Readers Question: “Is it a fallacy to assume that Super-storm Sandy will promote growth and, if so, why?” In the aftermath of a natural disaster, such as hurricane ‘Sandy’ which recently hit New York and New Jersey. there is usually a fairly minimal impact on GDP. The devastation by the storm has cost something in …
Readers Question. We hear much about the “pensions time bomb”, as people tend to live longer and there is a bulge as “baby boomers” reach retirement age. We also hear much about the need to save for retirement. Saving *money* may mean people have more money in retirement but surely the real problem is to …
Readers Question Is the study of economics irrelevant in the absence of the concept of scarcity? It would make a good interview question. The difficult thing is trying to imagine what a society would be like if it had no scarcity. One thinks of the imaginary desert island, with abundant resources and a lone Robinson …
Casey B. Mulligan, from the University of Chicago suggests a theory for a major cause of the great recession and the rise in US unemployment post 2008. – Higher welfare payments. ..Redistribution, or subsidies and regulations intended to help the poor, unemployed, and financially distressed, have changed in many ways since the onset of the …
According to the National Institute for Economic and Social Research (Niesr), fiscal consolidation in the UK is likely to increase the UK’s debt burden. Or to put it in layman’s terms there will be ‘pain, but no gain’ They model the impact of fiscal consolidation in both ‘normal’ times (scenario 1) and in the current …
Apart from economics my big interest is in cycling. This weekend, I’m doing the UK national hill climb championships, a short race up a steep hill in Ramsbottom (the Rake). First prize is a nice cloth cotton cap and a pat on the back. It is unlikely there will be any dope tests (though there …
The amount of UK retail sales increased by 2.5% in the 12 months from September 2011 to September 2012. This measure includes the amount (quantity) of goods in all retailing, seasonally adjusted. The amount spent (value of goods) increased by 3.2% Annual store price inflation was estimated to be 0.7 %. This suggests that the …
Readers Question: What should the government do to improve the American standard of living? How could the President + Congress, make the biggest difference to improving American standards of living in the long run? These are a few policies which I feel would improve US living standards. 1. Reduce Unemployment. The rise in US unemployment …