To conduct international trade and financial transactions, a reserve currency is necessary to eliminate the costs of settling transactions, involving different currencies. Prior to reserve currencies, the gold standard was used to align all currencies, but Gold did not grow at a pace with the real economy and caused crashes as a result. The financial economy has to grow faster than the real economy, otherwise … Continue reading The Euro’s Fundamental Problems
Economics is often criticised for being a reactionary science that predicts nothing and only explains its mistakes (Rodrik, 2015). It is rarely credited with discoveries that help society; and in a random survey, most participants did not trust economists (Economics Network, 2017). Instead, economists are criticised for their resistance to change and for limiting the exploration of real-world practical policy solutions. Moreover, it is true … Continue reading Has Economics Run Out Of New Big Ideas?
In the modern world, we take it for granted that the government should play an essential role in economic and social affairs. The idea that society could ever function smoothly without the apparatus of the state seems preposterous. Indeed, there is good reason to believe this, as mainstream economists today would identify three broad areas of responsibility that the state holds in managing the economy. … Continue reading Anarcho-Capitalism: Utopia or Pipe Dream?
It is January 19th 2017 and Joaquín “El Chapo” Guzmán has just been extradited to the United States to face charges related to his running of the most powerful drug cartel in Mexico, the Sinaloa Cartel. The United States’ Drug Enforcement Administration, also known as the DEA, claims that this is a monumental victory that will be the beginning of the end for drug smuggling into America. However, … Continue reading Crossing Borders and Crossing lines: The International Impact of the Mexican Drug Trade
On the 8th of January 1982, the telecommunications company AT&T was finally mandated to split into 7 independent companies. At that time, it was the only provider of telephone service throughout almost all of the United States. Moreover, most telephone equipment was provided by Western Electric, its subsidiary, which resulted in a vertical integration system, where a company owns its supply chain. Unsurprisingly, the United … Continue reading Monopolies
Tencent is not only the world’s largest game company; it also controls large shares of important markets in China such as music, social media, and films. Since April 2021, Tencent’s stock has seen a slow downward trend, falling from its highest closing price of HKD 757.00 on 14/2/2021 to HKD 266.40 as of 9/30/2022. This has been driven by anti-monopoly laws recently published by China, … Continue reading Tencent: The King of Video Games
Blood diamonds have in total caused 3 million deaths. The average blood diamond worker receives 5p per day. Statistics such as these, highlight the true socio-economic problems such as inequality and poverty that blood diamonds cause. Blood diamonds became a big issue in the 1990’s, when civil wars broke out all over Central and Western Africa, encouraging some of the governments and rebels within these … Continue reading Blood Diamonds: The Brutality behind the Bling
The years following the Great War saw Germany in economic and political which peaked by 1923. The country was plunged into a period of hyperinflation and high unemployment, while the government struggled to maintain order and stability. However, through the policies of Chancellor Gustav Stresemann, the economy was rejuvenated, bringing about the ‘Golden Age’ of prosperity in Germany. Stresemann’s most influential policy, the Dawes Plan, … Continue reading Stresemann and the Dawes Plan
“An economic recovery, like a rising tide, will lift all boats. For many, maybe even most, it will lift by painful inches. Some boats, however, may be lifted faster and higher.” So spoke President Ronald Reagan during his 1982 State of the Union address. He promised growth for all, stimulated by tax cuts for the top earning bracket, allowing for money to “trickle” down socio-economic levels … Continue reading Trickle Down Economics
In recent times, Artificial Intelligence has become more prominent in our everyday lives. With the emergence of AI chatbots such as ChatGPT, which are able to answer questions and assist with tasks such as writing essays, our everyday lives have become much easier and more efficient. While AI has the potential to bring about numerous positive changes in society, it can also bring about risks … Continue reading The Impact of AI in Our Society
