Global economic imbalances refer to an unfair distribution of resources between different countries or it may refer to a one-sided trade situation. Global economic imbalances include Balance of Payments. Unbalanced trade between different economies, e.g. US trade deficit with China Unemployment levels, e.g. high unemployment in southern Europe versus low unemployment in US, UK. Poverty …
The political map of the US increasingly represents a divided America, and this political divide has roots in an increasing economic divide. In brief – rural areas tend to have lower average incomes (though also cheaper rent) higher rates of unemployment, declining population, reliance on one major employer and more concentrated on the primary sector …
Readers Question: how to evaluate the reliability of economic data? This is a good question. In brief, some issues to consider Is there a political angle? – Political leanings of media/think tank In what context is the data presented? How to interpret the data. Should we look at nominal data, real data or as a …
A look at the economic and social impact of Mrs Thatcher’s economic policies. Summary of Thatcher’s Economic policies Belief in the desirability of free markets over government intervention. E.g. pursuing policies of privatisation and deregulation. The pursuit of supply-side policies to increase efficiency and productivity. Reducing the power of trades unions and increased labour …
One of the first lessons in economics is the idea of opportunity cost. If you pursue one choice, it means you can’t do another option. The government faces countless decisions based on this. For example, the government could spend more on health care, but the opportunity cost would be lower spending on education. We could …
The long-run trend rate of growth is the average sustainable rate of economic growth over a period of time. It could also be termed as the ‘underlying trend rate of economic growth’ The long-run trend rate is determined by growth in productive capacity (AS). It is the rate of growth which is consistent with low …