Wednesday, March 18, 2015

Investing in the Long Run

Ashton Keene
Mrs. Straub
Economics A1
17 March 2015
Investing in the Long Run
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If you’re searching for a way to thicken your wallet, look no further than your own two feet; running is the perfect solution. While it’s little shock that aerobic exercise improves your physical fitness, some might be surprised to hear that running can sculpt fiscal fitness, too. Last year, the sports company Mizuno  launched a campaign posing the question, “What if Everybody Ran?” To answer this, UNC Kenan-Flagler business students compiled research evaluating the effects of running, and applied them to an American demographic able and old enough to run. Statistics were calculated based on the participation in just 30 minutes of running per week, 52 weeks a year.  From serious matters such as sleep quality, to trivial ones like how much more pasta would be consumed (60 million pounds), the research spanned every possible outcome of a hypothetical nationwide running trend (Kane). The summarized findings can be explored in this virtual run graphic. Taking a closer look, we can evaluate these benefits at the individual level. Most of them can, in some form, translate into financial perks. Put simply, running can make you richer!

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Start by considering the most tangible effects of running -- the physiological ones. Running begets a multitude of health benefits: strong muscles and bones, cardiovascular health, lowered blood pressure,  healthy weight maintenance, stress reduction, more quality sleep, a boosted immune system, and increased longevity (Greenhalgh). From all these positive health effects, it can reasonably be deduced that running has the potential for a major impact on medical expenses. With the US now spending over $8,000 per person in annual health care costs, there’s a need for the health improvements that aerobic exercise can provide (“Health”). A  run or two each week would be a small price to pay if it meant less medical bills and fewer visits to the doctor’s office. A runner must think at the margin; if every run is another deposit into the bank of well-being, the cost and benefit of each mile should be considered. In addition to decreased medical bills, a stronger immune system means less sick days, which maximizes potential income.
After physical effects are addressed, the psychological benefits of cardiovascular exercise should also be considered. The mindset of a runner is one that is motivated and goal-oriented. A study by the International Journal of Workplace Health Management found that people who exercised were 27 percent more productive on that work day than those who didn’t. Increased productivity is just one mental byproduct of running. Other studies speculate that it sustains memory and cognitive function by combating the progression of age-related neural degeneration (Winker, Garcia-Mesa). While these things are all desirable on their own, they also have an impact on money. Being motivated and productive builds your human capital and makes you, to an employer, more profitable. In support of this, a study by Vastilios Kosteas found that, on average, employees who exercise regularly are paid almost 10 percent more than those who do not (Lipman).
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Perhaps the greatest thing about running is that it’s cheap recreation. Besides the initial investment -- a pair of sturdy training shoes --  there is no monetary cost to pursuing this pass time. Most roads and trails are public goods, so there is no fee and never any shortage to the places you can explore. In thinking of the trade-offs, it is difficult  to find a cheaper and more beneficial activity. Yes, you could be watching television, but that is significantly less stimulating, and cable costs money. Sure, you could be enjoying chat with a friend over coffee, but running with others provides the same opportunity to socialize for free.  Not only is running fun, it’s frugal!
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All things considered, it is evident that running provides more than just health benefits. Regular cardiovascular exercise has proven an immense facilitator of holistic well-being that improves quality of living, while the simplicity of the sport requires minimal funds. Just a few runs each week can be the gateway into financial prosperity.  That long run, in the long run, is money in your pocket.
Works Cited
Garcia-Mesa, Y. "Physical Exercise Protects against Alzheimer's Disease in 3xTg-AD Mice." PubMed.gov. National Center for Biotechnology Information U.S. National Library of Medicine. Web. 17 Mar. 2015.
"Health Care Costs 101." California Healthcare Almanac. California Healthcare Foundation, 1 July 2014. Web. 17 Mar. 2015.
Kane, Ellen, Jessica Newfield, Chris Campbell, and Deepak Gopalakrishna. "What If Everybody Ran?" Mizuno USA. UNC Kenan-Flagler Business School, 7 July 2014. Web. 17 Mar. 2015.
Lipman, Victor. "New Study Links Exercise To Higher Pay." Forbes. Forbes Magazine, 8 June 2012. Web. 17 Mar. 2015.
Greenhalgh, Andy. "The Benefits Of Running | The Research Continues." MyRunningTips.com. Web. 17 Mar. 2015.
Winker, Robert. "Cognitive Function in Elderly Marathon Runners: Cross-sectional Data from the Marathon Trial (APSOEM)." PubMed.gov. National Center for Biotechnology Information U.S. National Library of Medicine. Web. 17 Mar. 2015.

18 comments:

  1. This comment has been removed by the author.

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  2. This is a great topic! I completely agree with your argument and I think you provide a lot of sound evidence about the positive effects of running. It's interesting how much money 30 minutes of running a week can save you. Of course, it can cost you a lot too if you run too much and get hurt, I guess you just have to use moderation. Also, I think runners have more money because you have to be dedicated, goal-oriented, and driven to be a runner and those same attributes make you more successful in the work place. Overall, running seems to be cheap and rewarding hobby.

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  3. I think one of the best things about running is that not only does it provide means of physical activity and well being, it is essentially free. You don’t have to pay for expensive private lessons or gym time, you can go out into your neighborhood or a local park whenever you wish. Also, it is a lifetime sport and something that entire families can do together, which provides added incentive. Not to mention, activewear generates large amounts of revenue as, for example, Nike and other firms charge so much for their products.

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  4. This is a really interesting topic, and one that I never realized had any ties to the economy. I agree with your argument that not only are there the added health benefits of running, but it can actually save you money in the long run by not having to fo to the doctor as much. I also liked that it wasn't about going to the gym or getting a health club memborship beacuse those things are out of reach for a lot of people. Instead you talked about something we can all easily do-- go outside and run. Also I think that if more people ran it would improve the businesses that sell athletic wear like nike or under armer.

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  5. I think when most people think about running, they are mainly concerned with how the activity affects them physically, but even as a runner myself, I never considered the financial impact that running can have, too. Running is essentially free, but it is interesting to note how more monetary benefits can stem from the physical benefits. If more people think at the margin with running, all they would have to do is trade 30 minutes of television or internet usage for a 30 minute run, where the physical and fiscal benefits would surely outweigh the cost of missing a tv show. Also, if more people did take up running, we could see a greater demand for running shoes, potentially causing a change in price of the shoes because they are becoming more popular. Good post!

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  6. Before reading this, I had no idea running was so beneficial to not only one's health, but to their financial standings as well. I remember doing cross country my freshman year and even though I am a terrible runner, I do remember having a constant positive attitude. I really never thought how much a positive attitude could affect me financially, but now I know!

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  7. I never realized just how well running tied into the economy! I agree with you that running does seem to be a great choice for people as it strengthens your heart and immune system all while refraining from leaving a dent in your pocket but I don't know if people will be willing to make the trade offs to do so. A virtually free hobby will appeal to many but having to give up time in front of the television to do exercise isn’t exactly what America is known for. In conclusion while it would behoove everyone to take up running as it is rewarding and good for your health many people might not be willing to make the leap.

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  8. The part that was most interesting to me was the productivity aspect. I believe that directly running does not make your mind perform better, however I think that it rather sculpts your personality and work ethic. The mindset of running rather than watching TV or slacking off is what makes runners more productive, not just the fact that they run, but the fact that they choose to run. If a runner runs but dreads doing it, they are not going to get much mentally out of it. Also, I would add that running gives you time to ponder your own thoughts. In today's world, it is rare to have much time to think, as we are all consumed by our phones and other technologies. Because we always have to be doing something, we lose a lot of time that should be spent simply thinking with yourself, which is a strong attribute to success. It surprised me how important running can be to your overall health and how that can effect your health bills down the road. I never knew that a very significant amount of money could be saved through running, but it makes sense.

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  9. Ashton, I LOVE your topic! I never really thought of running from the economic standpoint, but that’s what I wanted to do my essay on. It’s so great to see that you already have done it! Thank you for the insight. Great job incorporating vocabulary such as marginal cost and benefit and public goods. I also appreciate your inclusion of links and visuals to help readers dive deeper into your study. Think about the awesome benefits of running if everyone took it upon them: more cross country, more shoes, more running shorts, and a huge boost in the economy! I definitely agree that running makes everyone happier and healthier! Great post!

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  10. Before reading this, I had no idea running was so beneficial to not only one's health, but to their financial standings as well. I think that running is good exercise as it strengthens the heart and helps build muscle, along with improving ones mood and positive outlook.

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  11. This was a very interesting idea. I never would have thought that in depth about running and how it affects our everyday lives and health. It is interesting to see that it also affects the economy as well. I never knew that our brain was affected by something so minuscule and simple to do. I think another trade off for running could also be biking, if the person has no interest in running.

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  12. Running is awful, Ashton. Just kidding. It is super interesting how an activity like running, where you really need nothing more than a pair of running shoes and the world outside your house, can have so many effects in the economical aspects of a person. Your evidence ties super well to your claims about running making people more efficient in the workplace and even stop spending as much money as they would be by doing other activities in the same time you could be outside strolling around. The medical expenses part is also very important because thousands of dollars are spent each year for cardiovascular, breathing, and other problems people suffer because of the lack of exercising. Good job connecting running with economics!

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  13. I like how you started out the post: "If you’re searching for a way to thicken your wallet, look no further than your own two feet; running is the perfect solution." It really grabbed my attention. It is good to know that running can release stress and is a good way to lower blood pressure, I did not know that. I like how you explained throughout the whole post that running will save you money.

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  14. I really love how you took a topic that is really important to you and applied it to econ! While I don't run, or like running, it was interesting to see all the health and economic advantages it has. Reading your article makes me think how much better I would look and feel if I started running. Overall this was a very interesting, well written article that really makes me think. Good Job Keene Machine!

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  15. I really liked your topic and how you related it to economics! I had never thought about the idea that running can make people richer, have a better memory, or even get more sleep. I found it interesting that running can have that many benefits to one’s body and save money in the end for medical bills. I don’t watch TV very often but when I do, I could switch to running for a trade off. You made a good point that all you need to start running is grab a pair of shoes, which makes it easy for anyone to start running. It will be interesting in the future to see if more people start running when the price to play other sports increases. Great topic!

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  16. I loved how you incorporated running for your blog post - since you love it so much. What I didn't know was that if everyone ran during the year, there would be a 60 million pounds of more pasta eaten. I hadn't truly thought of the idea of if people ran, it could make them richer, but also give each individual more sleep. I think it's just a concerning topic for people with health issues, because they believe something may happen to them, and they will need to use that money for medical expenses. It's disappointing though that not everyone loves to run (I'm one of those people). But with this information I could definitely start to improve sleep and save money!

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  17. I really like the topic I think that its one that most high school kids can relate to since most of us run at least one some time over a week. What I didn't know that made a really good point was that running can actually bring down the amount of money you spend on health services. It is truly amazing to find out that stress can bring down your stress and help you sleep, but it really makes sense. Why wouldn't people want to save money on their health bills?

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  18. I really liked this whole topic idea because it was something totally different. It was interesting to see the connections between running, health, and then the economic aspects as well. Before reading this I really had never thought about the costs of sports and how running is essentially free once you have the shoes. I would be interested to know the average costs for playing or participating at some level in all different sports. Overall, great job and wonderfully written piece!

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