Economics Archives

How Much of Your Income Should You Invest?

What does it mean to “pay yourself first”? How much of your income should you invest? Where should you invest it? If you want to become financially successful, the most important step you can take is to invest money from every paycheck. That’s the view of David Chilton in his book The Wealthy Barber. When you invest and leave it alone, compound interest will ensure the long-term growth of your assets. Chilton recommends a couple of types of investments that he prefers over savings in the bank. Keep reading to learn Chilton’s advice on what you should invest in and

The Age of Automation: How Can We Adapt?

Does automation contribute to unemployment? How can we adapt to the world where most jobs are performed by technology? The age of automation is upon us. Already, many jobs that used to be performed by humans can be completed by robots, and this is only the beginning. To address the looming challenges of automation, we must build a people-centered economy. Keep reading to learn about the looming challenges increasing automation brings.

Kate Raworth: What Is Homo Economicus?

What is “homo economicus”? Does the assumption of homo economicus reflect an average economic agent? Economics, once focused on the study of the production of goods and services, has branched into psychology and now purports to explain the motivations and beliefs of the human beings who produce those goods and services. At the heart of the current economic theory is “homo economicus”—the idea that humans are rational beings making optimal economic choices in the light of perfect access to information. Here’s why the homo economicus model is ultimately flawed, according to Kate Raworth.

The Relationship Between Poverty and Education

What is the relationship between poverty and education? Why do the poor choose not to send their children to school? Poverty is a major obstacle to obtaining an education. But even when education is available, poor parents may choose not to send their children to school. This is because there’s often a lack of well-paying jobs in poor areas, so parents don’t bother educating their children because they see little point in doing so. Here’s why the poor often choose not to make use of the educational opportunities that are available to them.

Real Estate Investment Tips: If & When You Should Buy

Is real estate a good investment? If so, how much should you invest, and when should you take this step? David Chilton, in his book The Wealthy Barber, recommends that you invest 10% of your income. A good place for this money, he says, is real estate. However, he provides some real estate investment tips that help you know if and when you should buy. Here’s what you should consider if you’re thinking about investing in real estate.

What Is the Key to Success in Trading?

Why do most people give up trading? Is trading really that hard as it’s made out to be? What does it take to become a successful trader? One of the keys to achieving success in trading is simply a matter of trading a lot. Provided you have a sound strategy, over time you’ll become more adept at reading market patterns and predicting what happens next with ever-increasing accuracy. Here’s how to achieve success in trading.

Kate Raworth: Challenging Economic Assumptions

What are the core economic assumptions? Do the current economic assumptions align with the ultimate goal of economics? According to Kate Raworth, economics has developed some core assumptions about human nature, what an economy exists to do, and what the social science of economics is meant to achieve. According to her, if the economy is to better serve humanity’s needs, these core assumptions need to change. Here’s why the traditional economic assumptions are flawed, according to Raworth.

How to Break the Vicious Cycle of Poverty

Why is it so hard to get out of poverty? What is the key factor that keeps people stuck in the poverty trap? Poverty is an insidious trap that is extremely difficult to escape. Poor people are so focused on stretching their limited resources that they simply don’t have the time or energy to think about anything else. According to Esther Duflo and Abhijit Banerjee, the authors of Poor Economics, one way to break the vicious cycle of poverty is to give the poor easier choices. Here’s how lack of choices keeps people in the poverty trap.

Kate Raworth: Doughnut Economics (Book Overview)

What is Kate Raworth’s book Doughnut Economics about? What is the key message to take away from the book? In her book Doughnut Economics, Kate Raworth argues that traditional economic theory has been too focused on the economy as a measure of GDP, income, and output. Raworth proposes redefining how economics is taught and the role that economists play in shaping public policy, shifting from a growth-centered approach to a human-centered approach that harnesses the power of economics for the betterment of humanity. Below is a brief overview of Doughnut Economics by Kate Raworth.

Competitive Marketing Strategies for Success

What are competitive marketing strategies? How can you assure your product will outmatch your competitors’ products? A competitive marketing strategy is a long-term plan that businesses develop to gain a competitive advantage in the market. William M. Luther provides a few strategies he swears by in The Marketing Plan. Keep reading to learn how to be the best in your market.