The Puzzling Economics of Sports

http://www.econlib.org/library/Columns/y2004/Sandersonsports.html

I agree with the author on a lot of the things he mentions in the article. I don't think its fair that people complain about Alex Rodriguez making $25 million a year and not complain about Ray Romano making $50 million a year. They are both in the same type of industry, which is the entertainment industry so how come we cannot treat them the same? Many people would probably try and make the argument that Alex Rodriguez is simply playing a game and Ray Romano is doing much more. But i really do not think that it is much different at all, they are both in the entertainment industry. I also agree that it is not fair that we complain about baseball players driving up the cost of ticket but not movie stars for doing the same. I think we should critic all these movie stars and people the same or not critic them at all. Another issue is that of athletes using performance-enhancing substances and movie stars getting cosmetic surgery. I do not agree with the author on this part, because he is suggesting that if it is alright for movie stars to get cosmetic surgery then it should be okay for athletes to use performance-enhancing substances. Cosmetic surgery and performance-enhancing substances are two very different things. Although cosmetic surgery may be dangerous and it can hurt you steroids will hurt your body and they will have long-term damage. The believe the author is correct in saying that it is unfair we critic basketball players and other athletes for leaving college early but we say nothing about movie stars not even finishing high school. I also agree that it is ridiculous of college athletes are exploited and no one really says much about it. As the percentage of what these student athletes are to their bosses they receive less than anyone else in the country. Then we they do leave college early they are frowned upon. The U.S. Justice department frowned upon 51 private colleges and universities discussing students' financial situations and then making similar aid awards to admitted applicants. They said it was because it would represent collusion and restraint of trade, but they didn't mind when they gave full collusive cooperation to over 300 universities giving financial aid to every scholarship athlete in the country. I think that we need to treat all the people in this entertainment industry the same because they are all doing pretty much the same thing, entertaining us.

Mexican Tortilla Crisis

President Felipe Calerdon of Mexico has come under intense pressure because of a recent march on Mexico's capital by tens of thousands of people protesting a recent surge in tortilla prices. The cause for the increase in prices is because of the rising U.S. demand for ethanol that has sent the corn prices to their highest level in a decade. Corn tortilla prices rose as high as 15 pesos ($1.36) for a kilogram (2.2 pounds). Mexico imports corn from the United States to top up its domestic production. Calerdon responded to the protest by persuading producers, makers, and retailers to make sure their tortillas sold at no more than 8.50 pesos a kilo, but the local media has said some vendors are still charging up to 12 pesos a kilo. Before the crisis they sold at about 5 pesos a kilo. For half of Mexico that lives on $5 a day or less this is a major crisis. Calderon's leftist election rival, Andres Manuel Lopez Obrador joined the recent march and is using the tortilla crisis to attack the government. This is after the highly contested presidential election between the two which ended when it was thrown out of court by Mexico's top election court. This tortilla crisis is going to hurt Mexico's economy because it is tough for the consumers to afford the corn tortilla which is a national food staple. Businesses are losing money and Mexico will still continue to have trouble trying to supply the U.S. demand for ethanol.