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Welcome to QETA Newsletter 1 2017.
QETA 2017 CALENDAR OF EVENTS Feb 20 RBA Seminar 1 11.00 am Cannon Hill Anglican College
Feb 20 RBA Seminar 2 4.00 pm Venue to be confirmed
Feb 21 RBA Seminar 3 9.00 am Toowoomba Grammar School
Feb 22 RBA Seminar 4 7.00 am Cavendish Road State High School
Feb 22 RBA Seminar 5 9.30 am Marist College Ashgrove
Feb 23 RBA Seminar 6 9.30 am Gold Coast – Somerset College
Feb 28 2017 Subscriptions due
Apr 1 Econopak Number 1 published
May 20 Professional Development Morning Brisbane
Jul 1 Econopak Number 2 published
Jul 13 UQ Student Day
Jul 21 QUT Student Day
Jul 24-28 QETA Student Economics Competition
Sep 11 QETA Student economics Competition Presentation of prizes
Oct 1 Econopak Number 3 published
Oct 11 QETA Annual General Meeting
QETA NEWS 1. BECOME A QCS TEST MARKER
The Queensland Curriculum and Assessment Authority (QCAA) is looking for new Writing Task and Short
Response markers for the Queensland Core Skills (QCS) Test.
You are invited to apply to join the QCS Test marking team. As a QCS Test marker you will:
gain CPD points for registration renewal
network with like-minded professionals
earn extra income
gain practical insight into QCS Test marking
.
The 2017 marking operation will be held in Brisbane from Saturday 16 September to Friday 22
September.
For more information and to apply online, visit www.qcaa.qld.edu.au or email
qcsmarkerinfo@qcaa.qld.edu.au or phone (07) 3864 0367.
Applications are open from Monday 6 February to Tuesday 14 March 2017.
2. MEMBERSHIP
All memberships are now due. QETA operates our membership on a calendar year basis. You will receive
an invoice automatically, and it is due to be paid by 28th February 2017. The discounted rate for early
membership will expire on 31st March 2017. Costs of memberships are $77.00 (discounted to $71.50 prior
to 31 March) and $154.00 for school membership (discounted to $143.00 prior to 31 March). Prompt
payment of membership fees reduces the amount of work that our small Committee has to do in chasing
membership fees up.
3. RBA SEMINARS
The 2017 RBA Seminars are on again! The new presenter is Cathie Close, the Senior Representative of the
RBA in Queensland, following the departure of Karen Hooper from the RBA.
We look forward to the presentations from Cathie, and feel sure they will match the excellent
presentations given by previous RBA Representatives.
Bookings for these events ARE NOW OPEN, so if you need to book your students in, you will be able to do
so before you leave for holidays this year. Just go to www.qeta.com.au and follow the steps
The cost remains the same at just $5.50 per student and teacher.
Seminars are on:
Feb 20 11am at Cannon Hill Anglican College and 4pm at Brisbane Girls Grammar School
Feb 21 9.00am Toowoomba Grammar School
Feb 22 7am Cavendish Road State High School and 9.30am at Marist College Ashgrove
Feb 23 9.30am at Somerset College Mudgeeraba Gold Coast
4. ECONOMICS SYLLABUS
The Economics Syllabus is one of many that have been reviewed by the Learning Area Reference Group
and sent back to the Syllabus Committee for further consideration, in particular in reference to how
composite classes in Economics can work. QETA has no further details on the likely date for the next
release of the syllabus.
TEACHING RESOURCE
PROFESSIONAL LEARNING Twenty-one Goals Every Educator Should Make in 2017
A hat tip to Russell Earnshaw for suggesting this blog from Kelly Crow, the Wired Educator. He suggests
21 ways to enhance and enrich your work as a teacher over the...
http://tutor2u.cmail19.com/t/ViewEmail/j/7679DBC1997C73AF/AECED1810B6D435DD8E2A916412CAE5B
NCEE Annual Financial Literacy and Economic Education Conference
October 5-7
Marriott Hotel, Brooklyn, New York.
This is the 56th Conference – always a good one to attend if you have the time and money! Add it to your
holiday and offset with a tax deduction!
http://councilforeconed.org/events/cee-national-conference/
RESOURCES
1. FROM THE FEDERAL TREASURY
Tax integrity - increasing administrative penalties for significant global entities
In the 2016-17 Budget, the Government announced that it would increase administrative penalties
imposed on companies with global revenue of $1 billion or more who fail to adhere to tax disclosure
obligations. This measure forms part of the Government’s Tax Integrity Package, which will strengthen the
integrity of Australia’s tax system.
Closing date for submissions: Friday, 13 January 2017
Read more
Review of the Petroleum Resource Rent Tax
On 30 November 2016, the Treasurer the Hon Scott Morrison announced a review into the design and
operation of the Petroleum Resource Rent Tax, crude oil excise and associated Commonwealth royalties to
provide advice on the extent to which they are operating as intended.
The review is being led by independent expert Michael Callaghan, with the support of a Secretariat within
the Commonwealth Treasury.
Closing date for submissions: Friday, 3 February 2017
Read more
Government response to the Senate Community Affairs References Committee Report -
Bridging our growing divide: inequality in Australia, The extent of income inequality in
Australia
This response addresses the recommendations raised in the Bridging our growing divide: inequality in
Australia, The extent of income inequality in Australia report, and has been coordinated and prepared by
the Treasury.
Read more
2. FROM THE ABS
5302.0 Balance of Payments and International Investment Position, Australia, Jun 2016 (Additional
Information)
http://www.abs.gov.au/ausstats/abs@.nsf/mf/5302.0?OpenDocument
6227.0 Education and Work, Australia, May 2016
http://www.abs.gov.au/ausstats/abs@.nsf/mf/6227.0?OpenDocument
3101.0 Australian Demographic Statistics, Jun 2016
http://www.abs.gov.au/ausstats/abs@.nsf/mf/3101.0?OpenDocument
5232.0 Australian National Accounts: Finance and Wealth, Sep 2016
http://www.abs.gov.au/ausstats/abs@.nsf/mf/5232.0?OpenDocument
6202.0 Labour Force, Australia, Nov 2016
http://www.abs.gov.au/ausstats/abs@.nsf/mf/6202.0?OpenDocument
6416.0 Residential Property Price Indexes: Eight Capital Cities, Sep 2016
http://www.abs.gov.au/ausstats/abs@.nsf/mf/6416.0?OpenDocument
5671.0 Lending Finance, Australia, October 2016
http://www.abs.gov.au/ausstats/abs@.nsf/mf/5671.0?OpenDocument
6291.0.55.001 Labour Force, Australia, Detailed - Electronic Delivery, Nov 2016
http://www.abs.gov.au/ausstats/abs@.nsf/mf/6291.0.55.001?OpenDocument
6291.0.55.003 Labour Force, Australia, Detailed, Quarterly, Nov 2016
http://www.abs.gov.au/ausstats/abs@.nsf/mf/6291.0.55.003?OpenDocument
6224.0.55.001 Labour Force, Australia: Labour Force Status and Other Characteristics of
Families, June 2015 (Replacement Content)
http://www.abs.gov.au/ausstats/abs@.nsf/mf/6224.0.55.001?OpenDocument
5368.0 International Trade in Goods and Services, Australia, Nov 2016
http://www.abs.gov.au/ausstats/abs@.nsf/mf/5368.0?OpenDocument
6224.0.55.001 Labour Force, Australia: Labour Force Status and Other Characteristics of
Families, June 2016
http://www.abs.gov.au/ausstats/abs@.nsf/mf/6224.0.55.001?OpenDocument
6354.0 Job Vacancies, Australia, Nov 2016
http://www.abs.gov.au/ausstats/abs@.nsf/mf/6354.0?OpenDocument
5609.0 Housing Finance, Australia, November 2016
http://www.abs.gov.au/ausstats/abs@.nsf/mf/5609.0?OpenDocument
3. FROM THE IMF
Why Productivity Growth is Faltering in Aging Europe and Japan
Many countries are experiencing a combination of declining birth rates and increasing longevity. In other
words, their populations are aging. And graying populations pose serious issues for people, policymakers,
and society.
Health care costs rise, mainly because older people need more of it. Pension payments—whether from
public or private plans—also increase at the same time there are relatively fewer younger workers paying
into the pension systems. And there are also fewer people producing goods and services relative to the
total population. The old-age dependency ratio—the number of people over 65 divided by the number of
people between 15 and 64—rises. In other words, there are economic strains and many countries that
haven’t faced them yet will soon. One way to alleviate those strains would be to increase the amount of
goods and services each worker produces—that is to boost productivity. Productivity is a major driver of
economic growth. When it is rising, more goods and services are produced from the same amount of
input—giving society more output to divvy up. When productivity is falling, GDP growth is retarded. Read
more
Infrastructure Done Right
In the face of crumbling bridges and super-low interest rates, many countries are talking and planning to
increase spending on infrastructure. And it’s not just about more spending; it’s about smart spending. This
is something that the IMF has urged countries to consider for several years, starting with our Fall 2014
World Economic Outlook.
Bridges, roads, and highways, along with telecoms, ports and airports are all part of the backbone that
supports a country’s growth and the global economy. Investing in building schools, public housing and
hospitals, known as social infrastructure, can provide a powerful impetus for economic activity and jobs in
countries. Canada and the United Kingdom have announced and begun plans to invest billions in the
coming years to fix and modernize their infrastructure, sorely in need of an upgrade. The incoming U.S.
Administration has also indicated its intention to increase investment in infrastructure. Read more
A Shifting U.S. Policy Mix: Global Rewards and Risks
After a year marked by financial turbulence, political surprises, and unsteady growth in many parts of the
world, the Fed’s decision this month to raise interest rates for just the second time in a decade is a
healthy symptom that the recovery of the world’s largest economy is on track. The Fed’s action was hardly
a surprise: markets had for weeks placed a high probability on last week’s move. But market
developments preceding the Fed decision did surprise many market watchers.
Especially striking were the sharp upward moves in longer-term U.S. interest rates, the dollar, and
market-based measures of long-term inflation expectations soon after the U.S. presidential and
congressional elections of November 8. No comparably abrupt market reactions preceded the Fed’s
previous interest rate hike of December 2015. The dollar has risen further in the days following the Fed’s
recent move. Read more
Asia in 2017 and Beyond: Prepare for the Unexpected by Building Resilience
http://www.imf.org/en/News/Articles/2017/01/17/SP011717-Asia-in-2017-and-Beyond-Prepare-for-the-
Unexpected-by-Building-Resilience
Transcript of a Press Briefing On Update Of The World Economic Outlook
http://www.imf.org/en/News/Articles/2017/01/16/tr01162017-Press-Briefing-On-Update-Of-The-World-
Economic-Outlook
World Economic Outlook Update, January 2017: A Shifting Global Economic Landscape After a
lackluster outturn in 2016, economic activity is projected to pick up pace in 2017 and 2018, especially in
emerging market and developing economies. However, there is a wide dispersion of possible outcomes
around the projections, given uncertainty surrounding the policy stance of the incoming U.S.
administration and its global ramifications. The assumptions underpinning the forecast should be more
specific by the time of the April 2017 World Economic Outlook, as more clarity emerges on U.S. policies
and their implications for the global economy. Read more...
http://www.imf.org/external/pubs/ft/weo/2017/update/01/index.htm
4. FROM WORLD BANK
Global Community Makes Record $75 Billion Commitment to End Extreme Poverty
More than 60 donor and borrower governments agreed today to commit $75 billion to the International
Development Association (IDA), the World Bank’s fund for the poorest countries. Read More »
Website | Blog | Podcast | Video | Slideshow
Risks and Returns
Financial trade-offs are often necessary to achieve sustainable, inclusive growth. A new report explores
the relationship between four key areas of financial development and provides a robust framework for
policy makers to set priorities and manage these trade-offs. Read More »
Year in Review: 2016 in 12 Charts (and a video)
A look at the data reveals some of the challenges we face but also the progress we’ve made toward a
more peaceful, prosperous, and sustainable future. Read More »
Climate-smart transport is key to development
Transport infrastructure is particularly vulnerable to the effects of climate change, but this is also one of
the sectors where emissions are rising the fastest. Read More »
Imagining infrastructure services in 2017
A few months ago, UNICEF created a project around John Lennon’s “Imagine" to highlight the plight of
millions of refugee children. Watch More »
Global Growth Edges Up to 2.7 Percent Despite Weak Investment
Global Economic Prospects 2017 says growth in emerging market and developing economies should pick
up to 4.2 percent this year. Read More »
Website | Report | Blog
A New Addition to Trade & Competitiveness Data
The World Bank Group’s newest open data portal aggregates 2,000 indicators on trade and
competitiveness data from more than 20 different sources. Read More »
5. FROM THE RBA
The Reserve Bank of Australia has released the following Research Discussion Paper today:
RDP 2016-10, ‘The Effect of Consumer Sentiment on Consumption’, by Christian Gillitzer and Nalini
Prasad
http://www.rba.gov.au/publications/rdp/2016/2016-10.html
The Reserve Bank of Australia has released the Minutes of the December 2016 Monetary Policy
Meeting of the Reserve Bank Board.
https://www.rba.gov.au/monetary-policy/rba-board-minutes/2016/2016-12-06.html
The Bulletin for the December Quarter 2016 has been released by the Reserve Bank of Australia.
http://www.rba.gov.au/publications/bulletin/2016/dec/
For your information the Reserve Bank of Australiaissued the Financial Aggregates for November 2016.
You can view this statistical release at:
https://www.rba.gov.au/statistics/frequency/fin-agg/2016/fin-agg-1116.html
The Reserve Bank of Australia has released the January 2017 issue of the Chart Pack.
You can view the Chart Pack at:
https://www.rba.gov.au/chart-pack/
The Reserve Bank of Australia ernoon issued the Index of Commodity Prices for December 2016. You
can view this statistical release at:
https://www.rba.gov.au/statistics/frequency/commodity-prices/2016/icp-1216.html
6. FROM TUTOR2U
An unusual take on Debt Forgiveness
Back in the Cold War era, both Cuba and what was Czechoslovakia were part of the Soviet communist
bloc. With no access to what were termed the 'western currencies' -...
http://tutor2u.cmail20.com/t/ViewEmail/j/2CF9DA27BA4427F1/AECED1810B6D435DD8E2A916412CAE5B
Which countries have the fastest internet speed?
A small island nation hoping to build and retain competitive advantage in digital industries would hope to
be well up global league tables in terms of internet speed. Sadly the...
http://tutor2u.cmail20.com/t/ViewEmail/j/2CF9DA27BA4427F1/AECED1810B6D435DD8E2A916412CAE5B
Hyperinflation in Venezuela - In Real Life
This is a superb short radio clip from Radio 4 on life in Venezuela, a country with three exchange rates and
suffering from hyperinflation. Gideon Long tries not to lose all...
http://tutor2u.cmail20.com/t/ViewEmail/j/2CF9DA27BA4427F1/AECED1810B6D435DD8E2A916412CAE5B
Model agencies found guilty of price fixing
Here is a model exam example of collusion in markets!
http://tutor2u.cmail20.com/t/ViewEmail/j/2CF9DA27BA4427F1/AECED1810B6D435DD8E2A916412CAE5B
Uber defies demand to stop using self-driving cars
Uber seems prepared to flout the law with its self-driving cars - being prepared to ignore the California
Attorney-General and continue to run its self-driving cars in San Francisco.
http://tutor2u.cmail20.com/t/ViewEmail/j/2CF9DA27BA4427F1/AECED1810B6D435DD8E2A916412CAE5B
Ten Economists I Follow on Twitter
There are lots of Economists who are active in the twitter sphere. Here is my selection of ten who inform,
enrich, amuse and engage in equal measure!
http://tutor2u.cmail19.com/t/ViewEmail/j/32C7E7736F5A9A4B/AECED1810B6D435DD8E2A916412CAE5B
An age of hyper-uncertainty
Here is a pithy and thought-provoking piece from Professor Barry Eichengreen. 40 years on from JK
Galbraith's Age of Uncertainty, Eichengreen argues that 2017 is riven with many more significant
unknowns. It...
http://tutor2u.cmail19.com/t/ViewEmail/j/32C7E7736F5A9A4B/AECED1810B6D435DD8E2A916412CAE5B
Secondary ticket markets - blessing or curse for consumers?
The secondary ticket market is one that arose strong emotions. For some it is a chance to snap up tickets
for a must-see event or off-load tickets when personal circumstances...
http://tutor2u.cmail19.com/t/ViewEmail/j/32C7E7736F5A9A4B/AECED1810B6D435DD8E2A916412CAE5B
Evaluating air pollution as a public hazard
Always nice to hear "The Prodigy" on the BBC and that's the backing track throughout this clip - however,
the economics in this video clip are fascinating.
http://tutor2u.cmail19.com/t/ViewEmail/j/32C7E7736F5A9A4B/AECED1810B6D435DD8E2A916412CAE5B
The Best Year in Our History?
"Extreme poverty, child mortality, illiteracy, and global inequality are at historic lows; vaccinations, basic
education, including girls, and democracy are at all-time highs."
http://tutor2u.cmail2.com/t/ViewEmail/j/538B476F04F4D05F/AECED1810B6D435DD8E2A916412CAE5B
Natural Capital - The Battle for Biodiversity
Annually, the world spends nearly $40 billion on pesticides but only $50 billion a year on protecting bio-
diversity. To sustain We are destroying the natural resources, wildlife and habitats that we depend...
http://tutor2u.cmail20.com/t/ViewEmail/j/697F409F0781BE64/AECED1810B6D435DD8E2A916412CAE5B
Martin Wolf on Global Economy in 2017
In this ten minute interview, Martin Wolf and Lionel Barber from the FT discuss prospects for the world
economy.
http://tutor2u.cmail19.com/t/ViewEmail/j/E7BB4D052AC988E9/AECED1810B6D435DD8E2A916412CAE5B
Informal labour market
Study notes
Also known as the “grey” market, shadow economy, or black economy. This is the part of the economy
that is not taxed or regulated by government, and therefore does not...
http://tutor2u.cmail19.com/t/ViewEmail/j/E7BB4D052AC988E9/AECED1810B6D435DD8E2A916412CAE5B
What is a behavioural nudge?
Study notes
A nudge is a technique used by choice architects in order to change someone’s behaviour in a very easy
and low-cost way, without reducing the number of choices available....
http://tutor2u.cmail19.com/t/ViewEmail/j/E7BB4D052AC988E9/AECED1810B6D435DD8E2A916412CAE5B
Mandated Choice
Study notes
Mandated choice is a situation or scenario in which people must make a decision in advance with respect
to whether they wish to participate in a particular action – they are...
http://tutor2u.cmail19.com/t/ViewEmail/j/E7BB4D052AC988E9/AECED1810B6D435DD8E2A916412CAE5B
Intertemporal choice
Study notes
Inter-temporal choice is the study of how people make choices about what and how much to do at various
points in time, when choices at one time influence the possibilities...
http://tutor2u.cmail19.com/t/ViewEmail/j/E7BB4D052AC988E9/AECED1810B6D435DD8E2A916412CAE5B
Gig Economy - Poor Working Conditions and Wages
How is the labour market being affected by the rise to prominence of the Gig Economy?
http://tutor2u.cmail19.com/t/ViewEmail/j/E7BB4D052AC988E9/AECED1810B6D435DD8E2A916412CAE5B
India overtakes the UK and becomes 5th largest economy
Accelerated by the post-Brexit depreciation of sterling against the US dollar but part of a much bigger shift
in the centre of gravity in the world economy, the value of...
http://tutor2u.cmail20.com/t/ViewEmail/j/02AF1690A978B56B/AECED1810B6D435DD8E2A916412CAE5B
Special Economic Zones and Growth in Bangladesh
Few countries in recent times have given more attention to setting up special economic zones than
Bangladesh.
http://tutor2u.cmail19.com/t/ViewEmail/j/6B10A3B0F40441DE/AECED1810B6D435DD8E2A916412CAE5B
China in Transition: Call for end to the iron rice bowl
The Chinese economy has been talking about reform, and reform of the working practices of China's state-
owned enterprises SOEs is an important part of this.
http://tutor2u.cmail20.com/t/ViewEmail/j/7CD70BF58438A24A/AECED1810B6D435DD8E2A916412CAE5B
Are trade unions needed more than ever?
According to the Guardian, the answer is a resounding yes. This editorialeditorial highlights the continued
need for trade unions in the modern economy, a counterweight to lots of the anti-union...
http://tutor2u.cmail20.com/t/ViewEmail/j/7CD70BF58438A24A/AECED1810B6D435DD8E2A916412CAE5B
Externalities - Gold mining in Ghana hurts farm productivity
The expansion of large-scale gold mining in Ghana has led to a big reduction in agricultural productivity
and output – and a significant increase in rural poverty. Environmental pollution from the...
http://tutor2u.cmail20.com/t/ViewEmail/j/7CD70BF58438A24A/AECED1810B6D435DD8E2A916412CAE5B
Best Films of 2016 for Behavioural Economics!
Behavioural Economics meets Hollywood - a great post from Cass Sunstein (co-author of Nudge) on the
behavioural economics embedded into some of the year's top films. Some interesting behavioural biases...
http://tutor2u.cmail19.com/t/ViewEmail/j/7679DBC1997C73AF/AECED1810B6D435DD8E2A916412CAE5B
Behavioural Economics - Default Bias
Revision videos
The default choice or default option is the option that a consumer “selects” if he or she does nothing.
Studies have shown that consumers rarely change the default settings. So,...
http://tutor2u.cmail19.com/t/ViewEmail/j/7679DBC1997C73AF/AECED1810B6D435DD8E2A916412CAE5B
Behavioural Economics - Bounded Rationality
Revision videos
Bounded rationality is the idea that the cognitive, decision-making capacity of humans cannot be fully
rational because of a number of limits that we face.
http://tutor2u.cmail19.com/t/ViewEmail/j/7679DBC1997C73AF/AECED1810B6D435DD8E2A916412CAE5B
Behavioural Economics - Introduction
Revision videos
Behavioural Economics tries to mix insights from Psychology with Economics, and looks at problems
through the eye of a “Human”, rather than an “Econ”.
http://tutor2u.cmail19.com/t/ViewEmail/j/7679DBC1997C73AF/AECED1810B6D435DD8E2A916412CAE5B
Behavioural Economics - Herd Behaviour
Revision videos
Herd behaviour is a phenomenon in which individuals act collectively as part of a group, often making
decisions as a group that they would not make as an individual.
http://tutor2u.cmail19.com/t/ViewEmail/j/7679DBC1997C73AF/AECED1810B6D435DD8E2A916412CAE5B
Behavioural Economics - Social Norms
Revision videos
Traditional economics assumes that people make choices independently of one another. Behavioural
economists believe that most decisions are taken in a social context within social networks. Individuals are
influenced by...
http://tutor2u.cmail19.com/t/ViewEmail/j/7679DBC1997C73AF/AECED1810B6D435DD8E2A916412CAE5B
Chains of Reasoning - Public Goods and Market Failure
Revision videos
Analysis should occur through a clear chain of reasoning. This short revision video build a chain of
reasoning explaining why pure public goods can lead to market failure because the...
http://tutor2u.cmail19.com/t/ViewEmail/j/7679DBC1997C73AF/AECED1810B6D435DD8E2A916412CAE5B
Chains of Reasoning - Allocative Efficiency
Exam technique advice
This short video explains how to build a chain of reasoning to help explain how a firm operating in perfect
competition will arrive at an equilibrium price and output that...
http://tutor2u.cmail20.com/t/ViewEmail/j/8C96AFF52D20CA57/AECED1810B6D435DD8E2A916412CAE5B
Exam Technique - Building Chains of Analysis
Exam technique advice
Analysis needs to include more than just ‘one thing leads to another thing.’ This answer may be marked
as ‘knowledge’ and not ‘analysis’. This short video looks at an example...
http://tutor2u.cmail20.com/t/ViewEmail/j/8C96AFF52D20CA57/AECED1810B6D435DD8E2A916412CAE5B
Average and Marginal Cost of Labour
Revision videos
This short revision video looks at a numerical example of the difference between the average and marginal
cost of employing extra workers when a business has to raise the average...
http://tutor2u.cmail20.com/t/ViewEmail/j/8C96AFF52D20CA57/AECED1810B6D435DD8E2A916412CAE5B
The Labour Force
Revision videos
The labour force is all people who are of working age, and able and willing to work. A key revision point is
that the labour force includes both the employed,...
http://tutor2u.cmail20.com/t/ViewEmail/j/8C96AFF52D20CA57/AECED1810B6D435DD8E2A916412CAE5B
Monopsony in the Labour Market
Revision videos
Monopsony is a labour market structure in which there is a single powerful buyer of a particular type of
labour. For example, the main buyer of the labour of doctors...
http://tutor2u.cmail20.com/t/ViewEmail/j/8C96AFF52D20CA57/AECED1810B6D435DD8E2A916412CAE5B
Geographical Immobility
Revision videos
Geographical mobility is the ability of labour to move around an area, region or country in order to work.
Geographical mobility is affected by things such as family ties, transport...
http://tutor2u.cmail19.com/t/ViewEmail/j/1AAB600016A5DFBD/AECED1810B6D435DD8E2A916412CAE5B
Occupational Immobility
Revision videos
Occupational mobility is the ability of labour to switch between different occupations. Occupational
mobility is affected by the level of transferable skills and educational requirements of jobs. This short
revision...
http://tutor2u.cmail19.com/t/ViewEmail/j/1AAB600016A5DFBD/AECED1810B6D435DD8E2A916412CAE5B
Age Dependency Ratio
Revision videos
The (age) dependency ratio is the ratio of dependents (i.e. people younger than 16 or older than 65) to
the working-age population.
http://tutor2u.cmail19.com/t/ViewEmail/j/1AAB600016A5DFBD/AECED1810B6D435DD8E2A916412CAE5B
2016 Global Economy in Ten Charts
Lots to get your teeth into here - ten charts that look at the forces that have shaped the global economy
in 2016, including the effect of the Tangerine Dream -...
http://tutor2u.cmail19.com/t/ViewEmail/j/1AAB600016A5DFBD/AECED1810B6D435DD8E2A916412CAE5B
An Animated Guide to Abenomics
This is so good! Reuters has produced an animated guide to recent Japanese travails, highlighting the
dangers of inflation, the nature of Abenomics, and looking at whether the policies have...
http://tutor2u.cmail19.com/t/ViewEmail/j/1AAB600016A5DFBD/AECED1810B6D435DD8E2A916412CAE5B
The Journey of an iPhone from Factory to Retail Store
You could make a case for using this one article to revise almost the entire A level economics course! The
New York Times follows the journey of an iPhone from...
http://tutor2u.cmail20.com/t/ViewEmail/j/FB52B965D95C37C4/AECED1810B6D435DD8E2A916412CAE5B
Sustaining rapid growth in Ethiopia
Ethiopia has continued to experience rapid growth despite he challenges of drought, social unrest and a
chronic trade deficit and volatile currency. The latest report from the World Bank on...
http://tutor2u.cmail20.com/t/ViewEmail/j/1C42F6E9CE0079EE/AECED1810B6D435DD8E2A916412CAE5B
Key Diagrams - Long Run Average Cost
Revision videos
This short revision video looks at the long run average cost curve.
http://tutor2u.cmail20.com/t/ViewEmail/j/45BE3860A1C1D52E/AECED1810B6D435DD8E2A916412CAE5B
50 Things That Made the Modern Economy
Don't worry if you have missed any of Tim Harford's new series on 50 Things That Made the Modern
Economy. We are curating a list of the supporting articles so that...
http://tutor2u.cmail20.com/t/ViewEmail/j/45BE3860A1C1D52E/AECED1810B6D435DD8E2A916412CAE5B
Evaluating Executive Pay Caps
Revision videos
In this short revision video we look at the evidence for the huge gap in pay between CEOs and average
workers and consider some of the arguments for and against...
http://tutor2u.cmail19.com/t/ViewEmail/j/C1AE4A78702D8D95/AECED1810B6D435DD8E2A916412CAE5B
Labour Markets - Key Measurements
Study notes
The labour market is studied in detail by economists. Here are some of the key measures used in
assessing changes in the labour market.
http://tutor2u.cmail19.com/t/ViewEmail/j/C1AE4A78702D8D95/AECED1810B6D435DD8E2A916412CAE5B
Transfer Earnings and Economic Rent
Revision videos
Earnings to the factor of production labour are made up of wages plus overtime pay, bonuses and
commission. This short revision video looks at the difference between transfer earnings and...
http://tutor2u.cmail19.com/t/ViewEmail/j/C1AE4A78702D8D95/AECED1810B6D435DD8E2A916412CAE5B
Not Quite the Vinyl Countdown
Really interesting article here about changes in consumer tastes - with sales of vinyl at their highest since
1991 and vinyl sales outstripping digital downloads too. However, there's even more depth...
http://tutor2u.cmail19.com/t/ViewEmail/j/C1AE4A78702D8D95/AECED1810B6D435DD8E2A916412CAE5B
Labour Markets - Evaluating Marginal Revenue Product of Labour
Revision videos
This short revision video looks at the problems in accurately measuring the marginal revenue product
from employing an extra worker.
http://tutor2u.cmail19.com/t/ViewEmail/j/C1AE4A78702D8D95/AECED1810B6D435DD8E2A916412CAE5B
Labour Markets: Marginal Revenue Product of Labour
Revision videos
Marginal revenue product of labour (MRPL) is the extra revenue generated when an additional worker is
employed.
http://tutor2u.cmail19.com/t/ViewEmail/j/C1AE4A78702D8D95/AECED1810B6D435DD8E2A916412CAE5B
Key Diagrams - Minimum Efficient Scale
Revision videos
This short revision video considers the concept of the minimum efficient scale.
http://tutor2u.cmail19.com/t/ViewEmail/j/C1AE4A78702D8D95/AECED1810B6D435DD8E2A916412CAE5B
China's Future Economy
The FT's Beijing Correspondent Yuan Yang journeys into the manufacturing heartlands of the Chinese
interior and finds that rapid industrial growth is giving way to less secure and less well...
http://tutor2u.cmail19.com/t/ViewEmail/j/392C34C6D5251ECE/AECED1810B6D435DD8E2A916412CAE5B
India's Dynamic Progress in Clean Energy
Tamil Nadu in India is home to the world's largest solar energy farm and a newly opened industrial plant is
capturing the CO2 emissions from a coal boiler and using...
http://tutor2u.cmail19.com/t/ViewEmail/j/392C34C6D5251ECE/AECED1810B6D435DD8E2A916412CAE5B
Revision Webinar - Business Costs
Revision videos
This revision webinar focuses on the short run costs of businesses. It includes with examples a distinction
between fixed and variable costs, average, marginal and total costs and short and...
http://tutor2u.cmail19.com/t/ViewEmail/j/392C34C6D5251ECE/AECED1810B6D435DD8E2A916412CAE5B
Who wants to be a Trillionaire?
This Marginal Revolution clip is excellent, and tongue-in-cheek in looking at the Zimbabwean economy.
http://tutor2u.cmail19.com/t/ViewEmail/j/392C34C6D5251ECE/AECED1810B6D435DD8E2A916412CAE5B
Be an Economist (and be less stressed!)
A favourite question I am often asked by prospective Economics students (and their families) is 'what
career can I have with an Economics qualification?' My stock answer generally revolves...
http://tutor2u.cmail20.com/t/ViewEmail/j/88E124723EFDE2A1/AECED1810B6D435DD8E2A916412CAE5B
Shut Down Point in Action: Jamie Oliver Closes 6 Restaurants
Here is a good contextual example of the shut-down point in action. Six of the 42 Jamie's Italian
restaurants are to close down with the business citing rising variable costs caused...
http://tutor2u.cmail2.com/t/ViewEmail/j/8BA948C45183AA5D/AECED1810B6D435DD8E2A916412CAE5B
Crash and the Michael Fish Moment for Economists
Here's a summary from the BBC regarding the similarities between Michael Fish's hurricane-forecasting
disaster from 1987 and the failure of central banks to correctly forecast the financial crisis and the
immediate...
http://tutor2u.cmail2.com/t/ViewEmail/j/8BA948C45183AA5D/AECED1810B6D435DD8E2A916412CAE5B
Indifference Curves - Falling Market Prices
Revision videos
This short revision presentation uses indifference curves to show the effects of a fall in market price on
equilibrium consumer choice.
http://tutor2u.cmail20.com/t/ViewEmail/j/0E7D1538F07FAE07/AECED1810B6D435DD8E2A916412CAE5B
Indifference Curves and Consumer Equilibrium
Revision videos
This short revision video looks at consumer equilibrium with indifference curves and budget lines.
http://tutor2u.cmail20.com/t/ViewEmail/j/0E7D1538F07FAE07/AECED1810B6D435DD8E2A916412CAE5B
Indifference Curves
Revision videos
An indifference curve shows combinations of goods and services between which a consumer is indifferent
http://tutor2u.cmail20.com/t/ViewEmail/j/0E7D1538F07FAE07/AECED1810B6D435DD8E2A916412CAE5B
Trade Creation
Revision videos
Trade creation takes place when domestic consumers in countries import more goods and services as
import prices fall due to a removal of import tariffs and import quotas; production will...
http://tutor2u.cmail2.com/t/ViewEmail/j/1D0A987D6C0A11AA/AECED1810B6D435DD8E2A916412CAE5B
Revealed Advantage - Global Clothing Exports 1980-2015
Revision videos
This short revision video looks at the changing pattern of global exports of clothing since 1980. China
dominates world export sales with a 38% share in 2015 but countries such as Vietnam, Bangladesh,...
http://tutor2u.cmail2.com/t/ViewEmail/j/1D0A987D6C0A11AA/AECED1810B6D435DD8E2A916412CAE5B
Absolute Advantage
Revision videos
If a country using the same factors of production can produce more of a product, then it has an absolute
advantage.
http://tutor2u.cmail2.com/t/ViewEmail/j/1D0A987D6C0A11AA/AECED1810B6D435DD8E2A916412CAE5B
Global Output in 2016 - Emerging Countries Dominate
Revision videos
This is a short revision video looking at two key charts from the IMF World Economic Outlook. One shows
the percentage share of the main industrialized and emerging countries in...
http://tutor2u.cmail2.com/t/ViewEmail/j/1D0A987D6C0A11AA/AECED1810B6D435DD8E2A916412CAE5B
Fixing Globalisation – Jim O’Neill in conversation with George Osborne
This is a 17 minute interview that might be used an enrichment for students evaluating the challenges to
globalisation.
http://tutor2u.cmail19.com/t/ViewEmail/j/261B98F46F1C524A/AECED1810B6D435DD8E2A916412CAE5B
The End of China Inc?
This is a follow-up to the blog about Robert Peston's analysis of prospects for the Chinese economy. I
think this report from Al Jazeerah is significantly better - not least...
http://tutor2u.cmail19.com/t/ViewEmail/j/261B98F46F1C524A/AECED1810B6D435DD8E2A916412CAE5B
Import Tariffs and Economic Welfare
Revision videos
This short revision video looks at the impact of an import tariff on consumer and producer welfare.
http://tutor2u.cmail19.com/t/ViewEmail/j/261B98F46F1C524A/AECED1810B6D435DD8E2A916412CAE5B
Import Tariffs - Basic Analysis Diagram
Revision videos
This short revision video takes students through the basic analysis diagram showing the effects of a tariff
introduced into a domestic market.
http://tutor2u.cmail19.com/t/ViewEmail/j/261B98F46F1C524A/AECED1810B6D435DD8E2A916412CAE5B
Fixing Globalisation
An excellent series on BBC Radio 4 by Jim O'Neill this month, entitled The New World, interviewing a wide
range of commentators including Dani Rodrik, Yanis Varoufakis, Paul Mason, Jim Yong...
http://tutor2u.cmail19.com/t/ViewEmail/j/261B98F46F1C524A/AECED1810B6D435DD8E2A916412CAE5B
Countries that Export Printing Presses
This has to be a go-to example of first mover advantage and retaining competitive advantage!
http://tutor2u.cmail19.com/t/ViewEmail/j/261B98F46F1C524A/AECED1810B6D435DD8E2A916412CAE5B
Customs Unions
Revision videos
A short revision video on customs unions and how they differ from single markets.
http://tutor2u.cmail19.com/t/ViewEmail/j/261B98F46F1C524A/AECED1810B6D435DD8E2A916412CAE5B
Import Dumping
Revision videos
Dumping happens when firms sell their products abroad in export markets at below costs or significantly
below prices in the home market.
http://tutor2u.cmail19.com/t/ViewEmail/j/261B98F46F1C524A/AECED1810B6D435DD8E2A916412CAE5B
Chain of Reasoning - The Terms of Trade
Exam technique advice
This short exam technique video looks at building chains of reasoning to answer a question: Explain two
economic effects of an improvement in the terms of trade.
http://tutor2u.cmail19.com/t/ViewEmail/j/657E9453B4C4676C/AECED1810B6D435DD8E2A916412CAE5B
Australian Beef Farming and Economies of Scale
This clip looks at how Australian beef farmers have responded to rising demand from Asian consumers, led
by Australian Agricultural who have made the most of their economies of scale...
http://tutor2u.cmail19.com/t/ViewEmail/j/657E9453B4C4676C/AECED1810B6D435DD8E2A916412CAE5B
Could a national maximum wage work?
On Tuesday's Today programme, Jeremy Corbyn suggested that introducing "maximum pay" would be an
effective way of reducing inequality and tackling the issue of overly-high pay in the boardroom (see...
http://tutor2u.cmail19.com/t/ViewEmail/j/657E9453B4C4676C/AECED1810B6D435DD8E2A916412CAE5B
Export Dependency on the United States Economy
Revision videos
This short video looks at evidence of the depth of trade dependency on the US economy
http://tutor2u.cmail20.com/t/ViewEmail/j/8E0A7C98833CB477/AECED1810B6D435DD8E2A916412CAE5B
Alternative Measures of Income Inequality
Revision videos
This short revision video looks at two alternative measures of the scale of income inequality - namely the
S80-S20 ratio and the Palma Ratio. The video draws on the...
http://tutor2u.cmail20.com/t/ViewEmail/j/8E0A7C98833CB477/AECED1810B6D435DD8E2A916412CAE5B
The Gini Coefficient
Revision videos
The Gini coefficient measures the inequality among values of a frequency distribution (for example levels
of income).
http://tutor2u.cmail20.com/t/ViewEmail/j/8E0A7C98833CB477/AECED1810B6D435DD8E2A916412CAE5B
The Lorenz Curve
Revision videos
The Lorenz curve is the graphical / visual representation of income or wealth distribution developed by
American economist Max Lorenz in 1905.
http://tutor2u.cmail20.com/t/ViewEmail/j/8E0A7C98833CB477/AECED1810B6D435DD8E2A916412CAE5B
Indifference Curves - Income and Substitution Effects for Inferior Goods
Revision videos
In this revision video we look at the income and substitution effects for an inferior good
http://tutor2u.cmail2.com/t/ViewEmail/j/4ACDDD8DD70441E0/AECED1810B6D435DD8E2A916412CAE5B
Indifference Curves - Income and Substitution Effects for Normal Goods
Revision videos
In this revision video we work through how to show the substitution and income effects arising from a fall
in the market price of a product, in our example we...
http://tutor2u.cmail2.com/t/ViewEmail/j/4ACDDD8DD70441E0/AECED1810B6D435DD8E2A916412CAE5B
Indifference Curves - Rising Income and Normal Goods
Revision videos
This short revision video consider how demand for two normal goods (with a positive income elasticity of
demand) is affected when real income increases. The video uses indifference curve analysis...
http://tutor2u.cmail2.com/t/ViewEmail/j/4ACDDD8DD70441E0/AECED1810B6D435DD8E2A916412CAE5B
Indifference Curves - Rising Income and Inferior Goods
Revision videos
This short revision video takes you through the key analysis diagram when using indifference curves to
show the effect of a rise in real income when one of the products...
http://tutor2u.cmail2.com/t/ViewEmail/j/4ACDDD8DD70441E0/AECED1810B6D435DD8E2A916412CAE5B
Multiple Choice Technique: Information as a Public Good
Revision videos
In this revision clip we look at an exam question on whether information services are public or private
goods?
http://tutor2u.cmail19.com/t/ViewEmail/j/BA7B63C9EC773EEC/DBB4D903609C5F7D2438807772DD75D1
Multiple Choice Technique: Changing Market Prices
Revision videos
This revision clip on economics exam technique focuses on shifts in market demand and market supply
and the impact on equilibrium price and quantity supplied. It is good technique to...
http://tutor2u.cmail19.com/t/ViewEmail/j/BA7B63C9EC773EEC/DBB4D903609C5F7D2438807772DD75D1
Development: the problem of 'failing states'
According to The Economist, few things matter more than fixing failed states. Broadly defined, state
failure provides “a general explanation for why poor countries are poor”.
http://tutor2u.cmail19.com/t/ViewEmail/j/BA7B63C9EC773EEC/DBB4D903609C5F7D2438807772DD75D1
8 billionaires own the same wealth as the poorest half of the world's population - does it
matter?
Oxfam have updated their list and comparison of the world's super-rich showing that the top 8 wealthiest
people own the same wealth as the poorest half of the world's population. You...
http://tutor2u.cmail19.com/t/ViewEmail/j/BA7B63C9EC773EEC/DBB4D903609C5F7D2438807772DD75D1
Zombie firms and weak productivity growth
Are zombie firms crowding out investment and holding back productivity growth? This article from the
Economist draws on a new research report from the OECD
http://tutor2u.cmail2.com/t/ViewEmail/j/88018443592FF945/DBB4D903609C5F7D2438807772DD75D1
The Debt Deficit Distinction
KAL from the Economist provides the artistic genius behind this short video from the Economist
http://tutor2u.cmail2.com/t/ViewEmail/j/88018443592FF945/DBB4D903609C5F7D2438807772DD75D1
Government debt and the interest burden
There has been a significant increase in the size of public sector debt in many advanced countries since
the Global Financial Crisis (GFC) engulfed nations in the autumn of 2007. But...
http://tutor2u.cmail2.com/t/ViewEmail/j/88018443592FF945/DBB4D903609C5F7D2438807772DD75D1
Relative size of major world economies
Revision videos
Prompted by new data published by the World Bank, this short video explores the relative size of the
world's largest economies. Will 2017 be a year when the centre of gravity...
http://tutor2u.cmail2.com/t/ViewEmail/j/88018443592FF945/DBB4D903609C5F7D2438807772DD75D1
Global Economy 2016 in 12 Charts (and a video)
A terrific source of information curated here by the World Bank. Here are 12 charts that help tell the
stories of the year.
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Indifference Curves - Cross Price Elasticity and Substitutes
Revision videos
In this short revision video we use indifference curves to illustrate the concept of cross price elasticity of
demand for two substitute products.
http://tutor2u.cmail2.com/t/ViewEmail/j/88018443592FF945/DBB4D903609C5F7D2438807772DD75D1
7. FROM WORLD ECONOMIC FORUM
The theme of the meeting calls on global leaders to renew the systems that have supported international
cooperation in the past by adapting them to today’s complex, multipolar world in ways that foster
genuinely inclusive and equitable growth.
To build on this theme, the programme focuses on five “gravity centres”, each constructed to help
leaders address distinct yet related critical challenges in 2017:
Strengthening Systems for Global Collaboration: Updating and re-designing our systems for
international cooperation to better manage the effects of globalization
Addressing Identity through Positive Narratives: Inspiring optimism and trust in the future, even as
our world gets smaller and more complicated
Revitalizing the Global Economy: Developing the skills and deploying the capital to address slow
growth, unemployment and financing the Sustainable Development Goals
Reforming Market Capitalism: Addressing short-term thinking, self-interested behaviour and
corruption to build a new compact between business and society
Preparing for the Fourth Industrial Revolution: Preparing workers and economies for the coming
convergence of technology and humanity
“Our world continues to become increasingly interdependent, even as political events signal a desire for
isolation and a retreat from globalization. To address both of these daunting forces, we must strive for
better global governance and leadership systems that are responsive to the need for social inclusion and
responsible in finding constructive answers to our multiple global challenges,” said Klaus Schwab, Founder
and Executive Chairman, World Economic Forum.
8. FROM BUSINESS COUNCIL OF AUSTRALIA
Release of Competitive Project Approvals Report
The Business Council has released a new report calling for COAG to commit to reform major project
planning approvals systems in the States and Territories.
The Competitive Project Approvals report sets out a best practice model for project approvals that we
would like to see included in planning and zoning reforms being considered by Australian governments in
their response to the Harper review of competition policy arrangements.
Our model streamlines approvals, reducing timelines and costs, while maintaining Australia’s strong
environmental and community protections. It will support faster delivery of government and private
infrastructure projects and make Australia a more attractive destination for capital investment that grows
national income.
9. FROM GAP MINDER
Dollar Street is live!
Imagine that everyone in the world lives in one street, and your house number is your income. That’s the
Dollar Street idea. And now you can see what it looks like.
The poorest live to the left and the richest to the right. Everybody else live somewhere in-
between. Where do you live? How is your home different from other homes on your income level, in other
continents?
In the news, people from other countries seem stranger than they really are. Visit dollarstreet.org to find
out how people really live!
We have collected photos from homes across the World. Today we’ve got more than 200 homes from 50
countries. And all images are free to use, share and edit as you wish under Creative Commons 4.0
License.
Updated Gapminder World Poster 2015!
Because of contributions from Gapminders on Facebook, we have added the latest Life Expectancy data
from IHME in our Socio-Economic World Map!
It shows the Life Expectancy and Income of 182 nations in the year 2015. It's clear in this chart that there
are not two groups of countries. There is no developing vs. developed, rich vs. poor. Instead of labeling
countries in two groups, we suggest using the 4 income levels marked on the chart.
Almost no country on the richest level has really short life expectancy, and no country on the poorest level
has long life expectancy. Most people live in the middle. There are huge differences in life expectancy in
the middle, depending on how income is used.
Download it, hang it next to the world map in your wall, and spread the word! You can also play with the
interactive bubble chart here: gapminder.org/tools
10. FROM TED TALKS
"The actual path of a raindrop as it goes down the valley is unpredictable, but the general direction is
inevitable," says digital visionary Kevin Kelly -- and technology is much the same. Kelly explores three
trends in tech we need to understand right now. Watch »
As a black woman from a tough part of the Bronx who grew up to attain all the markers of academic
prestige, Dena Simmons knows that for students of colour, success in school sometimes comes at the cost
of living authentically. Now an educator herself, Simmons discusses how we might create a classroom
that makes all students feel proud of who they are. Watch »
David Autor: Why are there still so many jobs?
Here's a paradox you don't hear about: Though machines and computers are constantly being created to
do human jobs, the proportion of adults in the US with a job has consistently gone up for the past 125
years. Which begs the question: Why hasn't human labor become redundant and our skills obsolete? In
this talk about the future of work, economist David Autor takes on the question of why there are still so
many jobs -- and comes up with a surprising, hopeful answer.
Watch now »
Maps: These 7 new maps offer a fresh perspective on our world »
And a new way of seeing ourselves ...
The world is changing much more rapidly than most people realize, says business educator Eddie Obeng --
and creative output cannot keep up. In this spirited talk, he highlights three important changes we
should understand for better productivity, and calls for a stronger culture of “smart failure." Watch
»
Money: Would universal income save the world? Maybe. But why not try these three (slightly easier)
options first >>
The idea of universal basic income (UBI) is so hot right now! But it might not be the only, or the best, way
to create more opportunity for all
11. FROM DFAT
Second anniversary of KAFTA
The Korea-Australia Free Trade Agreement is a vital element in trade between Australia and Korea that is
delivering strong results across export sectors and creating new Australian jobs. A fourth round of KAFTA
tariff cuts will come into effect on January 1 next year. Minister for Trade, Tourism and Investment Steven
Ciobo said the further cuts would deliver yet another boost for exporters looking to meet Korean demand
for premium Australian products.
DFAT: Media Release
DFAT: KAFTA Guide
Discovering Australia's next generation of resources
The Australian Government is supporting the development of the next wave of mineral, energy and
groundwater resources with work now underway on the $100 million Exploring for the Future program.
“Around 80 per cent of Australia remains under-explored. Tapping into Australia’s undiscovered potential
is the key to not only securing a healthy ongoing supply of mineral, energy and groundwater resources
but also our long-term prosperity,” Minister for Resources and Northern Australia Matt Canavan said.
Industry: Media Release
WTO reflects on year that was
The WTO’s latest report highlights persistent global economic challenges this year that continue to weigh
on international trade. The number of new trade-restrictive measures introduced over the year was
worryingly high given continuing global economic uncertainty and the WTO's downward revision of its
trade forecasts. The WTO also urges members to ensure the benefits of trade are more widely spread and
better understood.
WTO: 2016 Trade Overview
ABS Data Release: international trade in goods and services
The ABS’ October trade figures show that in seasonally adjusted terms, goods and services exports rose
$389m or one per cent to $27,631m over the month. Non-rural goods rose $223m, or by one per cent,
and non-monetary gold rose $198m, or by 13 per cent. Services exports rose $121m or by two per cent.
ABS: October Trade
DFAT: Trade and Investment Statistics
12. FROM IAG
8 December 2016
Energy price hikes: Why is it happening?
Read the Blog >
13 December 2016
Energy reform is urgent to avoid systemic crises
Find out more >
7 December 2016
GDP disappointing but not unexpected
Find out more >
12. FROM POPULATION MATTERS
read the recent article, ‘The seven deadly things we’re doing to trash the planet (and human life with it)’
by John Vidal. Ok, he puts ‘hyper-consumerism’ at the top of the list, but in what would have been
regarded as environmental heresy only a few years ago (especially from a Guardian journalist), Vidal
includes the issue of human population - headlining it as, ‘The one nobody wants to talk about’.
13. FROM ASIC MONEYSMART
Create a budget for 2017
Successful investing starts with a plan
Credit card balance transfers that work
14. FROM FEDERAL BANK OF ST. LOUIS
Education, Income, and Wealth
No surprise—people with more education often earn higher incomes and are unemployed less than those
with less education. Those with higher incomes also tend to accumulate more wealth. Why? Research
shows that well-educated people tend to make financial decisions that help build wealth. Their strategies,
though, can be used by anyone. Learn valuable tips in this issue of Page One Economics
15. FROM MANNKAL FOUNDATION
Superannuation – for better or worse?
So we have come to the end of the annual round of changes to our Super Fund, which in Australia, started
off as a world model for the superannuation system…..
http://www.mannkal.org/mannerisms/?p=796
Drain the Billabong
Public Choice Theory describes how a tiny minority of insiders can get favourable laws that enrich them
but spread the costs lightly over the rest of the population – so lightly that, if we even realise it’s
happening, it’s not worth us standing up to react….
http://www.mannkal.org/PaulsPerspective/index.php/uncategorized/117
16. FROM THE ECONOMIST
Stockmarket Review 2016
Stockmarkets had a good 2016. The S&P 500 rose by 10% over the 12 months and the Dow Jones by
13%. The FTSE 100 recovered from its Brexit wobbles to end 14% up; Russia’s RTS index soared after the
election of Mr Trump to finish 52% higher; and Brazil’s Bovespa rose by 39%. But Italy’s main index fell
by 10%, and China’s Shanghai Composite ended the year 12% lower
http://www.economist.com/news/economic-and-financial-indicators/21713826-
markets?cid1=cust/ednew/n/bl/n/2017015n/owned/n/n/nwl/n/n/AP/8532313/n
Inflation returns
After two years of unusually modest price rises in the rich world, inflation is picking up. Good\
READ MORE >
17. FROM OXFAM
An economy for the 99%
It’s time to build a human economy that benefits everyone not just the privileged few
The World Economic Forum is once again among us and today Oxfam releases a shocking new statistic on
inequality.
Just 8 men own the same amount of wealth as the poorest 3.6 billion people.
Below the report's author, Deborah Hardoon, shares with us how this data was compiled, why we study
wealth and suggests what can be done to tackle inequality.
Download the report
17. FROM WORLD ECONOMIC FORUM
Under-Employed, Under-Inclusive and Under Threat: the World in 2017
Trends such as rising income inequality and societal polarization triggered political change in 2016
and could exacerbate global risks in 2017 if urgent action is not taken, according to the Global
Risks Report 2017
Key drivers of risks can be arrested or reversed through building more inclusive societies, for which
international cooperation and long-term thinking will be vital
Climate change ranks alongside income inequality and societal polarization as a top trend for 2017,
with all five environmental risks featuring for the first time among the most likely and most
impactful risks before the world
Read the full report here
London, United Kingdom, 11 January 2017 – Economic inequality, societal polarization and
intensifying environmental dangers are the top three trends that will shape global developments over the
next 10 years, the World Economic Forum’s Global Risks Report 2017 found. Collaborative action by world
leaders will be urgently needed to avert further hardship and volatility in the coming decade.
In this year’s annual survey, some 750 experts assessed 30 global risks, as well as 13 underlying trends
that could amplify them or alter the interconnections between them. Against a backdrop of mounting
political disaffection and disruption across the world, three key findings emerged from the survey:
Patterns persist. Rising income and wealth disparity and increasing polarization of societies were
ranked first and third, respectively, among the underlying trends that will determine global
developments in the next ten years. Similarly, the most interconnected pairing of risks in this
year’s survey is between high structural unemployment or underemployment and profound social
instability.
The environment dominates the global risks landscape. Climate change was the number two
underlying trend this year. And for the first time, all five environmental risks in the survey were
ranked both high-risk and high-likelihood, with extreme weather events emerging as the single
most prominent global risk.
Society is not keeping pace with technological change. Of the 12 emerging technologies
examined in the report, experts found artificial intelligence and robotics to have the greatest
potential benefits, but also the greatest potential negative effects and the greatest need for better
governance.
While the world can point to significant progress in the area of climate change in 2016, with a number of
countries, including the US and China, ratifying the Paris Agreement, political change in Europe and North
America puts this progress at risk. It also highlights the difficulty that leaders will face to agree on a
course of action at the international level to tackle the most pressing economic and societal risks.
“Urgent action is needed among leaders to identify ways to overcome political or ideological differences
and work together to solve critical challenges. The momentum of 2016 towards addressing climate change
shows this is possible, and offers hope that collective action at the international level aimed at resetting
other risks could also be achieved,” said Margareta Drzeniek-Hanouz, Head of Global Competitiveness and
Risks, World Economic Forum.
How to address the world’s most pressing risks will be the subject of discussions at the World Economic
Forum Annual Meeting 2017, which convenes 17-20 January under the theme Responsive and Responsible
Leadership.
Although 2016 will be remembered for dramatic political results that broke with consensus expectations,
warning signs that a persistent cluster of societal and economic risks could spill over into real-world
disruption have been reported in the Global Risks Report regularly during the past decade.
In 2006, Global Risks warned that the elimination of privacy reduces social cohesion – at the time,
this was classified as a worst-case scenario, with a likelihood of below 1%.
In 2013, long before “post-truth” became the 2016 word of the year, Global Risks highlighted the
rapid spread of misinformation, observing that trust was being eroded and that better incentives
were needed to protect quality-control systems.
The complex transitions that the world is currently going through, from preparing for a low-carbon future
and unprecedented technological change to adjusting to new global economic and geopolitical realities,
places even greater emphasis on leaders to practice long-term thinking, investment and international
cooperation.
“We live in disruptive times where technological progress also creates challenges. Without proper
governance and re-skilling of workers, technology will eliminate jobs faster than it creates them.
Governments can no longer provide historical levels of social protection and an anti-establishment
narrative has gained traction, with new political leaders blaming globalisation for society’s challenges,
creating a vicious cycle in which lower economic growth will only amplify inequality. Cooperation is
essential to avoid the further deterioration of government finances and the exacerbation of social unrest,”
said Cecilia Reyes, Chief Risk Officer of Zurich Insurance Group.
The propensity of the Fourth Industrial Revolution to exacerbate global risks also came under scrutiny in
the Report’s Global Risks Perception Survey. Basing their analysis on 12 distinct emerging technologies,
experts clearly identified artificial intelligence (AI) and robotics as having both the highest potential for
negative consequences and also the greatest need for better governance. Notwithstanding its potential to
drive economic growth and solve complex challenges, experts also named it as the top driver of economic,
geopolitical and technological risks among the 12 technologies.
John Drzik, President of Global Risk & Specialties, Marsh said: “Artificial intelligence has the potential to
deliver dramatic benefits in sectors from manufacturing and transportation through to financial services
and health care. However, increased reliance on AI will create new threats and amplify existing ones, such
as cyber and social instability, making the parallel development of risk governance just as crucial.”
For the third year, the Global Risks Report also provides country-level data on how businesses perceive
global risks in their countries.
The Global Risks Report 2017 has been developed with the support of Strategic Partners Marsh &
McLennan Companies and Zurich Insurance Group. The report also benefited from the collaboration of its
academic advisers: the Oxford Martin School (University of Oxford), the National University of Singapore,
the Wharton Risk Management and Decision Processes Center (University of Pennsylvania), and the
Advisory Board of the Global Risks Report 2017.
Buoyant South Asian Economies Can Revive Global Demand and Spur Growth
Trade, common physical and social infrastructure important to harness growth in South Asia
Countries must focus on eradicating poverty, the common enemy
For more information on the meeting, see http://wef.ch/davos17
17 January 2017, Davos-Klosters, Switzerland – With its vast workforce, strong growth and
expanding purchasing power, South Asia will be the key to reviving global demand, Nirmala Sitharaman,
Minister of State for Commerce and Industry of India, said at a session on Harnessing Regional
Cooperation in South Asia at the World Economic Forum Annual Meeting. “The world cannot afford to
ignore the region that will be key to reviving demand,” the minister said.
Despite the South Asian Association for Regional Cooperation (SAARC) annual summit being cancelled in
2016 because of a terrorist incident in India, Sitharaman said, it is important to remember that the South
Asian Free Trade Agreement is still going strong and has achieved major gains in intra-regional trade in
the past few decades. She cited border haats, or markets, on the India-Bangladesh border and the India-
Myanmar-Thailand trilateral highway as other examples of increasing regional integration.
Prime Minister Sheikh Hasina of Bangladesh added that the India, Bangladesh, Bhutan and Nepal motor
vehicles agreement signed two years ago is another sign of closer ties within South Asia. She said better
connectivity of this kind will be an indispensable part of any strategy aimed at bringing nations and people
together.
With 1.8 billion people, 7% GDP growth rate and 25% of the world’s middle class, South Asia offers trade
and commerce that can improve people’s quality of life while also keeping the peace in a volatile region,
the panellists agreed. Manvinder S. Banga, Operating Partner, Clayton, Dubilier & Rice, United Kingdom,
said that as the world begins to de-globalize, there will be more opportunity for intra-regional trade within
South Asia.
He added that countries must set aside political irritants and improve connectivity – a huge advantage for
trade – as well as build common physical and social infrastructure, which can be a source of catalytic
growth and enable countries to meet the common challenge of fighting hunger and poverty and providing
education and healthcare to their people.
Business can help catalyse social infrastructure, particularly through digital technology, Banga said, citing
the example of education where information technology offers the opportunity to transform educational
reach while reducing the need for brick-and-mortar schools and teachers. Through digital technology, an
entrepreneur needs much lower investment and even education to set up a business, Banga said. “There
is an opportunity for digitally supported businesses at an unprecedented scale,” he added.
Mosharraf Zaidi, Founder and Campaign Director of Alif Ailaan – Time to End Pakistan’s Education
Emergency, Pakistan, highlighted the need for better education for the under-25 population that gives
South Asia its unparalleled demographic advantage over other regions. However, he warned that
countries’ oversized emphasis on defence spending is leaving little to invest in building the region’s social
capital.
Also underlying the discussion was the subtle acknowledgement that political issues such as state-
supported terrorism and the legacy of mistrust between nations cannot be wished away.
Ranil Wickremesinghe, Prime Minister of Sri Lanka, admitted that Sri Lanka prefers to deal bilaterally with
its larger trading partners outside South Asia as well as those within the region. Nevertheless, he said,
intra-regional relations of various kinds continue to thrive between his country and other South Asian
countries – such as the “camel trade” between southern India and Sri Lanka in which traders commute
daily between the two places. “There is a crisis only when you stop playing cricket with each other,” he
said on a lighter note.
President Xi Jinping: Don’t Blame Economic Globalization for the World’s Problems
China will meet its global responsibilities, including implementation of the Paris Agreement on
climate change
China will continue its economic reforms and opening up, and maintain its high level of economic
growth, while pursuing sustainable development
For more information on the Annual Meeting, see http://wef.ch/davos17
17 January 2017, Davos-Klosters, Switzerland – Chinese President Xi Jinping delivered a robust
defence of globalization to business, government and civil society leaders in the opening plenary session
of the 47th World Economic Forum Annual Meeting. China, Xi said, is committed to fulfilling its
international responsibilities and contributing to addressing pressing global challenges, including climate
change, the need for new drivers of economic growth and creating jobs in the face of the emerging
technologies of the Fourth Industrial Revolution.
“Many of the problems troubling the world are not caused by economic globalization,” Xi pointed out,
citing the global refugee crisis as an example. “There is no point in blaming economic globalization for the
world’s problems, as that is not the case and will not help with solving the problems,” he said.
But, Xi warned, “We should recognize that economic globalization is a double-edged sword. The pitfalls of
economic globalization have been laid bare and we need to take these seriously.” He added: “Nothing is
perfect in the world. It is true that economic globalization has created new problems. But this is no
justification to write off economic globalization altogether.” Xi recalled that China had at first doubted the
wisdom of joining the World Trade Organization, but had bravely gone ahead with membership and
determined that it was the right strategic choice. “If one is always afraid of the bracing storm, one will get
drowned in the ocean sooner or later,” he said.
Xi called for efforts to rebalance economic globalization so that all people share in its benefits. This will
require more effective international cooperation and new models of global governance, bold action and a
commitment to avoid protectionism. “We should not develop the habit of retreating to the harbour
whenever encountering a storm.” Referring to the threat of protectionism, he predicted that “nobody will
emerge as a winner in a trade war.”
President Xi also stressed that China will continue its economic reforms and opening up, and will maintain
its high level of economic growth while pursuing sustainable development. “We know only too well that
there is no such thing as a free lunch in the world and that no pie will fall from the sky.”
Reacting to Xi’s speech, Klaus Schwab, the World Economic Forum’s Founder and Executive Chairman,
told participants that it is crucial that globalization leads to a fair, innovative, open and inclusive world.
“We cannot go back to old policies,” he said. “We cannot take recipes which may have worked in the old
world but are not working anymore in the new world.”
Earlier, in welcoming remarks, Doris Leuthard, President of the Swiss Confederation 2017 and Federal
Councillor of the Environment, Transport, Energy and Communications of Switzerland, warned that
nationalism and protectionism, as well as the rise of extremism and conflict, are gaining and challenging
the cohesion of the international community. “Each of these problems leads us to perceive the world as
more fragile – and the insecurity is spreading.”
With the turbulence created by the Fourth Industrial Revolution, Leuthard advised: “Digitization must be
democratized, just as knowledge was democratized when the printing press was invented.” She
underscored the importance of investing in education. “We need to have responsive and responsible
leadership to draw the right conclusions and make the right decisions,” She concluded. “To achieve this,
we have to rid ourselves of the idea that there is a global solution to these problems. There is never going
to be a one-size-fits-all solution.”
Big Business Is Here to Stay, but in Need of a New Narrative
Consumers are increasingly uneasy with the immense size and power of big business
The giants of world business are challenged to manage their enormous scale, create new products
and contribute to society
Innovation requires a focus on the long term, especially in terms of investment
17 January 2017, Davos-Klosters, Switzerland – Gigantic corporations lead in business today: fewer
than 10% of public companies worldwide account for 80% of all corporate profits. But the giants of world
business are challenged to manage their enormous scale, create new products and contribute to society,
agreed leaders of global manufacturers, technology companies and banks in a session on the opening day
of the World Economic Forum Annual Meeting.
Consumers are increasingly uneasy with the immense size and power of big business. “That we are
discussing this topic today is a clear message that something has gone wrong in the last 10 years.
Suddenly, we have started question: Is big good or not?,” said Sunil Bharti Mittal, Chairman, Bharti
Enterprises, India. Recent populist votes in the US election and Brexit reflect a criticism of big business:
“The biggest risk we run is to lose our mandate. We had a licence for a time, society wanted companies to
grow; that mandate is getting weaker and weaker,” said Tidjane Thiam, Chief Executive Officer, Credit
Suisse, Switzerland.
Big business needs a new narrative that articulates its contribution to society, the panel concurred. “What
percentage of the world’s companies have 80% of the jobs? That’s the narrative. SMEs are thriving around
us, every job I create makes another five,” said Andrew N. Liveris, Chairman and Chief Executive Officer,
The Dow Chemical Company, USA.
Creating environments where innovation will prosper in gigantic companies tends to spawn new
structures.
“Our number-one priority is leveraging the benefits of scale and size – that goes against trying to maintain
entrepreneurialism and innovation in large companies,” said Sir Martin Sorrell, Chief Executive Officer of
WPP, United Kingdom. The solution, he said, is that the business has to be big and small – the company
can be split into units and then “the challenge is to figure out how to get them to work together.”
Innovation requires a focus on the long term, especially in terms of investment. “We are continuing to
invest for the long run. Unless you stay focused on innovation, you can be disintermediated,” said Ruth
Porat, Senior Vice-President; Chief Financial Officer, Alphabet, USA. Powerful market forces can swerve
the focus away from that type of investment, however. Since the financial crisis of 2008, “there has been
more emphasis on short-term performance because the system is focused on the short term,” said Sorrell.
As a result, investments made are incremental and not the fundamental ones in innovation and branding,
he added. “Incrementalism leads to irrelevance; the short-term view is the problem,” underlined Porat.
The phenomenon of gigantic corporations is here to stay, agreed industry leaders on the panel, although
some expressed the view that shifts are in sight. We are heading to a world where companies will be like
nation states, noted Liveris. Several panellists predicted that, 10 years from now, fewer companies will
generate a higher proportion of profits than today. New forces, however, could alter this landscape.
Subsidies for small business will become a force for change, said Mittal, and the concentration of profit-
making in a few companies will be lower because technology will allow for improvements in small
business, said Porat.
Doug Cave
QETA Secretary/Treasurer
info@qeta.com.au
http://www.qeta.com.au
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