Econ

ECON

https://www.abc.net.au/news/2019-02-05/banking-royal-commission-the-deal-for-consumers-now/10778078

The article analysis is comprised of a written paper of no more than 1500 words. In preparing your business article critique you should:

1. Provide a brief discussion of the article and point out the three most important issues contained within the article. Do not simply summarise.

2. Point out the underlying concepts which are relevant to the article

3. Provide a critique if the article contains economic discrepancies/ ignores important economic policy problems or issues, or is inconsistent with economic theory.

Harvard referencing

Words-1500

introduction (overall idea about article)

Small paragraph of article writer

Issues and theory application

Conclusion 

Reference 

Writer

Nassim Khadem

Nassim Khadem is an award-winning journalist, reporting on business news across online, radio and TV for the ABC. Nassim began working as a journalist with The Age in 2003, including as that newspaper's economics correspondent. Before joining the ABC, she worked in various business reporting/editing roles for Fairfax Media's BRW magazine, The Australian Financial Review and as deputy business editor for The Age and The Sydney Morning Herald

I have selected some issues

Issue 1

charging "fees for no service" 

Fees deducted from people's accounts, including their super funds, were often massive, and no-one could forget the revelations that dead people were slugged, including, unbelievably, for life insurance.

"Until satisfactory steps have been taken to deal with those involved in the charging of 'fees for no service', and to ensure that it does not happen again, the financial advice industry will lack the public respect and trust that is a necessary aspect of any profession," Mr Hayne said in his final report to the Federal Government.

Issue2

Car dealers under fire

The report notes that the person with whom the consumer deals at the point of sale is not subject to the National Consumer Credit Protection (NCCP) Act, and that car dealers act as agents for lenders without holding a financial services licence.

Mr Hayne's report singled out "flex commissions" — an arrangement between lenders and car dealers, which allows the dealer to set the customer's interest rate on a loan-by-loan basis. It often leads to customers being hit with very high interest rates.

I think supply and demand, competitive and fairness theories can be applyed.

If you want you can select another three issues and theories.