Georgia’s Booming Film Industry, Essay Example

Wal-Mart, has recently felt much pressure from their employees that have been actively protesting against the giant corporations’ low wages, which were the result of trying to control costs and push down prices at its stores. (Ziobro and Morath) The main reasons also suggest that the raise in minimum wage could signal a tightening of the labor market, but Wal-Mart believes that it will make employees happier. The “muted effect” is meant to describe the lack of effect that the wage increase will have, because the $13 an hour Wal-Mart will pay is still below the retail industry average of $14.65. (Zibrio and Morath) The effect that the wage increase on Wal-Mart’s profits could result in following below the threshold that was placed the prior year. However, Wal-Mart hopes that increased wages also mean better communication with customers, well-stocked shelves, and cleaner stores as the result of happier employees, which translates into higher profits.

George’s shortage of short-term labor in the film industry, mainly due to the quality of workers not meeting the standards of the producers. The tax incentives that are given to the film industry has significantly increased the amount of traffic to the state. However the shortage of labor places fears that it will drive the film producers and directors to another state. As the governor stated, “Georgia cannot afford for another state to do to us what we are doing to Hollywood.” (McWhirter and Schwartzel) Due to this major concern, the governor and other state entities have move towards establishing a state run film academy that creates a partnership with technical college systems and universities. Along with other programs that train and offer students opportunities to incentives to work in the film industry.

The decrease in the gas prices has decreased the demand for electric vehicles, particularly for used vehicles. More consumers are opting for fuel consuming vehicles because gas is cheaper. Gas prices has dropped 33 percent compared to last year, but are not attracting many customers.(Rogers) The discount prices and federal tax credit for new purchases, has provided little reason for buyers to purchase preowned cars at a much higher price. While also the concern for replacing the battery in preowned cars, buying pre-owned vehicle does not make sense when a new car could be brought for less. This has decreased resale value down, and depreciation has dramatically decrease. For new plug-in vehicles it has created a greater demand, but the prices are cheaper, and cost less than pre-owned cars, but for preowned cars the value is worth less than the price.

Much like the law of supply and demand, when the price of gas is cheaper, people will buy more of it, which creates an increased demand, which leads to a greater supply of cars on the road. For fuel-efficient cars, while there is still a slight demand, but it has decreased as 50% of vehicle purchases have been for gas consuming cars. (Zumbrun) However, the more demand there is for cheap oil, the less supply of oil will become available, and prices will eventually rise. For the demand for oil, it is inelastic in the short run, as it will relatively respond to the changes in price, however, in the long-run the elasticity will dramatically change. The demand in the short run and the long run will increase much if the price of oil stays low. Customers can either decrease the quantity they demand which will increase the supply of gas, while also decrease their demand for fuel consuming vehicles. The stronger the response that people have to the price changes in gas, the larger the elasticity will be.

Works Cited

McWhirter, Cameron, Schwartzel, Erich. “Georgia’s Booming Film Industry Produces Shortage of Crew Members.” The Wall Street Journal. 6 Feb 2015. Web. 28 Feb 2015. http://www.wsj.com/articles/georgias-booming-film-industry-produces-shortage-of-crew-members-1423242778

Rogers, Christina. “Resale Prices Tumble on Electric Cars.” The Wall Street Journal. 26 Feb 2015. Web. 28 Feb 2015. http://www.wsj.com/articles/resale-prices-tumble-on-electric-cars-1424977378

Ziobro, Paul, Morath, Eric. “Wal-Mart Raising Wages as Market Gets Tighter.” The Wall Street Journal. 19 Feb 2015. Web. 28 Feb 2015. http://www.wsj.com/articles/wal-mart-plans-to-boost-pay-of-u-s-workers-1424353742

Zumbrun, Josh. “Oil’s Plunge Could Help Send Its Price Back Up.” The Wall Street Journal. 22 Feb. 2015. Web. 28 April 2015. http://www.wsj.com/articles/oils-plunge-could-help-send-its-price-back-up-1424632746