Group items tagged

This article describes how the UK government is heavily subsidising fossil fuel producers instead of prioritising and investing money in renewable sources of energy. Although it is essential to keep crude oil and fossil fuel prices low, as they are essential to many businesses, consumers and indeed the country itself, the G20, of which the UK is part of, has made a commitment to phasing out fossil fuels in favour of greener and more sustainable energy sources. 

This article describes how the government is trying to stimulate the rice market in Thailand by buying rice and placing subsidies on it. These major investments, however, are causing debt for the government, and prevent the government from investing in other projects.

This article relates to subsidies since the government of Morocco has raised energy prices to save subsidy money that is needed for the International Monetary Fund requirements. Protests have been made from the government's junior partner party over the raise in price of energy. Higher taxes for energy will cause higher price for transportation for tourists and higher costs of production for agriculture. The government though, said they will return parts of the increase of energy prices for professional drivers to avoid a "snowball" effect on prices. But is the raise in price of energy due to the save of subsidy money rational for the country, looking upon the people's use of energy and the agriculture?

This article is about how farmers have been given subsidies. They have been given the subsidies so that they can do things like grow corn. However, there has been backlash as people feel that the subsidies are not going to a good cause, farmers are being given subsidies but there is no action being taken on food stamps which people are opposing. People are also arguing that ethanol subsidies which are used to make corn are bad for the environment, that is another reason why they are opposing the subsidy. Overall, this article focuses on the negative reaction of farmers being given subsidies.

This article deals with the long-term unemployment issue in the US that have been rising a lot since 2002. One solution to this is to follow one of the Swedish programs, wage subsidies. This have given great results and might be a good solution to the problem in the US as well.

In this article the problem about rising the fuel prices with about 33% is talked about. The reason to why the government has decided to do this is because it "will reduce the government's ballooning fuel subsidy which has been a major drain on resources". Instead, the new budget includes money to about 15 million families, most of them are poor.

The author discusses the problem of coal production, greenhous gases emissions and subsidies that are in use because of many ordinary employees who when fired can make a strike. There is also a detail that can draw one's attention - the article is outdated (it was written in 2010). The main thesis reflected with reality is probably false since coal subsidies are still popular.

The "Help to Buy" was a political masterstroke since, among other things, the government got help with the claim for a credit for an upswing in the property market, helping to spark a building boom. I think, the offering taxpayer subsidies, will help allocate resources in the free market since more will get willingly to pay for houses. But this is risky for the British housing market, since the levels that would be required to keep prices stable will remain below what is needed.

this article shows use of instruments that are in the hands of government. government in Indonesia imposed excise on petrol which is very common example of good with inelastic price elasticity of demand. The possible reason is that petrol is essential good. moreover, they want to use money gained from higher excise to give subsidies for the poorer households.

This article tells us about how China will soon be experimenting granting farmers loans to help them in producing more food. With more farmers being able to borrow money they can turn that money into profit by harvesting and selling sugar, cotton, soy and corn

The European Union have reached an agreement with China to end the threat of EU tariffs on Chinese telecommunications equipment. The tariff was going to be imposed as a form of protectionism to protect the European manufactures Ericsson, Nokia and Alcatel against the Chinese firms Huawei and ZTE. The Chinese firms are able to produce equipment cheaper than the European firms, due to more abundant natural resources, but also, crucially through subsidies from the Beijing government. The deal reached on October 9th, sees the Chinese companies granted a share of the market, but not access to it fully, as this is reserved for the European firms, to protect EU economic growth in such a tempestuous time, showing that, forms of protectionism still exist in the market, despite this agreement.

This article describes how processed food and fast food have many negative externalities which in the end makes them cost more than organic foods which are more expensive in the stores. Processed foods may be cheaper than organic food, however the pollution during the process of producing the food, the health problems involved and the low wages which are unpaid for are all consequences which in the end will make these foods cost more.

This article discusses how the politician in Indonesia are raising the price of fuel at their peril. I chose this article because it discusses some of the arguments which touched in this chapter as for example price controls and subsidies.

This article is telling us about how the higher education (college) is allocated. If it is a private good or a public good. I would say that for the moment, it is a good that is can be excluded for people who cannot afford it. Therefore it is not a public good.

This article is dealing with a book called "Dead Men" that is about how the government is so divided into two halfs, where both try to stay away from increasing taxes as that is what the voters mostly look for.

This is a very interesting article because it presents a well-known health care reform in the context of a supply-side policy. The article is about how Republicans have been blaming Obamacare for having negative supply-side effects on the economy and the labour force by reserving budgets for subsidising the system.

Republicans believed that supply rather than demand was to be blamed for the economy's state. However, there has been clear evidence that the job market was held back due to low demand. The article then starts to delve int Obamacare and how it had negative supply-side effects on the economy.

Obamacare is nothing new - it has been debated about for months, if not years, in one shape or form. This problem with Obamacare is that it has negative supply-side effects. These effects were offset by a half, with the presence of Medicaid, but now that the subsidies for health care have shrunken, the marginal tax rate would rise, thus discouraging people to find work and keep working. Politicians are pushing for supply-side reforms, but the Congress isn't budging due to the possibility that Obamacare, an expensive and time-consuming venture, might be scrapped.