If you’d spent more than a year studying Economics without having heard of Adam Smith, I’d be surprised. The eighteenth-century Scottish economist and Oxford academic is often referred to as the ‘father of modern economics’ – his classic work, An Inquiry into the Nature and Causes of the Wealth of Nations, being considered the first contemporary publication of economics. His theories shaping the concepts of the free market and division of labour will unlikely be of news to current readers - however, prior to The Wealth of Nations being published in 1776, pre-Adamite economics was devoid of such principles. Although Smith saw vast success in his career, his life was not, as such, in parallel with his profession.
A slightly different article to the general theme of the blog; you only have to read on if you're interested in learning about careers in finance.
Over the dawn of Easter break, I spent time working in the Finance Division at the University of Oxford (UO). The office was huge – larger than that in the Wolf of Wall Street. I even had my own desk within my team’s quarters. To be specific, I worked as part of the Financial Reporting team of the division – not only shadowing important meetings, but also participating in staff training schemes and day-to-day work in the office.
I know that just about everyone in their lives has had to learn about Pythagoras’ theorem. Although the theorem is an interesting thing to discuss in and of itself, I also enjoy learning about the people who derived these equations, and in this case, Pythagoras.
If we jump back in time to approximately 569 BC, a legend was born by the name of Pythagoras, in Samos, Greece. Little was known of Pythagoras’ early life and, therefore, I will focus on the more important milestones in his life. Around the year 518BC, he settled down in the Greek town of Cortona, in southern Italy. During his time in Cortona, he set up a religion and philosophy school, where he mainly taught his students the wonders of mathematics.
Sustainability in terms of the economy is the ability of an economy to support a defined level of economic production indefinitely. Economic development is a wider concept than economic growth. Development reflects social and economic progress and requires economic growth. Growth is a vital and necessary condition for development, but it is not a sufficient condition as it cannot guarantee development. This is a key factor to consider in evaluating economic conditions in China, as it can be seen to have one but not the other.
China’s growth could be seen as unsustainable as many state monopolies are currently sustained by state support through heavy subsidisation. These companies are not necessarily the most efficient in production, and may also abuse their monopoly power. In fact, due to the power they receive from such heavy subsidies, they are not even incentivised to increase their efficiency, hence productivity is reduced.