The socialist hopeful to the French presidency, Francois Hollande, declared last week that once president, he would implement a 75% income tax to one million euro+ earners. What he thought would earn him some credit from the many anti-system in France quickly turned into a demagogic and unrealistic promise. Criticism poured, and Sarkozy’s proponents called up some economic common sense to the situation.
By Joan Wu, ESSA Events Director 2012
During a speech at the Deakin Policy Forum this week, Terry Moran called for more accountability and transparency in our troubled system of government. Moran, former secretary to Prime Ministers Kevin Rudd and Julia Gillard, was quick to emphasise that it is not the quality of civil service, which is exemplary, but rather the nature of parliamentary democracy in the current system that is to blame.
Dr. Oliver Marc Hartwich
Traditional rankings of the least trustworthy professions always deliver the same result. Politicians, taxi drivers and journalists come out on top. However, in the wake of the financial crisis economists can no longer be far behind. At least jokes about hapless economists are not in short supply these days – which to economists is a clear indication that there must be a demand for such ridicule.
My favourite economics joke is about the two Iron Laws of economics. The first law: For every economist there exists an equal and opposite economist. The second: They are both wrong.
Okay, so as you are reading this, you may or may not have been sold on ESSA’s mission and vision to show how economics helps you in the industry. During this article, I would like to cement the view that economics helps in the workforce.
During the summer, I joined Deloitte for my internship, in Consulting (Strategy and Operations). This was a great experience and really helped to put to use the theories and skills we learn at university. During my project, there was a lot of economics, finance and accounting. However, economics really made it easier to decipher and get through the relevant tasks throughout the project.
By Brendan Law, ESSA Vice-President 2012
The essence behind Free-Market ‘capitalism’ is the idea that the provision of incentives, say, a profit-motive, or some significant tangible benefit, create a response within a particular market that allows it to organise itself, and for goods to be produced in the most efficient way, in the desired quantities and prices.
By Collin Li
My opinion is that globalisation is essential for dealing with poverty. While programs like World Vision’s Area Development Program may be helpful, I would argue they are only a small part of the effort in relieving poverty, because while the motive may seem more pure, it may be a smaller pool of energy to draw from. I would argue that the profit motive, provided by globalisation, has a far greater and wider appeal, as I believe people are inherently interested in their own well-being than others’.
By Collin Li
When an economic debate descends into something along the lines of “the economy exists in order to benefit the people – not the other way around,” you should reply:
But what is an economy other than many millions of people interacting daily?
Let’s not understate the reach and application of economics – it infects every facet of society.
(By definition in economics, individuals in a marketplace trade according to their “utility” – a term used to capture the personal values of each individual, thus allowing the individuals to maximise their well-being in the marketplace.)