Category: Economy

The global economy suffered a massive blow during the 2008 financial crisis. Equity markets crashed from $51 to $22 trillion in just 17 months. These historic economic downturns—the Great Depression and the Great Recession—left lasting societal impacts. The Great Depression pushed unemployment rates above 25%, while real GDP dropped 36.2%. On the other hand, the…

National economies worldwide face mounting pressure as 48 countries now spend more on interest payments than health and education combined. This reality shows the severe state of international debt management in today’s global economy. Recent global events have made sovereign debt challenges more intense. One-fifth of emerging economies now face high debt risk. The COVID-19…

Tax rates in the U.S. federal income tax system range from 10% to 37% in 2025. These rates fuel the debate between proportional and progressive tax systems. A proportional tax charges the same rate whatever the income level. Progressive taxation moves more burden to higher earners. Each system creates different economic effects. The bottom 90%…

The American Recovery and Reinvestment Act proved its worth during the Great Recession by saving 2.6 million jobs and boosting real GDP by 3.3% in 2010. These remarkable results show why economists call it a vital economic safety net. The benefits of these policies go well beyond job creation. Every dollar spent on government initiatives…

Today’s digital age reveals a stark reality – 1.7 billion adults worldwide still lack access to simple banking services, which represents 31% of the global population. This striking gap has created a powerful connection between fintech and financial inclusion that changes how people access and manage money. The most important effect of this transformation is…

The wealth gap in America tells a striking story. The top 3% of earners control 54.4% of the nation’s wealth, while the bottom 90% own just 24.7%. This imbalance shows why we must prioritize inclusive growth. Such disparities reach far beyond income levels and affect everything from educational opportunities to healthcare access. True economic mobility…

Middle-income countries are home to 75% of the world’s population and generate one-third of global GDP. These nations face a tough reality – they often get stuck in the middle income trap and struggle to reach high-income status. The numbers tell a sobering story. Since 1990, only 250 million people from middle-income economies have moved…

Legal foundations explain why some nations prosper while others struggle. A nation’s wealth often depends on the strength of its legal system. Strong legal systems protect property rights and enforce contracts. This creates an environment where businesses thrive and economies grow. Countries with reliable economic laws perform better than those with weak or unpredictable legal…

Infrastructure creates 79% of global greenhouse gas emissions. This makes it a key battleground to fight climate change. Green infrastructure offers a powerful solution to environmental challenges and brings major economic benefits. Experts project that we need $6.9 trillion in yearly investments until 2050. These investments will create infrastructure that supports development goals and leads…

Economic fluctuations are inevitable, but how we explain them varies widely. Real Business Cycle (RBC) models attribute booms and busts to technology shocks and productivity changes, while New Keynesian models emphasize demand-side shocks, price stickiness, and market imperfections. These competing views shape how policymakers respond to recessions, yet both have limitations. RBC downplays the role…