Welcome to the 49th edition of our Newsletter EdGenie's 📜 Sunday Scroll...
Every Sunday I send out actionable tips, tricks and real-world application insights from my 15 year experience coaching students to achieve As and A*s in their Economics A Levels via EdGenie.
Jump to Section:
📚 How to Use the News for A-Level Economics 📰
Turkey unveils corporate tax overhaul
Infographic of the Week
Chart of the Week
Macroeconomic Data
📚 How to Use the News for A-Level Economics 📰
Hey Genies,
You're often told to read the news, buy The Economist, and follow The Financial Times, but how do you actually use them effectively for A-Level Economics? 🤔
It's complicated, long, and sometimes hard to connect to your studies. So, how do you do this on a daily or weekly basis?
Let me break it down for you.👇
Why the News Matters 📈
Real-world events are the exact topics you will be asked about in your exams. That's how we generate our Hot Topics lists on EdGenie every single year! 🌍 And the best part? It's how we generate loads of practice questions that tend to come up in your exams. How to Get Started:
1) Pick the Right Sources 📚
Choose 3 or 4 publications that are appropriate for you. Here are my top picks:
Free General UK News: BBC /Guardian
Statistics and Charts: Trading Economics
UK/Global Economics Analysis: The Economist (Free for EdGenie Students)
Higher-Level Economics Analysis: Financial Times (Free for EdGenie Students)
These are essential for getting a balanced view. 📊
2) Set Up Notifications 🔔
Choose to receive daily or weekly news updates on economics, business, and company news. This keeps you in the loop without being overwhelmed.
3) Daily/Weekly Reading 📆Dedicate 10-30 minutes daily or every other day to go through these articles. Focus on:
Linking the news to topics you're studying 🔗
Identifying potential exam questions based on the articles ❓
4) Practice and Bank Questions 📝
Every week, try to answer questions based on one or two articles. For instance, check out the article below on the increasing Corporation Tax in Turkey. How might this affect businesses and consumers? (We even run through these possible essay questions every week)
Keep a bank of these questions in your folder. It's great practice and helps you see trends.
5) Build Understanding Over Time 🕰️
Consistently doing this will help you spot trends in economic data and better understand the real-world implications of the theories you're learning. This will be invaluable when you sit your exams.
I am big on Real World Application understanding, and that's why our students get those As and A*s! 🌟 Make sure you do it too!
🇹🇷 Corporate Tax Overhaul: Turkey announced plans for a corporate tax overhaul, including a 10% minimum rate, aiming to cool its $1tn economy and boost government revenue. 🗳️ Reform Package Circulation: President Erdoğan’s ruling AKP circulated a tax reform package to parliamentary committees for review.
💰 Broaden Tax Base and Reduce Inflation: The reforms aim to broaden the tax base and reduce inflation by tightening fiscal policy, part of a wider economic turnaround programme after Erdoğan’s re-election in May 2023.
🏦 Minimum Corporate Tax Rate: Plans include a minimum corporate tax rate and changes to property investment trusts. The standard corporate tax rate is 25%, but many companies use exemptions to lower their effective rate.
🌍 Multinational Taxation: Multinationals with annual turnover over €750mn would face a 15% minimum tax on global income, aligning Turkey with an OECD deal to prevent low-tax haven refuge.
📜 Auditing and Enforcement: Authorities would gain a broader toolkit to audit companies and enforce penalties, aiming to curb the underground economy.
📉 Tightening Fiscal Policy: The economic team, led by finance minister Mehmet Şimşek, tightened fiscal policy to curb inflation, which topped 70% in June.
🛢️ Previous Tax Increases: Last year, the government increased VAT on goods and services and tripled petrol levies to restore rational economic policymaking.
💬 Comprehensive Taxation Efforts: Şimşek emphasised ongoing efforts to ensure comprehensive taxation in Turkey.
📉 Public Pressure and Popularity: Revenue-raising initiatives have increased pressure on ordinary Turks, eroding the AKP’s popularity in local elections.
💰 Pension Increase: To ease this pressure, the AKP plans to raise the minimum public pension by TL2,500 to TL12,500 a month for about 3.7 million low-tier pensioners.
📉 Reducing Budget Deficit: Officials hope the tax changes will reduce Turkey’s budget deficit, which widened due to costs from last February’s earthquake and pre-election giveaways.
📊 Budget Deficit Statistics: The budget deficit reached 5.3% of GDP last year, the highest since 2009, well above the 2006-2022 average of 2%.
💵 Complementary Monetary Policy: The new taxes complement a tightening monetary policy, with the central bank raising the main interest rate to 50% in March from 8.5% in June 2023.
📈 Attracting International Investment: Turkey’s new economic programme has attracted international fund managers back, with foreign investors injecting nearly $12bn into lira-denominated government debt in the past year.
💹 Economic Progress: Signs of economic progress include rising central bank foreign currency reserves and a narrowing current account deficit.
A Level Economics Questions:
Q: Explain the rationale behind Turkey's decision to implement a minimum corporate tax rate.
A: Turkey aims to increase government revenue, reduce tax avoidance, and align with international standards set by the OECD. This is part of broader efforts to stabilise the economy and address imbalances caused by previous policies.
Q: Describe how fiscal policy can be used to control inflation.
A: Fiscal policy involves adjusting government spending and taxation. By increasing taxes and reducing public spending, a government can decrease the overall demand in the economy, helping to control inflation.
Q:Evaluate the potential effectiveness of Turkey's corporate tax reforms in stabilising the economy.
A: The reforms could effectively increase government revenue and reduce the budget deficit, contributing to economic stability. However, their success will depend on effective implementation and enforcement, as well as the response from businesses and investors.
Q: Discuss the potential challenges of implementing a minimum corporate tax rate in Turkey.
A:Challenges include resistance from businesses, administrative difficulties in enforcement, and the risk of capital flight if companies seek more favourable tax environments. Balancing revenue generation with economic growth is crucial.
Possible A Level Economics 25 Marker Question
Evaluate the potential impact of a high budget deficit on an economy.
Infographic of the Week
The G7's Declining Economic Influence in a Global Context
Formed in 1975, the G7 consists of seven advanced economies—U.S., Canada, UK, Germany, France, Italy, and Japan—that collaborate on economic policies and promote global stability. However, from 1990 to 2022, the G7’s share of global GDP has declined from 67% to 44%, as shown by World Bank data accessed via the Council on Foreign Relations. Meanwhile, the G20's share has remained steady near 80%, indicating that emerging markets like China, India, Brazil, and Saudi Arabia are taking a larger share of the world’s economy. This shift suggests potential consequences for the G7, including reduced global influence, changes in trade dynamics, and altered investment flows towards faster-growing economies outside the G7.
Chart of the Week
Global Trends in Plastic Bag Bans
As of 2024, 91 countries and territories have implemented full or partial bans on plastic bags, with Africa leading the charge due to its weaker plastic producer lobby and greater plastic waste mismanagement issues. In Europe, 26 countries have opted to charge fees to reduce plastic bag usage, though this approach is waning in favour of outright bans, particularly on thinner bags prone to environmental damage. Notable exceptions include France, Italy, and Germany, which have banned certain thin plastic bags and mandated compostable alternatives. The EU has also moved towards banning very thin bags, while other regions enforce various restrictions, such as production limits and import taxes, to combat plastic pollution.
Macroeconomic Data
Whenever you're ready there is one way I can help you.
If you or your child are looking to Boost your A level Economics Grades in under 30 days, I'd recommend starting with an all-in-one support network where you get 24/7 access to a SuperTutor:
→ Join EdGenie 🧞♂️: Transform your A-Level Economics essays and exam marks (genuinely) with our comprehensive on-demand learning platform. This carefully curated course blends engaging content with effective exam techniques, the same ones that have empowered over 1,000 of my students to achieve an A or A* over the last 13 years.
A huge thanks for hopping on board EdGenie's Wednesday Wisdoms newsletter!
I'm Emre, and I've got a big goal - to make A* education accessible to all A-level students.
And it Starts With You!
Emre Aksahin
Chief Learning Officer at Edgenie
Join EdGenie 🧞♂️
Unlock Full Access to Examinable Questions and Answers, Plus: