Welcome to the 89th 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.
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Reducing Inequality: Who's Really Responsible?
VodafoneThree plans to double UK broadband business after £16.5bn merger
Infographic of the Week
Chart of the Week
Macroeconomic Data
Reducing Inequality: Who's Really Responsible? 🤔
Hey Genies, 👋
You hear a lot about inequality, right?
But what does it actually taake to fix it?
Here's the truth: everyone has a role to play.
👉 Governments - Sort out the basics FIRST
27% of children in the UK live in poverty - shocking, isn't it?
If people can't even meet their basic needs like housing, education, food, and transport, how can you possibly build a thriving economy?
This isn't rocket science.
If the government fixes these issues first (think affordable housing, accessible quality education, reliable public transport, affordable food), the foundation for a stable, productive economy is set.
Crime rates fall, society becomes more cohesive, and inequality reduces as a natural byproduct.
Get the basics right, and a lot of the economy fixes itself.
👉 Businesses - Profit matters, but so does purpose
Entrepreneurship and innovation genuinely matter.
Businesses create jobs, incomes, and products that raise living standards.
Yes, owners earn profits, but so do your parents' in the form of salaries/pensions, your future opportunities, and your own living standards.
Successful businesses mean meaningful jobs and income growth.
BUT businesses must collaborate with the government - this isn't about short-term wins for them but for the communities.
When businesses align their goals with public welfare (think partnerships, apprenticeships, training schemes, or investing in communities), everyone wins.
That's sustainable growth.
👉 Individuals and Households - It starts at home
Accountability matters.
Family matters.
The small, daily choices families make set the foundation for lifelong success or struggle.
When family wellbeing improves, the economy improves - parents work better, kids achieve more in education, and overall productivity rises.
📱 The VodafoneThree Merger: Vodafone UK and CK Hutchison’s Three UK merged in a £16.5bn deal, forming VodafoneThree.The merger reduces the number of mobile network operators in the UK from four to three.
🚀 Ambitious Broadband Growth Plans: VodafoneThree plans to more than double broadband customers from 2 million to 4.3 million by 2034.The firm targets at least 10% annual growth in its broadband division.
📡 Massive 5G Investment: VodafoneThree will invest £11bn to extend 5G coverage to over 99% of the UK population by 2034. £1.3bn of this investment will be spent in the first year.
💼 Job Creation & Labour Market Impact: Up to 13,000 new jobs are planned as part of network expansion.Some shop closures will occur due to overlapping locations, but staff reductions will happen via natural attrition.
⚖️ Industry Competition & Rival Pressure: CEO Max Taylor urged rivals like BT and Virgin Media O2 to follow VodafoneThree’s investment lead. Market experts warn that intense broadband competition may limit profitability.
🔧 Operational Efficiencies & Economies of Scale: The merger allows cost savings through shared infrastructure, unified management, and larger scale operations. VodafoneThree aims to cross-sell broadband services to its 27 million mobile customers.
🇬🇧 Vodafone’s Shift in Strategic Focus: Vodafone is increasingly reliant on its UK operations after losses in other markets. In Germany, TV customer numbers halved after regulatory changes allowed consumers to switch providers.
A Level Economics Questions:
Q. Explain how VodafoneThree may benefit from economies of scale following the merger.
A. The merger allows VodafoneThree to exploit internal economies of scale by spreading fixed costs such as network infrastructure, R&D, and advertising over a larger output. With 27 million mobile and 4.3 million broadband customers, average costs (AC) fall as output rises. Technical economies arise from more efficient use of 5G networks, while managerial economies emerge through unified administration. Purchasing economies may also be realised through bulk buying of network equipment. Lower average costs may improve profitability or allow lower prices, enhancing competitiveness.
Q. Analyse the possible effects of VodafoneThree's £11bn 5G investment on UK economic growth.
A. The £11bn investment raises aggregate demand (AD) through increased capital expenditure, creating a positive multiplier effect on GDP. In the long run, improved 5G infrastructure enhances productivity and competitiveness, shifting long-run aggregate supply (LRAS) rightward. Dynamic efficiency gains may stimulate innovation across industries, supporting non-inflationary growth. Job creation (up to 13,000 roles) raises employment and income levels, further boosting AD. However, productivity gains may take time to materialise depending on adoption rates and complementary investment.
Q. Evaluate whether consumers are likely to benefit from the VodafoneThree merger in the long run.
A. Consumers may benefit if dynamic efficiency from the merger leads to better 5G services, wider coverage (99% target by 2034), and improved broadband options. Cross-selling may offer price discounts via bundling mobile and broadband. However, reduced competition may increase market power, leading to higher prices and less choice in the long run. Consumer surplus could fall if price rises outweigh quality improvements. Regulatory oversight will be crucial in ensuring allocative efficiency and protecting consumer welfare post-merger.
Q. Evaluate the likely impact of the VodafoneThree merger on employment in the UK telecoms sector.
A. VodafoneThree plans to create up to 13,000 jobs linked to 5G network expansion, raising employment and incomes. Induced employment effects may occur via multiplier effects. However, store closures through natural attrition may offset some job gains, particularly in retail roles. The net employment impact depends on the balance between new technical jobs and shop closures. Labour market flexibility and skills matching will influence how displaced workers adjust to new roles in the telecoms sector.
Possible A Level Economics 25 Marker Question
Evaluate the extent to which mergers lead to greater productive and allocative efficiency.(25 marks)
Infographic of the Week
🌍 The World's Richest Countries: GDP Per Capita Rankings for 2025
According to IMF data for 2025, Luxembourg ranks as the world’s wealthiest country by GDP per capita at $140.9K, followed by Ireland, Switzerland, and Singapore — many of which serve as offshore financial hubs. The United States, with over 10 million people, leads among large economies at $89.1K. Several small, oil-rich nations such as Qatar and Macao also feature prominently. GDP per capita offers a rough indication of average living standards, though it overlooks factors like income inequality, cost of living, and non-economic wellbeing. While useful for international comparisons, these limitations mean GDP per capita is best interpreted alongside broader welfare indicators.
Chart of the Week
🌍 Global Wealth Inequality: The 10% Dominance
The OECD has cut its 2025 global GDP growth forecast from 3.3% to 2.9%, mainly due to the adverse impact of new high-tariff trade policies introduced by the Trump administration. While the U.S. growth outlook fell to 1.6% and key trading partners like Mexico and Canada faced sharp downgrades, emerging Asia remains resilient. Countries including China, India, Indonesia, Vietnam, and others are now projected to contribute 60% of global GDP growth this year, up from 56% in 2024. China's growth stays steady at 4.7% due to fiscal stimulus. Meanwhile, North America's contribution to global growth is expected to drop significantly from 13% to just 8% in 2025–26, highlighting Asia’s rising role as the world’s economic engine.
Macroeconomic Data
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