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Exam paper - Book Report/Review Example

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Economic recessions and recoveries have been the trend in the performance this economy. The rise of Margaret Thatcher to power saw the growth of the economy through privatization of companies, deregulation of…
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Download file to see previous pages The service industry on the other hand enjoyed growth.
The economy again went into another recession in 1990 causing a shrink by 8% and increasing unemployment rates again. Subsequent economic recovery was strong prompting UK to display a strong economic performance until the great recession in 2008 which was brought about by the global financial crisis. In 2013 the economy showed improvements by reducing the number of unemployment below 2.5 million. Today the economy is promising with an estimated growth of 0.3% in the first quarter of 2015 and with the volume of GDP at 4.0% above its pre-recession peak. This is expected to grow steadily in the coming years in terms of increasing business services, innovation, and intermediate skills. Therefore UK economy will stagnate for a while and experience slight growth in the future.
Adam Smith, the first theorist of capitalism emphasized on the role of specialization and enlightened self-interest in promoting efficiency of capital accumulation. Smith goes ahead to advance the thought that when trade takes place individuals value what they are purchasing more than what they are giving in exchange. This is the thought that underlies the concept of mutually- beneficial trade where both sides stand to benefit from an exchange or trade.
On the other hand Karl Marx a critique of capitalism advance the thought that treating labor as a commodity made people to value things in terms of their price rather than their usefulness to them. This was demonstrated when Marx observed that some people bought commodities to use while others bought commodities to sell at a profit. Therefore Karl Marx believed that capitalism was going to exploit workers by denying them the value they create.
Colecchia, A., & Schreyer, P. (2002). ICT investment and economic growth in the 1990s: is the United States a unique case?: a comparative study of nine OECD countries. Review of Economic Dynamics, 5(2), ...Download file to see next pagesRead More
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