What is the tragedy of the commons? The tragedy of the commons is the idea that if anybody can use a finite resource as much as they want, they will usually overuse it and destroy it. That is human nature. The common that the tragedy of the commons refers to is common land that most […]
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What is antitrust? Antitrust is a set of laws that are supposed to promote fair competition and prevent monopolies. You have probably heard the word “antitrust” a lot since the birth of the giant tech industries. It is always being used to refer to Microsoft, Google, and Facebook (sorry – Meta). But, what actually is
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Who is the richest person ever? This is an incredibly difficult question because society and economics were vastly different in the past. Still, Mansa Musa is often said to be the richest person who ever lived. The richest person today is Elon Musk, although his wealth fluctuates wildly. At its peak, he was worth $425
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What is Boots theory? Boots theory is a theory that poor people have to buy low quality products that don’t last very long. This means they have to replace them often and end up spending more in the long run than they would have if they had been able to buy a more expensive product.
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Why was there a tulip bubble? There was a tulip bubble in Holland and across Europe in the 16th century because tulips were rare and because people didn’t want to lose out on an opportunity to make money. The tulip bubble, also called tulipmania, is a good showcase for human nature. It shows how people
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What is a hedge fund? A hedge fund is a pool of money invested by private individuals. Their money has more power together than they each would have individually. The expression “hedge” fund came about in 1949 and the word “hedge” was used to imply that the fund was hedged against risk. That means that
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What is a Ponzi scheme? It is a type of fraud where you use money invested by new people to pay profits to the people who are already invested. It was named after Charles Ponzi who certainly didn’t invent the scheme but who made it famous. (Incidentally, Ponzi scheme, scam, and con are all relatively
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How does promotion insurance work? It is basic insurance that covers businesses that offer promotions or competitions that are basically a publicity stunt. Promotion insurance, like all types of insurance, is a form of risk management. The idea of risk management has been around for thousands of years because disasters have always happened. Archaeologists discovered
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What are war bonds? War bonds are a way of raising money to fight a war from the citizens of that country, and a way of keeping inflation under control. The first public war bonds were issued during World War 1. Without them, both of the wars might have been lost. Despite the technological advances
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What is the fast fashion graveyard? It is a place where the fast fashion clothing waste ends up, causing environmental disasters. What is fast fashion? Fast fashion is called fast fashion because it is produced extremely quickly and to give it the same connotations as fast food. Just like fast food, the clothes are made
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