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BBC NEWS | UK | Wales | North West Wales | Big glass warning after drive ban

BBC NEWS | UK | Wales | North West Wales | Big glass warning after drive ban | Econ 1 | Scoop.it
A motorist speaks out after claiming she unwittingly broke the drink-drive limit after one large glass of wine.
Lampton Economics's insight:
Abdinasir abdi. This is a negative externalaty in which the government have tried tackle the problem by putting on a fine. Drink driving can cause a lot of damage to both the driver and its victim which could mean an increse injection in to healthcare by government.
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Britain is suffering from a housing crisis - who is to blame and how can we fix it?

Britain is suffering from a housing crisis - who is to blame and how can we fix it? | Econ 1 | Scoop.it
Britain has a nightmare, and its name is housing. At the heart of the nightmare is the sheer expense. The average house costs five times the average person’s annual income, not far off record highs. And they’re going up too. In December house prices were almost 10 per cent higher than they were a year ago, largely thanks to George Osborne’s various mortgage subsidies. Rents have also been rising quickly too in recent years. Housing now eats up around 20 per cent of the typical family's weekly outgoings, up from 16 per cent in 2000. Housing is expensive for the Government too, as it must help the less well-off afford their soaring rents and there are now 1.7 million people hoping to secure a state-subsidised home.

Via Mr Nelson
Lampton Economics's insight:

An additional perspective would be that the 'Housing Crisis' can be considered a form of market failure and portray the vast ineaquality between the rich and the poor; while the rich rent their properties and the poor have to rent as there is no short term alternative.

 

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Mr Nelson's curator insight, February 11, 2014 3:13 PM

Something that affects all of us. For good or ill.

Lampton Economics's curator insight, February 14, 2014 4:36 AM

As Britain is suffering from housing crises this is a demerit good as people have to pay more and many people out there can't afford this expensive rate as mentioned in the article that ' 1.7 million people' have still got to secure a 'state- subsidised home'. This is a negative externality in consumption because a persons annual income has rose  in the recent records and due to that it has increased by 10%. There are many solutions that could solve this sitation, you could subsidise mortgages. Because house prices are so high, young people should be given a helping hand from the state. Even though the property is worth many times their annual income and they can only a 5 per cent deposit. This is what the government can do to help.

 

Gurpreet

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£20m to improve Wales' worst schools

£20m to improve Wales' worst schools | Econ 1 | Scoop.it
A £20m a year plan to boost up to 40 underperforming schools in Wales is being launched, after similar schemes in London and Manchester.
Lampton Economics's insight:

Education is a merit good as it helps us to be educated, have some knowledge and good quality of job in the future. It is a positive externality in consumption because the government is actually funding 20 million pounds to improve Wale's worst schools. I think the government spending money to improve schools is a good idea as students intend to learn better in a better environment, with better facilities, equipments and e.t.c  " We know school performance needs to get better and we're taking the actions needed to make this happen" Huw Lewis, Education Minister

 

Sus

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Negative Externalities of Smoking

Negative Externalities of Smoking | Econ 1 | Scoop.it
The article: This article talks about how the "number of children admitted to hospital with severe asthma" has decreased by 12% in the first year after the ban on smoking in public places. It is al...
Lampton Economics's insight:

A.M - Smoking is a complex good, this article portrays it as a demerit good because it discusses the positive impact of the ban on smoking. Furthermore, this would cause an inward shift because less people would be able to smoke in public places thus saving more people from being intoxicated. Cigarettes are considered a demerit good because its not only the consumer who is affected by it. It creates negative externalities in consumption as to protect people the costs may be raised.

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Fears for over-60s turning to drink

Fears for over-60s turning to drink | Econ 1 | Scoop.it
A charity working with victims of alcohol abuse says it is worried how many over-60s are referred for treatment for drink-related problems.
Lampton Economics's insight:

The main significance of this article is to show the effects of people aged 60+ turning to drinking alcohol. The consumption of alcohol not only effects the consumer but also the consumers surroundings and everyday normal people as it creates a bad effect in society Including car accidents violence etc.. Alcohol is considered a demerit good because it creates negative externalities. It creates negative externality in consumption mainly as it's likely to lead to higher health costs and potentially higher taxes for the average person. 

-Bhavin

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NEWSNIGHT: Paxman shows Coca Cola boss how much sugar is in a supersize cup - YouTube

Calls are growing for high sugar drinks to be taxed in the same way as cigarettes to curb rising obesity. Does the drinks industry's resistance echo that of ...
Lampton Economics's insight:

This article itself is around negative externality in consumption, but this article coming on the news is a positive externality in consumption. Makes no sense but I hope you know where I am coming from. This article covers a demirt good : Coca cola and it raises awareness of how much sugar there is in your average cinema coke. In addition to this, the cola markets publish ingredients , and how much sugar , fat etc the drink contains, they use this point to back themselves, this is because they will say, we have everything on the  front of the can and its the consumers choice, this prevents asymetric information, and it doesn't give many ways for the govt interfere, the most they can do is jus create adverts after adverts...

Dhamen. K

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Lampton Economics's curator insight, February 10, 2014 11:58 AM

RJ: Is this a case of information failure leading to market failure? Would information make consumers change their behaviour?

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OFT gives games firms April deadline to clean up in-app purchases for kids

OFT gives games firms April deadline to clean up in-app purchases for kids | Econ 1 | Scoop.it
Final principles for online and mobile makers published alongside guidance to ensure parents are up to speed too. By Stuart Dredge
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Heineken predicts sales improvement

Heineken predicts sales improvement | Econ 1 | Scoop.it
The world's third largest brewer, Heineken, says higher beer sales in emerging markets will boost revenues this year.
Lampton Economics's insight:

KS - Although alcohol is a demerit good and gives a rise of negative externalities, the article shows that Heineken predicts that their revenues will increase throughout 2014. This shows that demerit goods are over consumed and over produced even though they do harm to us; however producing these goods benefit our economy as alcohol is relatively inelastic in demand and people will continue to buy it whether we are in a recession or not (due to addiction).

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Gambling industry fights self on Internet gambling

Gambling industry fights self on Internet gambling | Econ 1 | Scoop.it
LAS VEGAS — Many experts believe online wagering is the future of gambling, but the casino industry is increasingly divided on the issue.
Lampton Economics's insight:

SB - This is an article about how internet gambling is beating gambling casinos itself. Its an example of a demerit good and creates many social and economic effects also gambling creates external costs. People can be addicted to betting and gambling and it contributes to problems such as debt, bankrupcy or even loss of employment.

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Abbott Government increases beer tax as alcohol drinkers call for new deal

Abbott Government increases beer tax as alcohol drinkers call for new deal | Econ 1 | Scoop.it
EXCLUSIVE: THE biggest leap in taxes on beer and spirits for three years has sparked calls for a new deal for drinkers.
Lampton Economics's insight:

Kidus Yohanes- This article shows the positive and negative effects of rising beer prices with two different opinions

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Wales education: Room for improvement

Wales education: Room for improvement | Econ 1 | Scoop.it
All this week, BBC Wales is looking at the state of the education system in Wales ahead of the global education league tables, PISA, being published. Education correspondent Arwyn Jones looks at how Wales is performing compared to England.
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Lampton Economics's curator insight, February 11, 2014 2:03 PM

RC: This is an example of a merit good that is being under consumed by the people of Wales. Education is a positive externality because people benefit from it in the future by obtaining a higher paid job. The government are trying to reintroduced some elements of the English-style education. In addition to this, the government want to propose that no teacher can have less than a Masters of Education degree before teaching a course.

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Alcohol floor price announced

Alcohol floor price announced | Econ 1 | Scoop.it
The government confirms a plan to ban extreme discounting of alcohol in England and Wales, to try to stop shops using major brands as loss-leaders.
Lampton Economics's insight:

Y.M

Alcohol is a defierier good and therefore a minimum price has been set to stop people buying cheap booze. This will lead to a fall in sales as prices are higher.

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AS Micro - De-merit goods: Supermarkets banned from 'irresponsible' alcohol offers under new plans - Telegraph

AS Micro - De-merit goods: Supermarkets banned from 'irresponsible' alcohol offers under new plans - Telegraph | Econ 1 | Scoop.it
Supermarkets will be banned from "irresponsible offers" that make beer cheaper than water under plans to tackle binge-drinking, a Home Office minister has said.

Via Saint Martin's - Economics
Lampton Economics's insight:

JH : This is an example of a demerit good and it shows how supermarkets will be banned from making cheap offers for alcoholic beverages because this will promote irresponsible drinking (binge drinking), which is a "negative externality"

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Lampton Economics's curator insight, February 12, 2014 3:19 AM

RK - increasing the price of alcohol would cause a decrease in sales as it is a deferior good. Alcohol has many negative externalatirs for example the health effects and the cost to the government of peopl causing damage. However it can have positiv externalaties for example in moderation red wine can be good for you

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Britain is suffering from a housing crisis - who is to blame and how can we fix it?

Britain is suffering from a housing crisis - who is to blame and how can we fix it? | Econ 1 | Scoop.it
Britain has a nightmare, and its name is housing. At the heart of the nightmare is the sheer expense. The average house costs five times the average person’s annual income, not far off record highs. And they’re going up too. In December house prices were almost 10 per cent higher than they were a year ago, largely thanks to George Osborne’s various mortgage subsidies. Rents have also been rising quickly too in recent years. Housing now eats up around 20 per cent of the typical family's weekly outgoings, up from 16 per cent in 2000. Housing is expensive for the Government too, as it must help the less well-off afford their soaring rents and there are now 1.7 million people hoping to secure a state-subsidised home.

Via Mr Nelson, Lampton Economics
Lampton Economics's insight:

As Britain is suffering from housing crises this is a demerit good as people have to pay more and many people out there can't afford this expensive rate as mentioned in the article that ' 1.7 million people' have still got to secure a 'state- subsidised home'. This is a negative externality in consumption because a persons annual income has rose  in the recent records and due to that it has increased by 10%. There are many solutions that could solve this sitation, you could subsidise mortgages. Because house prices are so high, young people should be given a helping hand from the state. Even though the property is worth many times their annual income and they can only a 5 per cent deposit. This is what the government can do to help.

 

Gurpreet

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Mr Nelson's curator insight, February 11, 2014 3:13 PM

Something that affects all of us. For good or ill.

Lampton Economics's curator insight, February 14, 2014 3:57 AM

An additional perspective would be that the 'Housing Crisis' can be considered a form of market failure and portray the vast ineaquality between the rich and the poor; while the rich rent their properties and the poor have to rent as there is no short term alternative.

 

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Ministers 'will ban car smoking'

Ministers 'will ban car smoking' | Econ 1 | Scoop.it
The UK government will make it a criminal offence to smoke in cars in England when children are passengers, a Downing Street source says.
Lampton Economics's insight:

Cigarettes are an extremely demerit good. It is a good which not only harms the consumer to the extent that it could kill them but it also has a negative externality. This basically means that it is over consumed even though it can cause harmful illnesses such as cancer. 

 

In this case, smoking will be banned in cars mainly due to the fact that it is harmful for the children who are in the cars with their parents but also due to the fact that smoke can stay in the air for up to two and a half hours even with a window open (pollution). Also second-hand smoke contains more than 4,000 chemicals, some of which are known to cause cancer.

 

- Zain 

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Federal budget unveils major tax hike for smokers that will see jump in cost of cigarettes, tobacco and cigars

Federal budget unveils major tax hike for smokers that will see jump in cost of cigarettes, tobacco and cigars | Econ 1 | Scoop.it
Even so-called 'duty free' tobacco won’t be spared from the tax hike and will now face the same federal excise taxes as smokes
Lampton Economics's insight:

Tobacco is a demerit good, The taxes on cigarettes will reduce smoking, which will also reduce passive smoking which is an attempt of getting rid of the negative externality  -Hassan

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It’s time: Snuff out public smoking 

It’s time: Snuff out public smoking  | Econ 1 | Scoop.it
Pollock: As I left last Sunday’s Jets game, choking on a supersized cloud of cigarette smoke created by thousands of desperate addicts, a long festering op-ed idea returned to mind. To wit: Our current smoking regulations have things precisely backwards.
Lampton Economics's insight:

Smoking is a demerit good, it is a negative externality, because if you smoke out in public, other people will be breathing in the same air you breathe out, which is bad as it can affect your health 

 

Naim Upaday

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£1m cannabis plants seized by police

£1m cannabis plants seized by police | Econ 1 | Scoop.it
More than 1,000 cannabis plants with a street value of up to £1m are seized in raids on Merseyside.
Lampton Economics's insight:

Cannabis is a demerit good, as we all know, hopefully...
From this drug being seized, there is a slightly lower negative externality effect, as less people will breath in the toxicated air left after people smoke this drug. Hallelujah.
AC 

 

It can be argues that cannabis is a demerit good, however it can also be said that cannabis is a merit good. Cannabis is a natural drug that has proven medical benefits. In the United Kingdom the use of cannabis has been dated to as early as Henry the 8th times where his wives used it to ease child labour. In countries that cannabis is legalised the usage is controlled and monitored. The government benefits from the taxation applied to the product and uses the money to further fund initiatives that allow the country to excel in the long and short term. With the proven medical benefits of the product it is possible that ailments will be treated in a more natural manner, this has the ability to reduce the goverment expenditure on NHS and allow the money to be allocated to a different outlet. So you can argue that cannabis can be a positive externality in consumption and in production as both are benefited. 

Patrick P

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Christopher Pyne: $70m fund will back up independent public schools plan

Christopher Pyne: $70m fund will back up independent public schools plan | Econ 1 | Scoop.it
Commonwealth money will be spent to ‘reboot’ school communities and leadership teams, says education minister
Lampton Economics's insight:

This articles the future funding in place for schools in the UK and that'll help schools run themselves efficiently and back up indipendent school plans, as Education is a positive externality funding being increased in it's department is a  major positive also education is a merit good therefore the increase in funding will have a positive effect on society. - Kunwarpreet Kapoor 

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Fast-food diet 'linked to asthma'

Fast-food diet 'linked to asthma' | Econ 1 | Scoop.it
Eating fast food three times a week may lead to asthma and eczema in children, say researchers who have looked at global disease and dietary patterns.
Lampton Economics's insight:

NP- This article shows the negative effects on children of eating fast food which is a de-merit good. The negative externalities of eating fast food for children are not only getting asthma and eczema but also obesity and many heart problems. However, is the goverment really doing anything to combat this epidemic? If there is tax on alcohol and tobacco then surely there should be a tax on fast food in order for it to be more expensive because at the moment you can buy a burger and fries for under £3. This is clearly a sign of government failure.

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Lampton Economics's comment, February 13, 2014 12:45 PM
This article is great as it clearly displays a de-merit good which is having a major adverse effect on children consuming it, there are also negative externailites of consumption such as asthma which is higlighted in the article. - Kunwarpreet Kapoor
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E-cigs ban for under-18s in Wales

E-cigs ban for under-18s in Wales | Econ 1 | Scoop.it
Plans to ban under-18s in England from buying electronic cigarettes would also apply to Wales following agreement from assembly members.
Lampton Economics's insight:

Anika: This article surrounds e-cigarettes which are considered a demerit good as they produce "toxic" chemicals which can lead to health problems. This shows that e-cigarettes give rise to negative externalities in consumption. As they are considered a demerit good the English and Welsh government have decided to impose a ban for under-18s from purchasing e-cigarettes.  

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Gangs sell pirate Sky TV for £10

Gangs sell pirate Sky TV for £10 | Econ 1 | Scoop.it
Criminal gangs are selling hacked pay TV services at a fraction of their true cost, a BBC investigation reveals.
Lampton Economics's insight:

this is a n example of. Black market 

keshav 

 

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Lampton Economics's comment, February 13, 2014 3:54 PM
We have learnt that black markets occur when there is excess demand. Dhamen K
Lampton Economics's comment, February 22, 2014 7:12 AM
The black market is also the venue where highly controlled substances or products such as drugs and firearms are illegally traded. Hassan M
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MP tries his hand at bingo calling in gambling tax campaign

MP tries his hand at bingo calling in gambling tax campaign | Econ 1 | Scoop.it
IT was eyes down all round as Bolton North East MP David Crausby offered his services as a bingo caller in Breightmet.
Lampton Economics's insight:

danish hassan

gambling tax campaign

 

 

Gambling is considered a demerit good therefore, gives rise to a negative externality in consumption. This is because, too many people are gambling their life savings away thus, have to rely on the government to rebuild their lives. In order to try and reduce the number of people gambling MP David Crausby has given his support for the government in impose a tax. 

Anika

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AS Micro - De-merit goods: Supermarkets banned from 'irresponsible' alcohol offers under new plans - Telegraph

AS Micro - De-merit goods: Supermarkets banned from 'irresponsible' alcohol offers under new plans - Telegraph | Econ 1 | Scoop.it
Supermarkets will be banned from "irresponsible offers" that make beer cheaper than water under plans to tackle binge-drinking, a Home Office minister has said.

Via Saint Martin's - Economics , Lampton Economics
Lampton Economics's insight:

RK - increasing the price of alcohol would cause a decrease in sales as it is a deferior good. Alcohol has many negative externalatirs for example the health effects and the cost to the government of peopl causing damage. However it can have positiv externalaties for example in moderation red wine can be good for you

more...
Lampton Economics's curator insight, February 11, 2014 6:03 PM

JH : This is an example of a demerit good and it shows how supermarkets will be banned from making cheap offers for alcoholic beverages because this will promote irresponsible drinking (binge drinking), which is a "negative externality"

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Vodka blamed for high number of early deaths in Russia

Vodka blamed for high number of early deaths in Russia | Econ 1 | Scoop.it
The image of the vodka-swilling, chapka-clad Russian is a
long-held stereotype. But there is a more serious side to the
caricature.
Lampton Economics's insight:

GS: this is an example of a demerit good, as it is over-consumed and under-priced. alcohol has many negative externalities, including the costs of treatments for patients with alcohol-related illnesses, it contributes to death rates, it can be a cause of anti social behaviour, and also contributes to many crimes including drink driving and other alcohol influenced crimes.

 

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Lampton Economics's comment, February 12, 2014 3:07 AM
Qasim: I agree it is an example of a demerit Good as more it has more private benefits than social benefits. In addition it also leads to negative externalities such as the person drunk could cause social disruption, vandalism near the area and might be unfit to work the next morning. This means there will be negative costs of consumption.