The government has announced that the National Minimum wage will rise to £5.73 for workers over 21 – by the end of 2008. This means for a worker on a 40 hour week, their take home pay will be £229 per week. This also attracts top up benefits from the government in the form of …
Readers Comment: I’m a pensioner. Since introduction my Council Tax has increased by 103%,my pension by 29%. Mine is the sole income,why should I pay the same as a family of 4 all working and living in a house in the same tax band;does only one of them receive help from the police, firebrigade, does …
Readers Question: how the unemployment and inflation is related to country’s economy If we take the example of the UK, we can see differing examples of how unemployment and inflation are related to a country’s economy. The key to this question is what causes unemployment and inflation. There are several different factors, but it is …
The argument was that the poll tax was so bad that anything had to be an improvement. So with little thought, the Conservative government brought out the Council Tax. The council tax aims to introduce a degree of proportionality and fairness by charging a tax equal to the value of a house. The argument is …
Readers Question: How about the case of cost push inflation like that of China? there’s high inflation and yet the economy is not operating at its full level of employment and due to the fact that its exchange rate is fixed, monetary policies would not be effective but fiscal policies would further increase unemployment. What …
Although, the government has tried for several months to avoid this option, Alastair Darling admitted that the government had decided to nationalise the beleaguered bank Northern Rock. It means the government is responsible for over £100m of mortgages and savings. What Nationalisation Means Shareholders are likely to get very little in compensation. They have threatened …
Readers Question: Interest rates are determined by the markets and not by the Bank of England-where’s the truth? An interesting question. Firstly, it is worth bearing in mind that there are different interest rates in an economy. Bank of England Base Rate. This is the most important interest rate because it is the rate at …
I asked my Economics students to conduct a questionnaire, asking people in the street various questions about Economics. One Question was: What do You consider to be the Most Serious economic problem Facing the UK at the moment. These are the most popular responses to far. House Prices (50% of responses) Government Debt Ignorance because …