Many economists support free trade. However, in some circumstances, there are arguments in favour of trade restrictions. These include when developing economies need to develop infant industries and develop their economy. Reasons for blocking free trade Infant industry argument If developing countries have industries that are relatively new, then at the moment these industries would …
Minimum wage in UK Distribution of income in UK Policies to reduce inequality Causes of poverty Tax system in UK Inequality in the UK Why is there so much global inequality? Wealth inequality in the UK Factors that explain wage inequality Pros and cons of Inequality Poverty, income inequality and economic growth Effect of tax …
Definition – A centrally planned economy is an economy where decisions on what to produce, how to produce and for whom are taken by the government in a centrally managed bureaucracy. Central planning is also referred to as a ‘Command economy’ or ‘Communist economy.’ WIth Central planning, the theory is that the government will take …
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: 1. Does state capitalism as practised in China pose a fundamental challenge to the Western model of liberal-democratic capitalism? No, I don’t think so. From a political perspective, no matter how economic successful China might be, there will never be any enthusiasm to replicate China’s one party political system. In fact, it is …
A few weeks ago a senior Google spokesperson was asked about the tax affairs of Google. By funnelling money through Bermuda the multinational was able to significantly reduce their corporation tax bill. His reply was something along the lines of ‘well that’s Capitalism. If we can avoid paying tax, why shouldn’t we?” To the pros …
A Capitalist is defined as a person who makes the majority of their income from the ownership of assets and capital. For example, a capitalist may receive dividends from shares or rent from property that he owns. In a sense, a person with a private pension can be said to be gaining income from assets …
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. …