Author Archives: Christopher Skehan

Russian economy cracking

Thesis:In the next 3 years the Russian economy might be pressured to get assistance from the IMF if they remain on this aggressive track.

 

Tension between the United States and Russia started immediately after World War II celebrations and that tension grew into the Cold War. The Cold War is over publically, but economic sanctions placed on Russia for their involvement with Ukraine tells a different story. The United States along with several other countries in the EU have enforced economic sanctions on Russia.   Vladimir Putin remains strong as Russia endures the consequences of its own actions, but it’s economy has grown weak. In the next 3 years the Russian economy might be pressured to get assistance from the IMF if they remain on this aggressive track. Ignoring the collapse in Oil, food embargoes, Interest rates, and dwindling reserves are sinking the economy.

 

Several countries with the support of the United States have placed sanctions. “In response to sanctions from the west, the Kremline banned imported foods from any country which had issued sanctions against Russia. As a result food prices have spiked” (Levada). Prime Minister Dmitry Medvedev imposed a one-year ban of beef, pork, poultry, fish, fruit, vegetables, cheese, milk and other dairy products. Well According to Eurostat Russia imports nearly 10% of its agriculture and food exports. Ten percent is a large portion of food for a population of around 142,173,850. While these food embargoes are not creating the same kind of food shortage that Russia saw in Soviet eras, but certain western foods are becoming unavailable and domestic prices are rising. Vladimir Putins response sanctions have driven consumer price inflations in Russia, its highest point in three years.

 

According to the Bank of Russia the inflation rate in the month of February 2015 was 16.7, which is up 1.7% from January. “The latest news is that Russia’s central bank raised interest rates from 10.5 to 17 percent at an emergency 1 a.m. meeting in an attempt to stop the ruble, which is down 50 percent on the year against the dollar, from falling any further” (Washington Post). This raise in the interest rate backfired to create more uncertainty as the exchange rate sits at 80 Ruble per dollar. This dramatic drop is leading experts to predict a 5% shrink in Russian GDP (CNN). This collapse is reducing the value of Russian savings as their money continues to loss value, and it is happening during a simultaneous collapse of their biggest export.

 

High inflation and unstable markets have forced Russia to liquidate it’s foreign currency and gold reserve. It’s reserve of about $600 Billion has decreased by more than $200 Billion since 2008 (bloomberg). This has created an economic freeze that is bound to crack. Looking towards the future stockholder are looking at Russia now as a value trap, and they don’t see the upside. Russia might be forced to get help from global sources like the IMF but their actions in Ukraine are preventing that. Russia needs to learn that there are gains from trade, and that it needs to learn to play nice our it can’t survive in the global economy.

 

 

Cuban Embargo

The Cuban embargo, a relic from the cold war era, has lasted for nearly 53 year. Well Obama and many others feel that it is time to lift the embargo and welcome Cuba into a trade alliance. Recently Obama meet with President of Cuba Raul Castro and stated ““This is obviously a historic meeting,” Mr. Obama said, noting that a policy of isolating Cuba with an American embargo hadn’t worked and that “it was time for us to try something new” (WSJ). There are many people against lifting the embargo, but lifting the embargo would only help the United States economy. Those against lifting the embargo believe that the embargo shouldn’t be lifted until Cuba meets the requirements; It will make the US look weak, and lastly saying the embargo allows the US to force Cuba to prompt human rights in Cuba.

 

 

Those would feel that the embargo should not be lifted until the initial requirements are meet need to be told the Cold War is over. The embargo was created to cut relations with all communist governments. Fidel Castro, the communist leader at the time, has resigned in 2011 and his Brother Raul has taken his place. The embargo has had more than 50 years so I think a half-century of a failed embargo is enough.

 

For those that think dropping the Embargo will make the United States look weak need to understand the economic impact. The embargo only hurts the people of the United States and Cuba, and has little to no effect on the Cuba government. On the contrary, opening up trade relations with Cuba gives the United States more power. Opening up to Cuba increases the demand for US exports. “The US Chamber of Commerce opposes the embargo, saying that it costs the United States $1.2 billion annually in lost sales of exports” (USC). If stopping this embargo thinks it makes the United Stated look weak then use that money toward military research and contracts. New Military money would increase our military power, and simultaneously helps Americans. “A study by the Cuba Policy Foundation, a nonprofit founded by former US diplomats, estimated that the annual cost to the US economy could be as high as $4.84 billion in agricultural exports and related economic output. “If the embargo were lifted, the average American farmer would feel a difference in his or her life within two to three years,” the study’s author said” (Procon). So if you think It makes us look weak then use the extra money towards Military contracts plus it simultaneously helps American farmers as an added bonus.

 

 

The last reason for not lifting the embargo is that the law enables the United States to push the Cuban Government to prompt Human rights in the country. Well the simple answer is that lifting the embargo would dramatically help the people of Cuba. Obama stated that “the embargo strives to keep “Cuba closed off from an interconnected world.” In a reference to the limited access that Cubans have to telecommunications, he said “our sanctions on Cuba have denied Cubans access to technology that has empowered individuals around the globe” (WSJ-2). Not only would it allow Cuba to expand its technology reach it would also create hundreds of jobs and boost tourism in the area. This inflow of capital would dramatically increase the standard of living.

 

 

Overall, the people who are against the Cuban embargo are just wrong, and have never enjoyed a Cuban cigar. I’m joking about the latter but overall the benefits out way the cost. It helps both the United States and the people of Cuban. Most importantly it ends an era of bad blood and maybe just maybe a sign of good faith and respect will finally lead to democracy in the area.

 

 

3D printing can print out human hearts! What’s next?

I remember watching the Jetson’s as a child and was completely fascinated how they could push a button and food would randomly appear. Well writers often write and create the future and now that technology is possible. However, its just more than food, The 3D printers can make organs, food, and tools on earth and in space. 3D printing is the next trillion-dollar industry that will create shifts in global manufacturing.

 

How will 3D printing create global manufacturing shifts?” According the Havard Business Review “As applications of the technology expand and prices drop, the first big implication is that more goods will be manufactured at or close to their point of purchase or consumption”(HBR). Cheap 3D printing could prevent China from being the biggest manufacturing country in the world. According the United Nations “China has further outpaced its competitors in world manufacturing, generating $2.9 trillion in output annually versus $2.43 trillion from the U.S., the world’s second-largest manufacturing economy” (Thomas Net). China’s unprecedented efficiencies of scale and cheap labors allowed them to grab manufacturing contracts from every developed economy. With 3D printing manufacturing goods will be so cheap and easy to make that you couldn’t possible pay someone little enough to account for the cost of shipment. Therefore 3D printing is getting cheaper and according to The Pharoah Editorial “the cost of shipping internationally has increased 20% in the last three years and does appear to slow down”.

Several companies have already started to use 3D printing. “The Ford Motor Company uses 3D printing to make prototypes of many parts in their vehicles, such as cylinder heads, brake rotors, shift knobs and vents” (Forbes). Ford and several companies are all experimenting with this new technology and it’s just the beginning of a new era. Even though China might loss some manufacturing contract they will still be alright in the new era of 3D printing because they have a massive domestic demand for products. Not all products will be generated with 3D printing but China might loss its title as the manufacturing powerhouse.

 

Even NASA is experimenting with 3D printing and have stated that “And if astronauts ever do attempt to reach Mars, they may survive the journey by eating pizza made with a 3-D-printed food system for long duration space missions, now under development in Texas”(WSJ). So the real question is how can you profit from 3D printing? Besides investing in companies like DDD, SSYS, or ADSK you could begin to use the new technology. Anyone have buy a 3D printer and start using it to sell objects or even learn how to create designs on your laptop. 3D printing will become the biggest discovery since the internet.

 

 

 

 

Detroit Transit System

Its no secret that the city of Detroit was in a recession before the recession. It struggling education system and public transit are just a few of its major downfalls. Many major cities have well developed train systems and subways that connect the city to the suburbs, but Detroit has nothing to compare. A new public transit system that connected the suburbs to Downtown would make a dramatic economic effect on the City.

 

As a student at the University of Michigan I rarely travel to downtown Detroit for several reasons. The only reason I would go downtown is for a sporting event and to be honest no one wants to be the designated driver. This might seem like a childish and absurd reason, but I would bet that is the reasoning for a lot of people in Michigan. A new mass transit system would drive a lot more business and money into Detroit. Detroit is at a critical moment and Ford is stepping up to build the foundation. “The new commuter rail line linking downtown Detroit to Midtown won’t be done until late 2016, but Ford is already focusing on what’s next” (Mlive). What will be the economic effects of this newly developed system?

 

 

First, it will have effects on highway congestions. According to the Michigan Department of Transportation (MDOT) “As indicated in the Highway and Bridge Technical Report, 38 percent of state‐trunkline vehicle miles of travel (VMT) were at or approaching congested in 2004.   By 2030, this percentage is forecasted to increase to 55 percent of total VMT”. This analyst shows that by 2030 our highways will be completely congested and the investment in the new public transit could dramatically reduce congestion. Secondly, the new transit system will reduce costs and increase their revenue for residents and small businesses. “In addition, the IAV package will generate more than 43,000 permanent full‐time equivalent jobs by 2030.   This translates into $1.64 in economic benefits for Michigan residents for every one dollar invested in transportation.9  In comparison, the Business as Usual program gives rise to nearly $50 billion in economic impacts and nearly 30,000 permanent full‐time equivalent jobs.” (MDOT). This kind of impact would help build a strong foundation for the city of Detroit.

 

This new transit system seems like a no brainer for Detroit. The Government is implementing an increase in the sales tax from 6% to 7% to help rebuild our roads, but they should be using that money to build a new transit system. It would reduce congestion and giving construction crews a better chance at building better highways. This plan would be amazing for Detroit residents and would rebuild Detroit to its glory days.

 

Revised Post: Legalizing Marijuana

Thesis:Despite the negative reputation around legalizing marijuana many feel it could be the financial boost that Michigan needs to return to its former glory.

In 2016 Michigan might have something on the ballot that, if approved, could have enormous economic impact on the state of Michigan. The ballot is a statewide marijuana legalization ballot. For those unfamiliar with marijuana I will discuss the substance and its properties then the economic impact it could have on the state of Michigan. Despite the negative reputation around legalizing marijuana many feel it could be the financial boost that Michigan needs to return to its former glory.

For those unaware, marijuana refers to dried flowers from the completely natural hemp plant Cannabis sativa. The plant contains the chemical tetrahydrocannabinol (THC), and people absorb THC thought several different methods.  Several studies have shown that this cheap drug is not addictive and cannot result in death due to overdose. It is widely labeled as a gateway drug and according to National Institute on Drug Abuse “Marijuana is the most commonly used illicit drug in the United States”, and accounts for nearly 21% of adults incarcerated in state prisons. Since 1970 it has been by the Government as a Schedule I. Schedule I is the highest level and implies that it is a dangerous substance with absolutely no medical value. To put into prospective, highly addictive drugs such as, Cocaine, opium, morphine, and codeine are filed as Schedule II drug with medical value. Why would States like Colorado legalize a drug that is labeled with no medical value? Several case studies have indicated that cannabis does have medical value for several diseases, and could be used for treatments. How can the legalization have an effect on the Michigan economy?

If legalized marijuana would be distributed and of course taxed. Due to it’s large consumer demand it would generate millions in tax revenue at precisely a time when Michigan needs a major economic boost. In 2014 alone, Colorado, one of the first states to legalize it and, “raked in $60 million in marijuana taxes and licensing fees in the past year, plus saved most if not all of the $145 million the Harvard report estimated it spent each year fighting marijuana”(Providence Journal). A 60 million dollar gain would have a large economic impact on Michigan. It could possibly be use to support education and help rebuild our infrastructure. “In January, a Survey USA poll revealed that 64 percent of Michigan residents would rather finance road maintenance and education through the legalization of marijuana instead of the proposed tax hike approved by the state legislature in 2014” (High Times). This proposed bill is estimated to yield $1.2 billion a year for new funding. Simultaneously its estimated that “Michigan’s larger population indicates the Great Lakes State could reap a $2.8 billion payoff for initiating similar legislation” to that of Colorado (The Compass Chronicle). Legalizing medical marijuana could more than double the Michigan budget, and simultaneously stop higher taxes. It would also dramatically reduce the cost of State prison facilities. Additionally, “the Michigan Comprehensive Cannabis Law Reform Initiative says it would create nearly 25,000 new jobs” (woodtv). Its large economic impacts and popular support are very obvious, and should be seriously considered.

 

On a Federal level several high profile senators like Kirsten Gillibrand (D-NY) are proposing plans similar plans on a federal level. Federal reform is probably years away, and would generate billions in tax revenue. However for Michigan it would be economically immoral to not pass the reform. Our infrastructure and our education desperately need the money, and overall it’s just what the people want.

 

 

Disclaimer: I do not support the illegal use of marijuana, and I personally do not use the substance. This is purely about the potential economic impact for the state of Michigan.

 

 

Why Mary Jane can help Michigan

Thesis:Despite the negative reputation around legalizing marijuana many feel it could be the financial boost that Michigan needs to return to its former glory.

In 2016 Michigan might have something on the ballot that, if approved, could have enormous economic impact on the state of Michigan. The ballot is a statewide marijuana legalization ballot. For those unfamiliar with marijuana I will discuss the substance and its properties then the economic impact it could have on the state of Michigan. Despite the negative reputation around legalizing marijuana many feel it could be the financial boost that Michigan needs to return to its former glory.

 

For those unaware, marijuana refers to dried flowers from the completely natural hemp plant Cannabis sativa. The plant contains the chemical tetrahydrocannabinol (THC), and people absorb THC thought several different methods.  Several studies have shown that this cheap drug is not addictive and cannot result in death due to overdose. It is widely labeled as a gateway drug and according to National Institute on Drug Abuse “Marijuana is the most commonly used illicit drug in the United States”, and accounts for nearly 21% of adults incarcerated in state prisons. Since 1970 it has been by the Government as a Schedule I. Schedule I is the highest level and implies that it is a dangerous substance with absolutely no medical value. To put into prospective, highly addictive drugs such as, Cocaine, opium, morphine, and codeine are filed as Schedule II drug with medical value. Why would States like Colorado legalize a drug that is labeled with no medical value? Several case studies have indicated that cannabis does have medical value for several diseases, and could be used for treatments. How can the legalization have an effect on the Michigan economy?

 

 

If legalized marijuana would be distributed and of course taxed. Due to it’s large consumer demand it would generate millions in tax revenue at precisely a time when Michigan needs a major economic boost. In 2014 alone, Colorado, one of the first states to legalize it and, “raked in $60 million in marijuana taxes and licensing fees in the past year, plus saved most if not all of the $145 million the Harvard report estimated it spent each year fighting marijuana”(Providence Journal). A 60 million dollar gain would have a large economic impact on Michigan. It could possibly be use to support education and help rebuild our infrastructure. “In January, a Survey USA poll revealed that 64 percent of Michigan residents would rather finance road maintenance and education through the legalization of marijuana instead of the proposed tax hike approved by the state legislature in 2014” (High Times). This proposed bill is estimated to yield $1.2 billion a year for new funding. Simultaneously its estimated that “Michigan’s larger population indicates the Great Lakes State could reap a $2.8 billion payoff for initiating similar legislation” to that of Colorado (The Compass Chronicle). Legalizing medical marijuana could more than double the Michigan budget, and simultaneously stop higher taxes. It would also dramatically reduce the cost of State prison facilities. Additionally,

“the Michigan Comprehensive Cannabis Law Reform Initiative says it would create nearly 25,000 new jobs” (woodtv). Its large economic impacts and popular support are very obvious, and should be seriously considered.

 

 

 

On a Federal level several high profile senators like Kirsten Gillibrand (D-NY) are proposing plans similar plans on a federal level. Federal reform is probably years away, and would generate billions in tax revenue. However for Michigan it would be economically immoral to not pass the reform. Our infrastructure and our education desperately need the money, and overall it’s just what the people want.

 

 

 

 

 

 

Disclaimer: I do not support the illegal use of marijuana, and I personally do not use the substance. This is purely about the potential economic impact for the state of Michigan.

 

 

Savings Rate

Thesis:The savings rate has risen to the highest peak in the last two years, and it’s either because the harsh winter dropped consumer spending or Americans are becoming more fiscally responsible.

 

One of the main reasons our economy collapsed in 2008/2009 was because of consumer behavior. People were spending like there was no tomorrow, but now in 2015 people are starting to spend like there will be a future. The savings rate has risen to the highest peak in the last two years, and it’s either because the harsh winter dropped consumer spending or Americans are becoming more fiscally responsible.

The personal savings rate is at 5.8% in February. “The rate measures the percentage of disposable income Americans don’t spend. In absolute dollar terms, the figure was a seasonally adjusted $768.6 billion, also the highest level since December 2012”(WSJ). This spike is an effect of cheaper gasoline and rising income. According to the Bureau of Economic Analysis “Wages and salaries increased $23.9 billion in February”(BEA). Even though wages are rising, people have not seen a big enough increase to make them feel like they are richer. Therefore, people could just be spending less because of the harsh winter or people are still scarred from the last recession.

Erica Curtis, a professor from Loyola University, agree with my agreement and stated “”In my professional experience, one of the underlying reasons for chronic saving is underlying negative thoughts, such as ‘I don’t deserve to have things,’ or feelings such as, ‘I’m anxious because we don’t have enough,’ even if they are financially secure,” (USA). These negative thoughts are derived from people experiences in the last ten years which include the recession. Even if people are starting to see increases in pay they understand that the economy can be change dramatically and need a financial security blanket. With 2014 being such a good year for America financial it should have provided to appropriate amount of time for people to collect their security blanket.

 

The second reason for the savings rate to be increasing is because people just are not spending money. One reason for this is because people were locked inside their homes all winter. “The government reported Monday that personal consumption expenditures — aka consumer spending — rose just 0.1% in February. That follows two months of declines of 0.2%” (CNN). However, now that the snow is starting to melt people will start to spend more. If they don’t spend more then it’s a clear sign that maybe Americans are becoming more fiscally responsible.

 

Of course an increase in saving is great for the long term, but we need people to spend money too to keep our economy moving in the short run. With spring around the corner its estimated to see a shift upward in spending. If this is true then the increase in saving it due to winter effects. If people continue to save more despite their increase in wage then people are becoming more fiscally responsible.

 

 

 

 

Shady Airlines

Last summer I went to study abroad in Italy, and by far my biggest expense was my plane ticket. At the time it made sense for the price to be high because of high gas prices. However, in the last few months the price of oil has dropped significantly, but the price of a plane ticket has increased. Several factors that I will discuss lead me to think that the Airplane industry is possibly a monopoly, and is inhibiting economic expansion in the tourism industry.

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When most companies produce a bad product or demand a recall on a good they should see a drop in demand and therefore lower their price to accommodate. Why doesn’t that apply to airlines? “There have been 761 deaths in 12 commercial aviation accidents in 2014, according to the Aviation Safety Network, one of several organizations that tracks these statistics. Its data — spanning 1946 to the present — include hijackings, sabotage and shoot downs” (CNN). There have been more plane crashes in 2015 and one just recently in Germany last week. People have to be concerned about their safety when purchasing a ticket. After 9/11 people were worried about terrorism, but now they should be worried about a whole array of issues. Even with this surge in danger the big plane companies are seeing a surge in profit. “Airlines’ profits have been taking off this year, and the industry doesn’t seem inclined to change that flight path. The big carriers announced a $4 per ticket price increase Tuesday, even as falling jet fuel prices were delivering an unbudgeted bonus” (Time).   A more dangerous product should decrease airfares, but the short supply domestically is keeping the prices down.

 

Regardless of the increased danger in skies, there should be a drop in airfare due to the drop in oil.   A barrel of oil has dropped significantly from around $100 a barrel to $48 a barrel. That huge shift should give the airlines a option to lower their prices, and help the consumer. However, the luxury and the sexiness of the skies is long but gone, and has been replaced with new executives that are running a cut throat business. So cut throat that I believe they are not only setting prices but inhibiting other airlines from entering the market domestically and globally. “A swelling group of U.S. airports, tourism interests, consumer advocates and cargo carriers have complained that the big U.S. airlines are being protectionist, trying to undermine the U.S. “open skies” policy that has deregulated a wide swath of international travel, created new jobs and given consumers more choice and lower fares” (WSJ). So how are they creating barriers to enter, and fixing prices in a market with lower inputs and more plane crashes? The answer for most shady thing in this country, lobbying.

 

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The answer might be solved when you see how much money airlines use for lobbying. According to Open Secret they big airlines gave out more than 80 million to the disposal over 633 lobbies in Washington DC. As I’m writing this I admit it sounds like a conspiracy theory but the graph appear to show some correlation. For example, in 2011 Southwest Airlines had an international flight in Yemen crash. In 2010 they paid only $610,00 to lobby in Washington even though that was the highest lobbying year in the last ten years. In 2011 they paid $1,020,00 even when the total amount of money lobbied by all of the airlines in 2011 dropped by nearly ten million (Open Secrets). This could just be a coincidence, but with further investigation could be an alarming trend that airlines are paying for crashes through lobbying money.

 

I started this blog post with a simply question. Why are airplane tickets so god dam expensive even thought more planes are crashing globally? Through limited research some shady answers have arisen, and it seems like airlines are one of the most protected industries in America. They are fixing prices, stopping companies from entering, and paying off the government for their crashes.

Harold Hamm wants to be the King of Oil

 

 

Today my blog post is a response to an article I read on Forbes. The article titled, “ Welcome To Cowboyistan: Fracking King Harold Hamm’s Plan For U.S. Domination of Global Oil”. The article discusses the global oil situation from a multi-billionaire, and I find his argument to be fundamentally and morally wrong.

 

Since the beginning of the year the oil has been flooded with supply and therefore has seen a dramatic drop in price. Hamm has lost “ 7 billion since the oil market imploded” but he views this implosion as short term and as an opportunity for the US to pave their path to global oil dominance. Harold claims that U.S. fracking , which he calls “Cowboyistan”, differs from the rest of the world and specifically Saudi Arabia. According to Hamm Cowboyistan is different because of :

“The Three R’s: Rigs, Rednecks and property Rights. “We’ve got more rigs running than in the rest of the world combined. We’ve got highly trained and reliable rednecks to run them. And unlike anywhere else on the planet, we’ve got property rights, which enable landowners to lease out their acreage and receive royalties for their trouble. That’s what sets us apart” (Forbes).

 

Well lets start with the first R and why that is wrong. The United States might have the most rigs in the world, but that doesn’t mean they are the most efficient.   It is estimated that the United States ranking third in oil production behind Russia and Saudi Arabia. When you combine the oil production possibilities compared to the United States is doesn’t add up. Plus if Saudi Arabia wanted to squash the US they could continue to swamp the supply until it drives out its global competition.

 

The second R (rednecks) is completely irrelevant. There are several other countries in OPEC and around the world that recruit the most intelligent engineers, and those countries have been drilling for generations. To be blunt the second R is just stupid and a tad bit insulting for Harold Hamm’s employees. The third R is the most important, and should really be the only legitimate reason. The Third R is property rights. Harold Hamm claims that only the United States has property rights to a companies drilling. While these rights are fundamentally important they do come with a large price tag, taxes. “These huge sums gave the companies equally huge effective tax rates. ExxonMobil’s tax rate was 42.9%, Chevron’s was 48.3%, and ConocoPhillips’ was 41.5%. These figures are higher than the US federal statutory rate of 35%, which is the highest tax rate in the developed world” (Oil Price). It would be more advantageous for companies to start new drilling sites in safe international sites or corrupt countries with lower taxes.

 

Not only do I think that Harold Hamm’s cowboyistan is incorrect but I think its morally wrong for the United States to push more money into oil development. If the United States wants to remain a prominent global power it needs to focus more on alternative energy. Harold Hamm has lost a lot of money in the past couple of months and wants to must the United States up the global latter so he can win back what he has lost. “The U.S. oil industry is hurt by its own ingenuity and success, Mr. Hamm said” (WSJ). The guy is a rich tycoon that doesn’t know when enough money is enough.

 

 

 

 

 

 

 

 

Changing economy

Thesis: The combination of massive college debt and the economic transition from predominately manufacturing to service industries is producing a new generation of women with fewer marriages and less children.

 

Women’s roles and expectations in the workforce have dramatically changed over generations in several ways. When agriculture was the main contributor to GDP women were expected to cook, clean, and raise the children. Those expectations continued from the period of agriculture to the transition into Manufacturing. As the economy shifts again towards a service economy, women are educated and a prominent part of the workforce, and it’s having several affects on the economy. I believe that the combination of massive college debt and the economic transition from predominately manufacturing to service industries is producing a new generation of women with fewer marriages and less children.

 

Over the last decade the amount of women attending college has increased exponentially, but that education comes with a cost. According to USA News “The average amount of student loan debt again crept up for the Class of 2013, and is approaching $30,000, according to a new report from the Institute for College Access and Success”. Considering the average women leaves college with 30k in debt she doesn’t have the luxury of not working. College debt might force them to enter the workforce, but what I preventing women from marriage and having children?

 

There has been a declining in the birth rate for the past six years, and a significant amount of those children are born to unmarried parents. According to WSJ “Earnings of less-educated American men have fallen in recent decades, while education levels have risen among women, making marriage less attractive economically for women, research shows”. What could be the factors? Well considering the amount of college debt it’s becoming more difficult to finance a wedding. Considering the price tag of a wedding and the estimated price of having a child it doesn’t appear too advantageous for young women. With increase in women salaries it makes more sense for them to work, and remove to taboo of “shame” for not being a stay at home mom. Women should have equal pay and opportunities because he economy needs women to help grow.

 

This doesn’t just apply to the United States. “insidious conspiracy” of laws is keeping women out of the workforce around the world, costing the global economy badly needed growth, said Christine Lagarde, managing director of the International Monetary Fund”(WSJ 2). The generation change that allows more women to enter the work force is advantageous for everyone, and it’s just the right thing to do.