Recently, there has been much focus on US public sector debt – the total amount the government borrows. These graphs show the combined debt levels of both the public and private sector. Private sector debt is split up into households, non-financial companies and financial corporations. In the run up to the 2007 financial crash, we …
When examining debt levels in the UK, there is government debt – measured by public sector borrowing (often referred to as National debt). See: UK National Debt. We also have private sector debt which is composed of personal loans, personal mortgages, business debts, and debts of the financial sector. Total Debt includes both private sector …
An important principle in economics is the idea of taxing goods with negative externalities (goods which impose external costs on the rest of society) Usually, in a free market, we ignore the external costs of our consumption. We only face the private costs. But, this leads to overconsumption of these goods and a deadweight welfare …
Readers Question: In a non-recession situation, if a government reduces it’s borrowing and thus it’s spending, how can that have a depressing effect on the economy? Wouldn’t that money be either be loaned to someone else or spent to on goods and services by the people who have it? Yes. If an economy is growing …
For the past few years, it has felt a bit repetitive always asking the same question – why can’t the EU policy makers see unemployment, social exclusion and rising poverty as the real challenge facing Europe? In the current climate it is not bond yields, inflation targets or levels of debt that are the real …
The EU has recently entered a double dip recession, with southern Eurozone countries particularly badly affected. As a consequence of the recession, EU unemployment continues to rise. Over the last twelve months, the number of unemployed people has increased by 2 million, to reach more than 25 million. The unemployment rate is up to 10.6% …
If you read any number of self-improvement books, you will come across ideas such as ‘what you think, you will become’. Over, 2,500 years ago, the Buddha said: “All that we are is the result of what we have thought. The mind is everything. What we think we become.” When overused these positive thinking mantras …
Summary of UK Economy at the Start of 2013 The UK economy starts 2013 after one of the longest periods of economic stagnation on record. GDP has been flat for the past two years, and real GDP is still way below the 2008 peak. Despite the depressing picture of economic growth, unemployment (7.9%) is much …