Categorywolhan

This blog post examines the fierce debate between Malthus and Ricardo over the Corn Laws, exploring whose position—protectionism or free trade—was more valid.   British economists Thomas Malthus (1766–1834) and David Ricardo (1772–1823) were very close friends. Malthus cherished him so much that he said, “I have loved no one more than Ricardo, except my own family.” However, the two often...

During the Great Depression of the 1930s, unlike classical economists who believed in self-recovery, Keynes argued for the necessity of government intervention. What impact did his theory of effective demand have on the economy?   In the 1930s, the world was plunged into a severe economic depression known as the Great Depression, suffering greatly. In response, classical economists, who...

Does virtual reality offer us a better life, or is it just an escape from reality? Between reality and virtuality, what values should we choose?   Released in 1999, the film ‘The Matrix’ begins with the shocking premise that the reality we live in could be a virtual reality created by a computer program. This film made audiences deeply contemplate the boundary between true reality and...

This blog post examines the correlation between economic growth and our lives and happiness, using statistics and case studies.   Does economic growth guarantee happiness? Amidst a society where everyone—from government officials and business leaders to ordinary workers—focuses on economic growth, you’ve probably wondered at least once: ‘Would we be happier if the national economy grew...

This blog post introduces the concept of economic growth, the various factors that cause business cycles, and the key theories explaining them.   Economic growth refers to the sustained increase in Gross Domestic Product (GDP) from a long-term perspective. This signifies an improvement in the standard of living for citizens and an increase in the overall economic well-being of society...

In this blog post, we examine why society as a whole operates inefficiently even when individuals make rational choices, and consider ways to address this issue.   Can individual rationality and societal rationality coexist? This question has long been a major point of debate not only in economics but also in philosophy, political science, and various other disciplines. Classical economics...

The Trump administration sought to stimulate economic growth by drastically cutting corporate taxes. However, unlike the short-term growth effects, this also brought side effects such as reduced tax revenue and an expanded fiscal deficit. We examine the impact of the tax cut policy on the U.S. economy and analyze whether its effects were sustainable.   Why Did President Donald Trump Invite a...

A business cycle refers to the state of the economy. When the economy is strong, production and consumption increase, employment rates rise, and welfare expands. When the economy is weak, production and consumption decline, unemployment rates rise, and welfare shrinks.   When you wonder about the business cycle, check people’s spending around you! You can understand the business cycle...

The Pareto Principle and the Law of the Long Tail both address the 20/80 relationship, yet their emphases are entirely different. Explore the role distinction between elite minorities and ordinary majorities, and understand economic and social phenomena through the origins and real-world examples of these two laws.   The Pareto Principle vs. the Law of the Long Tail “Most of the results...

In this blog post, we explore the true meaning of PER—a concept many investors easily misunderstand—and the fundamental nature of stock price determination.   Why do stock prices fluctuate? Many investors feel confused when faced with this question. Especially for those just starting out, the seemingly unpredictable movements of stock prices can feel like a random game driven by intuition...