Peter Nowak’s view that ebooks are still priced unreasonable high is true as saving paper, and ink evidently do not reduce the amount customers pay. As Google released it’s bookstore in Canada last week, prices are still on par with purchasing a physical book at Chapters/Indigo’s. The only reason I would choose to purchase an ebook over a physical novel is for convenience, yet I would still rather flip a paper page if the price was the same. As Canadian consumers now have numerous choices when purchasing from an e-tailer, such as Kobo, iBook, and PocketBook, most of the sellers aren’t even going to try and lower the prices for customers.

One exception: Amazon. Apparently, they’re doing something right- it’s Kindle DX sales outnumbered it’s hardcover books for the first time ever during the second quarter of 2010. They’ve had notable battles with publishers on many fronts and it’s desire to sell all ebooks at $9.99 is reasonable as companies would not be marking up their product by 400% of their production costs.

From an economical standpoint, Amazon wants to cut it’s competition and release themselves from this cartel-like ebook structure that these companies have created.

So as a consumer, thank you Amazon.

Reference blog: http://www.canadianbusiness.com/blog/tech/56392–ebook-prices-are-still-unreasonable-and-e-tailers-aren-t-fighting-back

In reference to David Jhinku’s blog regarding the change of the Canadian currency, Canada is finally challenging the use and creation of counterfeit bills by introducing a new polymer based note. One hundreds are released this November, with fifties released in March 2012, and twenties, tens, and fives following in 2013. This new currency has security features that people will find hard to replicate; they include:

Raised ink
Large Window
Metallic Portrait
Metallic building
Small numbers
Transparent text
Maple leaf border
Frosted maple leaf window
Hidden numbers

The pros: The new bank notes last nearly 2.5 times longer; are more secure.

The cons: The cost of production is almost double the present cost of our current paper notes. At almost 19 cents per note, it may seem silly to install a new note system regarding our economy and lifestyle.

In hindsight, the new note system may be an investment for the past as we are slowly moving away from cash to digitalized payments, whether with the credit card system or our cell phones. Although cash accounts for 50% of transactions, it will slowly decrease until new methods overshadow our current ways. The Bank of Canada should take this into consideration and always be a step ahead.

Reference article: https://blogs.ubc.ca/davidjhinku/
http://www.bankofcanada.ca/banknotes/bank-note-series/polymer/

New York Mayor Michael Bloomberg is calling to end the 2001 and 2003 tax cuts for the farm, energy, and wealthy subsidies to help balance out the rising tax deficits and national debt. He wants all tax brackets to be a part of this situation and proposes the following:

1. Raise Social Security’s eligibility age gradually over the next six decades
2. End tax cuts that were introduced by George W. Bush
3. Millionaires and other high-income taxpayers face a scheduled return of limits on itemized deductions and personal exemptions.
4. Revert tax rate on capital gains from 15 to 20%
5. Dividends would be taxed as ordinary income
6. Individuals earning more than $200,000 in 2013 and married couples earning more than $250,000 would face a 0.9 percent payroll tax increase and a 3.8 percent tax on a portion of net investment income

Current policies will see the national debt rise to $21.5 trillion from $10.3 trillion in ten years and can be averted by a combination of reduced spending on health care, social security, and higher taxes.

Yet, if enacted, this will lead to an outrage of the public as they will lose a large portion of their income. Will this discourage spending back into the economy, or will it decrease the nation debt?

Reference Article: http://money.cnn.com/2011/11/10/markets/bondcenter/italian_bond_yields/index.htm?iid=Lead

The Hilton Hotel and Resorts is an international chain of hotel companies in North America founded in 1919 by Conrad Hilton. There are currently 540 hotels operating in 78 countries and would be considered as an entrepreneurial company according to Schumpeter’s view of entrepreneurship. The Hilton accomplished many firsts in its lifetime, including the first coast-to coast hotel chain in the United States, to install televisions in its guest rooms, to earn both LEED and Green Seal environmental certifications, to franchise, to become an airport hotel and utilize a multi-hotel reservation system. In 2007, the Hilton was ranked at 296 in the Fortune 500, with profits of around $572 million per annum. The Hilton continuously innovates with their products, developments, and partnerships. They have currently launched a partnership with Global Soap Project, a nonprofit organization that recovers and recycles soap from hotels that would otherwise end up in landfills, as well as landing a new development deal in Argentina. Their new HHilton reward system also allows members to redeem points in return of free stays at their hotels. Hilton Hotel and Resorts operates under Hilton Worldwide, which is owned by the Blackstone Group, a private equity firm.

References Links: http://www.quickmba.com/entre/definition/
http://www.hilton.com/en/hi/brand/about.jhtml
http://money.cnn.com/magazines/fortune/fortune500/2007/snapshots/628.html
http://www.hotelnewsresource.com/HNR-companyid-coid-11006-Hilton.html
http://en.wikipedia.org/wiki/Hilton_Worldwid

In America, older generations have seen a surge of wealth since the mid-1980’s, yet our younger generation has seen a decline as it is harder to save, harder to pay back debt, and harder to get their foot in the door. Back in 1984, households headed by persons older than 64 were worth 10 times that of a household headed by persons older than 35 years of age, yet now that gap has seen an increase to 47 times. With an average net worth of $3662 in 2009, households of 35 and younger has witnessed a 68% decrease to their wealth while older Americans have seen the opposite- a 42% increase as opposed to their 1984 counter-parts. These statistics could be due to a number of reasons, including:

1. Many young Americans are starting their lives later

2. Many Americans are now attending post-secondary school

3. The housing market

4. Financial security and pensions after retirement are no long guaranteed; therefore older generations hold onto their jobs, making it harder for youngsters to even get a summer job.

While Grandpa can now pay for retirement, little Joe is forced to struggle with debt, loans, and an expensive white picket fence. Question is, how will the government compensate this ever-growing gap and what effects will it have on our economy?

Reference Article: http://money.cnn.com/2011/11/07/news/economy/wealth_gap_age/index.htm?iid=Popular

Hey everyone, I just wrote a response to Adelle Tepper’s blog post about the new caffeine regulation in energy drinks. Click on the link below and take a look!

https://blogs.ubc.ca/adelletepper1/2011/10/06/canada-restricting-caffeine-in-energy-drinks/#comment-10

People have been sitting in Zucotti Park in Lower Manhattan advocating “Occupy Wall Street”, a anti-corporate protest against Wall Street bankers that aims to change a number of vast problems in America. These complaints range from mortgage foreclosure to torture but Breakingviews offers a four-point partial manifesto that can sum up the protesters’ goal.

To sum it up, the manifesto would have the following statements. Make banks safer and let them fail, name and shame those who receive huge bonuses and are earning up to more than twenty times the average man, free legislators from away from special interests for politicians to focus more on the common good than re-election, and lastly, change the two party system as it is entrenched in both rules and regulations, unable to commit to change.

In my opinion, the protesters should narrow down and state just exactly what changes they desire as there are mixed feelings attached to their cause. What exactly are they proclaiming? The “location and crowd makes for good TV”, but the cause is unclear and blurry. Simply stating that there is “a feeling of mass injustice” doesn’t address any real problems and leaves the demonstrations and desire for change looking as futile.

Reference article: http://www.theglobeandmail.com/globe-investor/investment-ideas/breaking-views/a-manifesto-for-wall-street-protesters/article2191865/

Over the next couple years, the Detroit manufacturers are headed to undeniable extinction unless they are able to switch markets and create a more sustainable vehicle that will support that of the global warming crisis. Vehicle manufacturers should not be blind to the fact that although short term their revenues are increasing, consumers and governments are headed toward a destination that will help improve the climate change situation; that of the hybrid. Due to the continuously rising gas prices, vehicle manufacturers are starting to take note of Toyota, the one manufacturer who has made a commitment to the hybrid market and accounts for almost half of the hybrid sales.

Even Porsche has come out with a hybrid: the Cayenne S hybrid. Although looking similar to the conventional Porsche, it weighs 400 lbs more with a 25% better gas mileage. Other German brands have also revealed their own hybrid versions, including Audi and Mercedes-Benz, demonstrating the shift of market as a necessity to stay one step ahead.

In the long run, vehicular companies should make that transition into the hybrid market as gas prices are only rising and new government mandates attempt to reduce carbon emissions.

Reference article: http://money.cnn.com/2011/10/04/autos/hybrids_prius_porsche.fortune/index.htm?iid=SF_BN_River

Rich oil bigwigs took a blow when Europe announced their step away from oil sands crude to cleaner sources of fuel that would meet the continent’s target of lower carbon emissions. Although not affecting Canada directly, this move could possibly influence other countries, such as China, into following the new policy and damage future business agreements in this billion-dollar industry.

The Canadian government intends to fight this move, possibly turning over to the World Trade Organization as they believe the European Union is discriminating against the country’s immense crude oil resources. This move also adds to the already negative view of Canada’s largest resource.

Although this is major hit to Canada’s economy, globally, it would help the global warming cause; there would be a reduction of carbon emissions (6% of transport fuels by 2010 in Europe) and greenhouse gases, as well as a cleaner environment. Despite the fact that Europe’s move may affect Canada and the oil industry, you can’t deny that in the long run, this move may benefit the well-being of future generations.

Reference Article: http://www.theglobeandmail.com/report-on-business/international-news/european/europe-labels-crude-from-oil-sands-dirty-fuel/article2191203/

Reference article:
http://www.law.harvard.edu/programs/lwp/NLC_childlabor.html

It has been reported by the National Labor Committee that Harvest Rich factory in Bangladesh has been employing child laborers of eleven years or younger. The fact that these children are working rather than receiving an education is disturbing enough, but the most shocking aspect is that major companies that are distinguished in the North American market, such as Hanes, Puma, Wal-Mart, and J.C. Penney, manufacture their products from this factory. Furthermore, these children are subject to abuse and mistreatment, “being routinely slapped and beaten, …forced to work 12-14 hours a day…for wages as low as 6 ½ cents an hour.” Worldwide Responsibly Apparel Production (WRAP), a group that monitors the U.S. apparel industry, certified Harvest Rich but failed to recognize the workers’ abuse and child labour; thus the entire corporate monitoring system has been unable to provide these people their workers’ rights. This article addresses the morality of these corporations, whether or not they are aware of employing children, and the treatment of their workers. Although the conduct of these companies lower the operating costs, they should make a conscious effort to better the welfare and conditions of their workers.