Verified Document

Economics In The U.S.A. -- Essay

This in turn will materialize in reduced sales and profits. If the situation continues to aggravate in the years to come, several players in the gambling industry might have to close their casinos. One must also notice the exceptional situations in which out of job individuals will gamble in the hope of winning some money. However, these instances are reduced and not able to modify the indirect relationship between the evolution of unemployment rate and demand for gambling services. Vice versa, when the unemployment rate decreases and the population enjoys more sources of revenues, the demand for the services of casino clubs increases. 2.3 Inflation rate (consumer price index)

The inflation rate represents the "percentage increase in the price of goods and services, usually annually" (Investor Words, 2009). Within the United States, the economic indicator has maintained a relatively stable trend, with insignificant fluctuations from one year to the next. 2008 has however commenced with a dramatic fall in the inflation rate and 2009 continues in the same path. For the future months however, it is expected that the interest rate increase.

Source: The Financial Forecast Center, 2009

When the inflation rate increases, the population is less able to satisfy its purchasing needs. This then means that a growth in inflation will negatively impact the financial results of the gambling institutions. Additionally, the players in the industry themselves will be faced with reduced purchasing power, meaning that their operating costs will increase and their ability to invest in the development of their organizations will also decrease. On the other hand, a decrease in inflation rates generates the opposite effects by increasing the purchasing power of both customers as well as economic agents.

2.4 Personal income

The personal income encompasses the totality of revenues registered by on individual throughout the course of one year and it is composed of all sources of income, including wages, pensions or revenues from investments. Throughout the recent decade, the trend has been an ascendant one, but the contemporaneous financial crisis might materialize in reductions in the personal income. Despite these reductions however, the economy is likely to pick up and generate increases in personal income starting with the end of 2009.

Source: iCharts, 2009

Increases in personal income will materialize...

The distinguished trend throughout the past years has been that of a massive relaxation in crediting conditions and an increase in interest rates with the purpose of increasing the levels of consumption and stimulating economic progress. The effects were however more damaging than initially estimated and the current trend is that of decreasing the interest rates on borrowed money.
Source: The Financial Forecast Center, 2009

Given that the interest rate remain constant in the next year and a half, the gambling industry will benefit from a stabilization of the financial sector, which will in turn translate into its won stability and its customers' stability. It could probably mean an increased demand for gambling services.

2.6 Producer price index

The producer price index can be defined as "an inflationary indicator published by the U.S. Bureau of Labor Statistics to evaluate wholesale price levels in the economy" (Investor Words, 2009). The recent trend in the evolution of PPI has been an ascendant one with a peak in July 2008; after that, the indicator's value significantly decreased and despite some fluctuations, its future is expected to reveal sustained decreases through 2009, with the first signs of growth being revealed in 2010.

Source: The Financial Forecast Center, 2009

Increases in the value of the producer price index means that the gambling industry registered increased values of money for selling the same products. However, to reveal if the price increase is translated into real profits, the findings have to be adjusted to the inflationist trends.

Sources used in this document:
References:

Ameristar Casinos Inc., Hoovers, 2009, http://hoovers.com/ameristar-casinos/--ID__16260,FRIC__ -- /free-co-competition.xhtml last accessed on May 8, 2009

Personal Income and Savings, iCharts, 2009, http://www.icharts.net/portal/app?service=external&sp=Y37ayiM=&page=Chartdetail last accessed on May 8, 2009

Investor Words, 2009, http://investorwords.com last accessed on May 8, 2009

The Financial Forecast Center, 2009, http://forecasts.org last accessed on May 8, 2009
Cite this Document:
Copy Bibliography Citation

Related Documents

Gambling the Negative Effects of Gambling Have
Words: 2051 Length: 6 Document Type: Essay

Gambling The negative effects of gambling have been researched, touted, published and spewed forth from the mouths of researchers and do-gooders for decades, yet there has been an astonishing lack of research accomplished on the positive aspects of gambling influences on modern society (or even past societies for that matter). The reason behind such paucity might be that there are no positive aspects to gambling and that it leads to a

Gambling He That Hastens to
Words: 946 Length: 3 Document Type: Term Paper

Also, the more the person loses money, the more likely they are to become emotionally distraught and potentially violent, especially when under the influence of alcohol and drugs. As organized crime and gambling go hand-in-hand, so too do organized crime and drugs, which is why gambling and drugs are closely related sociological deviant phenomenon, phenomenon that all Christians should firmly oppose. Gambling creates widespread familial and personal problems as well

Gambling Problem Gambling: No Quick
Words: 931 Length: 3 Document Type: Term Paper

Yet, not every group gambles equally often, demographically. Protestants seem less likely to gamble than Catholics. Culture plays a role, and demographics affect the choice gambling venue method. (Griffiths & Delfabbro, 2002) Yet when new forms of gambling are introduced, there is an overall increase in gambling. The method of gambling may also influence the likelihood of abuse. Continuous activities are more likely to be associated with gambling problems. The

Gambling: Far Beyond Entertainment Gambling
Words: 569 Length: 2 Document Type: Essay

Thus, people become too involved in the gambling itself, loosing control of taking back their senses. This then can result in a serious gambling problem, which if not treated properly, can harbor serious negative ramifications within the context of the person's life. Support groups and addiction programs can help keep people from being consumed by their habits. This is stark contrast of the defining elements of a hobby. Hobbies

Gambling Among College Students
Words: 775 Length: 3 Document Type: Term Paper

Gambling among college students is a growing problem on campuses across the country. A study released in May 2004 by the National Collegiate Athletic Association showed a growing tendency toward gambling among college-student-athletes, prompting the NCAA to commission a task force to study the problem (Dooley Pp). According to NCAA President Myles Brand, "The scope of sports wagering among intercollegiate student-athletes is startling and disturbing ... Sports wagering is a double threat

Gambling Odds
Words: 1310 Length: 4 Document Type: Research Paper

Gambling Odds Casino gambling in the United States is growing rapidly and shows no signs of abating. Since the first casinos opened on Native American reservations, many states have seen the potential revenue that gambling can add to its coffers. When Pennsylvania decided to add casino gambling in 2006, it was with the idea that it could generate enough revenue to supply some tax relief. But within just five years, eleven

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now