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“I’ll be the greatest jobs president that God ever created.” – Donald J. Trump The arrival of Donald Trump into the White House initiated a new wave of industrial policy in the West. Prior to Mr. Trump it was the 2008/09 recession that ushered in Mr. Obama’s economic nationalism: “Our first priority is making America a magnet for new jobs and manufacturing”, and before that … Continue reading Room for Industrial Policy?
Amidst a cascade of financial challenges and operational setbacks, Thames Water finds itself at a critical juncture. It is teetering on the brink of a profound transformation, with headlines echoing defaults on debt, investor withdrawals, and a funding crisis. From regulatory scrutiny to underinvestment in infrastructure, Thames Water’s journey to this precarious position reflects a complex interplay of factors. As stakeholders grapple with the repercussions, … Continue reading The Collapse of Thames Water
What is a just price? On the face of it, this might seem like a fairly arbitrary question; in a capitalist, free market economy, businesses seek to maximise their profits, and thus charge consumers the highest price that they are willing to pay. However, is it fair for a business to protect their profit margins in a time of inflation and a rising cost of … Continue reading Justice in exchange: the ideas of the Scholastics
The first week of June 2023 was the hottest in recorded history. The planet has not seen a hotter week, month or year in the last 120,000 years. At current rates of inaction, temperature rise could reach 1.5°C by the turn of the decade. “We are hurtling towards disaster, eyes wide open,” remarked António Guterres, UN Secretary-General. As climate change looms large, it has become clear … Continue reading Climate change and economic growth: an impossible trade-off?
Human behaviour, especially when it deviates from rational decision-making, has become increasingly significant in the realm of modern investment strategy; traditional economic models’ expectations of rationality no longer paint the whole picture. By applying psychological principles to economic analysis, behavioural economics adds nuance to the investment decision-making framework of individual investors. This interdisciplinary approach creates awareness that investors are subject to cognitive biases, emotions, and … Continue reading The Behavioural Economics of Investment
At the beginning of 2020, the value of sustainable investment in major financial markets globally stood at $35.3trillion. According to the Global Sustainable Investment Alliance it accounts for 36% of all professionally managed assets across the US, Canada, Japan, Australasia and Europe. Governments and companies are increasingly committing to climate action. The world is moving towards a net-zero emissions future, and this transition is expected … Continue reading The Impact of the Net-Zero transition on The World Economy and Global Strategies
In economics today, it is often assumed that human behaviour follows the model of ‘Homo Economicus’ or ‘the economic man’. This refers to a form of behaviour where an individual acts rationally to optimise their own utility, or the total satisfaction gained from the consumption of a good or service. While this approach has stood the test of time, cognitive psychologists have since shown that … Continue reading Quantum Economics
Labour refers to all productive forms of human output, mental or physical. As one of the four factors of production, the quantity and quality of labour is a key determinate of an economy’s productive potential. On the surface, this might seem to justify policies aimed at increasing wages and maximising the incentives to work. However, such policies can ironically reduce the availability of labour, due … Continue reading Work vs Leisure: The Backward Bending Labour Supply Curve
In the north-western Tabuk province of Saudi Arabia, armies of diggers carve into the arid desert as they attempt to excavate a 170-kilometre line. This project is part of what is called Neom, ‘The Future of Civilization’, and emerges from ‘The Saudi Vision”, a plan to reduce Saudi Arabia’s dependence on oil and diversify its economy by developing its public-service sector. The project’s estimated cost … Continue reading Blue Gold: The Precious Commodity of Tomorrow
High Speed 2, aka HS2, was conceived in 2009 as plan to build a rail line between London and the North of England to reduce the North/South economic divide in the country. Construction was planned in phases with London to Birmingham being Phase 1, Birmingham to Crewe being phase 2a and Crewe to Manchester being phase 2b. Phase 1 was planned to open by 2026 … Continue reading Should HS2 Have Been Scrapped?
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