Economic Slowdown 2014

Q1 is seeing slowdown in anticipated growth from last year. Fed tapering continues to fuel upward pressure on interest rates, on top of worsening currency depreciation in developing economies.

Continuing contraction of Chinese manufacturing means 2014 will not see Asia as the engine of global economic growth.

With developing countries experiencing unmanageable currency volatility, growth in developing countrys will be inward- looking in the next trading quarters.

A letter from Adam Smith

Adam Smith is considered the father of modern capitalism. Readers of capitalism miss a vital contribution Adam Smith made with regards to the economy. Adam Smith identified wealth or value as being able to uplift society as whole and or just cater for the whims of the few.

To give the economy more traction, the wealthy need to engage those with only their labour to sell. Principles of specialisation and government protecting society from a self-interested wealthy few are looked at in depth, in The Wealth of Nations, to express how wealth and value is sharable in free and fair just markets. According to Adam Smith, society and or the market cannot exist without justice and fairness.

Specialisation and free trade are mechanisms which help wealth be equally shared between the haves and the have-nots. When markets fail to facilitate trickle down, the government needs to identify how to improve the terms of trade between the owners of wealth and those with only their labour to trade.