Economics Archives

Extractive Political Institutions: How & Why They Exist

What are extractive political institutions? How do they come into power? What makes a nation extractive? According to the book Why Nations Fail, political institutions determine how a nation creates the rules that citizens live under. Whether a country adopts extractive or inclusive institutions also determines who wields power in society and how they wield it. Read on to learn how and why extractive political institutions are created, according to Why Nations Fail.

The 2 Things Successful Countries Do to Thrive

What makes a country successful? What do successful countries do differently than failing nations? In the book Why Nations Fail, economist Daron Acemoglu and political scientist James A. Robinson explain why some nations have wealth and high standards of living while others struggle with poverty and instability. They argue that freedom and fairness in a nation’s economy and government are the answer. Keep reading to learn the two reasons why successful countries thrive, according to Acemoglu and Robinson.

What Causes Inequality? Analyzing the 3 Leading Theories

What causes inequality in the world? Why are some countries prosperous while others struggle to survive? In Why Nations Fail, economist Daron Acemoglu and political scientist James A. Robinson argue that current theories on national failure are flawed. They further explain that successful nations have political and economic institutions that are “open” while failing nations have “exclusive” institutions. Read on to learn what really causes inequality and why the top theories are flawed, according to Acemoglu and Robinson.

The Big Short by Michael Lewis: Discussion Questions

The Millionaire Next Door and Wealth Building

Are you looking for exercises and discussion questions for The Big Short? How can you apply the lessons in the book to your own life? The Big Short by Michael Lewis explores the origins of and fallout from the 2007-2008 financial crisis through the eyes of a handful of eccentric and oddball investors who saw that the U.S. housing market—and, by extension, the entire financial system—was built on a foundation of sand. Continue reading for The Big Short discussion questions and exercises.

Why Is Rent So Expensive? Economists Weigh In

Why is rent so expensive at the moment? Who has been most affected by rising rent prices? Will prices drop? Demand for affordable housing has surged even as luxury rentals have emptied, leading to quickly rising prices in the market segment that can afford them least. Economists claim that, for lower-income households, the cost to rent is disproportionately higher. Keep reading to find out why rent is so expensive and what the solution is, according to economists.

What Is the Best Time to Buy and Sell Stock?

What is the best time to buy and sell stocks? How can you tell whether a stock’s price is fair and reasonable? There are numerous factors that determine the best time to sell/buy stocks. According to Peter Lynch, the author of One Up on Wall Street, there are two rules of thumb to follow when deciding whether to enter/exit the market for a particular stock. Here’s when you should buy/sell stocks, according to Lynch.

How to Avoid a Climate Disaster: Quotes by Bill Gates

Are you looking for How to Avoid a Climate Disaster quotes by Bill Gates? What are some of the most noteworthy passages worth revisiting? In How to Avoid a Climate Disaster, Bill Gates presents a practical discussion of climate change informed by his experience as a tech mogul and philanthropist. He discusses the looming effects of global warming on the planet and presents potential solutions for curbing CO2 emissions at the government, business, and individual levels. Below is a selection of quotes with explanations.

Should You Invest in Cryptocurrency? Consider These Risks

Should you invest in cryptocurrency in 2022? Which currencies are outperforming the others? What are the risks and benefits of investing? The cryptocurrency industry is large enough now that major investors take it seriously. But, before it becomes truly mainstream, it’ll need to address some basic problems that pose risks to the industry. Keep reading for an overview of the industry to help you decide if it’s worth investing in cryptocurrency.

Why Surveillance Capitalism Is Google’s Brainchild

What is surveillance capitalism? What role did Google play in its creation? What are the consequences? According to author Shoshana Zuboff’s explanation of surveillance capitalism, Google’s development of targeted advertising and data predictions played a major role in its creation. Zuboff claims that Google now holds a dangerously powerful position in surveillance capitalism and our rights to privacy. Read on to learn the connection between Google, surveillance capitalism, and advertising, according to Zuboff.

Regulation of Cryptocurrency: Why Are Lawmakers Wary?

Why are some lawmakers nervous about the regulation of cryptocurrency? What risks does the crypto industry create? The explosive growth of cryptocurrencies is attracting the attention of regulators who range from wary to enthusiastic about the industry. Cautious lawmakers worry about crypto’s potential for criminality and its susceptibility to cyberattacks. Keep reading for a brief overview of where lawmakers currently stand on cryptocurrency regulation.