Economic Effects of Gun Violence in Chicago

By Nia Hill

“Chiraq”- the unsought name of this beautiful city, Chicago. Mostly because of the horrendous number of crimes that occur on all sides of town. People are starting to realize that this violence is taking such a huge toll on the city- not only a social toll, but also a financial toll.

According to the Chicago Tribune, from the beginning of 2014 until now, there have been 363 homicides. Many of the crimes took place in various neighborhoods all over the Chicago: West Englewood, West Garfield Park, Austin, (Chicago Tribune, 2014)- the list goes on unfortunately.

If you were to ask any random citizen of Chicago, “Why does the violence occur?”, you would get synonymous answers: most crimes that occur are gun violence and drug related and most of the victims are of young ages. Most adolescents have lost   someone due to gun violence, which means their likelihood of being involved in any type of violence increases (CeaseFire, 2014).

Now, how is all of this violence financially related? If we think about it, every time someone dies, a variety of costs are associated: hospital costs, medical treatment, lost wages, missed opportunities, investigation and court costs, and more. Violence does not affect just any individual personally. Violence affects society as a whole. When a person gets killed in a certain community, that hinders people of all incomes, races and backgrounds to move into or invest in that community.

Na-Tae’, executive director and co-founder of True Star Foundation (TSF), believes that the young people of Chicago are involved in violence because of numerous reasons: “being bullied into it, searching for friends or some form of family, seeking out protection from bullies, and looking for financial gain because youth employment and opportunities are at an all-time low”. She also believes that violence takes a huge till on youth and that they might not realize it. They are so used to it that they become unaware of it.

At the end of the day, violence affects everyone. We need to make a change. We need to work together to stop violence in Chicago. We need to be aware that violence in our communities cannot continue to go on, because it will affect future generations. As Valeria Andrews once said, “If you wanna be somebody/ If you wanna go somewhere/ You better wake up and pay attention.”

Education: The American Downfall?

By Jonathan Switzer

In recent years, global mass media has touted the excellence of foreign education systems relative to those found in the United States.  Over and over, reports of academic ferocity - especially from Asian nations - have cast the sustainability of America's position as the premier global economic powerhouse into question.

But in order to assess the preparedness of the United States in competition against other developed nations in its ongoing bid for a so-called ‘economic superiority’ in today’s worldwide economic system of connectivity and interdependence, numerous factors have to be considered.  Let’s focus our attention on education.  Particularly, rankings and what they might mean.

And now for some simple numbers.  The Social Progress Index, a nonprofit devoted to analyzing metrics of worldwide productive progress, ranks the United States at forty-eighth in the world by measure of “Access to Basic Knowledge,” a semi-comprehensive composite of different educational factors affecting national productivity.  Japan places first worldwide in this regard.  When this parameter is averaged with international rankings for “Access to Advanced Education,” the United States surprisingly rises to the foremost slot.  Relatively, Japan falls to nineteenth.  What does this entail?

These numbers bring us to some fundamental and interesting trends.  For one, they could represent a rift between the qualities of primary and secondary education systems in America.  It seems that the economic advantage redeemed by the United States through its high-performance higher education system may be relatively outweighed by a greater systematic efficiency and effectiveness of teachings of basic knowledge elsewhere - primarily in Japan.  For instance, although the United States spends more per pupil on education than any other country on Earth, its students consistently rank far below students in nations like Singapore and Japan whose education has been less costly and has had greater emphasis on foundational concepts.  This has detrimental effects on the United States.  Let aforementioned 48th place be an indication.  

Another possibility is that the disparity between rankings of different education levels could represent a cultural and economic advantage in Japan.  Here in the United States, the phenomena of so-called ‘academic inflation’ of the past decades has substantiated a near-requirement for attaining advanced education, causing it to become a widespread prerequisite to employment and productivity.  Perhaps access to advanced education is simply unnecessary in Japan because a calamitous shift in advanced education - such as the one in America - hasn’t occurred there.

Adding to this uncertainty, superior education is not necessarily proportional to superior potential for economic prosperity.  To demonstrate this, let’s call into question other factors that affect education’s role in national productivity, such as specialization.  For instance, a country such as Singapore - which has a miniscule landmass, tremendous population, and rigorous international competition for prosperity - relies foundationally on the optimization of its most substantial resource: people.  As a result, in recent decades, education has observably become the means of Singapore’s optimization - the country has specialized in the production of and export of services requiring an adeptly educated workforce.  On the contrary, the United States is expansive, engorged with an abundance of resources, and maintaining a relatively low population density.  In this case, it seems that the optimization of education isn’t as essential to the country’s productivity as it is to nations such as Israel and Singapore.  In simpler terms, we don’t need homework.

Wealth Inequality

By Miro Ehrfeld 

The "wealth gap" has been a controversial and persistent issue in free market societies around the world. For decades, economists and politicians have been debating and implementing a variety of strategies in an attempt to alleviate the seemingly endless growing divide. Naturally, many economists turn to what the census bureau coins "middle class citizens" as potential candidates in facilitating solutions. Such solutions ranged from lowering the cost of sustainable education and levying higher taxes upon the top 1%, all the way to eliminating (or taxing) family trusts. The effects of these revitalization programs, however, have resulted in limited and or unsteady success. The exact numerical trend can be seen in volatility followed by a slight dip in the average household income of middle class citizens between 2005 and 2013 (Census Bureau US Median Household Income).

Despite the assured longterm potential of these projects, recent studies indicate that the problem may have begun to remedy itself. To justify this premise, economists refer to recent birthrate trends in the United States. According to Neil Howe at Forbes, " the birthrate again dropped to a historic low in 2013". The correlation between birthrate, population and the economy lies in employment. With substantially less people entering the workforce each year, employment rates are expected to rise accordingly. Theoretically, this would result in higher wages, diversity in career options and a confident, stable middle class.

In searching for a reference to refute the validity of the correlation, one might turn to new economic developments in China. Due to restrictions on the amount of children one may have, Chinese manufacturing capabilities have plummeted. Both Goldman Sachs and BBC News affirm the prediction that China will "grow old before it grows rich". America, however, thrives on its ability to innovate and create a diverse economy with new markets. Predictions anticipating Chinese prosperity were in large based on its capabilities to manufacture. Hopefully, this distinguishing factor will result in more optimism toward the depolarization of wealth inequality in America. 

The Economics of Adolescence

By Miro Ehrfeld

Year after year the number of unemployed college graduates accumulates. Despite extensive reemployment programs, many younger people are forced into jobs instead of careers. According to the Huffington Post, 57% (or more than 2 million) of college graduates are unemployed. Thus, many people have resorted to reexamining the benefits of higher education. Unemployment in itself is harmful to the economy, but unemployment of the younger, educated generation is critical. How can a nation excel without the presence and involvement of the best and brightest minds?  

One solution to the job deficit is entrepreneurship. Eric Ries, the author of The Lean Startup, reminds us that "Brilliant college kids sitting in a dorm are inventing the future" (Reis 21). Without the option of a career path, many students put their valuable education and creativity to use by starting their own company. Not only does this nurture leadership, it fosters innovation; without the conventional structure of hierarchy, they feel entitled to exploit their imagination. In addition to instilling character and confidence, being an entrepreneur provides crucial exposure to fiscal, real world economics.  

Starting a company from scratch is a trying task; age discrimination, legal procedures, time management, and capital allocation are just a few of the hardships of the process. Even if the company is destined to fail, the experiences gained are incomparable. But if a startup is successful, it paves the way for endless possibilities. With the presence of a new company, jobs will be provided, money reinvested in the economy and a new, or refined, product made available. If nothing else, "being your own boss is awesome" (Lord).

The JEC Promise

This first article in The Junior Economist serves one purpose: establish once and for all the foundation of this organization.

As members change, the leadership rotates and social circumstances pose contemporary problems,  it is easy to diverge from the original purpose. It is for this reason we will always hold this discourse, the first one ever given to describe the Junior Economic Club, close regardless where future circumstances lead us. We can call it an ideology, a manifesto perhaps, but we see it as a promise to ourselves to stick true to the values and vision that inspired the Junior Economic Club into existence.

Chicago has seen its fair share of troubles over its history, from the infamous Chicago Fire to the crippling effects of the Great Depression. And yet, we as a city have overcome every challenge, emerging stronger and more united each time.  This is due to the ability of the city’s population to think critically and acts decisively.  History has shown we can overcome differences and problem-solve. These fantastic qualities, engraved into the very foundation of this city, have been without question passed onto today’s generation.  Chicago has an unprecedented spirit of initiative and willpower among its youth. From one of the most active student unions in America to a variety of student-led initiatives, there are opportunities abound for Chicago’s youth to voice their opinions on education, socioeconomic inequality and world affairs. There has been a desire to make a positive impact from a young age. 

And yet most students have experienced the frustration that comes with wanting to make an impact, to bring to life a fantastic idea, but being unable to act. Perhaps we lack the resources available to those older than us. Perhaps our age doesn’t lend itself to credibility. Perhaps we simply have not yet had the chance to acquire the expertise necessary to influence the world around us.  The Junior Economic Club was created first and foremost to provide a supportive ecosystem for aspiring Chicago youth to achieve exactly what they aim to accomplish.

The organization began organically, grown from students’ desire to make a meaningful, positive and real world impact. I want to take the time to enumerate the three main challenges that were the inspiration for this organization.  Firstly, students are, for the most part, protected from the larger debate of economic policy and direction and therefore have no real world perspective on the financial issues facing our generation.  Secondly, while the gap between students and professionals is closing in just about every industry, from scientific research to journalism, the gap between bright, thoughtful students and economics, finance and business remains large. Thirdly, much socioeconomic disparity later in life stems from the widely varying opportunities available to students during the early years of their education.

In view of these challenges, the mission of this Club is to spark and facilitate meaningful discussion about economic issues among determined high school students. We are fostering a community where motivated students can be exposed to new ideas, be inspired to discuss complicated economic issues and act to secure a better future for Chicago and our generation.  Our philosophy is our differentiating factor: The JEC truly believes that, given the right guidance and support, high school students are fully capable of solving the toughest economic problems facing our society.

Our vision for the Junior Economic Club is simple: We envision this organization remaining for decades as the hub for ambition and aspiration among the most motivated students of Chicago. Membership at the Junior Economic Club will by synonymous with initiative and excellence. By giving the next generation a head start, the Club is nurturing more effective, efficient, and responsible leaders, thereby supporting Chicago's prosperous future for generations to come. 

We break the convention that you have to wait until after college to begin making an impression on the world around you. The real world begins now. The hard work begins now. The challenges begin now. And now we, the next generation of Chicago, begin to build a more prosperous and sustainable future.