Economic defeatism is a situation where policy makers accept an economic situation which is well below potential. Another form of defeatism is to see some problems as intractable and concentrate on dealing with side issues. Economic defeatism is contagious because it can set the tone for the whole economy, making it even more difficult to …
Free market economics believes government intervention should be limited to the protection of private property. It is advocated by many economists especially in the Chicago, and Austrian school of Economics. However, although free markets have advantages, such as greater efficiency, there are several criticisms levelled at purely free market economies. Criticisms of free-market economics Inequality. …
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 …
This is an article published in the LSE about the Austrian view of the Eurozone crisis ‘The Work of Hayek shows why EU governments can’t spend their way out of problems‘ I’ve attempted to summarise the article, but I advise reading it for yourself: The recent boom and bust was caused by artificially low interest …
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. …
It’s the time of the year when many students are getting to start economics for the first time. It can be a little confusing with so many new concepts and words. But, if we had just one lesson, what could we teach about economics? Society wishes to optimise the distribution of resources. Economics considers how …
Readers Question: Why the fire service is a public domain and how is the fire service a merit good I think you mean why is the Fire Service a public good? A public good has 2 aspects. Non rivalry – Once consumed doesn’t reduce the amount available to others Non excludability – Once it is …
Will Life Get Worse of Better for the Young Generation?Watch this video on YouTube Double-digit inflation, youth unemployment soaring, and a general sense of the UK’s economic decline. Is there any hope for the younger generation? Now here I’m not actually talking about 2025, that was the 1970s and early 1980s. It’s never been easy …