What exactly are the benefits of education? This might seem like an obvious or a trivial topic, but in fact, it involves some very deep economic issues. First of all, education increases human capital in the labor force and that raises wages. Workers who can read and write very well are more productive than workers who cannot. Workers who have a Master’s degree are also more productive. Furthermore, these workers may be more innovative and as we all know, innovation is one of the major drivers of economic growth. An educated workforce is also abler to accept and use the innovations generated by others.

Education enables the worker to work with computers. Many of the most important benefits of education are intangible. For instance, education seems to develop a greater sense of mindfulness in school and eventually in the workplace and also as individual citizens. Societies which have greater degrees of trust and greater degrees of cooperativeness can also be less corrupt. So through these indirect channels, a well-educated society may become a less corrupt society. Thus a society are better able to enjoy the fruits of economic growth.

Poverty is the greatest enemy of good health. Health and poverty are greatly related. Why does being poor affects one’s overall health? Being poor forces people to make choices costly to health. It affects:

• Food choices
• Shelter
• Clothing
• Access to water
• Sanitation

So how is health related to the economy? Note that money is a resource that can allow us to buy things that can make us healthy. A healthy life expectancy and GDP/person are very well connected. As GDP grows, health is also slowly growing. So if you are unhealthy and poor, the trend is you’re not going to live long. When the economy is rich, the society can afford to create a healthy community for everyone and thus allows people to live longer and enjoy life to the fullest.

We have what is termed to as Fragile States. These are economies who are over indebted. In other words, they owe a huge amount of money to other countries. Fragile states account to a huge percentage of global health statistics. Maternal death, poverty and under five deaths are common in fragile states. This is a clear symbol of something being wrong in the economy and the health system of a country. This would result to investors not wanting to invest in these countries because they feel that they won’t profit.

Most people have a hard time recalling what they have learned in economics during their undergraduate years. But many may remember how complicated the subject can be. Every country’s economy has a healthy dose of supply and demand. Supply and demand have an interesting and ongoing relationship. Supply is the availability of a particular good and services in any particular time. Demand on the other hand represents a way to measure consumer desire and spending on a particular good and specified price. This is one of the fundamental concept of economics. Prices is the reflection, and the point in which supply and demand intersect is said to be at equilibrium. Consumers create demand and companies’ studies consumer behavior. Supply impacts the country’s productivity potential. A country’s success in the short run will be determined by inflation, interest rates, consumer spending, and business confidence. In the long run however, the success depends on the right mix of people, population, money, investments, business capitals, and knowledge and ideas. Money and knowledge would result to productive workers and productive workers brings about economic growth. A country’s growth is determined by two components:

Population or number of workers. Population will determine how many workers a country may have. Population can be affected by things such as low birth rate, fertility rate, how long people live, how long they work or retire and the aging population. Obviously policy can impact population and population impacts economic growth. However, a large population does not always make some country rich but more of the productivity.

• Productivity or output by worker. This determines how much each worker earns. Potential output is how much a country can produce with its existing labor force. And the rate of growth overtime is potential growth.

Where does the Government earn and spend its money? There are two main sources where the Government earns its money:

• This is the first and beigest source. The Government taxes a lot of things, such as in the Income of individuals (income tax), profits of corporation (corporation tax) sales tax and services, etc.
• Non-Tax Revenue. These are income which the Government makes from its public undertakings. The Government is also a shareholder in some public sectored banks. When these banks make a profit, this can be a source of Government funds.

Where does the Government spend?

• Revenue Expenditure. This is the expenditure that the Government has to incur for its function. Examples of this is paying the salaries of Government employees, the utilities of Government offices, allocation of money to certain offices, etc.
• Capital Expenditure. These leads to the formation of assets in the economy. Examples of this is when the Government spends money on building roads, public schools, hospitals, railways etc.

When the Government spends more, the Government is experiencing a Fiscal deficit. Fiscal deficit is not necessarily a bad thing if taken under control. If the Government is mostly spending money on capital expenditure, the government is still creating assets for the economy. These assets will give return in the long ran. However, if this is not checked and the Government spends way too much money, then things can get problematic. Below are some effects it can bring to the economy.

• High Inflation
• Higher Interest rates
• Higher taxes

Education has a big impact on the Economy. Obtaining a degree is very important in economic growth. This is particularly true in the context in which skills have to be continuously developing. Education should be prioritized. One factor that hinders this is gender gap. This issue is very sensitive and needs immediate attention. Addressing this will nurture more skilled people in different areas which can help in economic growth. We should end gender gap in education as well as occupational segregation in the labor market.   Evidence has shown that women with degrees in Science and Technology who goes in the labor market do not stay on those occupations and make use of their degrees and practice their specialization. The reason is that; the environment is not family friendly. There is still gender discrimination in terms of promotions and ideas.

Negative effects of gender gap:

• Less likely to be in the labour market.
• Less likely to have a job
• More likely to be paid less
• More likely to be in involuntary part-time work.
• Often discriminated in the workplace.

Gender inequality is a worldwide phenomenon that is costing the global economy trillions of dollars. Many countries marginalize and discriminate against women thus facing the issue of aging and shrinking workforce. In poor countries. Addressing gender gap in education and workplace will have a direct and positive impact to the global economy.

If folks sell or buy houses, either to reside in or as an investment, then we now still all make reference to as the home marketplace. A residence has become the most effective thing lots of folks could possibly possess.

Back in Britain, two-thirds of households own your house they reside in; 1 / 2 these are still paying down their mortgage. The rest of the households are tenants, split fairly evenly between social and private renting.

What’s the home marketplace significant to the market?

The home market is closely connected to consumer spending. When house prices move up, homeowners eventually become better away and feel confident. Many folks will borrow against the price of the home, either to devote to services and goods, reestablish their home, supplement their own retirement, or repay debt.

When house prices return, homeowners hazard their house is likely to be much less than their mortgage. Folks are so more inclined to lower spending and hold away from making investments.

Collars would be the best supply of debt to households within the united kingdom. If a lot of men and women simply take out large loans in contrast for their own earnings and also even the value in their residence, this may set the banking system in danger in an economic recession.

Housing investment can be a somewhat but an erratic portion of how we quantify the entire outcome of this market. If you get a newly constructed home, it directly results in overall output (GDP), such as through investment in property and construction materials in addition to creating projects. The area also proceeds when new houses are assembled as novices begin using local services and shops.

Exchanging existing homes doesn’t affect GDP in precisely exactly the exact same manner. The corresponding expenses of a residence trade still benefit the market, nevertheless. These may consist of anything from the home representative, legal or surveyor fees to purchasing a brand new paint or sofa.

ALSO READ: How to Fix the Economy During This Pandemic?

Why would housing costs vary?

House prices have changed quite a good deal over the years.

The average house price was just only a little over #10,000 in 1977. Roll forwards 40 decades and the normal price has climbed up to #200,000. In spite of the typical gain in the costs of products and services, housing prices are currently around twice as costly as these were in the late 1970s.

There really certainly are a range of items that affect house rates.

To begin with, house prices are likely to grow if people expect you’ll be wealthier in the foreseeable near long term. Normally that takes place when the market is succeeding as more folks come in work and salary tend to be higher.

House prices tend to climb if more folks can borrow money to purchase houses. The more financing banks and building societies will willingly provide the more people may purchase a dwelling and prices will likely probably grow.

Even the Bank of England also changes house prices throughout setting the vital rate of interest from the market. The lower rates of interest are, the lower the value of borrowing to cover a dwelling is, as well as the more persons can afford to borrow to get home. This will mean prices will have a tendency to become higher.

Additionally, there are more fundamental reasons why house prices can vary.

For example, the need for homes can grow if the number of people is rising or you will find more single-person households. Growing demand translates to higher house rates.

Prices may even have a tendency to become higher if fewer houses are made, reducing the source of the home. The fewer homes which are constructed, the more individuals Will Have to compete with increasing the Sum of Money They’re willing to invest to buy a Home

There also have been instances when housing costs have grown a whole great deal only because people think prices will continue to grow. That is referred to as a housing market bubble. Bubbles are followed closely by home market crashes when house prices fall sharply.

This happened while in the 1980s. Between 1984 and 1989 housing costs skyrocketed, which has been substantially higher compared to the increase in people’s earnings. The unsustainable increase has been accompanied closely by over five decades of falling house rates. It took until 1999 before dwelling prices had recovered to the degree they were in 1989.

COVID 19 has brought the global economy to its knees. This pandemic has been an economic shock to almost all countries in the world. Many people have lost their livelihood and jobs. Lockdowns have brought about changes that has affected the global economy, technology, finance and trade.  Depending on how different Governments will adopt will determine how these county’s economy will recover.

How do we spark economic recovery?

1. Spend first and save later. During the pandemic governments had been borrowing funds to keep their economy alive. At this time of the pandemic interest’s rates are very low so governments take advantage of this.
2. Embrace exchange. This pandemic has brought about enormous changes. One of the biggest change is that people started working in their homes or remotely instead of the office. Many seem to prefer this. This can boost economic growth and decrease inequalities in the workplace. Before the pandemic people find it very expensive to live in areas where they can find good jobs. There is a clear opportunity if people chose to work at home to ease this constraint. Governments should embrace this change rather than not supporting it.
3. Build a Safety Net. Governments stood behind its citizen during the pandemic and replaced household incomes with stimulus by the Government. This were direct cash payments to people. This will help people get back to their feet.

COVID 19 presents an opportunity for reforming the relationship between the government and its citizen.

Almost all economies around the world has been in a hotspot in an uncertain international picture. The was caused mostly because of the effects of the pandemic. Even the world leading economies are battling weak growth and are facing other problems like the growth of high unemployment. Countries like the United States of America will be under a new leadership and it faces the task of sustaining growth while at the same time implementing unprecedented economic restructuring.

Many governments are asking these questions:

• What do they do to meet the challenges of this pandemic?
• What will be their domestic and international priorities?
• How will they fast track the regrowth of its economy?

Inflation according to Economists have an immense effect on a country’s economy. The average citizen would feel it’s effects as they live their daily lives. This is most especially true if they rely on a per diem basis.  When inflation gets out of control it would devalue a nation’s currency. Worst, it can lead into an economic recession.

Like any other social problem such as unemployment, Inflation has its ups and downs. The average person would greatly feel it’s effect. Inflation results to so economic uncertainties.

Here are the impacts that inflation my bring about:

• Income redistribution: Wealth and or income is redistributed among different social status.
• There is a fall in real income.
• Since inflation causes people to protect their real income, there will be an increase in pay claims. Thus a risk of wage inflation may occur.
• This isn’t good for businesses since business. Businesses cannot set up their real costs and prices.

Legally, bankruptcy is a procedure in which either a person or a business can discharge its debt. This is possible in case the petitioner, the person or the business that files debt for bankruptcy, does not have any possible ways to pay it within a reasonable time, even with the help of bankruptcy attorney San Diego. With this, the debtor will be given the opportunity of a brand new start. However, for some person, falling into debt with just a minimal opportunity to pay it off will be very easy. This can be applicable especially in today’s scenario of easy credit. Yet, this is not a good idea for both the person and the society.

Moreover, motivating people to work is one of the purposes of earnings and may be a factor affecting economic growth. Individuals need to pay majority of their money to the creditors and the result would lead to minimal incentive of working. Knowing this, lots of people would be possibly become slaves to those credit card companies and issuers of credits. Being able to fall on this would lead to total misery. Crime rates would increase in such a way that most individuals will have to look for ways to have money without reporting it.

Bankruptcy offers the debtors a brand new beginning in order to alleviate the possible tremendous burden.

How Bankruptcy Helps the Economy

One major advantage of bankruptcy over the economy is assisting to moderate the economic state. Further, restricting the economy from having an overheat during booms and, at the same time, stimulating the economy during recession is also its advantage.

Booms and recession on bankruptcy

At the moment the people spend much of their money at a short span of time, booms usually occur. Meanwhile, recessions may be experienced at the moment the people do not spend their money in an enough manner. Having an easy credit, individuals may have to spend extra bucks, but for paying back the debt makes them to spend less. This action is actually the cause of the boom and the crash cycles directly.

In case bankruptcy is present, creditors become prudent in the lending process. The moment the creditors extend their credits already, like to those borrowers under the subprime category, people on the poor side of the economy will have to spend money in a quick manner. This will lead the economy to heat up. Yet, the process of stimulation must need to stop due to the reason that the people can only have the ability to borrow more money. After this, the debt must need to be re-payed.

The cannabis mania is coming over and more and more time for investors to dive into this thrilling and enticing market. Due to the new discoveries of its medicinal use and its legalization over North America, the Cannabis stocks are gaining more tractions aside from those factors affecting economic growth. If you are interested to know more about this kind of industry, then let’s find out below.

Sneak Peak for the Cannabis Industry

Investing in the stock market is one of the best option to grow your money.

The stock market return is averaging on 8.65% annually for about 10 years. This is much comparable to 5.03% return of Treasury note, and 7.88% for gold. However, when it comes to weed stocks, much higher than those can be expected. A data from 2018 shows that the sales of cannabis in US alone landed on around $50 billion.

The birth of marijuana sub-sectors

Contributing to the value of the cannabis market is the addition of sub-sectors of marijuana that are continuously erupting. There are the weed cultivators, marijuana manufacturers, cannabis packaging companies, and dispensaries. On the other hand, even the manufacturers will benefit financially for this industry as the demand for weed-based products are growing enormously.

Based on market research, it is expected that, by 2027, the cannabis industry will reach about $57 billion. And speculations believe that the legalization of cannabis in US will be implemented right after the presidential election of 2020. Due to this, it is a good timing to invest in this kind of market before its gigantic burst.

Cannabis Stocks Investment for Everyone

The previous year became a good indicator for weed-based businesses as cannabis prohibition will soon end on many states. Because of that, many investors are very eager to invest on the Canadian pot stocks. Generally, it is still the same old reason why people like to invest in the cannabis stocks.

They invest primarily on the steel makers or streaming companies. And obviously, this is because they want to grow their money and wealth using this kind of industry. Further, this market is open for all who are interested to invest.

Key Notes:

Decided to invest in the cannabis stock market is closely similar with investing in other type of stocks. Basically, the process is very simple yet, finding the appropriate work to done is essential to see the right stocks. Keep in mind that investing cannot be done for a day. Meaning, you doesn’t need to stick your eye on the cannabis market 24/7 and watch its move.