The Federal Trade Commission (FTC) was originally created to encourage market competition and to protect consumers by breaking up monopolies and monitoring mergers and acquisition activity. It has now branched out into more areas in the pursuit of consumer protection and fair markets. The FTC is now comprised of three bureaus: Consumer Protection, Competition, and Economics. They protect consumers from fraudulent business activity and monopolistic business practices. Continue reading...
The Home Market Effect is a term used in macroeconomic theory describing a concentration of an industry’s production facilities being concentrated in the larger national economies where its primary consumers exist. The home market effect (HME) is a theoretical term used in trade theory economics. The domestic economy in this case has an effect on the international prices and economy related to these goods. Continue reading...
A monopoly is an unhealthy situation in the market in which a single company is the only option in a specific sector or area, which undermines the principals of a free market. In a free market, there is competition which keeps the prices and the quality of products as good as they can be for the consumer. The consumer will therefore receive the most value, and society will be in its best possible position, when the needs and demands of consumers are being addressed by several companies attempting to outdo each other to earn the consumer’s business. Continue reading...
Journey into the world of Karl Marx, the visionary behind Marxism. From dissecting capitalism's flaws to envisioning a revolutionary alternative, Marx's ideologies have shaped centuries of socio-political discourse. Delve into the essence of class struggle, the critique of economic disparities, and the quest for a just world. As society grapples with modern challenges, Marx's legacy offers a lens to understand and inspire change. Continue reading...
Economies of Scale is an economic concept that says the efficiency of production rises as the quantity of goods produced increases. With scale, the costs associated with production should decrease thereby allowing a company to increase profitability with more goods produced. However, in many cases the upside potential is not necessarily unlimited. A company may experience diminishing marginal returns to producing more goods. Continue reading...
Dive into the history & evolution of banknotes! 🌍 From ancient bartering systems & gold-backed currencies to today's fiat money. Discover how a piece of paper shapes economies & impacts our daily lives. 📜💰 #BanknoteHistory #CurrencyEvolution #ModernEconomy Continue reading...
In an era where environmental consciousness is at its peak, the waste management sector has emerged as a crucial player in the global economy. This industry, nestled within the industrial sector, uniquely overlaps with utilities, dealing with solid waste and wastewater management. As the world gravitates towards sustainable practices, companies specializing in waste management are gaining significant attention, not just from consumers but also from investors. Continue reading...
Utilities stocks are those who deal in services like water, electricity, gas, and other critical infrastructure. Recently, alternative energy has been added as a sub-sector due to its incremental rise in importance. Utilities are categorized as non-cyclical - even if the economy is in a recession, people still need water and electricity. For that reason, they are often treated as defensive stocks, which investors hope will outperform during more difficult economic times. There is little competition in the utilities sector, as the barrier to entry is generally extremely high for a new entrant, given the amount of infrastructure required. Continue reading...
Explore Modern Monetary Theory (MMT), a groundbreaking approach redefining government finance and money creation. MMT challenges conventional beliefs about fiscal policy, revealing how sovereign countries can create money without relying on taxes or borrowing. Delve into its origins, growth, and key principles, including its unique perspective on government debt. While MMT gains momentum, it faces substantial criticism, raising questions about its potential as a revolutionary economic paradigm. Join the ongoing debate on the future of fiscal policy and economic thought. #MMT #Economics #Finance Continue reading...
Unlocking the Secrets of Joint-Stock Companies: Explore the rich history, types, and benefits of this unique business structure. Discover its evolution from financing New World exploration to modern-day corporations. A historical journey through corporate finance awaits! #JointStockCompanies #BusinessHistory Continue reading...
Income inequality is the difference in the average income of the lower/middle class and the upper class. Naturally the high income of very rich people in the country, which constitute a very small percentage of the population, will dwarf the average income of those who are not very rich. The worrisome thing is when the gap between them widens at an accelerating rate and the lower classes are not able to break through to the upper classes. Continue reading...
The financial world often buzzes with high-growth tech stocks and innovative startups. However, a segment that consistently proves its worth, especially in turbulent times, is the paying utilities sector. This article delves into the crux of this industry, exploring companies that have not only established themselves as market leaders but also offer compelling investment opportunities due to their stable dividends and defensive nature. Continue reading...