T HE P ENNSYLVANIA S TATE U NIVERSITY E CONOMICS A SSOCIATION P RESENTS :

T HE O PTIMAL B UNDLE
F ALL 2013:
WEEK OF

O CTOBER 10 TH

E DITOR : C OLE LENNON P RINT EDUCATION COORDINATOR C ONTRIBUTORS : B EN R OWLES , C ADY B OUCHER , C OLE L ENNON , L EAH G ALAMBA , R YAN S OSNADER

Upcoming Events: General Body Meeting: 10/10

FOMC Meeting Minutes: 10/09

Psuea.org EA Homepage psueaeducation.blogspot.com Education Blog

DOES AMERICA NEED A CONFIDENCE BOOST?

In the midst of the government shutdown, Gallups daily economic confidence index reached its lowest three-day average since December 2011. To construct the index, Gallup utilizes two survey questions. The first asks respondents about the current economic situation. 15% of Americans answered that the economy is in excellent or good condition, while 43% called it poor. The second question asks which direction the economy is taking, and 67% said that it is worsening. Slate Magazines analysis of Facebook emoticon use by city shows that the frowny faces are rampant, especially in Washington D.C., suggesting that confidence and contentment are correlated.BR
CHECK
OUT THE ARTICLES: NYTI.MS/GB64CZ ; SLATE.ME/1ARUN1V

Confidence saved the cat.

AGRICULTURE MARKETS: DEAD MEAT?

As a result of the ongoing government shutdown, the U.S. Department of Agriculture has ceased publishing key data on livestock prices. This is creating confusion in the markets for commodities such as hogs. It has left the nations big meatpacking companies without reliable information on fair prices to pay for livestock. This has caused a disturbance in agriculture markets that has led to drops in the stock price of Tyson Foods, as well as a drop in the price of leanhog futures. These disruptions represent only some of several that agriculture markets have experienced as a result of the shutdown.RS

Oink!

Check out the Article: on.wsj.com/19bt1O5

C ORPORATIONS : MORE LIKE PEOPLE NOW TOO

Concerns of inequality are now set on corporations, with the top 50 US-based companies accounting for 64 percent of total corporate cash: 1.48 trillion dollars. Cash reserves piled up over the past five years as companies confronted uncertainty and the need for long-term planning. Firms that make profits overseas also accumulate reserves abroad to preserve their gains. Tech companies in particular benefit from cash-piling as they usually accrue lower labor and capital costs, which allows for more cash buildup. This observation does not perfectly mirror income inequality, but it reveals that inequality is prevalent in corporations as well. CL
Check out the articles: wapo.st/1c98Tzk ; bit.ly/1c51QaA

An increasingly unequal place at the table.

L IKE THE D EBT C EILING C AN T H OLD U.S.

While the news of the recent government shutdown has been at the forefront of debate the entire week, many people are keen to the idea of brushing it off as business as usual. However, Jason Furman, chairman of the White Houses Council of Economic Advisers, warns that this particular shutdown could have much more severe effects than past government stumbles. If Congress cannot pass a debt-ceiling increase by October 17th, the U.S. risks default. This would be catastrophic to the world economy, counteracting its recent strides toward stability since the end of the Great Recession.LG
Storm brewing over D.C.

C HECK

OUT THE ARTICLE : ON . WSJ . COM /18V MS NI

T HE F ED S T HROWIN H UNNIDS , H UNNIDS

This Tuesday, the Federal Reserve will begin circulating a new 100dollar bill. This dollar bill has been in the works for 10 years but issues with the printing process delayed its release. The 100-dollar bill is the most commonly counterfeited currency internationally, as an estimated to 2/3 of all 100-dollar bills in circulation are abroad at any given time. The Federal Reserve is prepared to confront worries of a shortage of the new bills in foreign countries. The new bills will have two distinguishing features: a 3D blue strip that appears to move when tilted and a copper bell that changes color with movement. CB
Check out the Article: nyti.ms/17PBYMz

Big Ben is back with some new style.