Spongebob's Supply and Demand

The topic of the week in Econ is supply and demand.  I can't think of a better example of supply and demand than in an episode of Spongebob Squarepants.  In this particular episode, Mr. Krabs, an economist if there ever was one, is having a yard sale.  He convinces Spongebob to buy a hat that holds soda cans and has straws connecting to the mouth for people that would like to drink their soda in a hands-free situation. Believing it is totally worthless, Mr. Krabs tells Spongebob that it once belonged to Smitty Werbenjagermanjensen, and that "he was number 1!" Rumors surface that the hat is the last of its kind, and it is very valuable.  Someone offers one million dollars to Spongebob for the hat, but he declines because it belongs to Smitty.  Mr. Krabs is beside himself for selling such a rare and valuable hat.  However, the following day, a warehouse is discovered that contains dozens of the hat, and all of the sudden the price drops drastically and the hat is basically worthless.  The demand for the hat was high because the supply was thought to be low, so the price skyrocketed.  But once the supply increased, both the demand and price dropped drastically.

Syria and the President's Decision

A couple of weeks ago, President Barack Obama spoke on national television about the issues in Syria.  His take was clear; Obama does not want to get America involved, but he will if he believes it is called for.  When Mr. Obama said "America is not the world's policemen," he had my attention. I completely agree with this statement, but at the same time, he still leaves that overlooming promise that the USA will not hesitate to do the right thing.  The issues in Syria could potentially escalate into something worse if not handled correctly.  One motto that we have lived and died by is "America does not negotiate with terrorists."  Syria is and will be no exception.  Obama may not be the best president in history, but he has my support with when dealing with the Syrian government.

The NFL Season is Back

This past thursday, September 5th, 2013, marked the beginning of the NFL season. Between watching my favorite teams and managing my fantasy roster, I have very little free time on sundays.  Throughout the week, I am constantly looking at my fantasy football rosters (I currently manage four teams) to make sure I put myself in the best position to win.  Like any other fantasy owner, I'm always faced with decisions.  Just this week, I had to decide whether to start Robert Griffin III or Cam Newton. The Panthers were playing Seattle, one of the top defensive teams in the league.  Who do I value more at this point in time? Which quarterback's marginal benefit is greater? Weighing the pros and cons, I decided to go with RGIII, whose Redskins are playing a much weaker Eagles defense.  Cam Newton, sitting on my bench, only had 12 points, so as long as Griffin can produce more than that, this economic risk will have paid off for me.