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UKL Economics Society (UKL EcoSoc)

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Reply 80

Drogue

I'm in

I'm a newbie though.

Reply 81

Euler

this society dies few weeks ago... :rolleyes:

its may rise from the dead soon... :rolleyes:

Reply 82

Amrad

We need a discussion topic, how about The Euro?
A major part of the unit 6 course, and something that is fairly easy to discuss. I'm researching it at the moment so that helps too!

Reply 83

saram

I'd like to join, if it's not a problem.

I've posted this question somewhere else, but I seem to get no reply, maybe I've posted it in the wrong thread, so I'm posting it here as well, maybe some of you might help.

Thanks

I'm reading "New ideas from dead economists" and I'm finding it really interesting, and reasonably easy - I've never studied economics before.

Anyway, I'm reading about Ricardo, and finding it quite hard to understand Ricardo's and the author's arguments against Henry George's proposal of a tax on land to absorb rents. (from page 83 on)

Is there anyone who could help me with this problem?

Thanks

Reply 84

AdamC

I read the book, but it was about a year ago. Very good book. Unfortunately I can't remember what that was talking about... give me more info!

Reply 85

saram

Ricardo is portraying a future in which free trade is replaced by protetionism, to frighten the supporters of the Corn Law. If the Corn Law remains, this is what he predicts: (accepting Malthus population principles)

(1)increasing population -> higher demand for food (2) ->need to extend farming to less fertile lands (3) -> higher costs in farming (4) -> higher prices for food (5) ->wages increase (6) -> lower profits for entrerpreneurs (7) -> higher payments to those who own the best land

According to Ricardo, rents emerge if population grow. If few people need food, they can raise enough by farming only the best land. If population grows, farmers begin cultivating the second-best land. Because the 2nd quality land produces less, the owner of the better land can now charge rent. (and so on)

The landowners who own the best lands collect higher rents: landowners win, and capitalists (tenants) lose.

Henry George (US journalist) condemned landowners who simply collected rents, without generating wealth. SO he proposed a massive tax on land to absorb rents.

Now the book says there are several problems with the proposal (1) economists distinguish between "economic rent" and simple rents tenants pay landolord. (What's the difference between economic rent and simple rent?)

Anyway, George can't impose taxation on rents, because "how can he know which part of the total payment is economic rent to be taxed"?

(2) it's not fair to tax only landlords, but labour and capital should be taxed as well.

Okay, this is it. Sorry if it's no clear enough. Anyway, I think George's proposal was not that bad, and I can't understand why Ricardo thinks it is.

Thanks

Reply 86

Amrad

Try deianra, she has read the book and promised to discuss it.

Reply 87

saram

The discussion is open to everyone, of course.

And deianra, if you read the book, it would be great if you could help!

Reply 88

BazTheMoney

Amrad

We need a discussion topic, how about The Euro?
A major part of the unit 6 course, and something that is fairly easy to discuss. I'm researching it at the moment so that helps too!

Very good topic, and one which can involve those with a fairly limited knowledge of economics. Of course there's reasons for and reasons against joining, that means there's never going to be a definative, yes-no answer. Annyway, I can't be bothered to do this in essay form, so I'll just do it in really brief bulletpoinst:

Pros:
- Higher levels of FDI
- Lower Inflation with the EZ
- Greater price transparency
- Lower interest rates
- Greater exchange rate stability and transaction cost
- Possiblity of increased capital investment
- Expansion in competition and trade
- Bigger market
- It's going to happen eventually, the UK might as well enter under her own terms.

Cons
- Menu costs
- Inclusive monetary policy
- Possible lose of consumer confidence
- The Growth and Fiscally Stability Pact
- Convergence
- Higher unemployment
- Consumer confidence
- UK is doing Ok at the moment, no need to join

Now, if we consider what the UK would want from entering the Euro: low unemployment, low inflation, stable interest rates, stable economics growth, greater expansion and a control turnover; and see what the Euro has to offer, in my opinion, at the moment it dosen't really make sense to join the Euro, but eventually (when the economies converge) the UK should jump at the chance.

Reply 89

ooops!

Hi, im ooops. im a new member and im interested in joining the economics society. im currently doing economics at A level, alongside psychology, ICT and critical thinking at AS level. my AS results were 1A and 3Bs. check out my thread in the general chat section.

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member of the UKL Law society

Reply 90

shyopstv

I'l join too!

As for the Euro, I agree that the difference between our intrest rates and those of the the Euro countiries is way too big for joining the Euro to be worthwhile.

I bet you can tell by reading that I have never been to an Economics class in my life! :biggrin:

Reply 91

freemyice

i would be really pleased if i can join.

Reply 92

Starryeyed Zoo

I want to join! Can i be the treasurer since i did get 100% in my econ A Level!! -

Reply 93

PhiPhi

Can i join?

PhiPhi
xx

Reply 94

gonzo the great

shyopstv

Im In!

I agree with the interest rates between European Countries. Due to this , if the UK were to join the Euro, Tax would have to be used to control demand as the Bank of England would not control interest rates. This will bring extreme seasonal fluctutions to our disposable income. As for the present day, i think we are stable enough not to join the EURO and my personal view is that the EURO is more beneficial to the less economically stable countries.