Economics Articles

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

Carbon Tax – Pros and Cons

Posted on October 21, 2017

A carbon tax aims to make individuals and firms pay the full social cost of carbon pollution. In theory, the tax will reduce pollution and encourage more environmentally friendly alternatives. However, critics argue a tax on carbon will increase costs for business and reduce levels of investment and economic growth. The purpose of a carbon …


Consumer confidence

Posted on

Consumer confidence is the outlook that consumers have towards the economy and their own personal finance situation. This outlook can be optimistic (high consumer confidence) or pessimistic (low consumer confidence) The level of consumer confidence will be an important factor that determines the willingness of consumers to spend, borrow and save. A high level of …


Reasons for Youth Unemployment

Posted on October 18, 2017

A look at the economics reasons for high youth unemployment (16-25) in the UK. During the recession, youth unemployment rose at a faster rate than the main unemployment rate.  After peaking at 20% (1 million) in early 2012, youth unemployment has recently fallen to 12 % (2017) The reasons for youth unemployment are fairly similar …