Bellerbys Economics - Mr Stephenson

Wednesday, January 16, 2008

Masala Economics

Today's mix of exciting Economics news includes the following:

The German government has introduced a ban on most forms of online gambling. Is this even possible, I ask myself - Germany doesn't have a national firewall in the same way that China has - and even the Great Firewall of China is easily breached by those who know how. The Economics of Gambling is a fascinating subject - so much so, that Salford University actually has a degree in Gambling & Leisure Management. The velocity of money is very important when looking at online gambling - the quicker that money changes hands (expenditure) the faster the economic growth - so you can increase GDP quickly by making it easy for people to gamble. But on the other hand, concepts such as demerit goods and allocative efficiency also come into play - is the development of a gambling industry a good use of money? Let's hear your comments!

It's the Detroit motor show this week and it's Chinese car manufacturers who are making all the news with a wide range of extreme concept cars - one of the most interesting is the Tang Hua from Li Shi Guang Ming Automobile - it looks like a boiled egg. Other impressive cars about to enter the US market are the 4x4 from Chamco which should do well and a convertible from BYD Auto (Build Your Dreams). This could be the start of a good decade for Chinese car manufacturers - now they are in the WTO, they compete on equal terms with Japan, Korea and other Asian manufacturers. Also, in a sign of increasing globalisation, Chamco are considering opening a factory in Indonesia - to take advantage of cheaper labour costs!!

It's good to see China and India coming closer together with the visit of Manmohan Singh to China this week. However, there is still one problem on the horizon: By 2030, both India and China will be importing more oil than the USA - so energy competition is going to become a fascinating topic over the next 20 years! There are alternatives to oil of course - nuclear, wind, biomass, CCT (clean coal technology) and so on - but each of them also brings problems of their own and they are not likely to make up more than 30% of any nation's supply (other than France and Japan) by 2030 - so oil will remain king. You can find out more about this fascinating area of world development in the Bellerbys Brighton Exam Hall on Wednesday, January 23rd at 7.30pm as we play host to LSE and WTO economist Philippe Legrain in a session open to Bellerbys students and the general public - free tea and biscuits will also be provided.

4 Comments:

  • Hello. Very interesting news about gambling. On one hand, it can increase GDP, as you said it's quicker...but easy come, easy go.

    About Chinese car, do you have any pictures of it?

    By Blogger Irina, at 3:18 pm  

  • I am suprising to hear there is a degree of Gambling & Leisure Management in Salford University .That means it will attract with a lot of students who intrested in this subject and also is a opportunity of increasing the econimic in this country.

    By Anonymous steve wei, at 11:54 pm  

  • Gambling cannot efficiently increase the GDP because it is not involved in production. The activities only involved transfer of wealth.

    Is it right?

    By Anonymous Sam Hang, at 1:18 pm  

  • Science has leaping development; I believe that in following 20 years we can find a better substantial power. Maybe one day we even leave the earth. Who know?
    Well, we should have more faith on it.

    By Anonymous Eric Ma, at 1:21 pm  

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