Wealth Inequality Part 1

When it comes to inequality there are a lot of phrases that get thrown around: wealth inequality, Income inequality, gini coefficients, etc. Therefore I am going to define a few of these terms to help to clarify the discussion. Wealth inequality is the difference in the distribution of assets (wealth) within the population of a country/society. The measurement for this difference in distribution is called a gini coefficient/index and goes from 1 to 100. Income inequality is a term referring to the differences in the distribution of income income within a society/country and is similar to wealth inequality. These terms Continue reading Wealth Inequality Part 1

A Circular Economy, Explained

Circular economies are often portrayed as simple combinations of reduce, reuse, and recycle activities as popular definitions have come short of selling the model’s potential to increase economic prosperity, derive more value from inputs, and reduce emissions. Considering our climate emergency and volatile resource markets, a 4R framework, closed-loop production process could be a real contender for transforming our economy.  To understand how this model could reform the current system, a comprehensive explanation of circular economies as a concept is necessary. While there are multiple definitions for the model, the following aims are almost always mentioned: to enable sustainable development at Continue reading A Circular Economy, Explained

The Economics of Halloween

The chill in the air, orange leaves, and Tacoma rain that now graces UPS signal that October, and thus spooky season is in full force. As the nation gears up for football season, the World Series, and pumpkin flavoring, children young and old prepare for Halloween, the holiday of holidays. Although the winter holidays more often elicit ideas of consumerism, Halloween still generates a relatively large surge in household consumption. According to The Balance, last year’s Halloween sales hit $9 billion, just shy of 2017’s $9.1 billion. The Balance sites the National Retail Federation’s annual survey, which found that people Continue reading The Economics of Halloween

Illiberalism or Hyperliberalism? Market Authoritarianism in Context

A dualistic view of the world has rapidly gained popularity in recent years. On one side stands the liberal order: supportive of free markets, the consent of the governed, human rights, and representative democracy. On the other: an aberrant authoritarian populism that flirts with ethno-nationalism, expands executive power, expresses intense skepticism toward globalization, and demonstrates disregard, if not contempt, for civil liberties and the rule of law. This authoritarian creep threatens the tremendous gains that the dominant order has made since the Second World War and may even seek to revive its more abhorrent ideologies. The alleged cure? More of Continue reading Illiberalism or Hyperliberalism? Market Authoritarianism in Context

Tariffs: Expectations vs. Reality

The purpose of Trump’s steel and aluminum tariffs is to protect  domestic suppliers and firms as well as to encourage steel/aluminum production in the United States . Tariffs, in general, are a tax on imports to increase the price which results in a larger producer surplus, revenue collected on account of the tariff, and deadweight loss. Overall, tariffs create market inefficiency and hurt the wellbeing of an economy because of it. Of course, there are many more factors to think about. The market for steel and aluminum affects much more than just those involved in the production. It affects all Continue reading Tariffs: Expectations vs. Reality

Yield Curve and Politics 101

The yield curve (showing investment rates over time) is an indicator of an economy’s health. When the curve is sloping up, the economy is expanding and overall doing well. It is when the curve starts to level out that it becomes worrisome as this generally means that an economic slowdown – or recession – is on the rise. Looking at the curve’s latest data from the U.S Department of the Treasury, we are bound to see a slowdown very soon. Slowdown or Recession?: “The United States does not define a recession as two consecutive quarters of shrinking output” however that Continue reading Yield Curve and Politics 101