The 1929 stock market crash was a result of an unsustainable boom in share prices in the preceding years. The boom in share prices was caused by the irrational exuberance of investors, buying shares on the margin, and over-confidence in the sustainability of economic growth. Some economists argue the boom was also facilitated by ‘loose …
Interesting article here about the UK economy of the 1930s escaping from the Liquidity trap and Great Depression of the 1930s. This involved: Higher inflation target Low-interest rates and negative real interest rates. Devaluation (UK left Gold Standard in 1931) The article is also interesting for another reason, a short insight into the housing market …
Readers Question: Evaluate the case for raising the legal drinking age to 21. Will it be more effective than other methods for reducing the harmful effects of alcohol? There are several reasons to be concerned about the over-consumption of alcohol, especially amongst young people. In the UK, abuse of alcohol has contributed to several social, …
Readers Question: What are the costs and benefits of the London 2012 Olympics? A cost-benefit analysis seeks to examine all the various costs and benefits. These include both the monetary costs and benefits and the non-monetary costs and benefits. Costs of London Olympics The financial cost of building facilities, which may only be used to …
Barack Obama served as President from Jan 2009 – Jan 2017. When Obama came to office in Jan 2009, the US economy was in a deep recession, with falling real GDP, high unemployment and rising levels of government borrowing. As President, Obama oversaw a moderate fiscal expansion which helped to promote economic recovery and falling …
There are arguments that the legal driving age is too low, and this causes an unacceptably high level of traffic accidents. Raising the driving age, would ensure young drivers are more experienced and less prone to rash judgements which can put other road users at risk. Arguments for raising the legal driving age include: 1. …
How to judge George Osborne’s and David Cameron’s economic record since May 2010? They inherited an economy recovering from a deep recession, high unemployment and large budget deficit. It was a difficult economic circumstance, but at the same time you might expect a strong economic recovery as there was much unused capacity and potential for …
If you are interested in fiscal impact of net migration, this study “Fiscal effects of immigration to the UK” is worth reading. The Economic Journal,Doi: 10.1111/ecoj.1218 Christian Dustmann and Tommaso Frattini Some highlights EU migrants cost the UK government £408.12 per second in public expenditures, and contribute £463.35 per second in revenue. Of all EU …