This blog post examines why the Great Depression, which began in the U.S. in 1929, spread worldwide and whether it could have been prevented, exploring its causes and background. What was the real cause of the Great Depression? The Great Depression that swept across the world in the 1930s was an unprecedentedly severe and prolonged economic downturn in the history of capitalism. Its...
This blog post explores why companies should consider long-term profits and social responsibility over short-term gains. The capitalist economic system maximally guarantees the human desire to pursue profit. Companies, born from the purpose of profit-seeking, play a central role in the capitalist system as the primary agents of production. Profit, therefore, serves as the motivation...
This blog post examines the reality of companies forcing positive attitudes on employees and the underlying issues. Let’s consider together whether forced positivity is truly effective. In our daily lives, we often encounter situations where store clerks or phone representatives smile constantly and treat customers with excessive politeness. Is it truly desirable that we easily...
Companies are tempted to collude to maximize profits. But there are a number of regulatory measures, including the Renewal System, that can help stop them. There are a lot of economic news and stories that pop up every once in a while that are worth forgetting, and that can be annoying to busy people. One of the most common economic offenses is collusion. Collusion is most common in...
Mergers and acquisitions offer a variety of benefits, including expanding market share, reducing costs, and acquiring technology, but they require a careful approach that considers risks such as antitrust issues and clashing organizational cultures. Companies compete endlessly to maximize profits. One strategy for this competition is for one company to acquire or merge with another...
This blog post explores how companies use market interest rates and social discount rates to reflect the value of future generations when evaluating public works. Business investment and the role of the discount rate When a company invests in a project, it evaluates the feasibility of the project by comparing the costs it will incur in the present with the benefits it will receive in the...
In this blog post, we explore why we should be more cautious about the accelerated warming and ecosystem destruction that Antarctic development can cause. If you look at a globe, you’ll see Antarctica painted white. You’ve probably seen it on TV before, with white glaciers floating by and families of emperor penguins strolling leisurely around them. Antarctica is located at 90...
In this blog post, we’ll take a look at how the leaning Tower of Pisa overcame its structural flaws, and how it’s a testament to modern building techniques. The Leaning Tower of Pisa is a structure located in the western Italian province of Tuscany, an annex of the Pisa Cathedral and a world-famous tourist attraction made even more famous by the anecdote that Galileo Galilei...
In this blog post, we’ll explore how invisible nanotechnology can revolutionize our daily lives while also posing a threat to the environment and our health. There’s a lot of interest in nanotechnology these days. It may not seem like a big deal, but the mere mention of the word “nano” often increases the price of a product. For example, a washing machine with a “silver nano...
In this blog post, we’ll take a look at how earnings forecasts affect stock prices and the relationship between interest rates and stock prices. It may seem a little complicated at first, but once you get the gist of it, it’s not hard to understand. Forecasts and expectations drive stock prices A company’s earnings forecasts are always volatile. Even for the most...