Last month a friend asked my opinion and I thought I might be able to apply my economic knowledge to a real life scenario (this almost never happens so I got quite excited). It had to do with the process of reselling tickets, and we debated whether or not this was greedy exploitation or simple capitalism. Is it right to be governed by money and the market or should social norms and ethics dominate? Continue reading “Applying Economics To Ticket Scalping”
Whenever I tell people that I’m studying economics they usually ask me how to solve the recession or what to do about the banks. Each time I’m embarrassed over the fact that we have never even mentioned these issues in lectures. In my course I have basically been taught that the free market is the most efficient and best system in the world and trouble always results when it is interfered with. In my textbooks recessions are not mentioned, they do not happen. There is no explanation of unemployment, the biggest issue of our times. There is no mention of profit, the heart of capitalism. Nor do they talk about banks or money or advertising or how systems are guided by power relations. No mention is made of poverty, in effect ignoring three-quarters of the world.
Continue reading “What Economics Doesn’t Talk About”
Economics is all about supply and demand. Textbooks are full of examples of these two balancing each other out. However there is a third factor that is forgotten. That is fairness. People are guided by how fair they think something is or is not. Businesses often don’t raise their prices even when demand rises because it is seen as being unfair. Similarly customers often resent higher prices if they feel there is no justification for it. Economists obey the laws of supply and demand, sometimes ordinary people don’t. Continue reading “Demand, Supply And Fairness”