Economics Articles

Essays on topical issues, latest developments in UK and global economies, and answers to readers questions

Who are the winners and losers from free trade?

Posted on June 15, 2018

Readers question: Who are the winners and losers from free trade? Free trade means that firms can export and import goods without tariff barriers. Free trade leads to lower prices and increased exports and imports. Economists are generally agreed that free trade leads to a net gain in economic welfare; as a result, economists generally …


Government intervention in the labour market

Posted on June 12, 2018

Government intervention in the labour market to reduce inequality and market failure can take various forms. Minimum wages/living wages Maximum wages (rarely used) Legislation to prevent discrimination on the grounds of age, sex, religion. Legislation to support or regulate trade unions. Maximum working week Legislation on health and safety Behavioural nudges (e.g. encouraging workers to …


Branches of economics

Posted on June 8, 2018

Economics is a broad subject concerned with the optimal distribution of resources in society. Within the subject there are several different branches which focus on different aspects. Also, there are different schools of thought which generally have different views on aspects of economics. The first way to split economics is Microeconomics and macroeconomics. Microeconomics – …