Economics Archives

2024 Housing Market Predictions: Will It Improve?

Will the 2024 housing market be as bad as the 2023 market? How did the 2007-2008 financial crisis trigger today’s affordable housing struggles? Why is homeownership a pipedream for many Americans? Stricter lending standards and sky-high home prices have rendered homeownership increasingly unattainable for many Americans. Despite slight improvements expected in 2024, long-term housing affordability remains uncertain due to supply shortages, high prices, and increasing economic inequality. Keep reading for an idea of what’s in store for the year ahead.

Economic Pessimism Rises, Despite a “Strong” US Economy

A sweaty man experiencing economic pessimism as he reads a paper saying the economy is up.

Why is there so much economic pessimism in the US, despite an objectively strong economy? How might the disconnect between economic realities and perceptions impact consumer habits and the future state of the American economy? Despite robust economic indicators in the US, public opinion surveys find many Americans are pessimistic about the economy. Factors contributing to the negativity include persistent inflation, political polarization, the media, and lasting scars from the Covid-19 pandemic. Here’s why there’s such a disparity between the numbers and public perception.

Shrinkflation and Skimpflation Mean You Get Less For Your Money

Have you noticed your cereal box getting lighter? Or that the cough syrup you regularly buy tastes watered down? What are shrinkflation and skimpflation? Companies use shrinkflation and skimpflation—reducing the volume and quality of goods and services—to protect their profits in the face of rising operational costs. These practices directly cut into consumers’ purchasing power, as they continue to pay the same amount of money for lower-value products. Here’s a look at how shrinkflation and skimpflation affect both customers and businesses.

Does US Defense Spending Help the Economy?

Do increased investments in missiles, fighter jets, and other military resources really create American jobs? Do they pose economic risks that could undermine US interests over time? US defense spending is said to bolster economic development and foster job creation, but some analysts caution that increased defense spending may not be a boon for economic growth. Hiring challenges, supply chain snarls, and other issues are delaying defense contractors’ peak production. Here’s a look at whether defense spending helps the economy or not.

The Anarchy by William Dalrymple: Book Overview

A young woman reading a book outside in a city.

How did a trading company, ostensibly formed for commerce, come to rule most of the Indian subcontinent and its millions of people for over 50 years? What impact did it make? The Anarchy by William Dalrymple charts the rise of the English East India Company (EIC) during the 17th and 18th centuries. Dalrymple explains how it rose from a small outfit of merchants into the imperialist superpower that established British colonial rule in India. Continue reading for an overview of this fascinating book.

The 2 Components of the Traditional Economics Theory

A hand holding a pink piggy bank in front of coins in a field.

What is the traditional economics theory? What two claims does the efficient market hypothesis consist of? In Misbehaving, Richard H. Thaler discusses two key components of traditional economics to back up why he’s against it. These components are the premise of constrained optimization and the efficient market hypothesis. Learn more about the foundations of the traditional economics theory below.

Mughal Trade: When England Deferred to a Mighty Empire

Numerous ships docking near a city as part of the Mughal Trade.

How wealthy was the Mughal empire? Why were the English the deferential party in the Mughal trade relationship? In The Anarchy, William Dalrymple charts the rise of the English East India Company. He sets the stage by discussing conditions in India during the 17th century and what made it so attractive to British merchants. Read more to understand how England took notice of the wealth in India and began trading within the powerful Mughal empire.

Constrained Optimization in Economics: The 3 Arguments Against It

An illustration of constrained optimization in economics as a graph with a downward trend.

What’s constrained optimization in economics? What are the arguments against this economic process? In Misbehaving, Richard H. Thaler focuses on the arguments against the premise of constrained optimization, highlighting three types of counterexamples to this premise. This is to show the salience of non-economics factors in our decision-making process. Continue reading to dive deeper into why Thaler is against constrained optimization.

The Fall of the Mughal Empire: The East India Company’s Role

The fall of the Mughal Empire illustrated in a battle between soldiers.

How did the mighty Mughal empire fall? What role did the East India Company play in its demise? While not the direct cause behind the breakdown of Mughal authority, the East India Company benefited from the resulting power vacuum. William Dalrymple explains that the company’s gradual accumulation of control paved the way for the establishment of British rule across India. Keep reading to learn about the dramatic fall of the Mughal empire.

Impacts of the National Association of Realtors Lawsuit

What does the National Association of Realtors lawsuit mean for major brokerages? What changes could the verdict realistically bring about? Who stands to benefit if commissions drop? In October, a federal antitrust lawsuit verdict found the National Association of Realtors and other big brokerages guilty of colluding to inflate home selling commissions. Experts forecast a substantial shakeup in the industry. Below we’ll take a look at the National Association of Realtors lawsuit and what it means for brokerages and home buyers alike.