THE LION’S SHARE
The Lion’s Share is a student-led business journal written by St. Mark’s School of Texas high-school students. This volume focuses on both the worldwide and local impact of the coronavirus on businesses. From covering student endeavors to global changes, The Lion’s Share provides a fully encompassing perspective.
The Lion’s Share - Volume I 2020-2021
St. Mark’s School of Texas 10600 Preston Road Dallas, TX 75230 214.346.8000 www.thelionsharejournal.com
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Like most students, at the start of my junior year I had culminated ten years of official English education already, yet through that decade-long journey, I had never published nor produced a tangible work. In pursuit to change the status quo, I tapped into my entreprenueristic spirit and proposed launching a brand new journal that investigates business-related issues, providing a platform for like-minded students to share their passion for business with our community. This outlandish idea seemed unfeasible, but as I thought about the idea more and more, a recurring phrase kept on resurfacing to the top of my consciousness: The Lion’s Share. Whether or not the St. Mark’s mascot helped influence the name, I cannot say. But I instantly recognized that I had to spearhead this project or I would regret everything. The play on words and the idiomatic structure was absolutely perfect. With a clear vision and an impassioned team behind me, I confidently embarked on this year-long adventure, starting with only a name and a dream. The first volume of The Lion’s Share represents a new beginning. After a year of unleashed chaos and widespread adversity, the world is finally returning back to normal. With the launch of this publication, we spend some time reflecting on this past year while also looking optimistically to the future, paving the way for a new era. Special thanks to my parents, for their constant support of my endeavors; to Jonathan, for spending countless long nights finalizing spreads and stories; and to Axel, for style editing stories and designing infographics.
Editor-in-Chief Evan Lai ‘22
Our idea of a business journal was met with healthy skepticism at first, but the challenge piqued my interest. Determined to make this dream a reality, I consulted my teachers and family. Motivated by their encouraging words, recruitment began, stories were written, and a publication that surpassed all expectations was created. I always hoped this journal would become a St. Mark’s tradition. From the Christmas party to commencement, in our illustrious history, we have developed many binding traditions: this journal aims to be an ingredient of that binding. Undeniably, The Lion’s Share is an effort to encourage Marksmen to become more involved in business topics, but it has evolved into much more. It is a family for its members, an opportunity for Marksmen to push their boundaries, and most importantly, a legacy for everyone involved. In a highly unprecedented pandemic year, the St. Mark’s community has been consistently resilient—always rallying around members in need. If it were not for the community that nurtured me for the past eight years, I genuinely believe this journal would not be here today. It is the culmination of our stellar team’s cohesive effort; their tireless support helped maintain my initial fervor, and hopefully, that enthusiasm is evident. Producing St. Mark’s first business journal was no small feat; Evan, Aadi, and Rishab, I cannot express how grateful I am for the work you have put into this journal. Hundreds of hours and a multitude of meetings allowed us to produce the product you are reading today.
Editor-in-Chief Pranay Sinkre ‘22
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ab initio Contents 4 | |The 12 TheLion’s Lion’sShare Share
SECTION I
PERSONAL FINANCE
SECTION II
Coronavirus impact
SECTION III
BUsiness insights
Reading the Stock Market
8
Financial Literacy
10
Paycheck Protection Program
12
On the Rise
14
The Toll of COVID-19
18
The 20 Oil and Gas Industry The Global Crisis
22
Tipping the Scales
28
The Rise of Crypto
30
The Responses
32
The High School Filmmaker
36
Humanity’s Responsibility
38
The Buckner Project
42
Key Terms
44 5
Section I — Personal Finance
With the advent of online banking and accessible investment apps, the average individual seemingly has an overwhelming selection of tools. This section focuses on introducing basic topics within this expansive field so that one can better traverse the financial world. 6 | The Lion’s Share
Reading the Stock Market
8
Financial Literacy
10
Paycheck Protection Program
12
On the Rise
14
ECONOMY
8 | The Lion’s Share
As the economy starts to pick up following a rocky 2020, indications of better economic conditions appear all around the country. What can the stock market tell us?
W
ith a quick search on Google with these keywords “is the stock market an indicator of the economy,” 177 million results immediately appear in the blink of an eye. The results are convoluted: some argue that the market, and therefore the economy, will thrive if listed companies are profitable; others contend that investors’ emotions interfere with this special relationship, causing the economy to act independently. Though complex, the stock market seemingly affects the economy’s condition. However, in the post-pandemic world, anything is possible. It might just mean that it is time for the stock market and the economy to become separate entities. Pre-COVID-19, the success — or lack thereof — in the economy could be attributed to the stock market. Since the market directly demonstrates companies’ success, investors decide to “buy or sell” based on their notions of how well the economy will be doing, with a rough time frame of six months. Additionally, stock prices are important because a high stock price can be indicative of a “strong” market while a lower price may represent a “weaker” market. However, because of price manipulation (interference of the free market) conducted by traders and corporations, the answer is not as clear cut. Jack L. Treynor, an American economist who served as the President
of Treynor Capital Management writes in his article Samizdat: Market Manipulation. “The broker takes the other side of each anxious trade, accumulating a position that fluctuates with the arrival of anxious buys and sells.” The exploitation of the market, therefore, may not always reflect the eventual condition of the economy. At the advent of the global pandemic, the market and the economy began to go their separate ways. The economy, taking a deep dive, was not reflective of the chaotic fluctuations within the stock market. This surprising diversion was mainly because of the immense uncertainty created by the pandemic. Initially, from Jan. to Feb. 2020, shareholders disregarded the pandemic; the markets continued on their high note. Then, when lockdowns were imposed, shareholders lost confidence in the market, and the economy fell. One could argue that the market did correlate to a weak economy, but the market started to take a turn after the banks came in to alleviate the situation (April 2020 to the present day). Since then, the markets have been thriving, while the economy has been continuing its downward trend. Whether the stock market acts as an accurate indicator of the economy’s health is a complex question. Sometimes it does, sometimes it doesn’t. In this postpandemic world, shareholders — not brokers — dictate the market. The effects of the stock market on the economy may soon become negligible.
Story | Bijaan Noormohamed Photoillustration | Jonathan Yin
Personal Finance | 9
EDUCATION
FINANCIAL LITERACY In addition to traditional subjects already taught in school, such as science, English and math, what role does a financial education play in a standardized curriculum? Should students be taught how to manage their money? What should we be learning?
F
rom managing debt, making education taught them how to manage monthly payments on homes their money. Although financial literacy and saving for retirement, adults may not become a part of the curriculum must reckon with many difficult tasks. at private schools such as St. Mark’s Furthermore, as an increasing number because they have the resources to educate of young adults struggle with student students through other means, it may loans, a basic financial literacy course prove beneficial at public schools, for some should be incorporated into the basic K-12 studies suggest that the lack of financial curriculum. literacy in high school widens racial According to a National Center for inequities in wealth. Education Statistics survey from 2015, Taking the initiative, the Buckner around 31 percent of Americans do not go Project, a nonprofit organization started to college, so for many, high school will be by two St. Mark’s sophomores, focuses on their only opportunity to learn providing financial education about making healthy financial to Dallas Independent School decisions. Thus, teaching District (DISD) elementary financial literacy in high school students. is paramount to creating an “It’s so important that all educated and robust society. the kids we teach know the Additionally, even in life skills they will need to college, many students are use after high school,” head not properly exposed to basic of curriculum Christian Youst Christian Youst financial concepts essential said. “Financial literacy is Buckner Project to a stable adult life. The lack super important in today’s of a formal infrastructure for society, so they’re more financial literacy is a glaring weakness prepared for the real world.” within the education system. Like other Even though they are not teachers, rudimentary subjects, schools should The Buckner Project recognizes that develop a solid foundation for students their volunteers need to gain teaching to build upon in the future. For example, experience and an effective teaching style mathematics majors begin to learn math as for their videos to be game-changing. young children; they learn to count, add, “Our teaching style makes kids subtract, multiply, and divide years before excited,” Youst said. “We’re as interactive beginning algebra. On the other hand, as we can be, whether it’s making activities aspiring finance students receive no such or multiple-choice quizzes. We’re not just progression of difficulty. trying to hammer them with information. Furthermore, only 31 percent of We want to be engaging, and we want young Americans believe their high school them to be able to use what we teach
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them.” While finance is difficult to understand even for many high schoolers, The Buckner Project has emphasized boiling down complex topics into easy-tounderstand videos. “Financial literacy is a pretty complex topic,” Youst said. “But we try and gather all the information we can and pick out the most important and easiest to understand topics, and that’s what we put into our presentations and videos.” Recent videos include budgeting and allowances, currency and the GameStop stock situation. For Youst, financial literacy represents an important part of one’s life, and he hopes elementary school students who view The Buckner Project’s videos will have a head start at learning how to be an adult. “We hope for these kids to be able to not only understand the topics we are teaching but to also implement what they’re learning into their lives,” Youst said. “Ten years down the road, I’d want them to look back at viewing our videos as the start of their interest in finance. I want kids who’ve watched videos to use the information they’ve learned from the course and have a lasting impact.”
Story | Keshav Krishna Infographic | Jonathan Yin
688
Credit Score
This is a number assigned to each individual that determines their creditworthiness. Lenders use it to estimate how likely that person would be to pay back a requested loan. Scores range from 300-850. This score is based upon your credit history and your credit report.
Debit Card
This plastic card connects directly to your checking account. With this card, you can pull funds directly from your checking account to make a purchase.
xxxx xxxx xxxx
Credit Card
x
xxx xx
This plastic card is issued by a financial institution, and allows you to make purchases up to a certain amount and pay back that amount at a later date with interest, calculated on any amount not paid back within a month of purchase.
Interest
Interest is a percentage of how much you borrow or deposit that is paid regularly. When you take out a loan, you’ll not only owe the loan amount back to the issuer, but also an additional percentage of money. In addition, banks will pay interest on any money you have deposited.
Principal pay to the order of
$
In the context of a loan, the principal is the initial amount issued to the borrower, not including any interest owed during repayment. If you take out a loan for $10,000, the principal amount is $10,000.
Source White Rose Credit Union
Personal Finance | 11
ECONOMIC RELIEF
Paycheck protection program Smaller businesses are more aversely affected than larger ones by fluctuations in the economy. This program acts as a life jacket for these businesses, helping them remain afloat throughout tumultous times.
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T
he paycheck protection program, Though there was a bit of confusion frequently referred to as a PPP in the early stages of establishing the or PPP loan, is a government principles of the loan, the requirements program designed to lend up to $349 for complete forgiveness are also rather billion in forgivable and tax-free loans simple. All that is needed is to show to small businesses during proof that the funds from the COVID-19 pandemic. this loan have been used to Evident in the title, the main cover payroll costs, mortgage purpose of these loans is to interest, rent and utilities supply small businesses with (incurred before February 15, adequate funds to cover all 2020), and that employee and payroll costs, including: salary, compensation levels have been wages, commissions, tips, maintained. Because of these Scott Brachmann employee benefits (costs for easily fulfillable requirements, ABCORMENTS paid time off [PTO], parental, a plethora of small businesses family, medical, or sick leave) around the country took and severance pay. Enticing as this offer advantage of this offer to stimulate their may be, the most intriguing part of this business during the COVID-19 pandemic, program is the low tax rate, a 1.00 percent many of these businesses being just fixed rate over 5 years, and the ability around the corner from St. Mark’s. to get full forgiveness on the loan, thus However, this loan and the effectively making it free money. distribution of it was not as simple as the
program made it sound. Scott Brachmann, CFO of ABCOMRENTS, a computer rental company, believes “the rollout of the program was beset with confusing and ever-changing rules and definitions — some of which were still never made clear — from the Small Business Administration (SBA), making it very difficult to complete the loan forgiveness application for some companies. It’s difficult to manage a process when the goal posts always seem to be changing.” In a manner fitting to the times, the requirements for the application, the actual amount of the loan, and the requirements for full forgiveness were constantly changing. These changes were also very hazy as the SBA dealt with the same problems that all other businesses were faced with. Yet even with these downsides and complications, both the Preston Hollow
Presbyterian Church and Studio Movie Grill wound up receiving $350,000 and $10 million respectively. With these added funds, Studio Movie Grill was able to retain over 500 jobs at their various locations around the Dallas area, clearly portraying the positive effects of such a loan. The PPP loans allowed over 5.2 million small businesses to experience a hint of normalcy in a year where furloughing and terminating employees was far too common.
Story | Max Vafa Photo | Evan Lai
Personal Finance | 13
STOCKS
On rise
the
As the stock market rallies after a turbulent year, certain stocks remain more deserving of attention than others. Here are a few to keep track of. At the end of 2020, the S&P Growth Index finished with a 33.5 percent total return. Millions of people earned an influx of money from the variety of investments they made. However, though the S&P Index grew at an astronomical rate, there were still some stocks that outperformed it and garnered even more growth. The following stocks are among the best up-and-coming stocks in today’s stock market.
Etsy P/E: $75.18 EPS: $2.69 OCF: $678,956
Etsy [ETSY]
100 shares of Etsy bought at the beginning of 2020 and sold at the end of 2020 would have made about $13,000. This e-commerce company is in a league of its own, with its main focuses on selling hand-made crafts and other materials. Over the course of the third quarter of 2020, Etsy’s sales had about a 128 percent quarter-over-quarter growth. Etsy continues to grow with an EPS of around $2.88, a profit margin of 20.24 percent, and an operating margin of around 24 percent.
Amazon [AMZN]
With the click of a button, you can get anything you want from a new skateboard to a book about investments in a matter of days. That is the standard that Amazon has set over the past decade. From 2010 to 2020, Amazon’s price per share increased by over 2,200 percent. Amazon has been the best stock to invest in for a very long time, and it continues to be the stock to buy today.
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P/E: $72.96 EPS: $41.83 OCF: $66,064,000
Shopify [SHOP]
Shopify is an e-commerce company that serves as a bridge between retail stores and consumers all over the world. Because of the COVID-19 pandemic, more people have turned towards this platform, giving Shopify a very high market capitalization at around 159.7 billion dollars. Because of all of this attention, it is no surprise that Shopify’s metrics skyrocketed in the third quarter. With over 97 percent total growth from the previous quarter, Shopify maintained a steady cash flow and increased their price per share by over 176 percent over the past year. Expect this company’s price per share to continue to increase as more and more people turn their attention to this great buy.
P/E: $411.28 EPS: $2.59 OCF: $424,958
Disney [DIS]
P/E: ($67.85) EPS: ($2.74) OCF: $6,091,000
The Walt Disney company is one of the largest media conglomerates in the world and has been hitting 52week highs every other day. Their influx of market capitalization (at around $350 billion) is a result of their new streaming platform, Disney Plus. This revenue segment alone accounted for 40 percent of their total revenue in 2020, according to their 10k, and proves to investors that Disney will adapt to whatever situation faces them. Though Disney’s metrics are a little extreme – with a 51.97 EV/EBITDA, a negative operating margin, and a high debt-equity ratio – they have tremendous upside. Their beta metrics lie at around 1.09, showing their lack of volatility and ability to garner much more profit.
As the stock market is incredibly volatile, the above references an opinion and is for information purposes only. It is not intended to be investment advice. Please consult a duly licensed individual for professional investment advice.
Opinion | Rishab Siddamshetty Infographic | Jonathan Yin, Axel Icazbalceta
Personal Finance | 15
Section II — Coronavirus Impact
The wide-ranging impact of the virus has already been extensively analyzed, but many overlook the local effect on small businesses. This section details how communities far and wide have been affected by the pandemic. 16 | The Lion’s Share
The Toll of COVID-19
18
The 20 Oil and Gas Industry The Global Crisis
22
Tipping the Scales
28
The Rise of Crypto
30
The Responses
32
M
STOCK MARKET
any people have passed away, leaving families alone. Many have lost their jobs. One in every six stores has had to close down. However, one of COVID-19’s biggest victims has been the stock market: once the virus started to spread, the market plummeted, putting millions of people in debt. Companies and businesses were required to stop their operations to prevent further spreading of the virus. Because of these precautions, supply chains were affected, unable to keep up with customer demand. Since companies could not produce as much product as needed, their business models would not remain profitable, forcing businesses to lay people off and cut excess costs. Unfortunatley, with a smaller workforce, production lines became shorthanded, generatining more disparity between supply and demand, creating a vicious cycle. Another factor to consider is the fear of the unknown. Even today, the market takes turns that are difficult to understand and predict, so people are more hesitant to invest their money. This lack of investment leads to an increase in market volatility resulting in more outstanding shares; then companies’ stocks begin to fall, and the market starts to plummet. A bear market begins, and within an instant $400 worth of shares is reduced to $200. The COVID-19 financial crisis was especially unique: it took the highest toll on companies around the world. On February 14, 2020, the DJIA (Dow Jones Industrial Average) was at a relatively high value (29,398.08 points). However, just a month later, the DJIA dropped to an astonishing 19,173.98 points, comparitive to levels back in 2017. This of life from drop is one of the largest declines in the market’s the stock market history, rivaling the 2008 financial crisis. This severe decrease provoked a frenzy among investors; people began to withhold their money, further digging themselves down a deep hole. Hedge fund managers, analysts, and other financial professionals were not able to comprehend the circumstances. However, based on various companies’ metrics, the true consequences were far worse than predicted. Every four months, companies are required to file a 10Q, a quarterly
THE TOLL of COVID-19 The pandemic aversly affected all aspects social gatherrings to education. Similarily, experienced severe consequences.
Story | Rishab Siddamshetty
18 | The Lion’s Share
report that describes their earnings, organizational structure, goals, and other financial metrics. In the first quarter — when the pandemic began — global companies finished down 22% from the previous quarter (Q4 of 2019). This metric illustrates the magnitude of the pandemic’s ill effect on the U.S. Amazon, one of the largest tech conglomerates in the world, has been considered one of the best stocks to invest in for the past decade. They have had monumental success and growth, with their stock increasing by 2321.15% over the past decade. Because they have their foot in every industry, Amazon seemed impervious to any radical shifts within the market. In February of 2020, the Amazon stock was, as always, breaking barriers and reaching 52-week highs almost every other day: keep in mind that on February 14, 2020, Amazon’s price per share was approximately $2,143.97. People believed in the company. However, the “unbeatable” Amazon fell prey to the raging pandemic as well, hitting $1,785 on
“The COVID financial crisis is especially unique: it took the highest toll on companies from around the world.” Rishab Siddamshetty Section Editor
March 13, 2020 (a 9% drop). In terms of volatility, the stock market has always been somewhat challenging to predict. By using various metrics such as liquidity ratios, profitability margins, activity efficiency percentages, and capital structure correlations, financial experts are usually able to judge how the market will do, but that was not the case for COVID-19. Throughout 2020, each industry saw a dramatic increase in beta, a measure of a stock’s volatility in relation to the market as a whole. For example, if a stock has a beta of 1.25, that stock would see a 1.25% change for every 1.00% change in the market (high volatility means that stocks are much riskier). Overall, the coronavirus has had devastating effects on the market. Luckily, as the pandemic begins to wane, everything is starting to return to normal. Even though much uncertainty remains, one should look forward to a positive future. Only then can the bear market transform into a bull market.
Beta
The volatillity of a security or portfolio compared to the market as a whole. Beta estimates risk — higher beta values indicate shakier investments.
Source Investopedia
Coronavirus Impact | 19
ENERGY
THE Oil & gas INDUSTRY
VOLATILE MARKET During the COVID-19 pandemic, oil prices fluctuated wildly, wreaking havoc in the economy. In April, prices fell to record lows — just $8.91 a barrel.
After a rocky 2020 greatly affected by the COVID-19 pandemic, the oil and gas industry is in the process of recovery. However, it is unlikely to return to full strength in this post-pandemic world.
P
rior to COVID-19, the oil and gas industry was already suffering because of a price war between Saudi Arabia and Russia that created a breakdown in dialogue between the Organization of the Petroleum Exporting Countries (OPEC) and Russia. In April, COVID-19 drove the industry prices and demand to a record low since 1986. For example, West Texas Intermediate (WTI) spot prices fell to as low as $8.91 a barrel. The oil and gas market was especially affected by the pandemic because of the global economic shutdown that occured, causing significant drops in demand and large spikes in unemployment. According to Corson Purnell ‘15, an intern at United Energy Trading, “In theory, this period of the oil and gas business cannot be compared to any other. Crude oil went negative for the first time in trading history in April. This was a shock to a lot of traders who feared massive selloffs. So although it has never been that bad before, it is certainly and definitely possible to be that bad again in the future.”
Especially with the emerging importance of clean energy, oil and gas businesses are bound to endure similar tough times. With the possibility of demand and supply shocks potentially occurring more in the future, proper procedures need to be put in place in order to mitigate losses and keep the market stable. Alex Korngut, Senior Consultant at Forensics Technology Insitute, talked about how to deal with this new era of oil and gas: “I think the key is to be adaptive and flexible. 2020 (between COVID-19, racial injustice protests, wildfires, the chaos that was and is the presidential election, etc.) has proven that you have to be willing to make adjustments on the fly. Almost on a whim, oil and gas companies had to drop their drilling plans and pivot to near “blowdown” capital programs (i.e., no drilling). Thousands were furloughed or laid off from companies that previously never would have thought about doing that. However, companies that implemented furloughs and layoffs realized they had no choice
and went against their established norms to survive. That willingness to be adaptive and flexible is the key.” With a robust and flexible infrastructure, a company can easily adjust to a volatility market. Looking ahead, 2021 oil demand is expected to recover strongly but remain lower than it was at pre–COVID-19 levels. Even though the oil and gas sector is used to the highs and lows of economic price cycles, this downturn seems unlike any other. In fact, it’s the “great compression” of the oil and gas industry. With the survival of many companies at risk, and the longer-term decline in petroleum demand, the next decade could look very different for the entire oil and gas market. 2021 will either be a leapfrog year or a test of endurance.
Story | Mac Mackenzie Photo | Hayward Metcalf Infographic | Jonathan Yin
West Texas Intermediate (WTI) Spot Prices per Barrel $65.00 $60.00 $55.00 $50.00 $45.00 $40.00 $35.00 $30.00 $25.00 $20.00
May 2019
April 2020
May 2021
Coronavirus Impact | 21
The sky isn’t always blue. Throughout history, financial disasters like the Great Depression and the 2008 housing crisis have shaken the very foundation of this nation’s economy.
How has the pandemic affected us?
22 | The Lion’s Share
THE GLOBAL CRISIS
BIG Picture the
To many students today, economic disasters of the past remain difficult to contextualize. How does the pandemic compare? Story | Pranay Sinkre Infographic | Jonathan Yin Photo | Drake Elliott
24 | The Lion’s Share
1929
Lulled into a false sense of security by the booming economy of the Roaring 20’s, Americans grew over-confident. Rampant over-borrowing and the lack of proper safety measures created the perfect storm: within the span of just 24 hours, the nation was plunged into the Great Depression. “How can you frighten a man whose hunger is not only in his own cramped stomach but in the wretched bellies of his children? You can’t scare him — he has known a fear beyond every other.”
John Steinbeck
The Grapes of Wrath
T
he Great Depression stemmed from a compound of agricultural calamities, a decrease in consumer spending and a loss of faith in the financial sector. With over 40 billion dollars lost, the Great Depression altered all aspects of American life. One in every four Americans was unemployed, the economy shrunk by half and nearly a third of banks throughout the country failed. However, depressions like these do not happen over a few weeks; a foundation of negligence and ignorance is required. Effectively nonexistent government oversight allowed and encouraged Americans to make risky decisions that jeopardized the security of the country’s financial sector, ultimately resulting in what is known today as the Great Depression. To maximize profits, buyers began to buy on margin. Essentially, that allowed American citizens, banks and companies to buy stocks with borrowed money at a fixed interest rate. Stock buyers could now purchase more stock with less money. The benefit of buying on margin is that a buyer can purchase more stock and multiply his profits while only having to pay interest on the loan. But when stock prices tank, the profits that would go towards paying the interest of the loan do not exist anymore. The same way buying on margin multiplies profits, it also amplifies losses. This combination of a belief that stocks only go up and brokers agreeing to loan more and more money without proper safety measures in place created a perfect storm: when stock prices plummeted, Americans that bought on margin could not pay back their loans,
lenders had no way of getting their money back and Americans that had put their money in banks had no way of retrieving their deposits since the money had been loaned out to others. This domino effect crippled the US economy as the stock market began to plummet, plunging the nation into a deep recession. Increasingly riskier loans and purchases were a major factor in the initial downfall, but the longevity of the crash was caused by government inaction. At the time, the federal government had a laissez-faire attitude towards the stock market: they had no intentions of stepping in, allowing the unbridled dog-eat-dog capitalism of the economy to manage itself. While this stance did have its benefits, allowing companies to grow at uprecendented rates, it proved incredibly disastrous. When the country was in dire need of financial assistance, purposeful negligence on the behalf of the Hoover administration further allowed the Great Depression to spiral out of control, plunging millions into debt. But as FDR assumed power, his plan to increase government spending grew the economy and drastically decreased unemployment. However, concerns about adding to the national debt, coupled with anti-communist sentiment, catalyzed widespread backlash, plunging the country back into a recession until increased military spending during World War II. As a result of this spending, in conjunction with America’s newfound international power, the nation’s economy began to flourish once again. As a further safeguard against another Great Depression, FDR enacted a series of bills, ushering in a new era of American dominance in the global economy.
2008
With banks indiscriminately handing out mortgages during a time of rising housing prices, companies validating housing stocks were incentived to give fake triple ‘A’ ratings to subprime stocks, drawing in unwary buyers. When this bubble finally popped, the house of cards that had been built crashed spectacularly. “The whole housing market is propped up on these bad loans. They will fail... It’s a time bomb.”
Michael Burry
The Big Short
M
uch like the Great Depression, the foundation of the 2008 housing crisis was set by a decrease in financial regulations and a baseless confidence in the security of the financial sector. The Great Recession began and ended with mortgages — before the crisis, people with low credit scores were never issued mortgages; banks feared that those people could not be trusted and they would not pay their mortgage off. Therefore, most mortgages did not default and were paid off in time. However, banks wanted to earn more money than just the interest they were receiving from mortgages and decided to sell mortgages to third parties that would then package hundreds of mortgages into one mortgage backed security (MBS). Investors believed that they could get a higher return from a mortgages’ interest rate payments, and began to purchase mortgage-backed securities from companies like Morgan Stanley, Merrill Lynch and Lehman Brothers. The idea of a mortgage backed security is essentially a more specific collateralized debt obligation (CDO). In theory, loans and their interest payments would be secured by major financial institutions, and investors would be allowed to buy shares in that pool of loans. MBS seemed like a safe investment with a relatively high return because banks were only offering mortgages to those with high credit ratings. Even if borrowers defaulted on their mortgage, the house could be sold for a higher price and money could be made on that purchase. Demand for this seemingly safe investment skyrocketed. To compensate for the shortage, companies needed banks to produce more mortgages, and the only
way to achieve that was by lowering the requirements for a mortgage. These mortgages were called subprime mortgages because they were lent to citizens with low credit scores, thus lowering the reliability of a mortgage. Some lenders even began to engage in predatory lending practices that would offer affordable, low interest rates at first, but then skyrocket to obscene monthly payments as time went on. Common sense questions why lenders actively created risky mortgages that had a lower chance of being paid back. However, banks did not make money off of the interest payments: they made money off of whether they could sell a mortgage or not. It was not their job nor their responsibility to determine whether the mortgages were safe or not. continues on page 26
Nasdaq-100 during the Great Recession
90% 80% 70% 60% 50%
2007
2008
2009
Coronavirus Impact | 25
continued from page 25 That job fell on credit rating agencies like Moody’s Investors Services, Standard and Poor’s and Fitch Ratings. The irony of this process stems from the fact that rating agencies are paid by the company they are rating: an obvious conflict of interest that was somehow overlooked. The presumption was that rating agencies would be impartial, but agencies quickly realized that more companies would request ratings if the agency had a history of giving AAA ratings, the safest rating possible. Rating agencies claimed that AAA ratings were given out because MBS were historically safe investments, but they would soon be proved false. These ratings deceived lenders and caused Americans to lose millions of dollars through these supposedly safe investments.
“Common sense questions why lenders would actively create risky mortgages that had a lower chance of being paid back.”
When the housing bubble eventually popped, the entire financial sector collapsed. Americans who could not pay or realized they were paying too much for their house defaulted on their loans, and those supposedly safe MBS dried up
overnight. More and more houses went on the market and supply began to skyrocket. The idea that even if borrowers defaulted, lenders would still have a valuable asset was not true anymore. Financial institutions began to cease the purchase of subprime mortgages, and lenders now had to bear the burden of terrible loans. This lack of interest payments on mortgages forced major lenders to declare bankruptcy. The house of cards that was the 2008 housing market had finally collapsed, and the American financial sector was heading towards another recession. Fortunately, the government stepped in and began to bail out banks that had gone under. Nearly 250 billion dollars was used to shore up bankrupt financial corporations, but millions of Americans had lost pension, retirement and other funds as a result of the crisis . Again, America found itself in an unnecessarily severe financial crisis that could have been avoided if the financial sector was kept in check. The government passed the Dodd-Frank Law, which aimed to hold financial firms accountable and prevent banks from making unnecessarily risky loans. Looking past the 2008 crisis, major financial institutions still make unethical decisions in the pursuit of profits, but congress seems to take a more active role in limiting the freedoms that firms enjoyed in 2008.
Quantified | Money Lost During Major Recessions 1929 Stock Market Crash
$629 billion
2008 Great Recession COVID-19 Pandemic
$16 trillion represents the projected impact of the COVID-19 pandemic. Values have been adjusted for inflation.
26 | The Lion’s Share
$20 trillion $16 trillion
Sources Encyclopedia Britannica, The Harvard Gazette
Source White Rose Credit
2019
With unemployment rates skyrocketing as businesses across the nation shut down over safety concerns, millions of Americans felt the impact. While companies have largely adapted to this new world, many citizens continue to face financial insecurity. “This pandemic has magnified every existing inequality in our society — like systemic racism, gender equality and poverty.”
Melinda Gates
Bill and Melinda Gates Foundation
U
nlike the Great Depression and Recession, the COVID -19 crisis was not the result of any action from the financial sector. An unprecedented pandemic paralyzed all facets of the world economy — prolonged quarantines in a multitude of countries prevented people from going to work, businesses from earning revenue and the economy from functioning efficiently. Unemployment reached 14.8% during April 2020 (the highest rate ever since recording started in 1948). The economy shrunk by 31.4% and the previously booming US economy came to a screeching halt. Luckily, the federal government and its respective appendages immediately acted to lessen the impact of a potentially severe recession. The federal reserve lowered interest rates in an effort to increase consumer spending and push the economy back towards equilibrium, and congress passed trillions of dollars in stimulus packages. Oddly, unlike in other financial crises, the stock market did not crash as much as expected. Analysts believe that this stems from the changing interconnectedness of the world. An increasing amount of the major players in the stock market are tech, media and telecommunication companies that do not rely on brick and mortar stores. The fact that a majority of their business is conducted over the internet dampened the effect on the stock market of a nationwide quarantine. Companies began shifting their workers on line, business that rely on foot traffic began operating at low capacities, and an increase in spending from both the government and citizens prevented the COVID-19 financial crisis from wreaking havoc on the US financial sector. While the economy has yet to fully fully recover from the pandemic’s devastation, it is safe to assume the worst
Union
has already happened. Unemployment rates are decreasing, the economy is picking back up, and expectations for the future are rising. However, concerns about unchecked inflation were immediately voiced as soon as stimulus funding was approved. Although society is yet to experience the aftermath of the actions taken to bolster the economy, the government has injected an unprecedented amount of money into the economy, and the federal reserve has kept interest rates low for an extended period of time. Speculators and cynics have already started to predict the downfall of the economy due to rampant inflation, but the future still remains unclear...
DESERTED Normally crowded lines lie empty at the Dallas Love Field International Airport. As a result of the COVID-19 pandemic, air traffic dropped by over 60 percent in 2020.
... only time will tell. Coronavirus Impact | 27
INEQUALITY
the g n i p p scales Ti Though the effects of the COVID-19 pandemic hurt all sectors of the American population, some groups were hit harder than others.
T
hroughout the course of the raging pandemic, all of us have witnessed its devastating effects. However, other people have had disproportionately severe experiences economically. These divides have occurred in race, age and income. First, minorities are more likely to be affected by COVID-19 from a health standpoint. African-American and Hispanic people are three times more likely to die from the virus as compared to white people. Many experts tie these disproportionate numbers to historic disparities in healthcare, housing and education. In general, during an economic crisis, people of color are more likely to sustain more damage than white people: that has been just the case in this recession. In the midst of the pandemic, about two times as many African-American and Hispanic people have had trouble paying rent and medical care, often forcing them to give up health insurance. In April, nearly 26 percent more Hispanics had trouble paying their bills than in a typical month, and 23 percent more Hispanics than white people had to take a pay cut. Similar to the likes of the health impacts, these significantly larger economic impacts can be drawn to the same historic disparities in housing, education and income. Around 70% of Black and Hispanic adults do not have the money to deal with the year-long impacts of COVID-19. Young workers have experienced more challenges as compared to their older counterparts. In 2019, 8.4 percent of workers under 25 years of age were
unemployed; this number increased to 24.4 percent during the pandemic. Workers older than 25 had unemployment rates rise from 2.8 percent to 11.3 percent. Because these younger workers are less experienced, they are more expendable during a recession, so the industries in which they work were affected the most. For example, many young workers had jobs in leisure and hospitality, which saw a major decline during the pandemic. Furthermore, only 6.7 percent of adolescents can work from home, which is very little when compared to the 30 percent of 25-to-34 year olds who are allowed to work at home. Finally, people with less income have been more severely affected by the pandemic. Medically speaking, the less income present, the more likely for a serious illness to emerge from contracting COVID-19. In addition, many lower-income workers who have jobs deemed essential are more likely to have worse health insurance, among other services. The growing wealth gap that has doubled since 1989 makes this recession even more difficult — in past recessions, more wealthy people have recovered, and less low-income Americans have recovered, further doubling the wealth gap.
Quantified
70%
Percentage of Hispanics and African-Ameicans unable to financially deal with the effects of the pandemic
24%
Percentage of employed made up by under-25s during the pandemic
11%
Unemployment rate for adults over 25 years old during the pandemic
Story | Akash Raghunathan Photoillustration | Evan Lai
Source Pew Research Center
Coronavirus Impact | 29
CRYPTO RISE THE CRYPTOCURRENCY
of
As COVID-19 left the global economy in shambles, one unlikely sector of the market was spared — in contrast to the rest of the economy, cryptocurrencies thrived throughout the pandemic. Why?
T
he COVID-19 pandemic has caused “Because so much of our lives are unprecedented losses in the global digital. It’s only a matter of time before economy, with many statistics our finances will also be digital,” said comparable to the Great Depression. CEO and founder of cryptocurrency The virus has left a swath of destruction hedge fund Plutus21, Hamiz Awan. “So throughout the American economy, anything that is more compatible with affecting everything from unemployment this digital future that we’re inevitably rates to the stock market. going towards is going to do well in an However, an unexpected victor has environment like this.” risen from the global recession, Since cryptocurrencies are setting records and reaching entirely digital assets, they are new highs — cryptocurrencies. stored in digital wallets rather As of early March 2021, the than banks or vaults. These most popular and successful wallets are accessible through cryptocurrency — Bitcoin — a private key — a unique has broken through its barrier code corresponding to each of $50,000, reaching a peak wallet — and can range from of over $61,000 per token. phone apps to physical flash Hamiz Awan The second most popular drives. With people growing Plutus21 coin, Ethereum, has similarly increasingly tech-savvy due to reached new heights, climbing the pandemic, digital wallets to a peak price of just over $2,000. In a have significantly jumped in popularity. year encapsulated by a global economic Awan believes that the sudden recession, how have cryptocurrencies, one increase in cryptocurrencies’ value can be of the most volatile investments in the traced back to the government’s response market, come out on top? to the pandemic. Many economists and investors are “35% of all the money that has ever pointing to the growth of digital life been printed in the US was printed in the amid the pandemic. As more and more last 12 months,” Awan said. “And we did people begin to work from home, attend that because we needed to support the meetings through Zoom and utilize hospitals, the people that had lost their previously foreign software, more people jobs and support government spending.” are becoming increasingly comfortable But as a result of the government’s with the idea of a digital wallet. expenditures, inflation has shot up to
30 | The Lion’s Share
ten percent. In response, companies and hedge funds alike have been buying hundreds of millions of dollars of Bitcoin as a hedge against inflation. With the US dollar becoming less and less valuable as the virus continues, people are looking towards more stable alternative assets, such as gold and cryptocurrencies. The currency, initially infamous for its instability and rapid inflections, is now seen as more reliable than the USD. What does this mean for the future of our economy? Could cryptocurrencies oneday rival the stock market and become as reliable of an asset? Probably not. At its core, cryptocurrencies are a decentralized and unregulated market, meaning that they will likely never be able to rival larger markets. What is more important about cryptocurrencies, however, is the technology and security that they offer. The blockchain technology associated with cryptocurrencies can bring forth a new era of tech privacy, especially in private transactions. In a time where online privacy is becoming extremely important, much can be learned from cryptocurrencies.
Story | Blake Molthan Infographic | Axel Icazbalceta
At a Glance
Today’s most popular cryptocurrencies — explained Source CoinDesk
Ethereum
1 ETH = 2,706.59 USD
As opposed to Bitcoin, which serves as a currency, Ethereum runs smart contracts. These smart contracts allow individuals and parties to carry out safe, secure agreements without the structures of government, laws, and police to safeguard the sanctity of the contract.
B
D Dogecoin
1 DOGE = 0.42 USD
Bitcoin
1 BTC = 37,686.15 USD
The biggest currency on the market, Bitcoin was also the first to record transactions on a blockchain network. Bitcoin was launched in 2008 by Satoshi Nakamoto, a pseudonym used by the creator of Bitcoin, who may be a single person or a group of people. To try to maintain the value of the currency, only 21 million bitcoins will ever be created. This mechanism should counter the inflation that is sometimes faced by paper fiat currency.
Cardano
1 ADA = 1.75 USD
Litecoin
1 LTC = 186.40 USD
Ripple
1 XRP = 1.03 USD
Personal Finance | 31
COVID-19
the
RESPONSES
As the pandemic swept through the nation, Americans experienced a range of responses.
Texas
Texas’s COVID-19 response has fluctuated throughout the pandemic. As cases rose state, governor Greg Abbott mandated all Texans to stay at home, with the exception of essential workers and activities, although he never called it a stay-at-home order. The state first started reopening many businesses at 25% capacity at the beginning of May. Because cases and deaths had not increased for the month, mostly all businesses were open at 50% capacity by June. However, with more relaxed regulations, cases, deaths and case positivity rate jumped to record highs. Reopening rolled back at the end of June, but Abbott resisted a lockdown, citing economic concerns. Texas continued to see increases in cases and deaths throughout July, but in August, the rate of infection started to decrease. Then, in September and October, cases, deaths and case started trending upwards through the winter, breaking records yet again and forcing the return of local restrictions. Abbott opposed new restrictions and encouraged businesses to open up further. Texas dealt with the Great Recession better than most states in the United States due to its significant energy industry contributions. Unemployment went from 8.3% during the recession to 4.5% in February of 2020. Before the pandemic, the state saw an increase to 5.1% unemployment, and in April, 13.5%. From February to April, more than 1.4 million nonfarm jobs were lost. Although the state’s unemployment rate has been changing at a rapid rate, Texas has been slowly recovering jobs each month, with more than 800,000 back. As expected, months with spikes in COVID-19 cases saw significantly slower gains than other months. Just like New York, Texas’s initial lockdown caused significant job loss. Yet, unlike New York, Texas’s premature repoenings allowed cases and deaths to rise again multiple times. This in turn caused unemployment rates to fluctuate, leading to the uneven changes in the recovery of jobs. Despite this, the road looks bright ahead as the pandemic finally begins to wind down.
32 | The Lion’s Share
Story | Akash Raghunathan Infographic | Jonathan Yin
New York
COVID-19 heavily impacted New York because of the early influx in cases at the beginning of the pandemic. Governor Andrew Cuomo explained that New York took the first hit owing to cases coming from Europe, not China, and he criticized President Donald Trump for not instituting a travel ban on Europe earlier, as New York already had over two hundred cases prior to the implementation of the new regulation. On March 22, Cuomo mandated all non-essential businesses to close and New York entered a lockdown. Over the next 100 days, he sustained the lockdown, thereby reducing the cases and deaths but creating major economic losses, and in the second week of June, New York began to open in phases, but under strong control from the state government. Compared to other states, the Great Recession for New York was not as severe thanks to the federal government giving plenty of support in the immediate reaction to the recession. After unemployment numbers nearly reached nine percent during the Great Recession, the government instituted various programs to combat unemployment, including attracting and expanding businesses through tax benefits. In February of 2020, only 3.7% of New Yorkers were unemployed, a historic low since 1976. However, when COVID struck, the numbers spiked to 15.3% in April and then 15.9% in July. Close to 2 million jobs were erased. But as deaths mostly stayed in the single digits and the COVID case positivity rate (the percent of tests conducted that come back as positive) dropped to nearly one percent, unemployment numbers began to drop, reaching 8.4% unemployment in a preliminary report for November.
Since April, New York has been consistently recovering jobs, and as of the November preliminary report, over 900,000 of those 2 million jobs erased due to the pandemic have been recovered. It is clear that the state’s economy has somewhat been revived as businessess open their doors after
Coronavirus Impact | 33
Section III — Business Insights
Many industrious individuals have been able to adapt to these difficult times, launching their own ventures. But what makes a successful business? This section focuses on student-lead organizations and start-ups and what makes them tick, as well as responsible business practices to consider. 34 | The Lion’s Share
The High School Filmmaker
36
Humanity’s Responsibility
38
The Buckner Project
42
Key Terms
44
PASSION Over the pandemic, Hussain created his own business, utilizing his filmmaking skills.
SCHOOL STARTUP
HIGH SCHOOL FILMMAKER
the
While the world reeled from an economic crisis, one sophomore found a way to pursue his passion through an entreperneurial venture. The following are excerpts from an interview with filmmaker Sal Hussain. Rishab Siddamshetty: What inspired you to start your business? Sal Hussain: I’ve always wanted to be independent and figure things out on my own, which includes working with people in the industry. Every project brings into light a different struggle that I have to go through. For instance, every wedding video is different from the other, just as car videos and advertisements are. I’ve also wanted to learn more about money and — more importantly — the value of work in general. RS: Describe your business. How does it work? SH: So I’m what’s usually referred to as a freelancer. I don’t have a manager and I don’t work for someone, which means I either have to find opportunities or create them, which is why a lot of the time my work is sporadic. Usually, someone will come to me with a creative vision and talk to me about some of the ideas they have. My goal isn’t necessarily to complete their vision, but our vision. The hard part about the business — believe it or not — isn’t the money and the budget, but it’s selling yourself. So after talking with a client for a little while — and getting a better understanding of the gravity of the project — I’ll leave it for a couple days and think through a price, then I’ll send them a contract that we both sign on. Unfortunately, it’s not entirely about talent
or actual skill, craft and storytelling: it’s about selling yourself and legitimizing yourself. RS: Has COVID-19 influenced your business in any way? If so, how? SH: In some ways COVID has helped — COVID has indirectly ushered the digital era even more so. Businesses have adjusted and moved online — of course, the ones who were big enough to last — meaning the demand for videos and micro-content has gotten up. Last summer was my first real experience with the real world. In a span of two months, I had shot my first two music videos and my first wedding video, both of which seemed pretty daunting at first. Maybe when COVID is over I’ll have more opportunities. I used to really enjoy filming events but that hasn’t been possible with COVID. RS: What have you learned from your experiences? Advice? SH: If you set your goals ridiculously high and it’s a failure, you will fail above everyone else’s success. Over-ambition can kill you sometimes, but it’s a blessing in disguise. I’ve missed out on a couple of opportunities just because some of the potential clients went with other people. A little while ago, even months, I would dwell over it and it usually deterred me, but as I did more projects and gained more confidence in myself, I used the clients
who didn’t use me as fuel to outperform on the next project. I kinda force myself into that thinking so that I can always remain hungry for opportunity, no matter where I stand in comparison to others. It can be especially hard in the industry when everyone is a lot older than me; it’s kinda like standing up in a crowd when everyone else is sitting down. The first and second and even third time you’ll feel really uncomfortable, but eventually you’ll get used to being kinda weird, or yourself. That’s what I’ve learned. To be myself regardless of the situations, and to really just bet on yourself when no one else will, and that it’s completely okay to fail. RS: Future plans? SH: I honestly don’t know. Going to a school like St. Mark’s — where it’s super STEM-oriented — it’s hard to make the decision of chasing fine arts. Right now, I just want to keep all my options open. I don’t think it’s ever too late in life to do anything, but sometimes it can be too early to do something, like not trying again with other subjects. My goal with this business is to learn about myself and other people, and to gain confidence in myself. My focus is building my brand right now, and then eventually, hire others, teach them and create a team of my own.
Interview | Rishab Siddamshetty Photo | Courtesy Sal Hussain
Business Insights | 37
38 | The Lion’s Share
Few issues affect all facets of our daily lives. Few issues threaten all living species on Earth. Few issues are as pressing as the one we all face today:
Climate change.
A
Call to Action
In the face of rising environmental crises, today’s youth have been presented with a myriad of challenges. What must be done? Story | Aadi Khasgiwala Infographic | Jonathan Yin Photo | Jake Robinowitz
40 | The Lion’s Share
C
limate change poses a threat to all life on Earth, creating a global issue. Today’s youth play a crucial role in mitigating this issue through limiting meat production, recognizing renewable energy as a viable option, implementing utilitarianism in climate change’s context and taking the time to educate themselves about the effects of global warming. Climate change decimates species, eliminates water supply for millions of people and depletes the Earth’s resources, yet it also presents an opportunity for today’s youth to take action. Controllable problems like greenhouse gas emissions, water contamination and deforestation can be solved with an entire generation’s growth mindset. Our indulgent exploitation of fossil fuels for food production, the energy industry and transportation implore youth around the world to fight for environmental longevity. One of the main interests in reducing climate change involves renewable energy. The United States reduced its energy dependency on the Arab League by increasing domestic production of natural gas and oil. Methods of increasing oil and natural gas production, such as hydraulic fracturing, negatively impact the environment by wasting water, eroding roads, destabilizing soil structure and emitting carbon dioxide, nitrous oxide and methane, which are all greenhouse gases. Conversely, renewable energy sources will fuel economic growth by driving energy efficiency. While renewable energy costs more than coal, prices for solar modules, wind power and hydropower are declining. Our generation must realize and encourage the reallocation of funds toward clean energy. In pushing for environmental conscience and commitment, the main opposition revolves around a multifaceted economic issue: although the development of renewable sources results in a decline in renewable energy prices, phasing out multi-billion dollar energy industries could devastate thousands of workers.
For example, three years after fracking commences in a community, the community reaps an average of $400 million worth of natural gas and oil. After three years, the employment rates, total incomes, and average salaries all increase by up to 11 percent. The average income in a community benefiting from fracking increases an additional $2500 per household, equivalent to a 4.9% net gain. These statistics support that fracking bolsters the foundation of communities because of its profitability. While this economic gain is beneficial, the information emphasizes the benefits of fracking, failing to mention the quality of life in these communities. This question between lifestyle and monetary gain presents a crucial point of opposition regarding the economy and the environment. In reality, the quality of life declined immensely. The destruction of vegetation, soil displacement, noise pollution, road erosion and water contamination pose a tremendous threat to these communities. During fracking, the frac mixture consists of water, various sizes of fine sand and a host of chemicals that facilitate natural gas extraction from the crevices of shale deposits. Inevitable leakage of this hazardous fluid contaminates local water supplies that provide water for other uses. This danger causes a ripple effect through fracking communities. Instead of resorting to this flawed source of energy, governments and investors must recognize that energy efficiency creates more jobs; therefore, it helps the economy and does not work against it. Because more jobs are created per dollar invested in the energy efficiency sector, transitioning to efficient energy sources has proven to lower unemployment rates. For example, China hosts the largest number of energy service companies (ESCOs) in the world. An estimated 652,000 jobs in China emerged from ESCOs. Three types of jobs stem from
Quantified ESCOs: direct jobs, indirect jobs and induced jobs. Direct jobs come from the workers needed to implement different energy-efficient technologies. Over one million energy-related jobs in the United States fit into this category. The number of direct jobs produced from energy efficiency already displays that the investment is viable. Indirect jobs come from an increasing demand for supplies regarding materials and technology required for expansion and manufacturers may need to hire more employees to keep up with the demand. Because people inevitably save money because of reduced energy bills, induced jobs come from the “excess” money spent on education, health and other lifestyle expenses, directly correlating to money spent in the energy efficiency industry. These different types of jobs contribute to creating a more productive marketplace, demonstrating that energy efficiency both helps the planet and the economy.
“The foundation of solutions revolves around dedicating oneself to the pursuit of understanding the climate crisis at an intricate level.” Aadi Khasgiwala Section Editor
Utilitarianism, the belief that the well-being of the greater good has more value than that of the individual, must encompass the ideology of today’s youth to effectively reduce climate change through education and awareness. In the age of social media, most youth simply “repost” the information of another account. Because Gen Z and millennials lead the world in social media use, we must promote the value of researching topics before posting information. Suppose each person who posted about COVID-19,
climate change, or the black lives matter movement apportioned 10 minutes to read primary sources about the topic and gather information from unbiased, reliable sources. In that case, social media could transform into an increasingly positive resource advocating for informed actions by its users. In addition to verifying information, today’s youth must bolster efforts to alleviate climate change effects by investing in electric transportation and conserving water in daily life. Today’s youth should strive to contribute to the benefit of a greater society. With this purpose in mind, a generation founded on the principles of deferring immediate gratification for future rewards will develop. For example, shortening a shower by two minutes does not seem like much, but if the one thousand students at St. Mark’s each shortened their shower times by just two minutes, over 4000 gallons of water could be saved in one day. It is this simple mindset of utilitarianism that we must embrace. The foundation of solutions revolves around dedicating oneself to the pursuit of understanding the climate crisis at an intricate level. Fostering the desire for students to think creatively and independently allows a broader sense of achievement for youth. Students must learn to think outside the box, challenge conventional wisdom and seek knowledge to educate themselves, thereby raising their own and society’s collective awareness to solve problems. Each person must contribute to the global effort of reducing climate change, whether it be conserving resources, researching environmental topics, investing in renewable energy, or even just taking a shower for two fewer minutes...
.32°F Since 1981, the Earth’s combined land and ocean temperatures have risen at the rate of .32°F (.18°C) each year.
4000 gallons If each student at St. Mark’s shortens their shower by just two minutes, over 4000 gallons of water can be conserved in just one day.
1,000,000 Over 1 million jobs in the US directly stem from ESCOs, a number that has been growing exponentially in conjunction with the rising popularity of environmentally friendly energy sources.
... the choice is in our hands. Business Insights | 41
T
NON-PROFIT
the
BUCKNER PROJECT In the middle of the COVID-19, sophomore Shreyan Daulat started a project to teach DISD students virtually.
he Buckner Project, a project developed by Shreyan Daulat and some of his friends, has really made an impact on the lives of many young DISD students. Through this project, he has been able to create videos since the summer of 2020 to give young students fun, educational, videos in these tumultuous times. This project has been creating all kinds of educational videos, such as videos about core classes, financial literacy, civics, environmental education, stem and health awareness. This project was started because of COVID-19, but it has really shown Shreyan and DISD students that education and learning can surpass whatever obstacles may appear. This is because – before the COVID-19 pandemic – the past 2 to 3 summers, Shreyan has been spending time working with an after-school program for DISD, helping these kids with homework and teaching them about important subjects. The Buckner Project was developed to solve issues caused by the COVID-19 pandemic and has already amassed a group of 80 volunteers from a number of different schools. The Buckner Project has been a great success so far, and Shreyan already has big plans for the future, such as expanding into other schools, improving the quality of the videos and starting a website to help the expansion of this project. Shreyan recommends that all younger students should find something they are passionate about and that he learned helping the younger generation is fun. Shreyan goes on to say that finding like-minded people that also share the same passion is very important, and he looks forward to the future of the Buckner Project.
Story | Harry Wang Photo | Evan Lai
42 | The Lion’s Share
VIRTUAL LEARNING Shreyan and the Buckner Project use videos to teach their students. Here, Shreyan teaches with a video explaining density.
Key Terms the
Important financial terms and concepts — defined.
10-K
A report filed annually by a publicly traded company about its financial performance; reported to the SEC (Securities and Exchange Commission)
10Q
A report filed quarterly by a publicly traded company about its financial performance; reported to the SEC
C Cash Flow
The amount of cash (cash-equivalents) being transferred in and out of a company
52-Week High
The highest price at which a security has traded during a one year time period
B Bear Market
A market in which many stocks decline in value
Bull Market
A market in which many stocks increase in value
DJIA
The main stock index that tracks the 30 largest companies trading on the NASDAQ or the New York Stock Exchange
E EBITDA
Credit Score
A credit score is a number between 300–850 that depicts a consumer’s creditworthiness. The higher the score, the better a borrower looks to potential lenders
Cryptocurrency
Measure of a comapny’s overall financial performance and is used as an alternative to new income. These earnings are calculated before interest, taxes, depreciation and amortization
EPS
A digital form of money that is impossible to counterfeit
A financial metric which indicates a company’s potential profitability
Debt-To-Equity Ratio
Federal Funds Rate
D F A financial metric used to measure how much a company finances its operations through debt and through equity
Federal funds rate is the target interest rate set by the Federal Open Market Committee (FOMC) at which commercial banks borrow and lend their excess reserves to each other overnight
Financial Literacy
The abillity to understand and utilize financial skills in a real world setting
44| |The TheLion’s Lion’sShare Share 12
Source Investopedia
I
O U
Decline of purchasing power of a unit of currency
A group of the 13 major oil-exporting countries that coordinate petroleum policies and production
Inflation
Interest Rate
The amount a lender charges for the use of assets; typically denoted as a percentage
OPEC
Utilitarianism
The doctrine that actions are right if they are useful or beneficial for the majority
V
J S W M Operating Margin
Measures how much money a company makes on a dollar of sales
Volatillity
Measures the dispersion of returns for a security index (Range of change)
Junk Bonds
Bonds that carry a higher risk of default than most bonds issued by corporations and governments
Supply and Demand The laws that determine the market prices and volume of goods traded
Supply Chains
The network between a company and its suppliers to produce a final product
Market Capitalization Total dollar market value of a company’s outstanding shares of stock
War Bonds
A debt security issued by a governemnt to finance military operations during times of war or conflict. Because war bonds offered a rate of return below the market rate, investment was achieved by making emotional appeals to patriotic citizens
Mortgage Interest
The interest charged on a loan to buy a property
Business Insights | 45
In Closing
46 | The Lion’s Share
Team
48
Details
50
ad finibus TEAM 48 | The Lion’s Share
Editors-in-Chief Evan Lai ‘22, Pranay Sinkre ‘22 Managing Editor
Jonathan Yin ‘22
Section Editor
Aadi Khasgiwala ‘23
Section Editor
Rishab Siddamshetty ‘23
Copy Editor
Axel Icazbalceta ‘22
Webmaster
Evan Lai ‘22
Faculty Advisor
Mr. Harrison Tassopoulos ‘07
Staff Akash Raghunathan ‘23, Alam Alidina ‘21, Alex Geng ‘22, Alex Pan ‘24, Andrew Kogan ‘23, Anthony Wang ‘23, Bijaan Noormohamed ‘23, Blake Molthan ‘22, Dawson Yao ‘24, Harry Wang ‘24, Keshav Krishna ‘23, Mac McKenzie ‘22, Max Vafa ‘22, Michael Anderson ‘21, Michael Gao ‘23
In Closing | 49
the
ad pedem litterae DETAILS 50| |The TheLion’s Lion’sShare Share 12
Policy The Lion’s Share is an out-of-school extracurricular activity that works independently from the St. Mark’s School of Texas journalism program. In the first half of the year, staff members pitch story ideas, hold interviews, and write and edit stories. Then, the majority of the design process occurs late in the year. This publication is submitted annually to the Columbia Scholastic Press Association (CSPA) for evaluation.
Colophon The Lion’s Share website is hand coded using html and Webflow. The staff used Adobe InDesign, Illustrator, and Photoshop 2021 on 27-inch Retina 5K Display iMacs and personal computers to design the spreads. Typefaces include Gilroy and Perpetua MT for spread titles; Roboto Slab for drop headings; Inconsolata and Quasimoda for subheads, pull quotes, and bylines, and Palatino for body text.
Special Thanks Our utmost gratitude goes to Mr. Harrison Tassopoulos, our amazing faculty advisor, Mr. Ray Westbrook, our terrific journalism advisor, and Lee Cockrell of Cockrell Enovation, without whom this publication would not have been possible.
In Closing | 51
52 | The Lion’s Share
The Lion’s Share - Volume I 2020-2021
St. Mark’s School of Texas 10600 Preston Road Dallas, TX 75230 214.346.8000 www.thelionsharejournal.com