Once upon a time there was a car manufacturer. One day he proposed to double his workers wages. The business community was stunned. Was this man insane? A socialist? Did he not understand the laws of economics? Surely his business would instantly go bankrupt and nothing more would be heard of him. In response he simply pointed out that with a wage increase his workers could now afford to buy the cars they made. Business boomed, profits rose and the company redesigned the entire car industry. The man’s name was Henry Ford. Continue reading “Pay More, Get More”
Sometimes just talking about politics and economics can be a bit dry so here’s some good cartoons to lighten it up a bit while still making a good point.
More or less sums up how stock markets work.
Decades after the Civil Rights Movement, Black workers earn significantly worse than White workers. The gap is either 40% or 25% depending on whether the average or median census data is used, but the fact remains that there is a large gap. Why is this the case? Is it due to discrimination or is it because of better skills and education levels among White people? Continue reading “Why Black People Are Paid Less Than White People”
It seems quite obvious what the cause of famines are. They are caused by a natural disaster (flood, drought, disease etc) destroying crops. With less food more people go hungry, hence starvation occurs. It seems very simple and straight forward. But Amartya Sen has proposed a radical new explanation. He argues that it is not a lack of food that causes famines, but rather an inability of people to purchase the food. Continue reading “A Surprising Cause Of Famines”
Einstein once defined insanity as doing the same thing over and over again and expecting different results. For four years the government has being cutting spending and raising taxes. For four years we have been told it is the only way to reduce the deficit, restore growth and create jobs. Yet four years later we still have a large budget deficit, high unemployment and the economy is still contracting. Continue reading “Why Austerity Isn’t Working”
We are in the midst of the worst recession since the Great Depression. It is therefore logical that we should see how that recession was ended for solutions to our current problems. It was solved by Continue reading “How To End The Recession”