21st-Century Economics

Readers will learn about recessions and how they are a part of the normal economic cycle: peak, recession, trough, and recovery. This narrative explores how inflation and the imbalance of supply and demand can cause an economic downturn. Through the twenty-first-century example of the Great Recession, students will learn what causes these periods of economic contraction, what leads to recovery, and how to avoid severe and prolonged periods of stagnancy, also known as economic depressions.

Although the stock market has a major impact on the economy, many people do not fully understand it. Through this book, students will learn about stocks, the open market, and the dangers and benefits of investments. They will come to understand why individuals and businesses place their financial confidence in the market in hopes of further financial gains. Additionally, the dangers of taking these financial risks will be explored through the examples of the Great Depression and the Great Recession, where people lost large amounts of money on their investments. Ultimately, students will gain an understanding of how the stock market has such a substantial effect on the economy.

What are economic depressions, and what causes them? Through this book, students will gain a general understanding of economic cycles and how depressions are not part of the normal ebb and flow. They will learn about what triggers these extreme economic downturns and how countries try to recover from them through the real-world example of the Great Depression. Readers will explore twenty-first century recessions in the United States, Greece, and Argentina, and learn how these crises did not become depressions.

What are taxes and what are they used for? Through this book, students will gain a general understanding of the obligatory fees each person in a country is required to pay the government. The text explains the history of taxation as well as the different types of taxes and their effects. Additionally, students will learn how important taxation is to modern economies and how taxation levels can rise or fall depending on a nation's financial health. Through real-world examples, readers will see how twenty-first century tax policies affect individuals, corporations, and countries.

This volume helps demonstrate the interconnectedness of international economies and cultures in the twenty-first century. Through discussions of economic, political, and cultural globalization, students will begin to understand the varied dimensions of global economies. This book presents twenty-first-century examples of globalization ranging from Apple's outsourced manufacturing to the ways in which countries that are a part of the United Nations work together to combat climate change. Students will also learn how, even though the term "globalization" is still relatively new, the concept itself dates all the way back to ancient trade routes.

Inflation is a complicated concept. Under ideal circumstances, an inflation rate of 2 or 3 percent can be good for the economy, as it helps boost businesses' profits. Unchecked, however, inflation can lead not only to financial hardships for individuals but to widespread economic downturns. Students will learn how inflation is affected by supply and demand, how it existed long before paper currency, how it can be regulated, and how a lack of regulation can affect the economy. From examples throughout U.S. history and comparisons of the costs of goods over time, students will understand how different rates of inflation in different contexts affect the economy.

How can supply and demand cause a factory to close in one town or country and open in another? How do consumers drive what products are being made and at what prices goods are being sold? Students will find answers to these questions and more through this book that explains the law of supply and demand. Examples tether these concepts to the real world through discussions of topics like the effects of crop shortages and surpluses. Readers will have the opportunity to consider how the increase of oil prices decreases the demand for oil and causes consumers to look for alternative sources of energy. Students will gain an understanding of the local, national, and global implications of supply and demand.

A renegotiation of NAFTA and a trade war with China have kept tariffs and trade agreements in the news in the early twenty-first century. Tariffs, trade barriers, and the potential consequences of both are complex. This book presents a difficult subject in a straightforward and interesting manner. The use of historical and cultural tidbits, such as how the press ridiculed the embargo of 1870 by referring to it as "O grab me!" which is embargo spelled backward, will delight readers. They'll learn how South Carolina threatened to secede from the Union over tariffs in 1832, almost thirty years before it actually did secede. A discussion of the theory and history of tariffs and trade barriers puts the concept in context, while recent examples illuminate how they work in practice.