Tag: economy

Croatia Switches to Euro

B2 – Upper Intermediate

Croatia is one of the most ideal tourist destinations in Europe, with more than a thousand islands and islets. With the country’s recent entry to Eurozone, it has adopted euro as its currency. It is a good news for tourists and local people alike when it comes to avoiding the hassles of currency exchange.

Let’s read the article and know more details about the newest member of the European Union.

https://www.voanews.com/a/croatia-switches-to-euro-enters-borderless-europe-club-/6899542.html

Vocabulary:

  1. What does “milestone” mean? Use it in your own sentence.
  2. What does “demise” mean? Use it in your own sentence.
  3. What does “bid farewell” mean in this sentence, “At midnight local time (2300 GMT Saturday) the Balkan nation bid farewell to its kuna currency and became the 20th member of the eurozone.”? Use it in your own sentence.

Discussion Questions:

  1. What are the economic benefits Croatia will gain by entering Europe’s passport-free zone?
  2. How do you think this entry affects other EU countries?
  3. What possible short-term problems could this have on Croatians?

Arms Trade Growth Stunted by Supply Chain Issues

B2 – Upper Intermediate

The pandemic’s lingering consequences can now be felt even in the arms industries. Despite demonstrating growth in the past year, this boost was still greatly stunted by worldwide issues in supply difficulties.

Read the article to know more about how supply chain issues has severely limited the growth in arms trade.

https://www.voanews.com/a/growth-in-arms-trade-stunted-by-supply-issues-report/6862357.html

Vocabulary Questions:

  1. What does “sourcing” mean? “Disruptions from both labor shortages and difficulties in sourcing raw materials were slowing down the companies’ ability to produce weapons systems and deliver them on time.” Use it in your own sentence.
  2. What does “gauge” mean? “By how much was at the same time harder to gauge, Tian said pointing to two factors that would impact demand.” Use it in your own sentence.
  3. What does “hamper” mean in this sentence, “With the supply crunch expected to worsen, it could hamper these efforts.”? Use it in your own sentence.

Discussion Questions:

  1. What are your thoughts on this news about the stunted growth of the arms trade due to supply chain issues?
  2. “The top 100 arms companies sold weapons and related services totaling $592 billion in 2021, 1.9% more than the year before.”. Share your reaction to this statement.
  3. “The worsening security environment means “countries are looking to procure more weapons.” What is your opinion on/reaction to this?
  4. What will be the result of the trend of private equity firms buying up arms companies?

India May Become World’s Third Largest Economy

B2 – Upper Intermediate

As most countries in the world struggle with slowing growth due to the economic turbulence caused by the Russia-Ukraine war, some economies are gaining momentum and might be able to overtake some of the world’s biggest economies.

For example, India’s economy has remained remarkably “navigating the storm”.

Read the article to know more about how India could possibly become the third largest economy in the world by the end of this decade.

https://www.voanews.com/a/forecasts-show-india-may-become-world-s-third-largest-economy-by-2030/6875735.html

Vocabulary Questions:

  1. What does “to move to better pastures” mean? “There are good projections for the Indian economy. Plus, even in our friends’ circle, a lot of people are changing jobs, moving to better pastures.” Use it in your own sentence.
  2. What does “to put something on track” mean? “India’s economy is posting the fastest growth among major economies putting it on track to become the world’s third largest before the end of the decade.” Use it in your own sentence.
  3. What does “wave” mean in this sentence, “As companies record strong growth and hand out pay hikes, there is a wave of optimism among professionals.”? Use it in your own sentence.

Discussion Questions:

  1. What is contributing to the Indian economy’s growth?
  2. “A lot of changes are happening across the world, and we hope that some of them will be beneficial for the Indian economy.” Do you think it is possible for India to become the third largest economy? Explain.
  3. How is your country doing amidst this global economic turbulence?

Crisis in Sri Lanka

B2 – Upper Intermediate

Economic stability is important in the development of a country. This implies that people have the resources necessary to a healthy life. This is otherwise the case in Sri Lanka where economic, political and social turmoil prevail. Just recently, some Sri Lankans forced their way into their president’s official residence when their frustration has reached a boiling point.

Let’s watch the video and read the news to know more about the predicament Sri Lanka is in.

https://www.aljazeera.com/news/2022/7/13/sri-lanka-in-crisis-what-when-and-why-explainer

Discussion Questions:

  1. What factors contributed to Sri Lanka’s economic crisis?
  2. How do you think this economic collapse could have been prevented?
  3. In your opinion, does a mere change of leader would rectify the current situation?
  4. How does your government create economic recovery and growth after the COVID-19 pandemic?

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?