Readers Question: I have a question: what are the pros and cons of setting and enforcing a living wage in the uk? A living wage is an hourly wage rate considered the minimum level to provide the basic essentials of modern living. A living wage takes into account average expenses a household is likely to …
Readers Question: Why can’t a debt-crippled and deficit-induced state, go on with its most normal economic activities (by borrowing the needed money to make sure that no or at the most, unproductive spendings are curbed, no tax rates up, and no austerity measures) in a bid to emerge out of debt & deficit potholes sooner …
Readers Question: Is large government spending bad for economic growth? to what extent does empirical evidence support this assertion? How Government Spending Might Lead to Lower Economic Growth Higher spending leads to higher taxes. Higher income taxes may discourage people from working. High corporation tax might discourage firms from setting up in that country. (e.g. …
Readers Question: Every country’s economy has their own dynamics. Competitiveness is more or less adjusted by appreciation and depreciation of individual currencies in free economies. Then why is EU pressurizing Greece to stay in Eurozone? Except borrowings at a cheap interest rate, what are other real advantages of Euro? There are a few advantages to …
Readers Question: I am much in favour of governments defaulting on what they owe to private financial institutions (as opposed to other governments). This would be in line with the ideas fuelling the current OCCUPY THE WALL STREET movement. I would very much like someone to comment if this is at all possible and practical. …
Readers Question: The number of Rhinos that are killed every year for their horns is increasing. They may soon be extinct. What would an economist do about this? An economist would say that if Rhinos are at risk of becoming extinct it would impose a significant social cost on society. Therefore the economic incentives should …
Readers Comment on UK National Debt – What we are doing now is not dissimilar to Roy Jenkins’ cuts in the late 60′s he brought us out of an £800m deficit into a £387m surplus, toughen up and let the economy settle. There are several examples of where governments have been able to transform public …
Readers Question: I am wondering why the 75 billion of quantitative easing that the Bank of England announced today to be “injected into the economy” isn’t spent on infrastructural projects? Why spend those funds on government bonds? This doesn’t seem to be the best way of using these funds. Many thanks. It’s a good question. …