Economic trend #1: Minimum wage is increasing
As claimed in the article, over 20 states have already enacted some sort of minimum wage increase; therefore, the opportunity for increased wages exists. As for the prototypical customer, this opportunity is especially relevant to any legally employed individual. Basically, once the minimum wage increases, the Domino effect comes into play. As the minimum wage increases, everyone else’s wage should supposedly increase as well.
As for this opportunity’s exploitative characteristics, I would say it would be a bit difficult to exploit because there are different minimum wage standards depending on the state. The differential can be substantial, with states such as New York having a minimum wage at $15 and the federal minimum wage standard being $7.25. Once cost of living is taken into account, then the minimum wage increase might be a bit easier to exploit.
I personally believed this opportunity exists because I myself have experienced this change. Upon working as a student assistant at the University of Florida, I distinctly remember my federal work study program increasing my minimum wage from $8.05 to $8.10. Aside from that experience, the article clearly depicts certain businesses increasing the prices of their product to compensate for the increased wage differential. These examples have been indicative of this increased change in the overall minimum wage standard.
Economic trend #2: Increased demand for highly skilled tech workers
With technology being on the forefront of many successful businesses, it is pretty safe to say that technology is here to stay. This article claims that with a critical labor supply shortage, the increased demand for these highly skilled workers has sky-rocketed. According to Payscale, there was a 572% increase of respondents for software developer positions. These statistics suggest that this opportunity exists and will continue to exist as we keep moving forward through the tech era.
The prototypical customer would be the STEM-focused newly grad who is specifically pursuing a career in the tech industry. I believe this opportunity will be relatively easy to exploit once the job description and/or role is made more specific. The more specific, the easier it’ll be to exploit on the expectations, demands, and trends behind the job.
Based on the given statistics and the overall trend of the job market, it was relatively easy to believe such an opportunity exists. Even through firsthand experience, I noticed that many of my friends who are specializing in the tech field seem to be receiving job offers more frequently and with higher compensations than their business counterparts. The opportunity is there and it’s only going to grow from here on out.
Regulatory trend #1: The implementation of tariffs on the United States’ trading partners
The Trump administration has decided to implement trade barriers with some of our international trading partners. Certain businesses who rely on steel production and manufacturing have already begun to feel the dramatic effects of this regulatory change. With the price of their product gradually increasing, the consumers will begin to notice these effects as well. Due to these changes, I believe the opportunity for better trading policies exists.
The prototypical customer will be the businesses directly affected by these barriers. Their products are the ones that rely on steel production. Therefore, in order to compensate for the differential in price production, their consumer price will substantially increase. This opportunity can definitely be exploited because this regulatory change will have a similar effect on all of these specific businesses. Although the effects may be more dramatic for some, its causes are the same and can subsequently be exploited to its advantage.
With this regulatory change, the belief in the opportunity was quite easy to find because it is instated by law. Through a plethora of research, many will read that all economists agree on the production and consumer effects on the trade ban. Based on historical context, free international trade has increased the accessibility to unbeknownst resources while also providing for countries that do not have that many resources to begin with. The trade ban, in other words, provides an opportunity for in-house production but regresses from efficiency and consumer desire.
Regulatory trend #2: There’s an increase in an uninsured individuals with the repeal of the Affordable Care Act
With the Trump administration, certain steps have been taken to pull back funding for the Affordable Care Act which has substantially reduced enrollment for many eligible individuals. With the growing immigration debate, many immigrants have lost this eligibility as well. The opportunity for better healthcare reform exists, especially when speaking from personal experience. My family used to be eligible for ObamaCare, but now we do not qualify.
Uninsured individuals would fit under the prototypical customer. There is this opportunity for healthcare reform for these ineligible candidates. This opportunity can be relatively difficult to exploit because it affects individuals at different degrees and at different rates. There is not a set standard for all.
I believe this opportunity for healthcare reform exists because of the aforementioned personal experience I’ve had with healthcare. The Affordable Care Act mandated insurance for everyone that way it would be affordable for those of low socio-economic status. Now with the repeal, i believe it will be relatively easy for others to believe this change and seek for an opportunity to reform it. Once it starts indirectly affecting individuals, the belief will only grow tenfold.
Hi! In my blog, I also discussed the minimum wage increase. I like how you included your personal connection to this topic. I also work at a student assistant at UF and forgot about my experience with the rising minimum wage. I think it will be interesting to see if states will continue to increase their minimum wage, in comparison to the federal minimum wage of $7.25.
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ReplyDeleteI also discussed the minimum wage increase in my but I didn't have an experience like you, however I thought of how it would raise the wage of everybody. Which would lead to many opportunities that people could exploit. I think that the problem is that the prices of everything will also rise. The wage increase might be a little harder to exploit than your other trend.
Hello Roksolana,
ReplyDeleteI also discussed the trade war a little bit in my blog. Except mine was talking about a different opportunity, in which the temporary peace with China can create an opportunity for stocks to increase in value. I also talked a little bit about affordable care act. I have plenty of friends who were eligible for Obama Care but now do not qualify because of recent laws.
Hi Roksolana,
ReplyDeleteI found it really interesting that you pointed out the increasing minimum wage as one of your economic trends. It is such a relevant topic in that the living wage is often more than the standard minimum wage, even when factoring in the increase. I liked that you shared your personal connection as many people tend to forget that a big demographic of who is receiving this minimum wage are teenagers and college students working in addition to being in school but are trying to live off of the minimum wage. Great post!
Looking at your list, I am surprised I did not look at the minimum wage for my list of well. It is such as big thing in our society and affects many individuals. I like the idea but the issue is some locations have a higher cost of living which makes it even harder. Prices went up everywhere sadly over the course of a few years. With the repeal of the AAC, I am not surprised more people have become uninsured. Health care helps people and health is just so important of a topic. There is a lot of opportunities to fix in this sector but it would help a large quantity of individuals.
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