The unadjusted labour share is usually calculated as the ratio of total compensation of employees – wages and salaries before taxes, plus employers’ social contributions – over GDP (national product/income) (Luebker, 2007). There are different methodologies for calculating labour share – e.g. should executive pay and share options be included? Greater insight would be gained …
Latest UK housing market stats and graphs. Including house prices, Price to income ratios and construction of new housing.
Huge volumes of waste are sent to landfill every year. In 2018, the US created 292.4 millions tons of trash, of which nearly half 146 million tons ended in landfill. In recent years, much effort has gone into encouraging people to recycle, and rates of recycling have increased significantly (in the US from 9% (1980) …
When people talk of UK debt, they usually refer to government debt. This is debt the government has borrowed to finance budget deficits (when government spending is greater than taxation revenue) There is also external debt, which is the net amount the UK (private and public sector) owes abroad. This external debt is high (2011, …
The Luddite fallacy is the mistaken belief that new technology leads to higher overall unemployment in the economy. New technology may cause disruption and some workers to lose their job, but the improved technology will also create jobs in other sectors of the economy – balancing out any jobs lost. Historical background In the early …
The sunk cost fallacy is when we continue an action because of our past decisions (time, money, resources) rather than a rational choice of what will maximise our utility at this present time. For example, because we order a big meal and have paid for it, we feel a pressure to eat all the food. …
What are the implications of an ageing population? An older population presents many challenges to labour markets, government tax, government spending and the wider economy. The Population Timebomb – How An Ageing Population Will Change UsWatch this video on YouTube One of the great achievements of the Twentieth Century is a dramatic rise in life …
Definition: Cost-push inflation occurs when we experience rising prices due to higher costs of production and higher costs of raw materials. Cost-push inflation is determined by supply-side factors, such as higher wages and higher oil prices. Cost-push inflation is different to demand-pull inflation which occurs when aggregate demand grows faster than aggregate supply. Cost-push inflation …