Readers Question: What caused the massive decrease in the debt to GDP ratio for the UK following World War II? It is a good question to ask. In the past few years, many European policymakers have felt that rising debt levels needed panic levels of austerity/spending cuts. But, that didn’t happen in the UK in …
Capitalism is an economic system based on free markets and limited government intervention. Proponents argue that capitalism is the most efficient economic system, enabling improved living standards. However, despite its ubiquity, many economists criticise aspects of capitalism and point out is many flaws and problems. In short, capitalism can cause – inequality, market failure, damage …
An entrepreneur is an individual who sets up and grows a business. They combine different factors of production (such as – land, labour and capital) to try and create a new profitable business venture. Entrepreneurs are themselves an important ‘factor of production’ and an essential aspect of a functioning free market economy. Importance of entrepreneurs …
A key economic debate is the extent to which should governments intervene in the economy? At one extreme, free-market economists/libertarians, argue that government intervention should be limited to all but the most basic services, such as the protection of private property and the maintenance of law and order. At the other extreme, Marxist economists argue …
The main difference between capitalism and socialism is the extent of government intervention in the economy. A capitalist economic system is characterised by private ownership of assets and business. A capitalist economy relies on free-markets to determine, price, incomes, wealth and distribution of goods. A socialist economic system is characterised by greater government intervention to re-allocate …
Capitalism is an economic system characterised by: Lack of government intervention Means of production owned by private firms. Goods and services distributed according to price mechanism (as opposed to government price controls) Capitalism – pros and consWatch this video on YouTube Pros of capitalism “A society that puts equality before freedom will get neither. A …
A look at the economics reasons for high youth unemployment (16-25) in many western economies. In the UK, youth unemployment has averaged higher than the main unemployment rate. This is is a similar situation to the US and European economies. The reasons for youth unemployment include Lack of qualifications. Young people without any skills are …
There are different forms of socialism but for this blog will use the form of democratic socialism advocated by Socialist parties in Western Europe. For example, Nordic countries where government spending is between 40-50% of GDP. This brand of socialism believes in: Redistribution of income and wealth through a progressive tax system and welfare state. …