This topic covers how to explore current economic issues in the news and evaluate their impact on society. In the exam, you use data from media sources to discuss both sides of an issue and present your own informed view.
Finding Economic Issues in the Media
A current economic issue is a real-world development affecting jobs, prices, incomes, taxes, or public spending. Useful sources of economic information include:
- The Central Statistics Office (CSO) for official figures on prices and employment.
- National news coverage such as RTÉ News or the Irish Times for reporting on current debates.
- Budget and public spending information published on gov.ie by the Department of Finance.
Always record the source and publication date. One interview tells you about one business; CSO figures show what is happening in the whole country.
Costs and benefits for different stakeholders
When discussing an economic issue, examine the economic, social and environmental benefits and costs for key stakeholders.
| Area | Focus | Example: New Rail Line |
|---|---|---|
| Economic | Money, jobs, trade, taxes | Creates construction jobs for local workers and speeds up deliveries for businesses. |
| Social | Health, wellbeing, communities | Cuts commute times for workers, but noise disturbs nearby residents. |
| Environmental | Nature, pollution, resources | Lowers car emissions, but construction may clear green space. |
Always name the affected group. Saying 'taxpayers fund the repair work' is far more specific than saying 'it costs money'.
Standard Economic Effects for Exam Answers
Marking schemes reward specific, named effects rather than general statements like 'it helps the economy'. You can apply these standard effects to almost any news issue:
- Employment: Jobs are created or lost in named sectors, such as tourism, construction, or farming.
- Government revenue: The government collects more income tax (PAYE), VAT, and corporation tax when incomes and spending rise.
- Government spending: Less is paid out in Jobseeker's payments when employment rises; more is spent on welfare, supports, or repairs during a crisis.
- Standard of living: Households with higher incomes spend more in local shops and businesses.
- Business costs: Dearer fuel, wages, or raw materials raise costs, forcing firms to raise prices for consumers.
Discussing Issues and Presenting an Informed View
Exam questions rely on specific action verbs from the Junior Cycle specification:
- Discuss: Offer a balanced review examining different arguments, ending with a conclusion supported by evidence.
- Present: Put forward an idea, deliver supporting evidence, and show it clearly for others to examine.
To present an informed view, use a clear four-step method:
- State your position on the issue clearly.
- Quote facts, figures, or details directly from the provided source.
- Explain the cause and effect on specific stakeholders.
- Say what the issue costs in the short term and what it gains in the long term.
Working with Data and Economic Indicators
Media reports frequently include economic indicators such as inflation, employment rates, and national debt. The official measure of inflation in Ireland is the Consumer Price Index (CPI), which tracks changes in the cost of living.
Exam questions often ask you to calculate the percentage change between two figures. Use this simple method:
- Work out the increase: new figure − original figure.
- Divide the increase by the original figure, then multiply by 100.
- Percentage change = (Increase ÷ Original figure) × 100.
Always divide by the original figure and show your full workings clearly.
Key terms
- Current Economic Issue
- A present-day trend, policy, or problem affecting how resources, jobs, and finances are managed.
- Stakeholder
- Any individual or group affected by an economic decision, such as consumers, workers, businesses, or the government.
- Economic Indicator
- A piece of data or statistic used to measure the health and performance of the economy.
- Inflation
- A sustained increase in the general level of prices of goods and services over time.
- Consumer Price Index (CPI)
- The official measure used to track changes in the cost of living and inflation in Ireland.
- Unemployment
- The state of being able and willing to work and actively seeking a job, but unable to find one.
- Sustainable Development
- Development that meets present needs without compromising the ability of future generations to meet their own needs.
- Informed View
- A personal opinion or conclusion supported by reliable facts, business knowledge, and balanced evidence.
Check yourself
Name two useful Irish media sources for economic data.
The Central Statistics Office (CSO) and RTÉ News or a national newspaper such as the Irish Times.
What are the three pillars of sustainable development?
Economic, social, and environmental.
What does the action verb 'Discuss' require in an examination answer?
A balanced review exploring multiple viewpoints, supported by evidence and ending with a clear conclusion.
A town's workforce grows from 4,000 to 4,400. What is the percentage increase?
10%, calculated as (400 ÷ 4,000) × 100.
State one economic benefit to the government when the national unemployment rate falls.
The government collects more income tax (PAYE) and spends less on Jobseeker's welfare payments.