Random stuff Flashcards
Why does Europe lag behind the US from a GDP perspective?
- Better business environment in the US; less egalitarian in nature, so less welfare benefits meaning that taxes are lower
- Less hours worked, likely because of the above
Why does Ireland have high GDP per capita?
Ireland has favourable tax laws regarding corporation tax, so a lot of big MNC’s hold their IP there, and then license this IP to other geographies. Then, these companies produce less profit in international geographies, instead Ireland operations making a large element of the profit.
How do football clubs make money?
Matchday revenue
Broadcast revenue
Commercial revenue
United make a lot of money from commercial revenue, match day revenue has been constant for last 15 years.
Why do football clubs love commercial revenue?
More stable than match day revenue, and potentially broadcast.
What is the singularity in technology?
Hypothetical future where technology has grown out of control and is irreversible.
AI video
https://www.youtube.com/watch?v=8liUOepAO9s
Why is Monaco so rich?
Very favourable tax laws for the uber wealthy
Small land available, meaning prices are really high so only rich people can live there
Why does Luxembourg have such a high GDP per capita?
Small population but is highly selective of the industries that the country specialises in, including banking and tourism. Financial services accounts for over half of GDP. Banking in Luxembourg is really attractive as it uses the Euro rather than CHF; also, being part of EU brings certain tax advantages that aren’t available to non-EU countries
Also has favourable tax rules for investment funds
What was Margaret Thatcher’s view on unions?
Didnt like them, big changes during her being prime minister to de unionise. She also thought there was too much dependence on the state.
She saw them as an obstacle to economic growth, as people should get wages determined by the market, not artificially propped up.
What was Margaret Thatcher’s decision on taxes?
During her being prime minster, she cut them dramatically to stimulate the economy and ‘get capitalism back on track’
What is Neo-liberalism
Supporting free-market capitalism, deregulation, less funding from the state, lower taxes.
Far right.
What is the link between neoliberalism and trickle down economics?
Neoliberalism favours lower taxes and a strong state that encourages the free market to decide things, but the state tends to remain out of things if possible.
The idea being that the economy is stimulated through lower taxes, and the more money earned by rich people ‘trickles down’ to the poorer ones who are originally worse off due to the reduction in state benefits.
Economists argue that trickle-down economics doesn’t work.
What is laissez-faire economic policy
Advocates for things to just be left alone, invisible hand will sort it out
Difference between government debt and governement deficit?
Debt is total outstanding government debt; deficit is the YoY borrowing the government makes to fund public spending
Why do tory governments believe in austerity?
Typically favour Neo-liberalist views that the state should have less influence, therefore want to reduce public spending to run a surplus.
These actions also favour the rich, as the reduction in public spending usually means reduction in welfare support
In QE, what does the central bank buy?
Not just government bonds, but can also buy corporate, RMBS, or any other marketable security
Why do conservatives favour reducing public debt?
Arguments mostly surround economic stability, long-term sustainability, and Neo liberalism (i.e., alternative would be spending money on stuff which is against the concept of leaving stuff to the free market)
Are labour Neo-liberalists?
No, they instead favour more state intervention and progressive taxation in order to fund greater public spending
Why is the NHS broadly insulated from austerity?
Treated as UK darling and so would be very unfavourable if a government reduced spending on it
Is migration a net benefit to UK economy?
Migrants tend to contribute more through taxes then they takee in taxable benefits (by a small margin of circa 10% or so)
Also, the demand for goods and services initiated by them contributes to GDP, and if sufficient, may create additional opportunities for businesses to open
Do migrants end up taking UK jobs?
Not for high-paying ones. Often, it is jobs towards the lower end of the pay spectrum that are taken up by migrants - jobs that, often, the UK demographic dont even want to do
How does the national living wage relate to laissez faire economics
It is state intervention, so is contradictory of what is suggested in LF economics.
What is triple locked pension?
Rise with prices, average earnings, or 2.5% - whichever is higher
Why are help to buy schemes not addressing the problem?
House price increases are through a lack of supply; helping people to buy isn’t the problem, as their simply isn’t enough houses. It also only helps a small portion of society that were very close to buying houses, rather than the people who are not even close because they cannot afford to save after deducting mandatory expenses.
Help to buy scheme means that people can better meet the value of inflated assets; the better approach would be to instead reduce the value of the houses to be more reasonsable as a % of wages.
In politics, what is the main argument against taxing assets?
- Dissuading success
- People leave to another country / hide their assets better
What is the idea of UBI?
State pays - to everybody, without means-testing - a basic income, which can then be supplemeneted through other sources
