Research Paper

Mark Zuckerberg's Facebook

Facebook is a huge part of a majority of the world. The person responsible for its success is Mark Zuckerberg. His product has had an impact on millions of people and it is used in everyday life. It's influence is so great that it plays a role in many events and daily happenstances everyday. Mark Zuckerberg’s work has greatly affected the way the society, the economy and the way the culture is today.

Zuckerberg's Facebook has helped the world in a social way. People are “friends” with people from other countries that they have never met before. Now users know what other people are feeling, thinking and doing without being there or knowing them. Some people think that this is unnecessary or useless information, but Zuckerberg feels that it actually helps the society become closer and more personal. According to him, “'Facebook was not originally created to be a company. It was built to accomplish a social mission – to make the world more open and connected'”(Eckstein). Facebook has made our society better because this type of technology has, “'...gave more people a voice...encouraged progress...changed the way society was organized...brought us closer together”(Eckstein). One article has an explanation for the need for people to be more socially connected, “Facebook users share for a reason. We want others to know what we're up to. We trade privacy for increased connectedness”(Vara). People now know things about other people that they would not necessarily share voluntarily. Facebook is just a tool for people to expose the smallest details of their lives. Facebook has helped people make friends, find information and people and learn new things.

Facebook also has a large impact on the economy around the world. Apart from making money itself, it helps users make money too. People use Facebook in many ways to help them find ways to make money, sell products, and buy products. It is like a huge advertising program; people find jobs they want, new products they have never heard about, telling people about products they have heard of. One article explains, “Eventually, the page will present specialized resources and content...Free job postings are also being considered. Facebook says it's examining ways to deliver these virally across its vast network...Facebook says it plans to issue a series of public service announcements to promote the new page in the 10 states with the highest unemployment rates, including Puero Rico, which faces a 16 percent jobless rate”(Locke). The companies new ideas and aspects on Facebook help people all over the world. “...developers that create apps on top of the Facebook platform have spawned 235,644 jobs and contributed $15.7 billion to the U.S. economy”(Locke). By creating those jobs, Facebook has allowed people to earn money and then put money back into the economy. So it just helps make the economy bigger and allows more people to participate and consume. These were the predictions for Facebook's value last year, “Facebook is widely expected to file next year for an IPO, which some reports say could be based on a valuation of $100 billion. Some former employees have already cashed in their shares on secondary markets. Global revenues for the world's largest social network are on track to hit $4.27 billion this year, up from $2 billion last year...”(Locke). So Facebook has a huge contribution to the economy. Without it, people would never hear about job opportunities, or new products, or tell people about great products that they know.

Facebook has drastically shaped the way our culture is today. People are more inclined to sit in front of a computer and look at what other people are doing. It has sort of taken away the need for one on one communication, like going out with friends, talking on the phone or being with the family. There is too much interest in another person's personal life; what they did today, what they are going to do tomorrow, what they bought at what store for how much, who they are friends with, etc. These are just some of the drawbacks or negative impacts of Facebook. Although the last one could be viewed as a good change. It would imply that people are more connected, they are able to know way more people than they would without Facebook. It also provides relief to the changing culture, according to this article, “'These days I think more and more people want to use services from companies that believe in something beyond simply maximizing profits”(Eckstein). People in every level in the economy use it, from CEOs to unemployed citizens. People in every corner of the world use it. So it has really changed peoples' views on relationships and has in a way forced them to conform. It has gotten to the point that to be “connected” is to have a Facebook and to have a billion friends. Research shows that, “Time spent of Facebook had increased 566 percent in a year [2008], to 20.5 billion minutes”(Kirkpatrick). Kirkpatrick's book also talks about the rise in user time in other countries in the world. The whole world is moving forward on a highly technologically oriented path where being virtually connected to the economy and to people is enough.

Facebook has made a great impact on the social expectations, economy, and cultural path of this world. It has tied the economy and social networking together and has had positive and negative affects on both. People are getting more connected, while at the same time losing the personal connection. People learn more about the world around them by sitting in front of a computer looking at information put there by other people. It has made making friends personal and distant at the same time. Mark Zuckerberg's ideas have put the world on a path towards highly technical society with economical and cultural advantages.

Works Cited

Eckstein, David. "Facebook IPO: Mark Zuckerberg Says Site 'will Help Transform Society'" Web log post. Zap2it. N.p., 1 Feb. 2012. Web. 14 Dec. 2012.

Kirkpatrick, David. "The Facebook Effect: The Inside Story of the Company That Is Connecting the ... - David Kirkpatrick - Google Books." Google Books. N.p., n.d. Web. 6 Dec. 2012. <http://books.google.com/books?id=RRUkLhyGZVgC&pg=PA20#v=onepage&

Locke, Laura. "Can the Facebook Economy Help Americans Find Jobs?" CNET News. CBS Interactive, 20 Oct. 2011. Web. 19 Dec. 2012.

Vara, Vauhini (November 28, 2007). "Too Much Information?". The Wall Street Journal. Retrieved June 26, 2010.

The Fiscal Cliff

The fiscal cliff addresses the possibility of acquiring billions of dollars in tax increases and spending cuts in social programs on January 1, 2013 unless a different decision is decided upon by President Obama and Congress. If no action is taken, taxes will automatically rise for nearly everybody and there will be huge cuts to spending on social benefits and programs. Mainly the Bush tax cuts will expire and Medicare, Social Security and education departments will be affected.

The Bush tax cuts were tax breaks for certain incomes and these are the main focus of the fiscal cliff situation because they will expire as of December 31. If nothing is done about it, then taxes will go up, about $500 billion dollars more will be collected. This is said to help reduce the deficit, but some argue that this will be too much of a shock to the economy and put us into a small recession again because so much money will be concentrated on fixing the deficit and will make the economy even more weak.

The debt-ceiling is another issue. It goes hand in hand with reducing the deficit. If spending cuts and tax increases are used together, the deficit can be amended and the debt-ceiling will not have to go any higher. Another thing affected are the payroll tax holiday cuts. These are one of the tax cuts affected by the fiscal cliff. Citizens making any amount of income may not see any holiday tax cuts if the fiscal cliff is reached without any agreements.

My Manifesto, yo!

The government should only be involved in the economic activities that concern the whole country. For example: taxes, social programs, medicare and medicaid just to name a few. If they get into small business and local economies, there will be too much interference and control.

Taxes should be collected based on income. Higher income citizens should be taxed more and lower income should be taxed less. There should not be an income tax and a sales tax at the same time though. It should be one or the other. Taxes should only be used in social programs and services. They should be used to help the people in need and those who cannot pay taxes on their own.

The government should play a larger role in funding for health care, social services, job creation and unemployment benefits. It should not rely solely on taxes. These are the things that the government should pay more attention to and show more interest in. It would provide a better sense of community action and care on the government's part.

Minimum Wage

I think that the minimum wage is very important. Without it, employers would be taking advantage of their workers or there would not be enough workers. It is needed to keep more people contributing to the economy and keep it flowing. People working low-income jobs still need to find a way to live, and minimum wage helps keep them from poverty. It would be more beneficial if the minimum wage could be raised higher because the current one is barely enough to sustain a family. As the cost of living gets higher, the minimum wage has to also go higher.

Price Floors

I agree that price floors should exist because they would regulate the quality of the products. If the price of the product cannot go below a certain price, then the producers will be more motivated to make them at a better quality. Also, for certain products, people will not buy them if they are too cheap because that can imply that they are bad quality and not worth the price. They will start loosing their true value. Some things that need a price floor are wages, electronics, and other elastic products like jewelry.

Price Ceilings

I agree that our market economy should have price ceiling because it would make the essential products available to more people. If suppliers kept raising the price of some inelastic products, lower-income people would not be able to afford them. Although it does create a shortage of supply, it would still help people acquire the product. Unlike products that need to be managed, the quality of the inelastic products would stay the same no matter the motivation of the producer. Some products that should have price ceilings are gas, electricity, and groceries (milk, bread, vegetables).

Supply

DEMAND

Complements

When my sister and I started swimming, there were a lot of products we had to buy. First, we had to buy swim suits, caps and goggles. Then we had to buy gear bags, equipment, swim bags and more towels. There were many things that were needed just for the one sport. 

These are complementary products because we need all of them to swim. If we buy caps, we will have to buy goggles. Every time we went to the swim store online or the actual shop, we would buy multiple products at a time. 

Hypothetically, can the price of an inelastic product go so high that people will not be able to afford it?

Demand Wrap Up

Elastic and Inelastic Demand

Demand Headlines

1. Complementary Demand: Michael Phelps breaks record of 18 Olympic medals, cap and goggle sales go sky high.
2. Substitute Demand: Android struggles to produce satisfactory products; Apple sales took a jump.
3. Elastic Demand: Macy's prices went through the roof, their profits took a plunge.
4. Inelastic Demand: Potato prices reach $8.00 a pound, customers confused and upset but still pile them up.

Potato buyers all around the U.S. are upset at the direction that potato prices are going.
           "Potatoes are a huge part of our diet and lives", says one customer. This has never happened before, so people don't know what to do. They just keep on buying the same amount they usually do, but are angry at the amount they are spending.
           "We can't live without potatoes. If I bought one less potato, my whole family will starve", complains another customer. This new jump in prices is due to the decreasing number of potato farmers in the U.S. Farmers are moving onto other crops, like carrots and cabbage. If they keep moving away from potato farming, they will have the whole country in a revolution. All for the laziness of a couple hundred farmers. It will be hard to convince the public to move on to something else to supplement their diet.

Price Effect of a candy bar

Market Economy

I think that the most important strength of the market economy is that it has a large variety of goods. Companies can make what ever product they want and consumers can buy what ever they want. Nobody is regulating what people should buy or sell.

This in turn allows higher consumer satisfaction. People will be more happy when companies are actually listening to their needs and are trying to meet them. There is more room for innovation and invention. Progress is easier to attain and the economy won't remain stagnant.


Why do some countries continue using a traditional or command economy after seeing the advantages that a market economy can bring?

Opportunity Cost

I had to consider my opportunity cost when I had to choose between piano and swimming. I was falling behind in piano because I had very little time to practice. I also wasn't practicing as hard as I can at swim practice.

If I stay in swimming, I can stay athletic, active and competitive in a sport I really enjoy. I can stay with my swimming friends and have a great experience. It will be very good for college too. If I continue piano, I can complete all 10 levels of syllabus, and go to festivals and competitions. I love music and I would be doing something I enjoy. Both of these activities are really expensive, so I can only pick one and concentrate on it and become really accomplished in it.

I had to pick swimming because it had a more promising future. I can still play piano on the side, I just don't need to pay for lessons anymore. So in a way, I still get to do both of them.


How do companies face their opportunity costs when both options are either equally good or bad?

Scarcity, yo.

socialnetworkingandyou.com

Something that is scarce in my life is social networking. The only thing I have is a blog; this blog. This is not something that is scarce in the world though. This image shows how many methods of social networking there are out there.