Economics Archives

Reluctant Entrepreneurs: Poverty and Entrepreneurship

How does poverty affect entrepreneurship? How does running a business—paradoxically enough—keep people in the poverty trap? It’s not uncommon for the poor to run their own businesses. However, running a business seldom helps them escape the poverty trap. This is because the poor choose not to invest in their businesses because they have little means to do so. Furthermore, the poor generally don’t want to run their own businesses—they often do so because they don’t have any other options to make a living. Here’s a look at poverty and entrepreneurship.

5 Mutual Fund Tips From The Wealthy Barber

Should you invest in mutual funds? If so, how do you choose among all of the options? In The Wealthy Barber, author David Chilton advises you to invest 10% of your income for long-term growth. This money should go into index or mutual funds. He recommends a particular type of mutual fund and provides advice on selecting one. Here are some mutual fund tips from David Chilton and a few others.

Trading in the Zone: Book Overview (Mark Douglas)

Why do some people achieve consistent success as financial traders while others fail? Do the successful few have special insider knowledge? Better trading strategies? Astounding good luck? In his book Trading in the Zone, Mark Douglas says one factor distinguishes successful traders: a winning mindset. To achieve consistent trading success, Douglas says, we need to train ourselves to think differently, and he shows us how. Below is a brief overview of Trading in the Zone by Mark Douglas.

How a Distributive Economy Promotes Equality

How to Create a Wealth Mindset to Change Your Reality

What’s a distributive economy? What are the dangers in entrusting the distribution of the money supply to private commercial banks? A distributive economy promotes an equitable distribution of the money supply. In a capitalist economy, the money supply is distributed by private banks, which gives banks too much power. In a distributive economy, government-backed financial institutions take the role of private banks. Here’s why we should democratize money, according to Kate Raworth.

Why Do Poor People Have So Many Children?

Why do poor people have so many children? How do poor parents plan their family size? Poor mothers often suffer disadvantages if they have children too early in life or if they have more children than they can afford. If they have children before they finish school, mothers tend to get less education during their lifetimes, and if they have more children than they can afford, mothers sacrifice their own health needs to ensure those children are cared for. Given these facts, Duflo and Banerjee point out two factors that affect the poor’s reproductive decisions. Here’s why the poor have

Why Is the Trading Failure Rate So High?

Why is the trading failure rate so high? In principle, is it possible to predict the market with absolute certainty if you have all the necessary tools? The financial market gives us ample opportunity to generate money. Yet, most people struggle to make the gains they want. The crux of the problem is that they don’t fully understand how the market operates. Most traders rely on either technical or fundamental analysis (or both) to try and predict the market, but they’re insufficient preparation for consistently successful trades. Here’s why conventional market analysis strategies fall short.

Multiple Segmentation: Benefits of Splitting Your Market

What is multiple segmentation? How does splitting your target market increase growth in business? Market segmentation is when you divide your target market into multiple segments with a different product or message. In The Marketing Plan, William M. Luther encourages multiple segmentation because it offsets market decline. Here’s a more in-depth explanation of why Luther is in favor of multiple segmentation.

Employee Ownership: Reimagining Labor Markets

Why should companies be owned by their employees? Will employee ownership work for any business? In her book Doughnut Economics, Kate Raworth champions more collective forms of corporate governance, such as cooperatives and employee-owned enterprises. She argues that to deny workers an equity stake in the company to which they provide their valuable labor is to deprive them of what is rightfully theirs. Here’s why employee ownership is the way to go.

Understanding Technical Analysis: Trading 101

What is technical analysis in trading? How does technical analysis predict the price of financial assets? Which approach is superior: technical or fundamental analysis? Technical analysis looks at patterns in the price of an investment to predict how that investment’s price is likely to shift in the future. In contrast to fundamental analysis, technical analysis takes into account traders’ activity by attempting to uncover behavioral patterns. Keep reading to learn how technical analysis trading works, its pros and cons, and why it’s superior to fundamental analysis.

The Circular Economy Model: Is It Bad for Business?

What is a circular economy? Will transitioning to the circular economy model hurt businesses? A circular economy is a model of production and consumption aimed at minimizing waste by reusing and regenerating the available resources. The shift towards a circular economy is the necessary step toward sustainability—if companies take and take from the planet without replenishing or regenerating, there will be nothing left. Here’s why shifting to the circular production model is good both for businesses and for the planet.