Economics

Economics

Economics, News

The Myth of Overcapacity: A Tale of Two Economies

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“Overcapacity” has become a geopolitical buzzword, particularly when Western nations, led by the United States, accuse China of flooding the global market with excess industrial production. But beneath the headlines lies a deeper question: Is this term applied fairly, or is it selectively used as a tool for economic leverage? 1. Setting the Scene: What Is “Overcapacity”? “Overcapacity” typically refers to a country or company’s production abilities that exceed its domestic demand—forcing excess supply onto global markets, often at subsidized prices.… Read more
Business and Technology, Economics, Finance

The Rise and Risk of Buy Now, Pay Later: A Fintech Revolution in Consumer Credit

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The financial technology known as Buy Now, Pay Later (BNPL) has fundamentally altered consumer credit by offering interest-free installment payments at the point of sale, a model that has seen explosive global growth, especially among younger demographics. This surge is driven by its instant approval, zero-interest terms, and seamless e-commerce integration, benefiting merchants through increased conversion rates and average order values despite higher transaction fees. While BNPL offers a perceived “friendlier” alternative to traditional credit cards by avoiding compounding interest, it lacks the same credit-building benefits and consumer protections, leading to concerns about fragmented debt accumulation, particular vulnerability for young users, and inconsistent credit reporting.… Read more
Business and Technology, Economics

Europe’s Tech Dependency: Why the Continent Trails Behind the U.S. and China

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This article provides an in-depth analysis of why Europe lags behind the United States and China in technological innovation and digital sovereignty. It explores the historical, structural, financial, and regulatory challenges that have limited Europe’s ability to produce global tech giants. Key issues include fragmented markets, underdeveloped venture capital ecosystems, brain drain, and overdependence on American digital infrastructure. The article highlights major European firms acquired by U.S. tech giants, examines China’s state-led strategic autonomy, and evaluates current EU initiatives such as the European Chips Act and Digital Markets Act.… Read more
Economics, News

The Looming Storm: How the U.S. Debt Crisis and Fiscal Instability Could Impact Ordinary Americans

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America’s national debt is no longer a distant concern debated solely in the halls of Congress or among ivory-tower economists. It is an immediate and mounting crisis with far-reaching effects already rippling through households, job markets, and investment portfolios across the country. Once considered a long-term theoretical issue, the consequences of unchecked borrowing have begun to materialize in the daily lives of ordinary Americans—affecting everything from mortgage rates to retirement security.As… Read more
Economics, News

US Visa Crackdown on Chinese Students: Economic and Academic Fallout

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On May 28, 2025, U.S. Secretary of State Marco Rubio announced that the United States will begin revoking visas of select Chinese students, particularly those studying in “critical fields” or with connections to the Chinese Communist Party. This move, under President Donald Trump’s administration, is part of a broader effort to scrutinize U.S.-China academic ties due to national security concerns. The crackdown comes amid increasing Republican criticism of Chinese access to U.S.… Read more
Economics

Understanding Global Inflation Trends: Causes, Impacts, and Policy Responses

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Inflation, the general rise in prices over time, is a crucial economic indicator influencing monetary policy, investment decisions, and household welfare. As economies around the world navigate a post-pandemic recovery, energy shocks, supply chain disruptions, and shifting labor markets, inflation has emerged as a central concern. This article provides a comprehensive analysis of global inflation trends, examining their causes, economic consequences, and the diverse policy responses adopted across countries. What Is Inflation and How Is It Measured?… Read more
Economics, News

Strategic Priorities: A Comparative Analysis of U.S. and China Military and Education Spending

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The United States allocates nearly $1 trillion annually to defense, emphasizing global military dominance, while China spends significantly less on its military but balances this with robust investment in education. China’s strategy includes modernizing its armed forces and expanding access to quality education, aiming to strengthen long-term economic and technological capabilities. In contrast, the U.S. faces challenges in balancing its heavy defense budget with underfunded educational priorities. These divergent spending patterns reflect each nation’s strategic vision and will shape their future roles in global leadership and innovation.… Read more
Economics

The Economics of Universal Basic Income: Theory, Trials, and the Path Forward

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Universal Basic Income (UBI) has transitioned from a fringe economic idea to a mainstream policy discussion in the face of automation, widening inequality, and labor market precarity. As governments experiment with unconditional cash transfers, economists, policymakers, and citizens debate its long-term feasibility, moral foundations, and macroeconomic implications. This article evaluates the theoretical basis for UBI, real-world pilot programs, fiscal constraints, and the emerging discourse shaping its global future. Defining UBI: Origins and Core Principles Universal Basic Income (UBI) refers to a public policy mechanism whereby governments provide regular, unconditional cash payments to all citizens regardless of income, employment status, or wealth.… Read more
Economics, Taxation

Digital Services Taxes (DSTs): A Global Response to the Digitalization of the Economy

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The rapid expansion of digital business models has disrupted traditional tax frameworks, leaving many governments unable to fairly tax profits derived from their markets. In response, numerous countries have implemented or proposed Digital Services Taxes (DSTs) to capture revenue from digital giants operating across borders. This article explores the evolution of DSTs, their policy rationale, international tensions, economic implications, and the ongoing efforts toward a global tax solution led by the OECD and G20.… Read more
Economics

Inflation Targeting in a Post-Pandemic World: Challenges, Effectiveness, and the Future of Monetary Policy

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Inflation targeting—monetary policy’s north star for much of the 21st century—faces renewed scrutiny in the wake of unprecedented global shocks. Central banks from the U.S. Federal Reserve to the European Central Bank (ECB) have struggled to balance inflation control with economic recovery in the aftermath of COVID-19, global supply chain disruptions, and geopolitical conflicts like the war in Ukraine. This article explores the evolution of inflation targeting, its theoretical underpinnings, empirical performance, and emerging critiques.… Read more
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