No one enjoys paying taxes. Remember receiving your first paycheck and discovering how much of your hard-earned money you would be sharing with the government? Most of us recognize that some taxes are necessary. Although economics recognizes the need for taxes to fund the government, it is pretty clear-eyed about the downside of taxes. One example is the tax on cigarettes.
Was there ever a more hollow and impotent piece of legislation than the UK’s Fixed Term Parliaments Act? Trumpeted by the Conservative-led coalition as a way of stopping opportunist prime ministers ever again calling snap elections to capitalize on hefty poll leads – by complicating simple confidence votes in ways that prompted Labour to condemn it as a constitutional “stitch-up” – within six short years of receiving Royal Assent it has proved itself wholly incapable of doing any such thing.
2016 was a rough year for globalization. And 2017 may get even rougher. By globalization, I mean the growing interconnectedness between economies through cross-border flows of goods and services, money, and people. The world has undergone two “eras of globalization” during the past century and a half. The first occurred during the 40 years or so before World War I.
Following the 2016 US Presidential election, we have curated a series of reading lists with resources that provide insight into electoral politics, key themes that stimulated some of the major debates from the election season, and important topics of discussion relating to the potential outcomes of the election. We have selected books and resources that detail American politics and investigate issues that influenced the recent presidential campaigns,
have not yet seen Lin-Manuel Miranda’s hit Broadway show Hamilton. I feel badly about this for three reasons. First, Miranda is a 2002 Wesleyan graduate, a loyal and generous alumnus who gave a great commencement speech in 2015 and remains solidly committed to the university. Second, the music and lyrics are, quite simply, amazing. Third, as an economic historian, it is heartening to see one of America’s economic heroes make it to Broadway.
Last month HSBC, one of the world’s largest banks, decided not to move its headquarters from London to Hong Kong.The revelation that a company is staying put is usually not earth-shattering news. Nonetheless, HSBC’s decision made headlines in Asia, Europe, and the US for three reasons. First, HSBC is the world’s fifth largest commercial bank: it holds more than $2.5 trillion in assets and is exceeded in size only by four state-owned Chinese banks.
The Chinese New Year begins on 8 February, ushering out the year of the sheep (or goat, or ram) and bringing in the year of the monkey. People in China will enjoy a week-long vacation and will celebrate with dragon dances and fireworks. Given the financial fireworks emanating from China, this is a good time to briefly review some of the major economic news coming out of the Middle Kingdom.
t the conclusion of the mid-September meeting of the Federal Open Market Committee (FOMC), the Federal Reserve announced its decision to leave its target interest rate unchanged through the end of this month. Although some pundits had predicted that the Fed might use the occasion of August’s decline in the unemployment rate (to 5.1 percent from 5.3 percent in July), to begin its long-awaited monetary policy tightening, those forecasts left out one crucial fact.
The next time you are slipping the valet a couple of folded dollar bills, take a good look at those George Washingtons. You might never see them again. Every few years, there is a renewed push for the United States to replace the dollar bill with its shiny cousin, the one dollar coin.
Wednesday, 22 July 2015, marks the tenth anniversary of the OUPblog. In one decade our authors, staff, and friends have contributed over 8,000 blog posts, from articles and opinion pieces to Q&As in writing and on video, from quizzes and polls to podcasts and playlists, from infographics and slideshows to maps and timelines. Anatoly Liberman alone has written over 490 articles on etymology. Sorting through the finest writing and the most intriguing topics over the years seems a rather impossible task.
One of the most striking structural weaknesses uncovered by the euro crisis is the lack of consistent banking regulation and supervision in Europe. Although the European Banking Authority has existed since 2011, its influence is often trumped by national authorities. And many national governments within the European Union do not seem anxious to submit their financial institutions to European-wide regulation and supervision.
As long as rulers have needed money for the military, public works, or just to enrich themselves, they have relied on taxes. As Americans approach the dreaded April 15 income tax-filing deadline, it is worth considering some key facts about taxation. There are many different modes of taxation: individual income taxes, corporate profits taxes, capital gains taxes, property taxes, inheritance taxes, sales taxes, social insurance taxes, taxes on imports, and a whole host of government-levied fees that look and feel a lot like taxes.
The industrialized world is currently moving through a period of ultra-low interest rates. The main benchmark interest rates of central banks in the United States, the United Kingdom, Japan, and the euro-zone are all 0.50% or less. The US rate has been near zero since December 2008; the Japanese rate has been at or below 0.50% since 1995. Then there are the central banks that have gone negative: the benchmark rates in Denmark, Sweden, and Switzerland are all below zero. Other short-term interest rates are similarly at rock-bottom levels, or below.
I have written about the dangers of making economic policy on the basis of ideology rather than cold, hard economic analysis. Ideologically based economic policy has laid the groundwork for many of the worst economic disasters of the last 200 years.
On September 18, Scots will go to the polls to vote on the question “Should Scotland be an independent country?” A “yes” vote would end the political union between England and Scotland that was enacted in 1707. The main economic reasons for independence, according to the “Yes Scotland” campaign, is that an independent Scotland would have more affordable daycare, free university tuition, more generous retirement and health benefits, less burdensome regulation, and a more sensible tax system.
By Richard S. Grossman
What do the Irish famine and the euro crisis have in common? The famine, which afflicted Ireland during 1845-1852, was a humanitarian tragedy of massive proportions. It left roughly one million people—or about 12 percent of Ireland’s population—dead and led an even larger number to emigrate. The euro crisis, which erupted during the autumn of 2009, has resulted in a virtual standstill in economic growth throughout the Eurozone in the years since then.