As somebody who reads a lot of "economics for laymen" books, I find some of the esoteric microeconomics theory or hardcore mathematics boring. Occasionally there is an obscure topic worth learning: labour demand elasticity is such a topic.
The price of labour often affects the demand for it. If wages fall, we might expect higher demand as employers take advantage of the inexpensive human capital by hiring more people. The relationship between the two is "labour's elasticity of demand", and it's the answer to the question, "by how much will employment increase if workers are X% cheaper?"
Read moreContrary to popular opinion, morality is encouraged in capitalism. Without honesty and reliability, markets do not function: an untrusted operator within the market will suffer. Trust is an economic advantage, and it is the government's role to create an environment in which honesty flourishes via the dependability of laws and consistency in their application. Dishonesty becomes an advantage only when governments intervene - businesses find workarounds and exploits because honest behaviour is no longer financially possible or competitively advantageous. Rent controls are an example of measures that encourage economically harmful behaviour, disincentivising landlords to maintain unprofitable accommodation or maintain safety standards.
Read moreCritics of gentrification give two main reasons for their opposition: (1) wealthy newcomers drive up monthly rents, thereby displacing original residents, and (2) rapid change to neighbourhood culture represents negatively impacts the original residents.
Read morePerhaps we can’t turn it all around. In a basic sense some rise in planetary temperature is inevitable, so do we roll over and accept our fate? One group of people believe we must spend whatever money we have on policies that can only promise a minimal impact at best. Another says something along the line of “if you can’t cure climate change, then let us mitigate against its most harmful effects, working on technologies with the time we buy ourselves”. The former dominated the conversation, I’d like to look a bit more at the latter.
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