Deflation is the opposite of inflation. Deflation is what we call it when things get cheaper. What could possibly be wrong with that? And yet some people argue that deflation is one of the worst things that could happen. How can that be? Suppose flat panel TVs keep getting cheaper. Some people will spend less on [more...]
According to Suzanna De Baca, a recession is when your neighbor loses his job and a depression is when you lose your job. On a more serious note, the terms “recession” and “depression” are defined differently by different people and organizations. Recently it has become common to consider a recession to be two consecutive quarters in [more...]
In a sense, Woolworths Group plc failed because they did not bring in enough money to cover their costs (they became insolvent). The wider question is: why were they not turning a profit? Woolies started out in Liverpool in 1909 as a “3d and 6d” (threepence and sixpence) shop selling low-priced mass-produced items, and was immediately [more...]