Over 51 Million People Flying Domestically this Holiday Season

Each year, especially leading up to the month of December, people across the country frantically scour the internet for the best airplane tickets to make it home in time for the holidays. Many people want to visit with family and the 21-day Christmas travel season is when millions of Americans choose to do so. Some people choose to drive or take a bus or train, but each year, the number of fliers continues to rise. According to Hugo Martin's L.A. Times article, this season's number of fliers increased by 3.5% from the same measurement last year.

Analysts expect that there will be over 51 million people traveling via plane throughout the upcoming holiday season. Over the last four years, airplane travel has been growing, especially in the month of December, and especially during the few days leading up to and following Christmas. Research shows that the increasing prevalence of the mode of transportation is likely due to improvements in the economy and competition between airlines, which make flights more affordable for the common consumer.

The law of supply and demand states that supply and demand tend to be inversely proportional, which means that as the supply of a good or service increases, the demand for it decreases. The same concept applies to the proportionality of demand/price or the inverse proportionality of supply/price. In other words, the more consumers demand a product, the more a company can charge for it. Because there are so many companies that offer the service of airplane transportation, the competition drives the price down. As more and more consumers choose to fly because of the lower prices, however, those same prices will likely be driven back up until the price reaches an equilibrium.

Economic analysts predict that this trend will lead to a total of more than $16 billion in profit split among the various domestic carriers, 5% more than last year. Additionally, over the past three years, airlines throughout North America have earned over half of the profit in the industry as a whole. Analysts expect that things might change quickly if the airlines aren't careful. Between rising costs, taxes, and governmental security laws, the various airlines may have to quickly adapt to successfully meet growing demands and keep their competitive edge.

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Prices Generally Unaffected by Increased Competition in the Pharmaceutical Industry

The laws of economics state that price is inversely proportional to competition. The more competition there is in an industry, the more options a potential customer has, which means the competitors have to lower their prices to draw in the customers. This phenomenon occurs especially in situations where the products being sold by different companies are similar enough to be interchangeable. For some reason, as investigated in Melody Peterson's L.A. Times article, that doesn't seem to be happening with pharmaceutical prices, even when there are many competitors.

To some extent, it makes sense that pharmaceutical manufacturers charge high prices for the prescription drugs and medical devices that they provide. It takes years and millions of dollars in research and development to create something new, which then has to spend years being tested by the Food & Drug Administration before it is finally approved for sale to the public. Often, by the time a medication has been approved by the FDA, there is only a small amount of time remaining on the patent. So, the developing company has only a few years in which to recoup their investment before other companies come out with generic versions.

The unfortunate aspect of that situation is that the medications and devices being developed are often necessary to cure or treat diseases. That can create an unfair situation: the creating company has the right to choose whatever price they want for their product, and the sick person has no choice but to pay it. That's what makes pharmaceuticals different from a normal product. If a computer company comes out with a new type of device that they have patented and decides to charge exorbitant prices for it, a customer has the choice to either pay the high price or move on without buying the new computer. It doesn't work that way with medicine. If a medication is highly priced, a sick person's only options are to pay the price or not be treated for their illness, which could lead to worse sickness or even death.

You would think that once a patent runs out, generic drug manufacturers would enter the market with a lower-priced product, thus giving customers a choice. The increased competition between the original manufacturer and all of the new generic providers should drive the price down, but it doesn't. Even generic drug producers have been coming out with exorbitantly priced medications. The price is usually slightly less than what a name-brand has it listed for, but nowhere near low enough to make it affordable or even justifiable. One example is a drug called ursodiol, which treats gallstones. The method of creating ursodiol was perfected decades ago, and all patents have run out. The ingredients are not very expensive, yet every drug company is charging somewhere around $5 per pill.

Analysts believe that drug manufacturers are defying the laws of economics for one simple reason: they can. When one company raises their price on a medicine, instead of lowering prices to gain greater demand, the competitors follow suit and raise their prices. In that way, the companies bring in more income, mainly at the cost of medical insurers, which leads insurance companies to charge higher premiums to customers. It's a cycle of rising costs with no end in sight. If a single company stood against the status quo and kept their prices at normal levels, the other companies would eventually have to either lower their prices or go out of business due to lack of demand.

Since none of the companies seem to be following economic principles and standing against the current, many are suspicious of the whole situation. Some fear that the medical suppliers have secretly formed a type of coalition or "trust," an incredibly illegal practice. The grand jury has subpoenaed some of these companies to find out if they had any communication with their competitors prior to making consistent price increases. Analysts believe that a trust could be the explanation as to why drug producers have successfully avoided the laws of economics from catching up to them. In time, a federal investigation may reveal the truth of the matter.

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U.S. Takes Second Place in World Oil Reserves

The top oil-producing countries in the world are Russia, Saudi Arabia, Canada, and the United States. A few short years ago, the US was dead last in that hierarchy based on estimates of total recoverable oil throughout each country. As shown in Rob Nikolewski's L.A. Times article, a recent study by Rystad Energy has shown that the United States has beaten out some of its former competition, taking second place behind Canada as one of the world's top oil producers.

The amount of "recoverable oil reserves" is calculated based on how much of a country's oil is both technologically and economically feasible to extract. In other words, if it is too deep to get out or will cost more money to mine than can be earned in the market, then it isn't calculated in the country's total reserves. Leaders in the oil industry have determined that the United States' improved position in the market is likely due to technological advancements, especially those that enable the procurement of shale oil.

Shale oil is a type of oil found in some sedimentary rocks that can be extracted pressurized drilling. It is a type of oil that was previously ignored or not considered useful because it was harder to extract. However, since much of the "easier to access" oil has been extracted and used up over decades of drilling, the technology advanced to keep up with demand. Additionally, other forms of drilling technology, such as hydraulic fracturing, or "fracking," which involves the pumping of pressurized fluid into otherwise-empty oil well in order to force any remaining oil out have added to US reserves. Texas by itself has over 60 billion barrels worth of shale oil, an amount comparable to the total oil reserves in the entire country of Mexico.

The Rystad study concluded that there are approximately 2.1 trillion barrels of oil globally, from over 60,000 oil wells. Over half of the reserves in the US are shale oil deposits, which, since they are more difficult to extract, can incur extra costs. Right now, oil prices are very low, which might seem like a good thing to the average consumer. However, when prices stay low for too long, producers can;t extract more oil in an economical manner, which reduces the total amount in the market, which can cause prices to shoot up.

According to one economist, if oil prices stay below $50 per barrel, miners will not put in the investment to tap shale oil reserves. If prices get closer to $100, he predicts that the US will provide a significant portion of the oil market over the next few years. So, even though the US has plenty of oil deposits in Texas, California, South Dakota, and Alaska, and technology can help the mining along, prices will have to go up in the short-term in order to keep gasoline prices steady in future years.

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Britain's Exit from the EU and its Effects on the Global Economy

This week, Great Britain voted on a referendum that concluded with their decision to leave the European Union. With that decision, the international financial markets became a sea of confusion and the pound hit its lowest value since 1985. The European Central Bank is worried about the negative consequences this landmark decision will have on the general population as the devaluation could cause a nation-wide panic. Jonathan Kaiman, Don Lee, and Julie Makinen discuss in their latest L.A. Times article some of these potential effects, not just to Britain's financial future, but to the world.

Early this morning, the voting results had begun to show a not insignificant push for the "leave" camp of British voters: 52% had voted for the United Kingdom to leave the European Union. While the difference of 4% between the two sides may seem small, it represents a shocking turn that many policy-makers didn't expect.  Apparently, the general populace would prefer to be independent, no longer under the rule of the EU. Why are the British people so adamant about leaving the European Union?

The "Brexit" (British exit) is based on three main issues: economics, immigration, and identity. Under current practice, the members of the EU have a common market with a shared form of currency that makes the economy run smoothly. However, the UK is forced to send a sum of money to Brussels (the headquarters of the EU) each year, where the money gets redistributed to other member states, which can help to stabilize their economies and hopefully induce growth. Many of the "leave group" don't want to pay extra taxes to support another country other than their homeland.

The immigration argument comes down to the fact that anyone from an EU-member country is legally able to move to the UK and get a job without needing a work visa. According to economists, this is good for the economy, filling necessary jobs and helping the local housing market. Many UK citizens are against the free immigration, however, because they believe that non-citizens are coming in and using up already limited public resources. Finally, many voters in Great Britain don't see themselves as "European." They prefer to identify themselves as British above all else and dislike many of the laws and regulations that come with being a member of the EU. In all, those supporting the Brexit do it because they want Britain to have control over its own governance again.

Unfortunately, many economists believe that the Brexit will lead to massive, irreversible economic downturn around the world. Already, the pound's value has gone down by over 10%, the price of oil has taken a dive, and even stocks in Asia have suffered. Investors throughout Europe and the US are preparing for the worst. As everything unfolds in the UK, even countries as far as Singapore are feeling the effects due to the high degree of uncertainty as to what will happen next. No one knows for sure, but economists believe that Britain will not be able to avoid a hard recession with economic output dropping by 1-6% in the coming years.

The abounding fear and uncertainty have more strongly affected Asian markets than anywhere else so far. Japan's Nikkei index dropped 7.5%, Hong Kong's 4.7%, and Shanghai's 2%. All of Asia's markets have been feeling the significant effects caused by the upcoming Brexit. Fortunately, analysts believe that the worst of the Brexit will negatively affect the Chinese economy, but only in the short-term. In fact, economists believe that the financial instability will benefit China in the long-run. As Britain leaves, the power of the euro will decline, which could give the Chinese renminbi (RMB) a chance to replace the euro as the world's second-most-powerful form of currency. However, as a whole, it is expected that the global economy will not do well over the coming months and years. Only time will tell how things will end.

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"365 by Whole Foods" Market Boasts Lower Prices and Higher Efficiency

This week, Whole Foods opened their "365 by Whole Foods Market" in Silver Lake, the first of a set of 13 such stores to be built around the country this year. The supermarket chain's new style of smaller store has already interested many customers in its first couple of days, and the company expects the fad to grow rapidly. In her L.A. Times article, Samantha Masunaga describes the new type of store and some of the ways it differs from the classical Whole Foods supermarket.

365 is Whole Foods' first smaller format store. However, it features many high-tech options and better deals than their regular stores, making it a highly sought-after alternative. People, especially Millennials, go to Whole Foods because they are looking for healthier, organic food options. However, eating healthier is often costly, and most people have pretty inflexible budgets when it comes to groceries. Therefore, when shoppers found out that 365's products were the same, but at a cheaper price, they flocked to the new store.

On Wednesday morning, when the store opened its doors for the first time, the parking lot was full and then some.  Interested shoppers circled the lot, having trouble finding a spot to park their cars, but when they finally got into the store, they were amazed by what they found. While the 365 has a smaller selection than a normal Whole Foods, its prices are significantly cheaper, which, too many Millennials with little disposable income, is a worthwhile trade-off. Additionally, the displays of produce feature electronic readers that measure the weight of fruits or vegetables and print stickers based on the measurement. In that way, the check-out process is quick and easy, saving time for both customers and employees.

Besides the reduced variety, the new 365 will also be missing Whole Foods' signature deli counter. However, it still has a large salad bar and a variety of pre-cooked hot food items. Analysts believe that 365 is likely Whole Foods' response to losing their share on the health food market. Other stores like Ralphs and Target have begun to provide organic options for their customers, which means Whole Foods is facing much greater competition in a once-blue ocean. Over the past three quarters, Whole Foods has shown declining sales, but the management hopes that the smaller, less cost-intensive 365 stores will help to turn that around over the coming year.

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Berkshire Hathaway's Investment Boosts Apple Stocks

Warren Buffett, one of the richest men in the world, has been known to avoid investments in technology. So, it came as a huge surprise to many when it was revealed that his company, Berkshire Hathaway Inc., purchased 9.81 million shares of Apple stock in the first quarter. In his L.A. Times article, James Peltz described the reasoning behind Buffett's investment and how it affected Apple's shares and the stock market as a whole.

It is true that Buffett and his company generally avoid technology investments, mainly because Buffett admittedly doesn't understand technology enough to take the risk. However, they have made one exception in the past: Buffett's company owns a stake in IBM valued at $12.3 billion. Berkshire Hathaway's main investments are in companies like American Express, Coca-Cola, and Wells Fargo. Additionally, Berkshire owns dozens of companies such as See's Candies and Geico Insurance.

Likely because of Buffett's record of success in business and his company's large investment portfolio, Apple's stock prices rose 3.7% after the purchase was revealed on Monday. As of March 31, the end of the first quarter Berkshire Hathaway's stake in Apple was valued at $1.07 billion but is likely worth significantly less now due to declining Apple stocks. According to analysts, Berkshire likely made the purchase due to Apple's low prices in recent months. Apple's top-selling item and source of the majority of their revenue is their iPhone. The iPhone and other Apple devices had lower-than-expected sales this year, which was the main reason for lowered stock values.

Buffett has been quoted saying that the Apple purchase was made by one of his stock-picking lieutenants who did not consult Buffett before making the decision. However, Buffett seems optimistic that the stocks will regain their value and more in future months. Berkshire is always purchasing companies and shares and very rarely makes bad investments, which explains why so many normal people are suddenly investing in Apple, following Berkshire Hathaway's lead. Buffett, however, is known for his shrewd, long-term investments, and will likely drop the tech company, which he would usually avoid, when the investment gets back to its original value. Buffett doesn't understand tech companies, but some of his top advisors do. He may end up changing his stance in the future, though, if it turns out that the investment in Apple pays off as well as is expected.

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Bitcoin's True Founder - Revealed at Last?

Bitcoins are a form of electronic currency first introduced to the public in 2009 by a creator who goes by the pseudonym Satoshi Nakamoto. The "mining" of these Bitcoins is performed by computer software following a mathematical proof. The software is open-sourced, which means anyone can use it and check it out to see how it works. Recently, as discussed in Samantha Masunaga's L.A. Times article, an Australian businessman and computer scientist named Craig Wright came out of the shadows and provided evidence showing that he may, in fact, be the elusive Mr. Nakamoto.

Bitcoin's protocols make it impossible to churn out an endless supply of Bitcoins; only 21 million coins can ever be produced by "miners." That's one of the things that sets the electronic currency apart from more "traditional" currencies. With dollars or Euros or any other form of government-backed currency, an unlimited number of bills and coins could theoretically be printed. Sometimes it is done to provide a shock to try to start a stagnant economy, but, more often than not, it results in massive inflation and more economic downturn than before. There is a limit on the number of Bitcoins in the world, which means their value is pretty stable, and inflation doesn't really exist.

Additionally, while central banks can charge exorbitant fees to someone trying to open up an account or someone trying to send funds internationally, Bitcoin cuts out many of those fees. A Bitcoin account can be created in a matter of seconds, with no fees. The decentralization of Bitcoin's network means that there is no bank to default on any loans, so you know your "funds" are safe. Best of all, the network is extremely transparent since every transaction is recorded in a secure "blockchain" that can be added to, but never changed. Unfortunately, most normal retailers don't accept Bitcoin as a form of payment. Over recent years, however, Bitcoin has become much more prevalent, especially with online retailers, so it is expected to come into more widespread use.

Although Wright, an entrepreneur with several masters' degrees and a couple of doctorates, came out with some proof showing that he may be the true creator of Bitcoin, there are still many doubters. In his digital messages claiming to be "Satoshi Nakamoto," he signed off using certain cryptographic keys that could be found in Nakamoto's work in the early days of Bitcoin. He also published a very technical post on his blog with information that no one but Bitcoin's true creator should have. Wright claims that he has chosen now to reveal his identity because he is tired of the misinformation being spread about Bitcoin and its stability. Additionally, the media has long suspected Wright's alter-ego, and he wanted to put an end to the investigations into him and his family. While he hasn't provided undeniable proof, it seems very likely that Satoshi Nakamoto's secret identity has finally been revealed to the world.

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Yahoo for Sale - Verizon Considered Most Likely Buyer

You may have heard about Yahoo's plans to "spin off" their core web business. Over the past decade, the company lost the battle for market leadership to Google, which was once their smallest competitor, and has gone through several CEOs, still without any significant growth in sight. So, it makes sense that Yahoo wants to make a last-ditch effort to turn their luck around. However, as Tracey Lien stated in her recent L.A. Times article, Yahoo may have given up their plans to turn the business around. Instead, the web powerhouse could be looking to sell while the company is still worthwhile to potential buyers.

The various chief executives have tried everything to bring the company back to its former glory. Millions of dollars were spent to try to make Yahoo into a leader in media and technology, but that never really panned out, especially since the company largely missed the transition to mobile technology. Yahoo's websites get nearly a billion visitors per month, yet Yahoo has yet to gain the kind of big-money advertisers that Google and other competitors are known for snagging. Yahoo even tried starting a $42 million video program to compete with Netflix and YouTube but canceled it after disappointing results in the first season.

One of the company's most valuable assets, at least to analysts, is its $32 billion stake in Chinese e-commerce company Alibaba. Unfortunately, Yahoo failed to successfully spin off that asset, which just led to more scrutiny by current and potential future investors. According to analysts, Yahoo's changes this month to their employees' severance packages are a telling sign that Yahoo is getting ready for a sale. According to tech analyst Jan Dawson, the only way Yahoo doesn't get sold is if they insist on a price that no one is willing to pay. Even then, Dawson continues, Yahoo could end up looking at a sale again in the near future.

At least 40 potential buyers have done in-depth research into Yahoo's finances, but some companies are looking like more likely buyers than others. Currently, the front-runner in the competition to purchase Yahoo is mobile and broadband company Verizon. Verizon has both means and motive, especially after acquiring AOL last year as part of its attempts to bolster its efforts to become a leader in the media sector. Other potential buyers include Daily Mail, a British tabloid newspaper with similar audiences as Yahoo; Microsoft, which tried to purchase Yahoo in 2008 for $45 billion; and CBS, which could use Yahoo's size to reach a larger audience. There are some rumors that Google could be interested, but Dawson doesn't believe that Google would want to invest a lot of money to gain a business so similar to what they already have.

Some private equity firms could also be interested in purchasing Yahoo, but if they did, it is likely that the company would be broken up and sold off in pieces in the near future. Each asset within the company would be built up, then sold in the right market for greatest potential profitability to the firm. No matter how it goes down, though, it is expected that Yahoo will find itself under new ownership at some point in the next several months. Yahoo has billions of visitors a year, thousands of employees, and has been valued at about $35 billion. Eventually, someone will buy the company. It's just a matter of time.

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Not All Tesla Customers Will Get Expected Tax Rebates on Model 3

Tesla's new electric vehicle, the Model 3, is making waves throughout the market. Thousands of buyers are looking to get their hands on the luxurious, energy-efficient, affordably-priced car. At $35,000 before any governmental rebates, the Model 3's price can't be beaten by other electric vehicle producers. Thousands of dollars in state and federal rebates are offered to buyers, thus making the car an even better deal, but the rebates are not as easy to get as a buyer might think. According to Rob Nikolewski's article in the L.A. Times, buyers shouldn't count on the rebates when determining whether they can afford to purchase Tesla's Model 3.

Just this week, Tesla allowed potential customers from around the world to put down a $1,000 deposit in order to reserve their Model 3, which won't actually hit the market until December 2017. In the first 3 days, over 270,000 customers reserved their future vehicle, drawn in by its price, appearance, and the Tesla brand name. Many also took into account potential rebates that they expect to receive from the government, which Nikolewski considers an unfortunate oversight. According to him, most of the government rebates could run out by the time people get behind the wheel of their Model 3.

Southern Californians can receive $7,500 from federal subsidies and $2,500 from state subsidies when purchasing one of Tesla's electric vehicles. Unfortunately, the subsidies are only allowed for a certain number of customers. After 200,000 Tesla vehicles have been sold, the government will start to phase out the subsidies until, eventually, there will be none left. Additionally,  the state recently announced that wealthy buyers (a head of household income of greater than $340,000 or a single filer income greater than $250,000) will not qualify for the state rebates at all. So, some buyers are trying to play the odds to have the greatest chance of getting the $10,000 in tax rebates.

One customer in Santa Monica, Paul Scott, decided to go for the $50,000 version of the Model 3, which comes "fully loaded." Scott's logic in ordering the most expensive model is that he assumes that Tesla will produce their more expensive models earliest, which means that he will have a greater chance of getting the rebates before they run out. Either way, Scott asserts, he is fully willing to buy the car, whether he gets the tax credit or not. Other buyers, however, don't even seem to realize that the tax rebates are not a definite source of income. They are assuming that the price will automatically be $10,000 less, and are making their purchasing decisions with incorrect numbers, a mistake that they will regret.

Tesla needs to make the terms much more clear for customers. While $35,000 is still an incredibly low price, especially for a high-end, energy-efficient vehicle that grants owners the use of Tesla's supercharger stations, customers will not be happy if they find out that they won't be able to get the $10,000 in tax credits that they had expected. For all we know, California may decide to raise the number of individuals to which they will grant rebates, in order to encourage more potential buyers into greener vehicles. So, it is possible that a lot more than 200,000 customers will get tax credits. Either way, Tesla needs to make the situation as transparent as possible so as to avoid upsetting customers and losing potential customers forever.

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Disneyland to Incorporate Surge Pricing in Response to High Demand

Nearly 40 years ago, Robert Crandall, the then chairman of American Airlines, first employed a "dynamic pricing" system through which customers could get "super saver" fares, which adjusted based on demand and seat availability, among other factors. Since then, dynamic pricing has spread throughout many markets, which has caused surge pricing to be more of a normal part of the economy. As described by James Peltz, in his L.A. Times article, Disney became one  of the most recent companies to join airlines, online retailers, and ride-sharing applications in employing dynamic pricing.

While Disney's decision to incorporate surge pricing at Disneyland and its other theme parks may have come as a surprise to many customers, business analysts saw it as the sensible move for the company. Airlines are able to fill more seats without becoming overbooked using dynamic pricing because the pricing strategy encourages customers to buy seats on days where demand is usually lower. In that way, both customers and airlines can benefit. Customers are able to get a discounted price while airlines are able to sell tickets and fill seats on an otherwise underbooked flight. In much the same way, Disney will be able to control daily traffic to some extent.

Under the new policy, visitors will have prices ranging from a 4% discount on low-traffic days to a 20% surcharge on exceedingly busy days. This plan allows Disney to follow the same laws of supply and demand that all businesses do. Disney's supply is limited since they can only allow a certain number of visitors at any given time. Very often, especially in the summer months, when many people are out of school or are able to take time off from work, more people want to enter the parks than can be safely admitted, so some have to be turned away. This is bad for business, because it reduces the number of tickets Disney can sell, and it leaves potential customers with a bad taste in their mouth and make them less likely to want to return to the park in the future.

So, rather than turning away potential customers, surge pricing can convince customers that their day of enjoyment at the park might be more worthwhile if rescheduled to a different day. If they visit the park on a low-traffic day, the visitors will not only receive reduced prices, they will also be in a much less crowded park, which will allow them to enjoy more rides and attractions. Dynamic pricing has become more prevalent in the society because of improvements in computing technology. American Airlines was able to employ surge pricing originally because they had a computing system that allowed them to easily compare prices and availability, enabling them to sell seats at competitive prices. For most businesses, dynamic pricing was impossible until their data became much more computerized.

From ride-sharing services like Uber to the stock market to auto dealerships, dynamic pricing has spread throughout most markets. Data is key in determining competitive pricing. Teams use data from previous games and sales of merchandise in order to determine which games will be most in demand, and therefore should have the most highly-priced tickets. Pricing for hotels can be determined based on the events happening in the area and the level of demand for short-term housing. In general, improvements in computing technology have made pricing a huge part of sales and have improved the profit margins of many businesses. In the future, dynamic pricing will likely spread to every business, thus giving customers a choice. A potential customer may not like the increased price, but when it comes down to it, they can either take it or leave it. Every customer has the choice whether to purchase something or not.

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"The Wizarding World of Harry Potter" at Universal Studios Hollywood Expected to Greatly Increase Park's Revenue

J.K. Rowling's "Harry Potter" franchise has made the author a millionaire and a worldwide sensation in the relatively short time since she first published "Harry Potter and the Philosopher's Stone," the first book in a seven-part series. While it took her quite a while to find a publisher that was willing to take a risk on the new author, when she finally did, the series took off and quickly became the best-selling sensation it is today. Between the seven books in the main series, three other books set in the same universe, 8 movies, and all of the different kinds of merchandise, "Harry Potter" has been a huge money-maker over the years. One of the largest sources of merchandise income has been Universal's "Harry Potter World" in Orlando, Florida. Hugo Martin, in his L.A. Times article, discusses the upcoming opening of a new theme park, this time in Los Angeles: The Wizarding World of Harry Potter, at Universal Studios Hollywood.

Everyone expects the new theme park to be a huge success, both for the franchise itself and for Universal Studios Hollywood, which has undergone millions of dollars in renovations over the past couple of years in an attempt to bring in more visitors. In 2014 they started with a Despicable Me-themed attraction called Minion Mayhem and continued into 2015 with the Simpsons Springfield land and a new Fast and Furious ride. The new Harry Potter attraction, however, while still smaller than its Florida counterpart (about one-third of its size) is expected to do more for Universal's bottom line than any of the other attractions.

Besides the fact that the new Wizarding World of Harry Potter will attract more visitors to the theme park as a whole, analysts believe that a large portion of the increased income will be due mainly from merchandising. In 2010, when Orlando first opened a Harry Potter World, park attendance went up by 20% and total revenue increased by 41% in the first year. Analysts believe that a similar trend will be noticeable at the Los Angeles analog. Between souvenirs like wands or robes and food options like butterbeer and chocolate frogs, the Harry Potter World is expected to make a killing among die-hard fans and regular folks alike. With a franchise like Harry Potter, there is very little that can go wrong, since the fans, known as "Potterheads," are so invested in the series that nay addition to the magical world is seen as a welcome surprise.

Members of Universal Studios' sales and design teams have come up with many clever ideas to make the theme park a huge money-maker. Replica wands ($39.95) can be purchased to match a favorite character's, and for a slightly higher price ($47.95), one can purchase an "interactive" wand. These interactive wands are specially designed to activate lights and motors specially incorporated into some of the wizarding world's attractions when waved in a certain manner. Not only do these wands bring in more revenue, they also add to the overall ambiance of the park and make visitors feel more immersed in the magical world that Universal is creating. Costumed employees add to the "realism" of the immersive world, and visitors will have the ability to purchase robes, wands, and the like to add to their personal collections.

The Wizarding World of Harry Potter should be a huge success for Universal Studios Hollywood. As of now, it is smaller than the one in Orlando, but with enough traffic and high demand, the park will likely expand in future years. 2016 seems to be the year for all things Harry Potter related. Not only is California's wizarding world opening, but Rowling's sequel to the Harry Potter series, titled "Harry Potter and the Cursed Child," will be performed in English theaters in July and the script should come out in print soon after. Finally, "Fantastic Beasts and Where to Find Them," one of Rowling's other books set in the wizarding universe is currently in filming and is set to be released in movie theaters in November. One might expect that all of this new content will eventually be incorporated into new Universal attractions, which should make for even more income in the not-too-distant future.

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Alphabet to Surpass Apple as "World's Most Valuable Company"

For years, Google Inc. was always known for its internet/computer science businesses, including its online search database, maps, advertising platform, YouTube, Android, and more. In recent years, Google began investing more and more time, effort, and money in other kinds of technologies. From healthcare devices to drones to self-driving cars, Google has had its hand in many types of technological innovations. Unfortunately, that led to a somewhat unwieldy business model, in which every product/ technological focus was grouped under the single title of "Google." Paresh Dave and Andrea Chang discuss in their L.A. Times article how Google recently underwent a business shift and created a new corporation, Alphabet Inc., within which several subgroups focus on different realms of Google's technological goals.

Not only has the creation of Alphabet Inc. made the business more structured, it also has generated plenty of investor interest. In fact, according to Dave and Chang, Alphabet Inc. is well on its way toward claiming the position of "world's most valuable company" from competitor Apple Inc. In the fourth quarter, Alphabet showed that profit had grown by double-digits, and proved to investors and the world that projects like self-driving cars and virtual reality glasses were not wasting resources, but instead earning revenue. Where analysts expected Alphabet to earn $16.9 billion, the company surprised everyone by reporting $21.3 billion in revenue, an improvement of 18% over the course of two years.

Last summer, when Google first began changing to the Alphabet structure, the company aimed to separate online ventures from those involving physical technological innovations. Each of the individual units of Alphabet is designed to have flexibility over its own budget and operations, but in the end, Alphabet itself will keep watch over each sub-business and make the major business decisions. Certain ventures labeled as "Other Bets," which include YouTube and smart-thermostat maker Nest, had a loss of over $3 billion in 2015, which was to be expected, according to Alphabet's analysts. Loss is expected during the R&D stage of technological innovation, but executives believe that the loss is at an acceptable level based on predictions of future revenue.

Alphabet's momentum seems almost unstoppable. In the past year alone, Alphabet's stocks have risen more than 40% in total. On the other hand, Alphabet's major competitor, Apple, is having plenty of problems that have led their stock values to fall. As mentioned previously, much of Apple's recent troubles have been closely linked to the company's reliance on a single product: the iPhone. Since iPhone sales have gone down, Apple's stocks have taken a plunge. Alphabet's new business model will help to reduce the chances of a similar situation taking place, since the variety of sub-businesses means that even if one sub-business has trouble, it will have little effect on the company as a whole.

Overall, economic analysts believe that Alphabet will keep improving and that its stock prices will continue to increase. Executives have seen continuous increases in the number of users of Gmail and the Google Play Store. They also expect that advertisements on Google and YouTube will be very important for Alphabet's future revenue. Since Alphabet's creation, revenue rose nearly 14% and profit for the year rose by 16%. In the past year, Alphabet also added over 8,200 new employees. As you can see, Alphabet seems very confident about the company's future growth and is planning accordingly.

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New Research Involves Renewing Groundwater Supplies, Not Filling Reservoirs

In a test on a potential new way to reduce the effects of California's recurring drought conditions, researchers are looking not to expand reservoirs, but rather find a way to funnel the excess rainwater from the El Nino winter back into the groundwater, where it can be put to better use during the drier seasons. Currently, the majority of rain runs off into the ocean, simply because a large portion of the land is covered in concrete or asphalt, which doesn't allow rainwater to permeate. Through this ongoing experiment, depicted in Geoffrey Mohan's L.A. Times article, the water is instead redirected to the fields of involved farmers, where the water is able to seep into the soil.

While creating new reservoirs and expanding existing reservoirs could accomplish the same goal, the experiment aims to show that it can be accomplished more naturally and cheaply. Simply by harnessing the power of gravity, storm runoff could be forced into irrigation channels. From the irrigation channels, several fields in succession can be watered before the rest of the runoff can make it to nearby lakes and rivers. Once upon a time, farmers used only surface water and groundwater to tend to their crops. In this day and age, the groundwater levels are so depleted, especially during drought seasons, that there isn't enough water to make that system feasible.

That system could once again become helpful for farmers and common folks alike, once the groundwater levels have been put back to normal. Through a large-scale application of the concepts present throughout the experiment, everything from wells to reservoirs could be filled with the rainwater that would normally be wasted as runoff to the ocean. Unfortunately, not very many people have volunteered to be a part of the study. Some are, quite reasonably, simply unwilling to risk their trees in the event that the experiment ruins them. More often, state or federal agencies control the water in dams and canals and put up a lot of red tape due to their worries that the water may benefit people who aren't paying for it.

The research is risky, but well worth it in the long run. The water might spur fungal disease in the trees, but it also might kill off worms and mites. The test measures whether the concentration of contaminants like nitrogen-based fertilizers increases in the total groundwater and what effects that might have on the ecosystem. In general, the experiment is looking to make sure whether this would be an effective way to store water for use in drier times. From what has been measured so far, the irrigation hasn't ruined the test trees, but it will still be a while before significant results can be found.

According to researchers' approximations, there are about 3.6 million acres of agricultural land in California alone that have the proper characteristics to make them usable in groundwater-refilling projects. The only issue is that everyone would have to work together to make this concept a reality. For the first few years, crop yields will likely decrease due to the plan, which will make many farmers want to drop out. However, if they all stick it out to the end, the groundwater levels would eventually become properly equilibrated, which would extremely dampen the effects of future drought conditions in the area. It would just take a lot of cooperation between individual farmers and governmental agencies, as well as a unified belief that renewing the environment will have far more positive effects, both economically and otherwise, in the long  run than making a quick buck today.

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Apple Stocks Fall, Partly Due to Struggling Chinese Economy

While Apple is a large company with a variety of different products, many investors measure the company's success solely on the sales of a single product: the iPhone. Because of its popularity around the world, analysts tend to use the statistics of iPhone sales to monitor how the company as a whole is doing. Unfortunately, when iPhone sales are down, investors see this as a red flag and look to jump ship, thereby causing Apple stocks as a whole to go down. Paresh Dave and David Pierson write in their article about some of the possible factors contributing to lowered iPhone sales, as well as how this affects the company.

While just over a month ago, Apple stocks closed at $119, the same stocks have recently taken a plunge, going under $100 for the first time since October 2015. That's a decrease of over 15% in a single month, not a good sign for executives and potential investors. The iPhone 6S, this year's iteration of the popular cell phone, hasn't sold as well as predicted, in China as well as throughout the rest of the world. Several rumors have surfaced that assemblers and manufacturers of iPhones have recently been bracing for a slowdown in production, and financial analysts have determined that Apple has reduced supplies to Asian distributors.

While all of this may be coincidental, investors have taken these signs to be harbingers of future turmoil for the company and have decided to pull out for the time being. China's economy, which has doubled in the 7 years since Apple first opened stores and factories in the country, has a large impact on the company's success and failure, whether we like it or not. China's middle class is slowly expanding, opening up the market for iPhones to a much larger group of people, which will be good for sales when the economy gets back on track.

It seems that the first sign of a downturn for iPhone sales appeared in mid-December, when companies like Jabil Circuit and Dialog Semiconductor, which produce casings and internal parts for the iPhone reported lower-than-expected revenue predictions for the coming months. Decreased sales could be due to the fact that the newly released iPhone 6S is not very different from last year's iPhone 6, which would explain reduced demand, or it could be due to more economic factors. Either way, Apple seems confident that sales and stocks will go back up in the near future, especially with the new iPhone 7 in the works. While growth may be slow in 2016, executives believe that revenue will continue to grow at a rate of about 5%.

Where iPhone sales didn't boom as greatly as expected, products like the Apple Watch, iPad Pro, and Apple TV were popular gifts during the holiday season, thus boosting Apple's total revenue over the past couple of months. Apple executives are certain that China will remain a huge market for iPhone sales, but that it will just take a little bit of time for the economy to catch up again. In the long run, China is still one of the biggest markets for Apple products, even with current economic turmoil messing up sales. Eventually, Apple stocks should go back up, but the question is: How soon?

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Federal Reserve Hikes Interest Rates - First Time Since Great Recession Began

For the first time in seven years, since the Great Recession began in 2008, the Federal Reserve has decided to start raising its interest rate. When the recession began, pushing the interest rates as close to zero as possible was necessary to help the nearly crippled economy. The Fed raising their rates could be seen in a positive light, as a sign of confidence that the economy is getting back on track. To others, it could be a preventative measure in preparation for a future economic downturn. Jim Puzzanghera and Don Lee discuss the implications of the rate hike in their recent article in the L.A. Times.

What was seen by some as a vote of confidence in the recovering economy helped investors to feel more confident, which in turn led the Dow Jones average to rally and close up about 224 points, a substantial increase. When the Fed decides that the economy can handle an interest rate increase, this helps the average person to believe that they can more easily trust the economy to keep their money safe. This leads to more investment, which can help the economy even more on its path to recovery. When people believe in the power of the economy, it is more able to grow and meet their expectations.

On the other hand, the increase of the interest rates might be an indication of future trouble for the economy. When the economy is struggling, when the market crashes or a recession hits, the Federal Reserve is able to lower interest rates, which can lessen the impact of the economic downturn. However, if the rates are already near zero and a recession begins anew, lowering the interest rates will have no effect because they are already too low. So, if the Fed raises the interest rates now, the government can start building up revenue so that if and when the economy slows again, they can lower interest rates and pump money back into the economy to give it a jumpstart.

This decision by the Fed, although seen as "historic" by economists, will likely have little effect, at least for the time being. The benchmark federal funds rate, which affects consumer and business loans, has only increased by 0.25%, and the Fed has promised that increases in the future will come slowly. Loans on automobiles and the interests rates on credit cards will probably begin to rise slowly in the coming months, and mortgage rates have already risen slightly. Small businesses, which have been more affected by the Great Recession than their larger competitors, have shown support for the raising of the interest rate, seeing it as a step on the way to a more stable economy. After all, at this point, a quarter of a percentage point does very little to harm business growth and could do much for the future of the economy.

The rate hike has been viewed by many as the turning point for the economy. It may signal an end to the worst of the recession and a new beginning for the economy. The rates, which will grow slowly, at first, are expected to reach 1.375% by the end of 2016, which is pretty low in the grand scheme of things. In fact, the interest rate was over 5% before the Fed started lowering it due to the Great Recession. By some measurements, unemployment is down to 5%, which means that the rate hike could be necessary in order to reduce inflation. Out of fear for issues in the global economy, the Fed decided not to raise rates in September, but since then has decided that the rate hike is exactly what the US economy needs right now.

Some economists believe that the increase is a ploy by the Fed to simply fulfill a promise that was made to raise the rates by the end of the year. Whether this was the Fed's intention or not, it doesn't matter because the rates have gone up and will continue to increase. All agree that the interest rates, when increased again, should go up slowly, so as to not stifle any economic growth that they may cause. While some still fear that the rate hike is a way for the Fed to handle "negative shocks" in the economy, the Federal Reserve Chairwoman, Janet Yellen, assures the American people that the economy appears to be stable for now. She believes that the economy will continue its growth in the future and that the American people should see the rate hike in a positive light.

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Some Stores Find Black Thursday Not As Profitable in the Long Run

Where several stores have decided to push up their Black Friday sales earlier on Thanksgiving day, many others are doing the opposite, closing their stores for the entire holiday in a show of support for those shoppers and employees who wish to spend time with their families. In her L.A. Times article, Samantha Masunaga investigates some of the deeper reasons behind the closure, as well as the financial implications for the businesses.

Over the past couple of years, Black Friday sales have been starting earlier and earlier. Historically, Black Friday is the day after Thanksgiving and is a time when people can get good deals on new electronics like video game systems, televisions, and handheld devices. Until relatively recently, Black Friday started around midnight on Thursday night (technically Friday morning) and continued throughout the day. As companies began to realize that Black Friday sales brought in a lot of income, they started opening as early as 8 or 9 PM on Thanksgiving itself, enabling the sales to last longer and bring more customers into their stores.

This year, though, some companies are pushing it even earlier, some as early as 5 or 6 PM on Thanksgiving, which cuts family time pretty short for employees. In opposition to this, many slightly smaller companies are choosing to remain closed all of Thursday, with a belief that the few extra hours will not make much of a difference in the long run. Companies like Staples, Gamestop, and H&M have announced that its stores, headquarters, and distribution centers will be closed for the holiday. This decision, while upsetting to some potential shoppers, could potentially lead to greater loyalty among other customers who see that the companies care about enabling their employees to spend time with their families on the holiday.

Furthermore, many of the smaller retailers have come to a realization that opening their stores earlier for Black Friday doesn't have so much potential for profit. Analysts have shown that larger retailers, who can more afford to purchase big-ticket items in bulk for very reduced prices, are helped by a longer Black Friday, but that the smaller stores don't stand a chance trying to compete. So, this year the smaller retailers are concentrating on building goodwill and encouraging customers to shop online, then are opening up on Friday with their Black Friday sales. Statistics even show that those stores that opened early on Thanksgiving had a reduce in sales of about 11% over the rest of the weekend since those people who shopped on Thanksgiving were less likely to come back later.

Large companies may find out eventually that starting Black Friday on Thanksgiving does not positively affect them to the required extent to make a sizable profit. After all, when employees work on Black Friday, especially the portion of Black Friday that falls on Thanksgiving day, they get paid a higher hourly rate. At some point, the stores will reach a point at which sales are maximized while costs are minimized, at which point they will try to open their stores at that sweet spot every year. Because they continue to open ever earlier, it appears that they have not yet found that perfect time. Maybe they will eventually go back to being closed during the entire holiday, whether due to a lesser profit ratio or a surge in public opinion. It's hard to tell, so we will just have to wait and see.

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San Francisco's Anti-Airbnb Proposition Narrowly Fails

Short-term home or apartment rentals, usually through online platforms like Airbnb and VRBO, have been steeped with controversy in recent months. Some cities have even tried to ban such rentals while others have embraced them wholeheartedly. Most recently, San Francisco put forth a proposition to limit the ability of landlords to use such websites for renting their property. Tracey Lien, in her L.A. Times article, discusses how Airbnb affects both landlords and tenants, and how this new Proposition F may affect the city.

The controversy behind services like Airbnb is mainly one of a fight between a capitalist economic theory and one in which people deserve fair treatment. On the one side, tenants in San Francisco fear that the increasing prevalence of Airbnb will eventually lead the owners of their rented homes and apartments to evict them in favor of the larger sums paid by short-term renters. It is these tenants who would vote for the proposition since it limits landlords' use of Airbnb and their ability to turn normal rentals into short-term ones quickly. The proposition aims to prevent or at least slow down the conversion of apartment buildings into pseudo-hotels.

Some see it differently. While services like Airbnb could convince landlords to evict tenants in favor of the faster income, the free market could take care of any issues that arise from it. Eventually, if enough landlords raised prices enough to match the rising demand by tourists, ten the average worker would not be able to afford to live in the city. If workers are forced to move out, then business and regular city work will grind to a halt, When the economy halts in such a way, tourists will not want to visit, which will force landlords to lower their prices back to normal rates in order to get tenants. While this situation could probably work itself out, Proposition F aims to avoid it altogether.

Even for some landlords, Airbnb has uncomfortable implications. One Balboa Park resident, who had only ever rented his units out on a long-term basis voted against Proposition F. He worried that his tenants might use Airbnb to rent out his unit for short-term stays, a concept that he wasn't completely comfortable with. However,different from many tenants, he said that he would have voted yes on the proposition if he was in their shoes for that same reason: the ability to rent out the apartment in which one is living while out of town for short periods of time.

Unfortunately for those passionate about the topic, voter turnout for the proposition was extremely low. In-person votes were in the low hundreds, and mail-in votes reached about 9,000. In the end, Airbnb beat the bill, but even while celebrating, the San Francisco-based company expects further assaults in the near future. They believe that the proposition failed mainly due to its highly specific and extreme stance regarding the short-term rentals. Even so, the vote was close, with about 45% of voters supporting the proposition. Airbnb fears, rightfully, that behind the scenes, lawmakers in places like Los Angeles and San Diego may be getting ready to start the fight all over again.

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Google to Offer New "YouTube Red" Subscription-Based System

Where YouTube once made all of its income through advertisement sales, the Google-owned company is planning to make a big change. Starting next week, YouTube will be providing an option for viewers to pay $9.99 per month to be a part of a service called YouTube Red. As described by Saba Hamedy and Paresh Dave, in their L.A. Times article, this service will not only remove advertisements from most videos, thereby enhancing the viewer's enjoyment, but will also provide the ability to download content and stream music from Google Play.

YouTube, which first opened in 2005, grew in popularity very quickly and as purchased by Google a year later. Since then, while videos on YouTube get millions of views per month, Google has found that the well-known site is not quite the money-maker it might have been expected to be. Analysts believe that this is because YouTube is free, in general. Artists, musicians, instructors, and entertainers can upload videos for free, and people around the world can watch, like, and comment those videos for free. Only videos with advertisements provide any sort of income to YouTube and the maker of the video.

Now, with YouTube Red, Google's parent company, Alphabet Inc., expects to make far more money from the site without increasing advertisements or drastically changing its currently free setup. Analysts YouTube Red has great potential to become hugely profitable, but only if YouTube finds a way to overcome competition by Facebook, Vimeo, and Snapchat, among several other competitors.

Furthermore, will it really be worth it to viewers? Is the removal of ads, even on top of the addition of all kinds of new content by such YouTubers as The Fine Bros, Lilly Singh, and Pewdiepie, really worth the $10 per month that it will cost. YouTube tends to be targeted more toward teenagers and younger Millennials, so that would also mean that subscription to YouTube Red would probably fall under the jurisdiction of viewers' parents, who may not be willing to spend money on that which used to be free.

Much of the new content will be produced by well-known YouTube stars, who, unlike so-called "traditional actors," tend to come up with the content in their own videos. Many such stars started out with comedy or singing shows, filmed in their bedroom, and since have accrued hundreds of thousands of subscribers. It is these individuals that YouTube Red is going to use to try to pique the interest of potential viewers.

Market research company EMarketer believes that the growth of YouTube's ad revenue will slow over the coming years, which would make now the perfect time for the company to move away from advertisements and toward other forms of income. Many wonder, however, how this new system will affect the YouTube stars, some of whom are making a comfortable living off of payments from advertising sponsors. Will they be willing to give up that security to be a part of this new project? Hamedy and Dave seem to conclude that with YouTube Red, the stars will have more opportunities to create newer and better content that previously would have been cost prohibitive. YouTube executives believe that the stars will see the project's potential and will happily sign on to be a part of this new system.

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Young Adults: Halloween's Growing Demographic

While Halloween was once considered to be mainly for children, statistics show that it has become a major consumer holiday, celebrated by plenty of Millenials and young adults. In fact, it is expected that this year, American will spend approximately $6.9 billion on Halloween and everything it entails. James Peltz, in his L.A. Times article, discusses how spending on such festivities has increased drastically over the years.

It is expected that over 157 million Americans will be participating in the festivities this year. Whether that includes purchasing candy to pass out to trick-or-treaters, or carving a pumpkin and wearing a costume, consumers will be spending a lot of money on their night of fun. The average price per consumer will be around $74, dramatically up from the $48 they spent a decade ago.

Spending, while high on Halloween, is still nowhere near the level during holidays like Christmas, Thanksgiving, Mother's Day, etc. However, for some businesses like costume shops and amusement parks, Halloween provides a significant portion of their yearly revenue. Most of the pumpkins grown in California are used for Halloween, thereby providing a reliable source of income for farmers in the San Joaquin Valley.

Some costume stores like Party City and Spirit Halloween open specific stores only for the six weeks preceding the holiday, thereby getting the most bang for their buck. Even though Party City has year-round stores, Halloween is their biggest season, bringing in about 25% of their annual sales. Even "Knott's Scary Farm" and Six Flags' "Fright Fest" have been known to encompass 15% of the total number of visitors to each amusement park in a given year. American consumers spend over $2 billion in candy alone per year. Generally, Halloween has become very profitable for an array of different kinds of businesses.

Even while consumers reuse decorations and costumes purchased in past years, they can't avoid spending on perishable items like food, candy, and fresh pumpkins, Research has even found that as involvement in social media has grown, so too have holiday-related costs. People share costume ideas via Facebook, Pinterest, and Twitter, alerting friends to sales at certain stores. Even more so, young adults, especially Millennials, tend to participate as a group, purchasing matching costumes and attending themed parties, all of which can be shared around the world by social media.

Peltz sees that nationwide spending on the festivities has doubled in the past 10 years. He believes that it is quite likely due to the technological era in which we live. As new devices and new movies/television shows enter our world, we have so much more to use in the celebration. Sure, kids are still participating in the holiday, but Peltz shows that Millennials make up the largest proportion of participants, and he believes that this trend will continue to hold true for many years to come.

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Grocery Chain Haggen's Bust May Have Little Effect on Competitors' Prices

Grocery chain Haggen Inc., which spent approximately $1.4 billion last year in a dramatic expansion along the West Coast, was forced to file for bankruptcy this month, undoing everything it had accomplished over the past several months. While Haggen believed that its buy-outs of several dozen Albertsons, Vons, and Safeway supermarkets would help the Northwest-based company grow, in Shan Li and Andrew Khoury's L.A. Times article, it is explained why their business plan may have been flawed from the start.

According to experts, Haggen's purchases were doomed to fail from the beginning. Not only was the cost of purchasing and converting 146 supermarkets of various brands remarkably high for the 18-store chain, but Haggen's prices were seen as too high for the quality of produce being provided. According to the founder of DJL Research, a research firm specifically for supermarkets, no one believed that Haggen had any chance of success with their large acquisition.

Analysts go on to claim that Haggen's prices were determined too much by the prices already in place at the purchased supermarkets. Instead of doing their own research, they chose prices similar to those of rivals like Albertsons or Safeway. Haggen is known for its higher quality meats, seafood, and organic produce, which would normally be reason enough to qualify higher prices than their competitors'. However, complaints from customers seemed to all point to less than fabulous service and produce of lower quality than advertised.

Perhaps the lack of proper business planning in the stores was due to the stresses Haggen experienced because of the buy-outs. Albertsons, one of the former owners of some of the stores, broke off their tenuous business relationship shortly after the purchase. Albertsons opened lawsuits against Haggen, stating that $41 million worth of inventory had not been paid for, and in response, Haggen sued Albertsons, claiming that the competitor was consistently working behind the scenes to push Haggen out of the market. Perhaps Haggen's legal struggles interfered with its ability to run its newly obtained markets properly, Now that Haggen plans to pull back and keep only its 37 stores in Washington and Oregon, its reputation for high-quality may one day be restored.

For the over 8,000 Haggen employees in California alone, the bankruptcy will hit hard, The Local 324 United Food and Commercial Workers Union is rightfully upset, especially after having filed recent grievances against Haggen for layoffs and reduced hours. For others in the community who do not work for Haggen, however, economic analysts and regular shoppers alike do not expect to be affected by the closures. Since there is enough competition going on in the community, between Ralphs, Wal-Mart, and other stores, they believe that prices will not likely rise significantly. Who knows? In the end, perhaps Haggen will earn enough money from the sale of the closed stores to get back on their feet in their Northwest home base.

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