Economics Archives

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.

Deflation in America: A Cause for Celebration or Concern?

Is deflation in America a good or bad thing? How does it impact American households and the broader economy? In mid-November, Walmart CEO Doug McMillon and investor Cathie Wood flagged the potential of a deflationary period in the US, citing shifting consumer behavior and falling prices. Deflation, while promising lower prices for consumers, can signal a slowing economy and lead to wage cuts, job losses, and potentially a recession. Here’s a look at what deflation would mean for US citizens.

The Rise of the East India Company: From Traders to Rulers

The rise of East India Company illustrated with soldiers and ships on water.

How did England’s East India Company get so powerful? How did it pave the way for colonial rule in India? In his book The Anarchy, historian William Dalrymple traces the ascent of the English East India Company. Originally a modest group of traders, the company transformed over the 17th and 18th centuries into an imperial powerhouse that imposed British rule across the Indian subcontinent. Continue reading to learn about the fascinating rise of the East India Company.

2023 US Holiday Sales Show a Complicated Economy

Is holiday spending breaking records or masking economic troubles? What’s the outlook for shopping trends? How are retailers being impacted? US holiday sales over Thanksgiving topped $10 billion online, but growth lags behind previous years. Shoppers are flocking to discount retailers, leaving traditional stores in the cold. “Buy now, pay later” programs are gaining traction, offering relief and risks for strained consumers. Continue reading to learn what the holiday sales numbers say about the US economy.

Fairness in Economics: 2 Examples That Prove It Doesn’t Work

A person abiding by fairness in economics as they write on a paper with coins.

Should fairness be accounted for in economics? How does fairness conflict with budget optimization? Economist Richard H. Thaler argues that consumers are concerned with fairness and cooperation, even when these concerns get in the way of their budget. This is shown by two experiments: the ultimatum game and the prisoner’s dilemma. Discover why fairness in economics doesn’t always have a happy ending.