The ‘pension time bomb’ refers to how demographic changes will cause a rise in the percentage of people entitled to a pension (both state and private). An ageing population leads to smaller workforce, more spending on pensions (and healthcare) and could require higher taxes to meet spending commitments. . Some argue this is a serious …
A big issue is how net migration is affecting the National Health Service. Does an influx of migrants place greater strain on the NHS? Is migration a convenient excuse for the more long-term issues facing the NHS? To what extent do migrants work for the NHS? If we cut migration levels would that affect taxation …
Readers question: Is there anything in economic theory that addresses what I would like to call “economic abuse” Where the profit of a what a worker does is ten to a hundred times what the worker earns to the Owner or Individual paying the worker. The worker earns $10 a day doing labour that the …
Readers Question: Is it better to sell more services/products with less profit, than sell less with high profits? What are the pros and cons to the employer, worker, and customer? i.e. high revenue low profit, vs low revenue high profit? Classical economic theory suggests firms will seek to maximise profits. The benefits of maximising profit …
Aggregate Demand is the total demand in the economy. AD = C + I + G + (X-M) C= Consumer spending (Household consumption) I = Investment (gross fixed capital formation) G= Government spending (Government investment and Government consumption) X-M = Net Exports (exports – imports). Components of Aggregate Demand A graph showing components of AD …
Source ONS | NTV A possible unit 4 A Level question this summer could be: Discuss the impact of a fall in public sector investment on the UK economy? The graph shows a fall in public sector investment from 3.5% of GDP in 2008 to 1.5% in 2011. This means cuts of approximately £30bn a …
At this time of the year, my students are preparing for their exams with a mixture of trepidation, confidence, resignation, hope or fear. The best way to prepare is to simply do one thing at a time. Concentrate on making small improvements and importantly keep practising past papers. Students who just do a bit of …
Readers question: Will a sustained recovery in the UK lead to inflation? A sustained economic recovery could lead to inflation. If economic growth is above the long run trend rate for a prolonged period, if demand grows faster than productivity, then in that scenario we are likely to see rising inflation (rise in the cost …