Oil in the Arctic: New Discoveries

Did you know that the Arctic Circle now contains double the amount of oil that was previously found in that region? According to CNN's recent article, the "Arctic may be home to 30 percent of the planet's undiscovered natural gas reserves and 13 percent of its undiscovered oil" (Azadeh Ansari, CNN). This assessment performed in the Arctic Circle is helping scientists with their latest discoveries, and has the potential to "help oil and gas companies locate new troves of fossil fuels". One of the main concepts of Macroeconomics is the idea of scarcity (and accessibility) to resources: in today's society, fuel and gas are certainly considered to be limited resources. Although offshore oil exploration is at its "infancy", companies such as ExxonMobil have claimed their drilling areas without hesitation. Since the United States is one of the largest consumers of oil and gas, it makes sense that the drilling and oil sources are diversified. Public policy ensures us easier access to such scarce resources, which is especially important in regards to the United States' current situation within the economy.

No country for Dead Seals

The EU is putting a ban on seal products from Canada. Seals are hunted in a couple countries across the globe, for their furs and fats. The problem in seal hunting is the methods and ethics involved. Everyone loves a good baby seal, and no one wants to see them cudgeled to death. But, the market for seal products has been established. For some seal hunting provides greater marginal utility than the costs of killing it. Income, trade, and possibly meat for the family (if one believes in such things). Ultimately though, the market of seal stuffs has been promoting economic trade for centuries. So, when the EU Parliament approved the ban 500 something to 49, it was obvious that the trade is nearing its end. Economics gives way to cute, cuddly goodness.

-Adam

A Economic Opportunity on Wheels

Bicycles are becoming more and more common for hotels to rent out. This is a very good thing, because it promotes all sorts of different economic activities. First of all, they benefit the hotels and users of the bikes. The customers at the hotels who rent or provide free bike rentals have a greater utility from the hotel, and therefore, choose to stay at that hotel more often. the hotel benefits from the business, creating more GDP for the country in which it is located. Also, the use of bicycles promotes international trade in two ways: tourism and the market for bicycles. Where tourists flock, the demand for the local currency increases. And countries that produce bicycles can specialize and trade in order to benefit the most from trade. Just to think that one revolutionary idea creates so much economic growth. Imagine what other exciting possibilities there are in other additions to hotel services.

-Adam

Reaching Towards Recovery: What Should Be Expected

Although unemployment rates may remain high, Federal Reserve Chairman Ben Bernanke believes that the United States economy will begin to improve later on this year, assuming that financial sectors continue to 'heal'. Now more than ever, Bernanke appears to be fairly confident that our economy will soon reach its recovery. He predicts a "rebound in consumer spending, which is the driving force behind the economy". Bernanke also claims that we, "continue to expect economic activity to bottom out, then to turn up later this year". Even at the first sign of recovery, however, economic activity rates still won't be as high as they should be. This will keep inflation low for a while, resulting in lower interest rates as well. Bernanke announced that the Fed will soon be releasing further information about various lending programs in order to help release us from this credit crisis. Even though our current situation has become a serious issue and there are only a limited number of loans that banks can offer, Bernanke believes that things will only begin to get better from here.

-Hannah Rutzick