Inefficiencies within Greek economy

Over Christmas and the New Year I visited Greece – landing at Athens airport then hiring a car to Kalamata. After writing many articles on the economic troubles of Greece, it was interesting to visit in person. Whilst enjoying a holiday, I was always aware – in the back of my mind – the Greek …

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Should we increase the state pension age?

Many Western economies face a demographic time bomb – an ageing population, which places strain on government spending and the welfare state. To deal with this situation, governments face several difficult choices – Raise taxes to pay for pensions, Shift the emphasis on to the private sector provision of pensions, Raise the retirement age Cut …

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Should the Legal Driving Age be increased to 21?

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. …

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Mobility of labour

The mobility of labour refers to how easily workers can move to different jobs within the economy. The two main factors of labour mobility are: Geographical mobility – how easy is it for a worker to move between different regions and countries to seek new work. Occupational mobility – how easy is it for a …

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Arguments for privatisation

privatisation-vs-nationalisation

Privatisation involves selling state-owned assets to the private sector. For example, in the 1980s, the UK government sold many state-owned industries, such as BP, BT and British Gas on the stock market. The main arguments for privatisation includes: Efficiency gains. When firms are privately owned, there is a greater profit incentive to increase efficiency. In …

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Can the government prevent a house price crash?

uk-house-price-inflation-1980-2013

Should the government leave house prices to market forces, or actively intervene to prevent a house price crash? Arguments for intervention Falling House Prices Could cause a recession If house prices fall, it will cause significant problems for the UK economy. There will be a fall in consumer wealth, and declining house prices can lead …

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Does economics growth bring increased living standards?

Increasing the rates of economic growth has long been the holy grail of conventional economics and politics. To a large extent, most developed economies have been highly successful in increasing economic output. But, has such an impressive increase in national output actually improved people’s standard of living? To decide whether economic growth has increased happiness …

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Carbon Tax- Advantages and Disadvantages

tax-on-negative-externality

A Carbon tax is a specific tax on the consumption of goods which cause carbon dioxide emissions. C02 emissions have been identified as a major source of global warming and therefore, governments have been keen to reduce carbon emissions. Advantages of Carbon Taxes The market price is P1 – but this ignores the external cost …

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