Econ Ramblings

Tuesday, October 31, 2006

http://www.hybridcar.com/news/in-the-news/demand-for-prius-continues-to-outweigh-supply.html

Ch2

The Prius is pretty ugly. It's also pretty energy efficient. That makes it IN-DEMAND.
It's what the article says. The Toyota Prius is growing more and more popular with consumers, and suppliers and manufacturers are finding it harder to catch up. Being a gas-electric hybrid, the Prius can help its drivers save a lot of money at the pumps, and with rising gas prices, people are finding it more and more (though not necessarily physically) attractive. Since gas prices right now are around Mount Everest level, SUV's and trucks are decreasing in demand, as they are The Gas-Guzzlers of today. Although its pretty early into the Hybrid age right now, the Prius is being seen more commonly on the streets, and even in Hollywood (Cameron Diaz and Leonardo DiCaprio can be seen routinely driving this energy-efficient car around).

Chapter 2 is all about Supply and Demand, and factors affecting these numbers. The rapid increase in gas prices, a complementary product to a vehicle, is causing the demand for cars to decrease, because it is becoming simply too expensive to drive an SUV around to the mall, or just out to dinner. This results in the increase in demand for smaller, gas-efficient cars like the Prius and the Civic Hybrids, because they use a combination of gas and electricity, something that is much cheaper than just pure petroleum.

While I agree that buying a Prius right now would be the smart move, its awkward design and unattractive exterior is giving me second thoughts about buying a car right now. I'd rather wait a few years and save up more money to buy a gas car; while it may be more expensive to refill at the pumps, it would look way more appealing. Hey man, a nice car to own is what keeps me going right now. =D

http://www.nytimes.com/2006/09/17/business/yourmoney/17every.html?ei=5090&en=6e569c2dbfa2afa4&ex=1316145600&partner=rssuserland&emc=rss&pagewanted=all
Ch1
Hey, it's my first blog!

This article is basically a description of conditions in one of Germany's camps in WWII; this psychiatric hospital in Hadamar was transformed into a euthanasia center on Hitler's orders. Not only Jews and Gypsies were sent here - people who were mental or "antisocial" in any way (like divorcing too much or drinking a lot) were delivered in curtained buses here. They would be led to a white-tiled 25 by 15 ft room, locked in tightly, and suffocated by carbon monoxide gas that flowed through valves into the cell.

The author of this article is worried that history will repeat itself in the United States; he fears what is down the road for Americans when retirements and the baby boomer era will cause shortages because the burden of having to support them will become too much for the rest of America.

The reason for this center (and what it has to do with Chapter 1) is the focus on the concept of scarcity. Hitler saw resources as being in definite limited supply; that means that almost everyone who wasn't Aryan (blonde hair, blue eyes) was a "useless eater." Because of the limited availability of resources, Hitler saw it as being necessary to conserve all resources for the use of true Germans, and not to be wasted on people who were of not the idealistic German race.

Like Chapter 1, this article talks about the significance of scarcity in determining the value of a product, and also what is to be done with it. Just the idea that something valuable will sooner or later run out is enough to make anyone want to conserve it and hoard it as much as possible. It can be understood why Hitler wanted to simply save more resources for his people, but what is inconceivable is how that motive could turn into genocide and the mass killings of human beings, just because they grew and consumed just like everyone else in the world.