Why Egypt Could Fail

I’ve finally had a chance to read Why Nations Fail by Daron Acemoglu and James Robinson. It provides a useful tool for looking at the President Morsi’s attempt to centralize power in his own office could damage Egypt’s fragile economy. In Why Nations Fail Daron Acemoglu and James Robinson reiterate throughout that politically inclusive institutions,… Read More

There Is No ‘Competitive Economy’ On/Off Switch

As anticipated by many observers, elections in Greece ended in stalemate as many Greeks elected to support the Coalition of the Radical Left and other anti-austerity parties over that the two traditional parties, New Democracy and PASOK. One of the bailout conditions that the leader of the Coalition of the Radical Left, Alexis Tsipras, refuses to… Read More

It’s (Rarely) the Government’s Fault

As the U.K. slipped into a technical recession – two quarters of negative GDP growth – the media, industry, and opposition parties were quick to pounce on the U.K. government austerity measures. Either they blamed the U.K. government for the slowdown outright, or suggested that austerity during an economic slump are foolish. The data says… Read More

Across the Eurozone, Citizens Vote Out Austerity Governments

World stocks continue to oscillate with every bond sale and finance minister utterance in the 17 member Eurozone. Yet, the underlying reality is that the situation hasn’t changed at all. Matthew O’Brien has a nice summary in The Atlantic. It’s tragicomic. Southern Europe already has an unemployment crisis. Their depression-levels of joblessness are a dagger… Read More

The Canadian Mint Has Unveiled the Blueprint of a Bitcoin Successor

The Bitcoin currency – an online, anonymous currency, ‘mined’ by computing power – was fraught with problems from the start. Bitcoin’s supporters champion that it’s ‘safe from the instability of fractional reserve banking‘. Hardly. Bitcoin has proven to be a volatile currency, with only a tiny market for goods and services, no available deposit insurance,… Read More

The Great Manufacturing On-shoring

Tim Worstall at Forbes brings up an important point about the recent increases in wages and working conditions in China for major American tech companies. These manufacturers would allow wages and conditions to stagnate to maintain a competitive cost edge over other firms, but the inevitable Chinese labour shortages have increasingly given employees the upper… Read More

Comparative Earthquake Economics

A recent article by Matt Yglesias on the affect of weather on the economy (or at least, how it is measured) got me thinking about post-disaster economics. What happens to national economies after major natural disasters? Certainly, the loss of life can’t be ignored, but what about the survivors’ livelihoods? The immediate affects are obvious… Read More

The Mobile Phone’s Rise in Developing Countries

Saying that developing countries ‘leapfrogged’ tradition information communication technology adoption is a massive understatement. Ten years ago, cell phones and traditional landlines were virtually non-existent in low income countries. In 2002, there was less than one cell phone per 100 people in UN least-developed countries compared to 64 cell phones per 100 people in the… Read More