Definition – Collective bargaining refers to the negotiations between a group of workers and firms. Workers, usually through a trade union, form a unified approach to negotiate wages and work conditions with their firm (or group of firms). Collective bargaining can involve many different aspects of work – including pay, health and safety, working hours, …
Readers Question: This is hypothetical, but I wondered what would happen if we developed robots resembling humans who could perform any task a human could perform, but more effectively and essentially for free? More specifically, how would this development affect employment and real per capita GDP, and what would the pros and cons be? What …
Definition Wage-push inflation is the increase in general price level resulting from higher wages in an economy. Explanation of wage-push inflation If firms increase nominal wages by 5%, they experience higher costs of production. This is likely to cause firms to pass the cost increases onto consumers in the form of higher prices. Firms increase …
By different measures, US corporate profit has increased significantly in the past two decades. It stands at 10.5% of GDP. What is behind the large rises in profit? Source St Louis Fed CP (not this is for nominal profit) In 2021, US corporate profit after tax stands at 2,700 billion (or $2.7 trillion) This is …
Across the globe we are seeing a dramatic fall in the birth rate, with countries like Italy forecast to see their population decline from 61 million to 28 million by 2100. There are several reasons for falling birth rates – traditional factors include economic growth, improved education and access to contraception. But, in recent years, …
A business has a variety of potential objectives from profit maximisation to cultivating good relationships with various business stakeholders. Economic theory often assumes that firms are rational profit maximisers. However, in the real world, there are many other objectives that a firm can pursue. Business Objectives of firmsWatch this video on YouTube Profit Maximisation. The …
Technological unemployment occurs when the adoption of new technology causes job losses. Automation is a process of using robots, AI and machines to take the place of workers – not just in manufacturing, but increasingly new avenues – even in the service sector. The pace of automation is causing job disruption – with workers – …
Since the 1970s, we have seen a fall in average global inflation rates. There have been periods of inflation (often due to rise in oil prices), but the overall trend has seen much lower inflation rates. In the 1970s, inflation was seen as one of the main macro-economic challenges, but now many feel the challenge …