BBC News – Is Christmas getting cheaper?

Is Christmas getting more expensive or are we in for a bargain year? We look at the changing costs of food, drink and toys

Source: BBC News – Is Christmas getting cheaper?

I was a big fan of He Man in the mid 80’s, but it appears the action figures I pestered my parents to buy me for Christmas were not cheap. This great piece by the BBC illustrates perfectly the impact of inflation and the importance to convert prices into ‘real’ terms in order to make comparisons over time.

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Keynesianism and Monetarism

The debate between Keynesian and monetarist economics is a key part of economics and looking at economic problems from the two perspectives can be a very effective method of evaluating.  This youtube documentary is an excellent way of developing your knowledge on the subject and you should watch it.

 

 

Revealed: how Sports Direct effectively pays below minimum wage

Guardian undercover reporters find world where staff are searched daily, harangued via tannoy to hit targets and can be sacked in a ‘six strikes and you’re out’ regime

Source: Revealed: how Sports Direct effectively pays below minimum wage

Nice example here of Sports Direct exploiting their monopsony power as the major employer in a small town, a determinant of monopsony power in labour markets. Alan Manning (LSE) suggests that all employers exert some degree of monopsony power as workers are reluctant to move for the fear of the unknown. This power helps firms to drive down wages lower than they should be in a perfectly competitive market.

Clearly the low cost, low price model comes at a cost….to the workers…minimum wages, zero hour contracts, and little job security. Whether or not these findings make a difference to the brand and sales ultimately depends on whether existing customers read and react.