Should Governments Fight a Recession With Spending Hikes Or Tax Cuts?

For Spending Hikes – Mehak Singh A recession implies significant decline in overall economic activity, usually due to a drastic drop in spending and has widespread effects such as unemployment, lower wages, and lost opportunities. So how exactly should the government wrap its head around these mammoth issues? The very nature of recessions suggests that…

IKEA Effect: When Labour leads to Love

Have you ever breathed a sigh of relief, smiled wide and felt a sense of accomplishment after completing a puzzle? Not just puzzles, have you ever baked a cake and ended up valuing it more than a ready-made one? If your answer is yes, then you have experienced what one calls, “The IKEA Effect.” As…

The Antibiotic Paradox

What doesn’t Kill you, Makes you Stronger “Invent a bad antibiotic, and no one will use it.  Invent a really good antibiotic, and really no one will use it.”  ~  John Rex, Physician Here’s a dilemma: A patient approaches their doctor presenting some symptoms of a bacterial infection. The solution for an infection would be…

The False Curve

Must we wait for things to get worse before they get better? Economics is a land of fables. One of the most fascinating stories that a student of economics might have come across, is the story of the Kuznets Curve. The story goes back to 1955, when a brilliant American economist, Simon Kuznets, gathered data…