The Chapter of Depression and Other Stuff

     Reading this depressing chapter from what im sure is a depressing book, I learned a few eye opening facts about Economic Bungee Jumping. For one, it's pretty tough for economists to predict the buisness cycle due to the fact that there are many levels to the business cycle. "Business cycles are an unavoidable and largely unpredictable feature of market economies." (2 IP) The future is something that no one knows, it's unpredictable and it can certainly throw you some curve balls, and "...these decisions often depend as much on gut feeling as cold calculation." (2 IP)

     Another thing that I learned reading this very depressing article, is the definition of a Bull Market and a Bear Market. FACT: Bear Markets are more viloent than Bull Markets and unemployment rises more quickly than it falls. (3 IP) The true definition of a Bull Market however is, a market in which share prices are rising and encouraging buying. While on the other hand, a Bear Market is, a market in which prices are falling, and encouraging to sell.

     The cause of these economic patterns have truly differed over the years and they haven't differed from bad to better, only bad to pretty much the same. This Depressing Book states that "in nineteenth-century America, it was often a natural disaster, a crop failure, or a bank panic" (3 IP). After this statement, this very depressing chapter listed a bunch of failures and disasters: "2001-Technology investments crashed. 2007-House values plummeted." (3 IP)

     How does one know that a recession has occured? Well most people today just usually watch the news and find out from those people sitting at a desk with a coffee mug that I'm sure is empty. Never the less, there is actually a logical explanation: a press release. In 1920 a group was formed called the NBER which promote better economic analysis. Some people might ask, "How does this turn into a depression?" Well, back in 1930, "a depression was the term used for what we now call a recession." (4 IP) Financial crisis' don't always produce depression, but they often lead to severe recessions with unusually weak recoveries- and that my friend, is what produces depression, which later comes out in people.

The Underground Economy

     The underground economy or the shadow economy, is a system composed of those who can't find a full-time or regualr job. Some workers turn to anything that pays them under the table, with no income reported and no taxes paid-especially with an uneven job picture. A professor stated that he thinks "the underground economy is quite big." He goes on to say that even though "it is using undocumented workers or those legally, it is still pretty large."

     This hidden economy can be beneficial due to the fact that, even though it can be related to drug dealers and other not so good things, it supports the personal and domestic workers such as housekeepers and nannies. It also includes firms that hire hourly or day construction labor, information technology specialists and web page designers. Many people in this category have a job, but take another due to the fact that they don't get paid enough from their original job.

     For the people who have certain underground jobs, it can be great, but there can also be some bad side effects. The result of these hidden jobs, "is less tax money paid to the various levels of government." What does that mean to the average working human? It means that, "those working and not paying taxes puts the burden on those who pay the tax."

     Another side effect is that those who are not in the books, don't gte Social Security or Health Benefits. "People who do these types of jobs run the risk of getting exploited with lower pay or not being paid at all."
All and all, the underground economy can truly only be judged by you and you alone. There are pros and cons, but it's you who has the final say.

Net Neutrality

     Net Neutrality is "the principle that Internet service providers should enable access to all content and applications regardless of the source...". In a more simplified version, it states that regardless of the source the Internet is coming from, the Internet should be equal to everyone everywhere.

    Major companies would completely benefit without having Net Neutrality because that would mean that the buyers would have to pay more to get faster and more reliable Internet. With Net Neutrality today, people pay a certain amount for a certain Internet service, and they receive the Internet that they pay for.
   
     It's important to us (consumers), to have Net Neutrality because if we didn't, then we would have to pay our provider more then what we are paying now. With Net Neutrality, we have an equal and easy way to get to the Internet without all these complications.

     In 1934, the FCC voted to regulate the Internet under Title II of the Communications Act. That ruling enabled the FCC to enact new rules that would prevent Internet service providers from manipulating how quickly or slowly sites are transmitted along their networks. All and all, the FCC has total control of the providers and how much Internet service is delivered to the consumers.