Capitalism is an economic system dominated by free markets and private ownership of wealth, assets and business. Within the broad church of capitalism, there are different forms – from unregulated ‘Turbo-capitalism’ to ‘responsible or ‘social welfare capitalism.’ In practice, all ‘capitalist economies have a degree of government intervention. Turbo Capitalism This refers to an unregulated …
Summary: Capitalism is the dominant economic system because the concept of private property and freedom to pursue economic choices are deeply embedded in human nature. Also, alternatives based on co-operation, sharing and state control have many flaws and limitations making capitalism least worst option for many. Definition of capitalism Capitalism is an economic system where …
Readers question: Firstly, I wholeheartedly praise the magnificent work done by you in exhibiting economic knowledge and demystifying it to us, the mediocre audience. I seriously question one fact that you presented about capitalism and how it “inevitably causes monopoly”. I grew really surprised and perplexed the moment I read that in “The problems of …
In 1984, Arthur Scargill passionately spoke to 140,000 miners to fight for their jobs, communities and livelihoods. Coal was the black gold which kept the country going. Coal miners were the working class heroes, with the capacity to bring down a government or fuel the engine of the economy. After descending a coal mine in …
Rail Privatisation Failure – Why we pay more for TrainsWatch this video on YouTube In the Victorian age, the UK led the world in building railways, it was an invention that changed the world. But, by the 1980s, the state owned British Railways was the butt of jokes, stale sandwiches, declining passengers and closed lines. …
Trickle down economics is a term used to describe the belief that if high-income earners gain an increase in salary, then everyone in the economy will benefit as their increased income and wealth filter through to all sections in society. How the trickle-down effect may work in theory If the richest gain an increase in …
The Russian fossil fuel industry is facing a real crisis. Western sanctions and Russia’s own embargo on exports to the West mean that the industry is facing long-term decline. Already there have been reports of ‘capping’ of natural gas facilities. This means that natural gas is burnt at its source because the industry cannot sell …
Prices and incomes policy is an attempt by the government to set the rate of increase in prices and the rate of wage increases in the economy. The government do not seek to control individual prices but control the general rate of increase in prices and incomes. Price and incomes policy may involve ‘voluntary’ agreements …