ESPN 30 for 30: Broke — Risky Investments

 

Athletes become broke after retirement because of overspending, unexpected expenses, and poor financial advice from third parties. Because of the prominence of reporting athlete salaries, distant friends and family pitch business ideas to athletes, most of which have no knowledge of the risk involved in starting a business. Safer assets are not viewed as exciting or sexy, despite their considerable safety. One way to help secure financial futures is to seek out financial advice from professionals who are educated in the field.

Abdullah Al-Bahrani and Darshak Patel have a great paper in the Southern Economic Journal that looks at using ESPN 30 for 30 to teach economics.

The Simpsons — 3 Kids & No Money

Homer laments of his problem of having no money and three children, but would instead prefer no kids and “3 money.” Kids, thankfully, cannot be used as money, but do represent a tradeoff in that parents could spend their money on other items instead.

Thanks to Nick Covington for the clip!

West Wing — CPI Increases

 

At this part in the episode, Senior Communications Director Toby Ziegler tells Press Secretary C.J. Cregg about the Bureau of Labor Statistics reporting the CPI increased by 0.7% in one month (could this be info that they released on Jobs Friday?). C.J. is about to go to a press briefing and quickly practices an answer in case a reporter asks about this startling statistic. C.J. and Toby, though they don’t name these exactly, talk about New Product Bias and Quality Bias as ways of explaining why CPI is not always reliable!

Thanks to Katie Cook and Kalina Staub from UNC for getting this clip on the website!

Superstore — Phone Innovation

 

It’s back to school time and everyone has flooded the store to buy calculators, notebooks, dictionaries, and planners, but these are all items that come with a smartphone so it makes those products obsolete for most individuals. Creative destruction occurs when new innovations replace old industries.

South Park — Necessities & Substitutes

 

The economy of South Park has dwindled and Randy has some suggestions on they can survive the economy’s wrath. He recommends substituting many of their everyday items for cheaper alternatives, and returning back to the basics: water, bread, and margaritas. During recessions, income and wealth take a dip and people are unable to afford many of the items they may have once consumed. This shift allows for a discussion of inferior and normal goods.

Thanks to Zoe Cook-Nadel for the suggestion!

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