Tag: economy

Central Banks Can’t Print Unlimited Money

C1 – Advanced

The advent of the COVID-19 pandemic in 2020 has caused a great shock to the global economy. Governments’ solution was to release huge amounts in the form of stimulus packages.

Perhaps the biggest question in everyone’s mind is, where was this money from? How come banks do not produce as much money as we need in times of need? Instead, their response is quantitative easing.

Though the monetary policy quantitative easing has become common in the recent years, it is still in its nascency and the governments and economies have yet to uncover the extensive scope of its consequences.

Learn more about quantitative easing and why central banks can’t print unlimited amount of money even during severe economic crisis.

Discussion Questions:

  1. Why can’t central banks just print unlimited money even if it is to help an economy in crisis?
  2. Explain quantitative easing, buying bonds, and treasury bonds.
  3. Treasury bonds are considered as a safe form of investment. What is your opinion on this?
  4. In your opinion, when central banks buy government bonds/debts, does it only undermine a system that is designed to protect the economy or do you think these measures are actually necessary and helpful in stabilizing economies?
  5. Talk about the economic relief packages by your government as a response to the pandemic crisis.
  6. Share your thoughts on this statement by John Kenneth Galbraith, “The process by which banks create money is so simple the mind is repelled”.

Trickle-Down Economics

C1 – Advanced

Tax cuts for the wealthy is implemented in order to ideally boost the economy by creating more jobs. Thus, providing income for everyone else. As the wealth tax continues, more and more economists hypothesized that these wealth from 1% of the population has not been able to reduce poverty.

Let’s watch the video and know more about the trickle-down economics.

Discussion Questions:

  1. What is trickle-down economics and does it actually work?
  2. Do you have tax cuts for the wealthy and big corporations in your country? What do you think of this?
  3. Does increasing workers’ take-home pay translate to increased household demand? Explain.
  4. What do you think would improve the circumstances of the less wealthy?

The Buy Nothing Project

B2 – Upper Intermediate

Buy Nothing is a nonprofit organization that not only helps people save money but also reduce the clutter in their homes. This idea is based on gift-giving. The members of this group barter or offer their old stuff as a gift. The main payment for getting this free stuff is saying “Thank you” a a sign of appreciation.

Watch the video and read the transcript to know more about it and be able to discuss the questions that follow.

https://www.fox5ny.com/news/what-is-the-buy-nothing-project

Discussion Questions:

  1. What do you think of this organization? Is there a similar group like this in your community?
  2. What are the pros and and cons of this type of organization?
  3. Would you like to be a member of this organization? Why or why not?
  4. What do you usually do with your old stuff or other things that you don’t need anymore?
  5. How long can you go without buying anything? Why is that?

Child Tax Credit Payment

B2 – Upper Intermediate

A revamped child allowance program will soon be enjoyed by Americans families. The IRS will soon start sending $300 to families with children ages 0-5 and $250 for each child 6 to 17 years old.

This is an effort to combat child poverty in the country. But is it too soon to celebrate the child tax credit payments?

Read the article about child tax credit payments in the US.

https://www.businessinsider.com/irs-child-tax-credit-payment-dates-families-monthly-payments-2021-6

Discussion Questions:

  1. What is the child tax credit and who are eligible to receive this payment? What do you think of this incentive?
  2. What are your thoughts on the possibility that some moderate Senate Democrats may push for cuts to the measure?
  3. Compare the child tax credit system or child allowance program of your country and the US.
  4. What benefits from the government do children in your country have?
  5. Share your thoughts on this statement: “Children and families must be able to count on this benefit long after the end of this pandemic.”

Federal Trade Commission’s New Rules

B2 – Upper Intermediate

The US administration is cracking down on anticompetitive practices of big tech companies. President Biden has signed a new executive order calling the Federal Trade Commission to adopt new rules. This could give small businesses an edge.

Read about the details on how the executive order could affect small businesses.

https://www.inc.com/amrita-khalid/biden-executive-order-noncompete-hiring-competition.html

Discussion Questions:

  1. How may the order affect startups and small businesses?
  2. What are your thoughts on the new order restricting noncompete clauses?
  3. Do you think it is a good idea to remove some occupational licensing requirements? Why or why not?
  4. What do you think of big online retailers like Amazon not being able to use sales data on third-party-sellers’ goods to launch competing products anymore?
  5. How is the competition in procurement and spending decisions like for small businesses in your country?

Combat Staff Shortages by Relaxing Brexit Immigration Rules

B2 – Upper Intermediate

Some British companies are faced with the problem of shortage in workers. The Confederation of British Industry (CBI) is pushing for the government to relax post-Brexit immigration rules if the government wishes to prevent putting the UK’s economic recovery from the pandemic in jeopardy.

Read about how changes in the Brexit immigration rules can help combat staff shortages in the UK.

https://www.theguardian.com/business/2021/jun/28/combat-staff-shortages-by-relaxing-brexit-immigration-rules-says-cbi

Discussion Questions:

  1. What is your opinion on this solution to staff shortages in the UK? 
  2. Has your country struggled with the same problem especially because of the pandemic? What has the government done to address it?
  3. What are other ways to prevent a big problem with occupation shortages?
  4. What roles do you think belong to your country’s shortage occupation list?
  5. Would you consider working abroad after the pandemic? Why or why not?

EU Economy Forecast to Rebound Faster

B2 – Upper Intermediate

As the economy reopens and vaccine rollouts continues, Europe is now on its way back to its economic level before the pandemic happened. The EU economy is predicted to bounce back faster compared to previous economic downturns.

Read the article about forecasts on EU’s economic recovery.

https://www.theguardian.com/business/2021/may/12/eu-economy-forecast-rebound-faster-vaccine-covid-coronavirus-europe-economics

Discusion Questions:

  1. What are the driving forces to EU’s economic growth post-pandemic? Discuss each one.
  2. Do you think these forecasts are accurate? Support your point.
  3. How badly has your country’s economy suffered because of the pandemic?
  4. How is your country’s economic recovery going so far?
  5. What are some things that the government’s done to aid businesses from getting hit hard by the economic crisis?
  6. What has your company done to cope with the economic crisis brought about by the pandemic?

Building Blocks to a New Social Economy

B2 – Upper Intermediate

Perhaps the goal now is to create an economy that is not only sustainable and resilient but also human-centric. One that will enable us to achieve economic objectives of growth, inclusion, and equity. 

Is it possible for the industry to provide economic boom from only flourishing jobs and economic upturn while having the societal well-being as the one that will point to the information on producing goods and providing services?

Read the article about the building blocks of a new social economy.

https://ssir.org/articles/entry/social_tech_entrepreneurs_building_blocks_of_a_new_social_economy

Discussion Questions:

  1. How is technology pivotal in supporting a new purpose-driven economy?
  2. What do you know about social entrepreneurship?
  3. What are other ways to create integrated and inclusive social and industrial policies?

Coronavirus: Dealing with Mass Unemployment

B2 – Upper Intermediate

A lot of people have been stressing about being permanently or temporarily laid off from their jobs because of the coronavirus pandemic. It has caused financial problems to a lot of people. Some started finding jobs that are not in their fields of expertise and some have been trying to survive by the money that the government has given them. They say that we are not yet in a place where we can talk about recovery and the ripple effect will come in the future.

Let’s listen to the audio below to learn more.

https://www.bbc.co.uk/learningenglish/english/features/6-minute-english/ep-200924

Discussion Questions:

  1. Has the pandemic caused mass unemployment in your country?
  2. What would be the ripple effect of mass unemployment?
  3. Would upskilling or reskilling be the answer to our problem?
  4. What are your thoughts about not having a job for life?
  5. What do you think are other ways to deal with mass unemployment?

EU Forecasts Recession of Historic Proportions

B2 – Upper Intermediate

The European Union’s economy chief Paolo Gentiloni said that Europe is going through a sharp economic downward spiral; something the continent has not experienced since the Great Depression.

As the Coronavirus pandemic continues to affect member countries, the EU gears up for a recession of epic proportions.

Read more about this news on this imminent economic recession from the link below:

https://www.euronews.com/2020/05/06/eu-forecasts-recession-of-historic-proportions-this-year

Discussion Questions:

  1. What conditions and consequences might this deep recession have in different member states?
  2. What economic damages has the spread of Coronavirus done on the economy of your country?
  3. How is your government preparing for this deep recession?
  4. Talk about other times your country was in recession. How did it affect your country and you or your family directly?
  5. Explain your understanding of the V-shape and Nike swoosh recovery.