new competitor with a new, stylish, appealing look.
http://www.hindu.com/2007/01/23/stories/2007012301601800.htm
On Tuesday, January 23, 2007, The Hindu's Business Page featured an article titled "Berggruen to Launch Chain of Budget Hotels." An Indian corporate office, Berggruen Holdings, Inc., will be in charge and build thirty eight hotels within the next five years, the first with its completion date set for June of 2008. It will be called "Keys," and it is described to be "a chain of category defining boutique gotels in India, providing a stylish, cheerful and cutting edge experience..."
As an interior design major, I would be curious to see what these hotels may look like. Most hotels (as I think of them in typical American, commercial design at low expense with bulk-purchased material), especially on a budget, do not turn out "stylish" in the least. I would be very curious to see what these stylish, budget hotels look like and how comfortable they may be. Berggruen Holdings, Inc. has an equity capital of $100 million. Rooms will cost between Rs. 1,400 and Rs. 2,200, which is between $31 and $50. This is quite inexpensive, even for India I believe which has an overall well balanced economy.
I may have my chance to see what one of these hotels will look like, as the company plans to expand this chain of Key's across the world. As we speak, they are "looking at marketing tie-upd with airlines, travel agents and even retail outlets." Perhaps the Holiday Inn will have a new competitor with a new, stylish, appealing look.
http://www.hindu.com/2007/01/23/stories/2007012301601800.htm
Wednesday, January 24- European Union
Wednesday, January 24, 2007
On December 31, 2006, The EUObserver published an article entitled "Solvenians Greet New Year with the New Currency." No longer a Yugoslav country, Slovenia decided to join the European Union entirely, including its currency. This two-week exchange period went into effect on January 1, 2007. This is being done in an effort to secure the use of a single European currency, rather than individual countries holding their own. Slovenia hopes this currency change will help to increase trade.
Slovenia is one of ten new countries to recently join the European Union, and "has been regarded as a political and economic success story within the group of ten newcomers," states the article. One worry was that some corporate companies within the country would take advantage of the currency exchange and boost prices, but governent officials were previously warned, and there does not seem to be many issues raised.
I think it is a very positive act that Slovenia is doing, and I think it will be very beneficial to their economy. The European Union, I have recently learned, is very powerful in the world's economy, which makes them very powerful as a whole. As a smaller country, benefits that may come with being part of the European Union would never exist for them if they were independent from the union. This will increase their trade, and they will often be communicating with other countries within the union. They will now have more involvment with everything that goes on in both the political and the economic world, and this will make them stronger as a country. They will hold more power and more knowledge will be available to them directly through the union rather than finding out later. This involvment will directly boost their economy, and I think this boost will appear sooner rather than later.
The information in this blog was taken from the article located at the following web address:
http://euobserver.com/19/23139
On December 31, 2006, The EUObserver published an article entitled "Solvenians Greet New Year with the New Currency." No longer a Yugoslav country, Slovenia decided to join the European Union entirely, including its currency. This two-week exchange period went into effect on January 1, 2007. This is being done in an effort to secure the use of a single European currency, rather than individual countries holding their own. Slovenia hopes this currency change will help to increase trade.
Slovenia is one of ten new countries to recently join the European Union, and "has been regarded as a political and economic success story within the group of ten newcomers," states the article. One worry was that some corporate companies within the country would take advantage of the currency exchange and boost prices, but governent officials were previously warned, and there does not seem to be many issues raised.
I think it is a very positive act that Slovenia is doing, and I think it will be very beneficial to their economy. The European Union, I have recently learned, is very powerful in the world's economy, which makes them very powerful as a whole. As a smaller country, benefits that may come with being part of the European Union would never exist for them if they were independent from the union. This will increase their trade, and they will often be communicating with other countries within the union. They will now have more involvment with everything that goes on in both the political and the economic world, and this will make them stronger as a country. They will hold more power and more knowledge will be available to them directly through the union rather than finding out later. This involvment will directly boost their economy, and I think this boost will appear sooner rather than later.
The information in this blog was taken from the article located at the following web address:
http://euobserver.com/19/23139
Sunday, January 21, 2007
Monday, January 22- Local/State/National Affairs
1/21/07
On January 17, 2007 the Boston Globe published an article titled "State likely to freeze tax exemption: Analysts Cite Slow Growth in Revenue." The article begins by educating readers, "for the first time in four years, Massachusetts taxpayers will not receive a higher personal tax exemption in 2008 under current projections, a sign of slowing economy..." In 2005 the tax revenue increased to 7.1%, compared to 6.6% in 2004. In 2006, it projected up to 8.2% from 7.1%, and suddenly this year it is estimated that it will drop to 3.0%. My question is, why the sudden change?
As a member of the upcoming generation of Massachusetts taxpayers, I do not feel confident that our economy is entirely safe. Analysts state that the loss in revenue may be high enough that Deval Patrick may not be able to keep his promises of hiring 1,000 new police officers or expanding full day kindergarten. This takes a toll on all of the state, such as the men who will be employed with these jobs rather than just the people in the state feeling safer with 1,000 more police officers. Expanding full day kindergarten would perhaps save some parents a bit more money a year on day care, children would have the opportunity to learn more, and teachers would also be making a higher income. A drop in revenue resulting in a freeze in tax exemption affects everyone within the state and I believe that we should be given answers to how it is going to be resolved. So far, we are told that lawmakers are thinking of legalizing gambling on increasing gas tax as new revenue sources. Not only do I think this will be unsuccessful in raising the economy, but legalizing gambling would cause the economy to drop unbelievably quickly. People that never thought they would have an addiction would begin to have one, as gambling is a huge problem in this country. This means these people would not have the money to buy, and so this would not help the state revenue at all. I think it would make it incredibly worse. Increasing gas tax will only aggrevate residents of Massachusetts, especially the taxpayers of this generation. Gas prices are already at an all-time high, we do not need anymore of our income going towards this gas. Also, more and more people are turning to hybrid vehicles as it is, since gas prices are so high, therefore it would not result in increasing revenue at a such a rate it may have some years ago.
Perhaps I am a bit too negative, but it seems to me that lawmakers are not taking any consideration into their ideas and the overall affects that they may have on our economy past this revenue issue. Maybe they will work out this issue soon enough, but if we are being denied money we have been promised in the past, I think they owe us to think of our future, and the future of the children in this perhaps soon to be casino-run state.
The information for this blog was taken from the article located at the following web address:
http://www.boston.com/news/local/articles/2007/01/17/state_likely_to_freeze_tax_exemption/
On January 17, 2007 the Boston Globe published an article titled "State likely to freeze tax exemption: Analysts Cite Slow Growth in Revenue." The article begins by educating readers, "for the first time in four years, Massachusetts taxpayers will not receive a higher personal tax exemption in 2008 under current projections, a sign of slowing economy..." In 2005 the tax revenue increased to 7.1%, compared to 6.6% in 2004. In 2006, it projected up to 8.2% from 7.1%, and suddenly this year it is estimated that it will drop to 3.0%. My question is, why the sudden change?
As a member of the upcoming generation of Massachusetts taxpayers, I do not feel confident that our economy is entirely safe. Analysts state that the loss in revenue may be high enough that Deval Patrick may not be able to keep his promises of hiring 1,000 new police officers or expanding full day kindergarten. This takes a toll on all of the state, such as the men who will be employed with these jobs rather than just the people in the state feeling safer with 1,000 more police officers. Expanding full day kindergarten would perhaps save some parents a bit more money a year on day care, children would have the opportunity to learn more, and teachers would also be making a higher income. A drop in revenue resulting in a freeze in tax exemption affects everyone within the state and I believe that we should be given answers to how it is going to be resolved. So far, we are told that lawmakers are thinking of legalizing gambling on increasing gas tax as new revenue sources. Not only do I think this will be unsuccessful in raising the economy, but legalizing gambling would cause the economy to drop unbelievably quickly. People that never thought they would have an addiction would begin to have one, as gambling is a huge problem in this country. This means these people would not have the money to buy, and so this would not help the state revenue at all. I think it would make it incredibly worse. Increasing gas tax will only aggrevate residents of Massachusetts, especially the taxpayers of this generation. Gas prices are already at an all-time high, we do not need anymore of our income going towards this gas. Also, more and more people are turning to hybrid vehicles as it is, since gas prices are so high, therefore it would not result in increasing revenue at a such a rate it may have some years ago.
Perhaps I am a bit too negative, but it seems to me that lawmakers are not taking any consideration into their ideas and the overall affects that they may have on our economy past this revenue issue. Maybe they will work out this issue soon enough, but if we are being denied money we have been promised in the past, I think they owe us to think of our future, and the future of the children in this perhaps soon to be casino-run state.
The information for this blog was taken from the article located at the following web address:
http://www.boston.com/news/local/articles/2007/01/17/state_likely_to_freeze_tax_exemption/
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