I believe that the economy is going to go in the direction of option A, as much as I would like to believe differently. If I were looking back at the economy's decrease since graduation from high school, it would not be an easy path for the country. With the arrival of the fiscal cliff, taxes rose, and continued to rise through the years as the country fell further and further into debt. Of course, many people were unable to pay these high rates of taxes, and began having difficulties supporting themselves and their families. The quality of life declined dramatically as people were unable to support themselves. The last few years haven't been easy for my family and I, either.
I was able to get into college, but am having difficulties paying it off (and likely will be for quite some time). I wasn't able to get a job until the end of my sophomore year, and it doesn't pay as much as I would like, but at least it's a job. It's difficult to have any extra money to spend on things (of course, being a college kid means I'm broke anyway, but in this economy it's about twice as bad), and I'm mostly using all of it to just get by. The taxes continue to rise every few years, and the debt never seems to get any lower. I don't look forward to seeing how the economy is for the next generation, but maybe they'll be able to fix it. You never know.
A question to end with is, will the American people be able to look past the lifestyles they have now in order to help maintain it in the future?
Thursday, December 20, 2012
Tuesday, December 18, 2012
Econ Paper, yo. (Disney Company)
Unless you’ve been living under a rock for the entirety of your life, chances are you have heard, read, or seen something related to Disney in some way. Disney is one of the largest corporations in the world, and is involved in nearly everything imaginable - movies, television, amusement parks, the Internet, games, toys - the options are endless. Disney can be found almost anywhere, through advertisements and product placement; it is designed to never be out of mind. How did Disney get so good at its marketing strategies - what makes it so successful as a company? Through countless years of learning and experience, the Disney corporation has perfected its social media and marketing strategies into nearly a work of art.
Originally founded in 1923, Disney has had many years to perfect its strategies, to figure out what worked and what didn’t. This is one of the primary factors that puts them so far ahead of other companies - the huge amount of time they have had to learn and revise their marketing strategies. Their marketing teams are extraordinary at coordinating complementary marketing events; a good example is the release of Toy Story 3. When it was released in theaters, it generated a very positive response, earning $1 billion in the box offices. It wasn’t long after the movie’s release that the retail market was flooded with toys, souvenirs, apparel, and other items, all related to Toy Story. A few months later, a new Toy Story attraction was opened in Disneyland Paris; although it was an attraction that had been in production for years, its release was scheduled to coincide with the release of the movie to amplify the Toy Story frenzy. As well as that, Disney World was then able to add to their already existing Toy Story attraction to make it relevant to the new movie (Tracy). These are only a few of the strategies used to draw attention and interest to the products of Disney. The Disney marketing teams do not allow their products to leave customers’ minds, and are always introducing new products to keep the Disney brand fresh in fans’ minds. Through their careful and specific advertising and marketing, Disney is able to do that successfully with nearly every franchise they launch.
Another reason that Disney is so far ahead of many other entertainment companies is because, quite simply, they were the first company to successfully launch what they are most famous for; animations. In 1928, Disney was the first to release an animated short that was synced with sound, Steamboat Willie. It was a huge hit, which gave the company the advantage of being the first to offer such entertainment. They were also one of the first to release a full length animated film, Snow White and the Seven Dwarves, and revolutionized the entertainment industry by being the first studio to produce programming exclusively for television (Tracy). By starting so much earlier than most other companies in the field of film and animation, Disney gained a huge advantage, and more time to perfect its production and presentation to audiences. Their aptitude for continuous improvement of this strategy has rewarded them well.
Another social media strategy that Disney uses is building communities of people brought together by a common interest - Disney - while extending the community beyond that sphere. Some communities such as Disney Living or Disney Baby maintain a focus other than Disney, but the Disney mystique is what initially helps draw interest and bring the consumers together in a community. It is also another technique to always keep Disney in mind; while mothers might be having discussions about their babies or parenting-related topics, they are still linked together through a Disney community (Warren). Disney offers a variety of products and communities, that range far from the expected merchandise and movies associated with Disney in order to have impact and relevance in all aspects of life. Even when people aren’t specifically discussing Disney, they are still linked to it through the very community they inhabit.
It is quite outstanding how the Disney machine has managed to expand its reach into such a variety of business ventures - including merchandise, games, movies, amusement parks, cruise lines, and online communities. Disney creates this diverse range of business not only by creating its own franchises, but by acquiring outside businesses, such as ABC Family, Pixar Studios, and Marvel, which allows Disney access to a whole new range of popular, well-known franchises (Tracy). When Disney gains access to the earning power of companies that are already popular and successful, it increases the likelihood that their own success will grow. One would not expect any of these companies to be a part of Disney at first glance, further proving the point that almost any aspect of business and entertainment can be related to Disney, and further enhance its brand.
Due to its wide and powerful influence, Disney plays a large part in the economy. Their merchandise fills store shelves, their movies generate income for movie theaters, and their advertisements are visible everywhere. If Disney did not exist, it would result in a significant loss of income for many other companies. For example, Disney has quite a few amusement parks scattered around the world. All of the businesses, hotels, and restaurants in the towns surrounding Disney properties depend on the business gained from all of the tourists who are there to visit “the happiest place on earth.” If the parks were not there, these companies would lose the considerable business produced by the constant barrage of tourists. A huge number of jobs are also created in Disney parks, stores, studios, and other operations, all of which would be nonexistent without Disney. Disney has built a strong, influential hold over society and its economy.
In conclusion, Disney has used its countless years of experience and practice in order to make itself into one of the most successful and influential companies in the world. While it would not be impossible for other companies to copy Disney’s business model, they would likely have a difficult time replicating Disney’s success. If you need evidence of that, look at all the ways that Disney surrounds us and try to imagine another brand achieving such a universal presence.
-Tracy, Ryan. “The Business of Magic.” The Daily Beast. Newsweek. 11/3/10. Web. 11/30/12.
-Warren, Christina. “Disney Marketing: The Happiest Social Media Strategy on Earth.” Mashable. 8/3/11. Web. 11/30/12.
Originally founded in 1923, Disney has had many years to perfect its strategies, to figure out what worked and what didn’t. This is one of the primary factors that puts them so far ahead of other companies - the huge amount of time they have had to learn and revise their marketing strategies. Their marketing teams are extraordinary at coordinating complementary marketing events; a good example is the release of Toy Story 3. When it was released in theaters, it generated a very positive response, earning $1 billion in the box offices. It wasn’t long after the movie’s release that the retail market was flooded with toys, souvenirs, apparel, and other items, all related to Toy Story. A few months later, a new Toy Story attraction was opened in Disneyland Paris; although it was an attraction that had been in production for years, its release was scheduled to coincide with the release of the movie to amplify the Toy Story frenzy. As well as that, Disney World was then able to add to their already existing Toy Story attraction to make it relevant to the new movie (Tracy). These are only a few of the strategies used to draw attention and interest to the products of Disney. The Disney marketing teams do not allow their products to leave customers’ minds, and are always introducing new products to keep the Disney brand fresh in fans’ minds. Through their careful and specific advertising and marketing, Disney is able to do that successfully with nearly every franchise they launch.
Another reason that Disney is so far ahead of many other entertainment companies is because, quite simply, they were the first company to successfully launch what they are most famous for; animations. In 1928, Disney was the first to release an animated short that was synced with sound, Steamboat Willie. It was a huge hit, which gave the company the advantage of being the first to offer such entertainment. They were also one of the first to release a full length animated film, Snow White and the Seven Dwarves, and revolutionized the entertainment industry by being the first studio to produce programming exclusively for television (Tracy). By starting so much earlier than most other companies in the field of film and animation, Disney gained a huge advantage, and more time to perfect its production and presentation to audiences. Their aptitude for continuous improvement of this strategy has rewarded them well.
Another social media strategy that Disney uses is building communities of people brought together by a common interest - Disney - while extending the community beyond that sphere. Some communities such as Disney Living or Disney Baby maintain a focus other than Disney, but the Disney mystique is what initially helps draw interest and bring the consumers together in a community. It is also another technique to always keep Disney in mind; while mothers might be having discussions about their babies or parenting-related topics, they are still linked together through a Disney community (Warren). Disney offers a variety of products and communities, that range far from the expected merchandise and movies associated with Disney in order to have impact and relevance in all aspects of life. Even when people aren’t specifically discussing Disney, they are still linked to it through the very community they inhabit.
It is quite outstanding how the Disney machine has managed to expand its reach into such a variety of business ventures - including merchandise, games, movies, amusement parks, cruise lines, and online communities. Disney creates this diverse range of business not only by creating its own franchises, but by acquiring outside businesses, such as ABC Family, Pixar Studios, and Marvel, which allows Disney access to a whole new range of popular, well-known franchises (Tracy). When Disney gains access to the earning power of companies that are already popular and successful, it increases the likelihood that their own success will grow. One would not expect any of these companies to be a part of Disney at first glance, further proving the point that almost any aspect of business and entertainment can be related to Disney, and further enhance its brand.
Due to its wide and powerful influence, Disney plays a large part in the economy. Their merchandise fills store shelves, their movies generate income for movie theaters, and their advertisements are visible everywhere. If Disney did not exist, it would result in a significant loss of income for many other companies. For example, Disney has quite a few amusement parks scattered around the world. All of the businesses, hotels, and restaurants in the towns surrounding Disney properties depend on the business gained from all of the tourists who are there to visit “the happiest place on earth.” If the parks were not there, these companies would lose the considerable business produced by the constant barrage of tourists. A huge number of jobs are also created in Disney parks, stores, studios, and other operations, all of which would be nonexistent without Disney. Disney has built a strong, influential hold over society and its economy.
In conclusion, Disney has used its countless years of experience and practice in order to make itself into one of the most successful and influential companies in the world. While it would not be impossible for other companies to copy Disney’s business model, they would likely have a difficult time replicating Disney’s success. If you need evidence of that, look at all the ways that Disney surrounds us and try to imagine another brand achieving such a universal presence.
Citations
-Barnes, Brookes. “The Downfall of a Disney Marketing Executive.” Nytimes. 1/8/12. Web. 11/30/12.-Tracy, Ryan. “The Business of Magic.” The Daily Beast. Newsweek. 11/3/10. Web. 11/30/12.
-Warren, Christina. “Disney Marketing: The Happiest Social Media Strategy on Earth.” Mashable. 8/3/11. Web. 11/30/12.
Tuesday, December 4, 2012
Fiscal Cliff, yo.
The Fiscal Cliff is a looming set of tax increases that are set to happen after January 1st, if no decision is made between Obama and the Republicans. This will involve more than $500 billion in increases; taxes will raise for almost everyone, and most businesses as well. January is set to be when a few other things happen, as well; the Bush-era rate reductions, a cut in payroll taxes, and smaller tax cuts for businesses and individuals. As well, about 1 in 5 tax payers will have to pay the alternative minimum tax.
The alternative minimum tax is an extra tax that is meant to prevent people who have high incomes from paying little or no taxes due to special tax benefits; however, almost anyone can be affected by it. The alternative minimum tax, obviously, determines a minimum amount of tax a person has to pay - those who already pay that much through regular taxes aren't required to pay any more, but if the regular taxes are lower than the alternative minimum tax, a person must pay more to meet it. Along with that, the Bush-Era tax cuts will be ending as well; Obama wished to end them two years ago, but reluctantly decided to renew them in order to help stabilize the weak economy.
The Republicans wish to keep the Bush-Era tax cuts the same, but Obama wants to end cuts on those with high incomes - to prevent the wealthy from paying a very small amount of their taxes. Also adding to the fiscal cliff is the incoming debt ceiling - the US is heavily in debt, and we're rapidly approaching the limit of debt that the government allows. In order to help lower the debt, spending cuts are supposed to go into effect on January 1st, when the Bush-Era cuts are set to expire. With our debts so high, it's looking unlikely we'll be able to pay off our debts in time - which is likely to raise borrowing costs in the future. January of 2013 should certainly be an interesting month, to say the least.
The alternative minimum tax is an extra tax that is meant to prevent people who have high incomes from paying little or no taxes due to special tax benefits; however, almost anyone can be affected by it. The alternative minimum tax, obviously, determines a minimum amount of tax a person has to pay - those who already pay that much through regular taxes aren't required to pay any more, but if the regular taxes are lower than the alternative minimum tax, a person must pay more to meet it. Along with that, the Bush-Era tax cuts will be ending as well; Obama wished to end them two years ago, but reluctantly decided to renew them in order to help stabilize the weak economy.
The Republicans wish to keep the Bush-Era tax cuts the same, but Obama wants to end cuts on those with high incomes - to prevent the wealthy from paying a very small amount of their taxes. Also adding to the fiscal cliff is the incoming debt ceiling - the US is heavily in debt, and we're rapidly approaching the limit of debt that the government allows. In order to help lower the debt, spending cuts are supposed to go into effect on January 1st, when the Bush-Era cuts are set to expire. With our debts so high, it's looking unlikely we'll be able to pay off our debts in time - which is likely to raise borrowing costs in the future. January of 2013 should certainly be an interesting month, to say the least.
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