This blog post examines how inflation affects currency value, income, and perceived living costs, and how it alters our current lives and future choices through specific examples. There was a time when you could ride the bus for 100 won From a single potato bought at the market, to a notebook chosen at the stationery store, to a cup of coffee at a cafe—everything we pay for and use has a...
Why are taxes attached to the entire process of buying, owning, and selling a home?
This blog post calmly examines the connection between government policy and the real estate market through the structure of taxes levied throughout the entire process of buying, owning, and selling a home. It also outlines the logic by which taxes regulate the market. Taxes are the final step in real estate In a market economy, those who possess assets must bear the corresponding tax...
Is the existing industrial classification system in need of reorganization due to technological advancements and market changes?
This blog post examines how well the existing industrial classification system aligns with technological advancements and market changes, and discusses the need for a more flexible approach to reflect emerging industries. Economist John Bates Clark originally classified industries into primary, secondary, and tertiary sectors based on whether they extract raw materials from nature, process...
The Great Depression: Why Couldn’t the U.S. Prevent Its Severity?
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...
Why should companies prioritize long-term profits and social responsibility over short-term gains?
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...
How far should companies push for the positive attitude they demand?
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...
Why are companies tempted to collude and how can we stop them?
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...
Is M&A the best strategy for competitive advantage?
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...
How do companies use discount rates to reflect the value of future generations in public works valuations?
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...
Antarctic development, warming, and ecosystem destruction: why are we ignoring it?
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...