You are welcome to ask questions on Economics. I am looking to explain economic principles / ideas/ recent developments in economics. Due to the volume of questions, I can no longer promise to answer. But, I will try if it meets below criteria.
I will post the answer on this blog, for everyone to benefit from. I never email individual answers
Please Bear In Mind
- Use google custom search (top right) to see if question has been asked. If I have already answered a question I don’t tend to repeat it.
- The replies will be guidance and not for duplication. Your essays should be your own work.
- Don’t ask me to do your coursework / assignment e.t.c. The answer will be published here where your teacher can see it.
- My speciality is economics for British A Level standard.
- I don’t answer university questions or maths calculations
- I am looking to explain economic principles / ideas/ recent developments in economics.
- I will answer as a new post. Check home page of blog for new post. With question and answers
I studied PPE at Lady Margaret Hall college, Oxford University, and currently work as an Economics A Level teacher. I have also examined several different economic units for Edexcel AS and A2.
Related
About The Author
May be I am stupid to ask this question. I don’t know fundamentals in economics as my education is in engineering and work in IT filed. But since 1 year I has a question on economics which is teasing my brain. “Where and who creates the money?” Looks like Newton’s “Law of conservation of energy : Energy never be created nor destroyed”.
To be more clear, I will explain with 2 examples.
First case :
I work in a big retail company in USA and get paid bi weekly. How my company is getting money?
Retail company makes profit from some % of the money they got from the customer after selling an item.
This customer gets money as a salary or as profit if he do business and so. That means money is just rotating. Never created.
Second case :
Let us say I have some $70K property (as of today) which includes bank balance+car cost+
cost of house holds etc. Like this, every one in USA has some property. If I add all this individual properties of all people or families in USA, let us say it comes to an ‘X’ dollars as on today. If we calculate the same total amount on a day for 20 years back, it will definitely be less. So money is created as the time goes on.
The two examples are conflicting. Money is never created in 1st case, Money is created in 2nd case. Which is right and how it suffice with other example? Can any one answer?
Hello Ames
Yes I am agree. USA is feeling big economic loss due to trade deficit. This deficit is cutting local jobs and sending it to other countries specially China and India. Illegal migration from Mexico is also a big issue. Govt should think about it. Canadian economy is much balanced than American economy.
Hello Ibrahim
Generally it is believed capitalism and inequality is responsible for poverty . It is true . Poverty is result of low annual income. Due to high level of inequality, there is unequal distribution of money , as result some get more and some get nothing . Another main cause of poverty is low devolvement. In a welfare democracy capitalism may exit without any poverty . Actually pure capitalism does not exist in any country as in CANADA, ENGLAND ,USA there are high level of income tax , Govt spent this money for welfare of poor people. But in Latin America govt are corrupt and result of capitalism is very destructive. Rising population is also a big cause of extreme poverty.
i need economic exam 2011
The United States of America has not had a trade surplus since 1975. We have not had a trade surplus with Japan since April, 1976. Every year since 1983 we have been in deficit with Europe. The last time America had a trade surplus with both Russia and China was a very brief period during the Cold War. We have been running ever increasing trade deficits with South Korea since 1998. Our 1993 trade surplus with Mexico is now a 100 billion a year trade deficit. In the 1970’s, 80’s, and much of the 1990’s our trade deficit was never more than one half of 1% of GDP. We now find ourselves with a trade deficit of between 5% and 7% of GDP depending on how you count. From 2002 to 2007 the trade deficit exploded. The only reason unemployment stayed well under 6% is because of the credit bubble. 63% of all jobs created from 2000 to 2006 were housing or credit bubble related. We did not feel the destructive affects of the trade deficit because of this credit bubble. I have concluded from work I have been doing that America will never get unemployment even under 7% with a trade deficit of over 3% of GDP, without a major credit bubble. The U.S. Economy has actually stopped functioning like a real economy. We literally need a credit bubble to function. America must move from the ideology of free trade to the economic policy of balanced trade. Until this structural shift takes place you can bank on the American economy being the laughing stock of the world economy.
Regards,
Ames F. Tiedeman
Dripping Springs, Texas
causes and consequences of inequality and poverty in developed and developing countries?? and the extent to which inequality is an essential ingredient of capitalism