INSTITUTE OF ECONOMIC AND SOCIAL STUDIES

Despite the unfavourable situation caused by the COVID-19 pandemic and pandemic restrictions in 2020-2021, we were able to hold the fourth edition of the Economics Olympiad, the first comprehensive nationwide competition in economics and finance for high school students in Slovakia. What is more, we were happy to welcome a record number of high school students from all over the country to take part in the competition this year.

Martin Vlachynský talked in CEA Talk podcast about why Europeans should be concerned about 750 billion EUR packaged called Next Generation EU.

When you ask a good economist to name the most precious capital, their answer will be “human capital”. Large oil field, steel production capacity, or a number of tractors produced do not make the company rich. The company grows rich thanks to skilled people in the right place, their excellent skills and ability to adapt to change. As Julian Simon used to say, the ultimate source of wealth is man.

Governments around the world reacted to the pandemic situation in similar fashion. Costly economic stimulus packages popped out, undermining the role of decentralized reaction from the bottom and strengthening state’s role in economy. European Union introduced the EUR 750 billion worth Next Generation EU package. Next Generation EU and its crucial part, Recovery and Resilience Facility, promise to bring an era of growth and stability to the European Union and its 27 member states. Can this promise be fulfilled, and if so, at what cost?

Next Generation EU and its crucial part, Recovery and Resilience Facility, promise to bring an era of growth to the European Union. Can this promise be fulfilled, and if so, at what cost?

One of the basic economic lessons is that the first slice of bread will bring you the highest utility. Definitely, you will be better off than with the second slice, or the third which is rather more likely to bring costs. The law of diminishing marginal utility applies generally to all human action, including the public administration.