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The TeenBiz Editor: Stephanie Y.
This Month’s Hot News: ●
Volume 1. News 2.
Mumbai’s Rent Control
Mumbai’s Rent Control
Writer: Minjee Kim
Food Crisis: Getting less for paying more
Korea’s Game Sensation
PSY: How Far Will He Go?
Rent control is basically setting a price limit in order to make it more affordable - maximum price. However, in the long run, it can have negative effects on the economy as a whole. Mumbai is not able to provide basic accommodation for its residents. 60% of the population, 8 million people are homeless while more than 400,000 residences are empty. This is because landlords are forced into abandoning their properties because they cannot sell them or pay the required real estate taxes. Tenants, too, leave because a building cannot be repaired or updated. Rent control reduces the economic incentive for landlords to upgrade or repair properties as well as to develop and maintain new real estate.
Food Crisis Unveiled Page 1,2
© Minjee Kim
As shown in the diagram, without government interference, the equilibrium quantity demanded and supplied would be Qe, at a price of Pe. The government imposes a rent control of Pmax. At Pmax, Q2 will be demanded because the price has fallen, but only Q1 is supplied because as the landlords leave, there is a decrease in supply
of housing units. Since there are thousands of homeless who want residences, it makes an excess demand. There is a waste of a factor of production, the land. There is a large area of empty residence that is there just to be wasted. There is an opportunity cost since the area could be used for something else.
Continued on page 3
Food Crisis: Less Content, Higher Profits
Contents: Food Crisis Korea’s Game Sensation: Social Network Mumbai Rent Control PSY
2 1,3 3
Writer: JW Yang Consumers in Korea are suffering from a severe food crisis. Several big Korean food and beverage industries have now resorted to reducing capacity of the products to gain profits. It turns out that this chicanery is not something new. Many food products, such as cookies, chips, and drinks have been reduced to
half of their size over the last ten years. “I resent the industries for reducing the contents while the consumers are expected to continue paying the same amount,” said one of the consumers. “Even the chocolate pie that I enjoy after dinner has been reduced to half of its size, while the size of the wrappings are still the same. I definitely do not want the industries to toy
with us.” On the other hand, these industries claim that they are merely reflecting the change in consumers’ viewpoint. According to a food company that manufactures drinks, the recent consumer research has reported that as more people place their wellbeing over their food preference, they are very willing to choose products that are smaller in volume but healthier in terms of nutrition.
Continued on page 2
Food Crisis: Less Content, Higher Profits - Cont’d “As more people are gearing toward healthier products, consumers think that they would rather buy products that are smaller in size and less in content than those that have an excess amount. After all, this saves our environment and at the same increases the efficiency of manufacturing.” It is expected that these products will continue to decrease in volume and amount, as Korea’s industrial field is getting ever more competitive.
Korea’s Game Sensation: Social Network Games Writer: EB Kim It is beyond dispute that Koreans are experiencing a new sensation. Often in daily lives, it is easy for one to observe people staring at their smart phones and avidly swiping the screen. Yet, these Koreans are not the typical game addicts. Korea’s number one chat application, Kakaotalk, has recently launched a new feature to gain more users. Now, the users can easily launch the application to play several mini-games that are simple, but powerfully addicting. Among these games are AniPang (supposedly short for Animal Pang, with Pang referring to the sound the balloons make when they pop), which was created by Nexon, one of the most famous Korean game companies. AniPang is a simple game in which the users are expected to match three animal characters in horizontal or vertical directions. Users who “pop” these animals rapidly will get high scores. Users have commented that the most attractive feature of Kakaotalk’s game center is that they are able to share their scores with their friends. The infamous hearts which the users exchange with other users also play a part in making AniPang unique.
After the game, the user can check his or her rank as the scores of all the players who are connected with the user on Kakaotalk will be shown.
“I use Kakaotalk because I like its chat system, and it’s also free,” said one of the users. “Recently, I have gotten tired of hearing chat messages that mean nothing to me.”
However, not all users are satisfied by this new sensation. Many users who do not play these games have admitted that they are tired of receiving chat messages from their friends who invite them to play the game. “While I am sleeping in the night I constantly get notifications from my friends on Kakaotalk. As much as it is disturbing to receive chat from someone while you are sleeping, what makes me more angry is that these messages are merely invitations from the users who just want to get more hearts that will enable them to play more games.” AniPang’s success has led Nexon to introduce its sequel CandyPang. (As the name implies, one can easily guess what the game is about. Yes, this game is all about making candies pop.) While many users are satisfied to see Kakaotalk launch more games, those who are not interested in playing games are rather disappointed to see the application turn into a major portal.
Source: Kakaotalk Meanwhile, Kakaotalk, the number one chat application in Korea, has to launch more innovative features in order to maintain its free status, especially when it is pressured by other big telecommunication companies that try to mar the application’s popularity. The more connections it makes, the better the chance of the application running smoothly.
V olume 1. New s 2.
Mumbai’s Rent Control Cont’d This also results in decrease in tax revenue, since the government can’t get housing tax and rents. Government also have to pay welfare benefits to the thousands of homeless people which makes them spend a lot of their budget. This results in decrease in GDP and economic growth of Mumbai. The investments in Mumbai have been decreased rapidly because many potential landlords did not invest in properties or build new properties as the restrictions imposed by rent control make it impossible to keep up with any rise in inflation and find the needed capital to construct new apartment homes. There are conflicts between landlords and residents because the necessary repairs or refurbishments that need to be done are not affordable to landlords because of inflation. Therefore, many residents can feel angry toward them because of his refusal to update or fix the property and the landlord is unhappy because he’s forced into taking losses or minimal returns on his investment. Even if he wants to make repairs or updates, his cash flow situation is too weak to justify the expense. Thousands of homeless in Mumbai live and expand slums in order to get a cheap, affordable shelter. This, however, has external costs; visual pollution and air pollution. Slums are not visually attractive and don’t have good sanitation. The streets are not organized and it has high crime rate. So, it could result in low life expectancy rate and high mortality rate. Although the idea behind rent control is a positive, it’s not producing anything unless the government keep up with inflation and utilize the space optimally.
PSY: How Far Will He Go? Writer: Byeongchan Gil “Gangnam Style” does not seem to stop. Originally released to Korean fans, it has become one of the hottest songs in the United States, the U.K., and other countries including Korea. PSY, recording 560 million views, beat Eminem who was on the third place of YouTube’s “Most Viewed Videos” with his song, “Love the Way You Lie.” On the top of the chart is Justin Bieber’s “Baby”, but there are prospects that “Gangnam Style” will break Bieber’s 800 million hits shortly and get many people’s attention. As “Gangnam Style’s” view is increasing at an even faster rate than Bieber’s, some pop experts anticipate that it will be No.1 about 60 days later. It attained the 100 million views in just 53 days and became the song to mark 100 million views the fastest. It also came in the first place on seven different charts of the Billboard. PSY had a free concert in which he performed topless his “Gangnam Style” and his other hit songs at Seoul Plaza, where every citizen could watch him. When he came in the second place in the Billboard Hot 100, approximately eighty thousands of crowds went wild that night. PSY uses this popularity as a chance to make a positive image of Korean music industry called Kpop. His influence may motivate other Korean singers. Kyungduk Seo, a professor of Sungshin Women’s University, tells that “Gangnam Style” has an economic value as much as over 910 million dollars, which can be used to promote Korean culture which includes KPop, Korean dramas, and Korean food etc. PSY’s next song will be sung in half-Korean and half-English. It will be released not only to Korea but also to the entire world. We are definitely curious to see how far he will go. Very well then, Let’s “Gangnam Style!”
[ Map of Mumbai ]
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