The fact that an abundant welfare system and a loosely regulated market are operated by the same government does not give proof to their harmonious existence and a beneficial impact of their supposed fusion. The latter is practically impossible.
In considering the extent to which the state should be relied upon to promote social cohesion and virtue, one must keep in mind the potential associated pitfalls as well as the other possible means to accomplish the same desired ends.
The Centre for Economic and Market Analyses published a study about the shadow economy in the Czech Republic. The study deals with the theoretical aspects of shadow economy, methodology and definition, it includes international comparison, determination of driven factors as well as provides a further analysis of chosen industries.
Security is the biggest challenge for our economy. To counteract a similar challenge, Israel, for example, is entirely militarized, regardless of the fact that numerous international lobbyist groups assist it, including financially. A country facing such security challenges might have armed forces three or four times stronger than Georgia and a defense budget 10 times larger.
Soon after the outbreak of Volkswagen scandal, it was found out that not only Volkswagen, but also many other, and potentially, all car producers which release diesel cars have the same problem. Their management, who cheated their way around the strict emission limits, eats humble pie at the press conferences.
Cuba needs a comprehensive structural reform of the constitution, legal system, economy and within its society. It needs to open up to dialogue, interchange and cooperation with today’s key international players: the United States, Europe, Latin America and the international institutions.
In the most recent ranking of the World Economic forum, which compares the competitiveness of 140 countries around the world, Slovakia ranked 67th. Since we ranked 8 places higher the year before, the media presented this as positive news.
A few weeks ago, the Fed expressed no intention to increase interest rates, but the will to maintain the current ones of 0 to 0.25%. The problem is that cheap money does not only indicate the prevailing economic problems, but imply long-term negative impact on both savers and economy.
Arrival of Uber, which provides a cheaper alternative compared to traditional taxi services, has stirred up a debate in Slovakia. The participants are two camps divided by two completely different points of view regarding the question what Uber represents.
The first task an economist has to master is to explain to people that there is such a thing as an economic problem. That is because people are more concerned with everyday emotionalism creeping into their lives by means of having to deal with another type of a problem that we could call an ‘engineering’ one.
