economics

Thus, commodity prices tend to be dominated by demand forces over time, but when we approach capacity limits, supply forces can have extremely large impacts.

One of these powerful downmarket voids occurred in the steel industry, for example, when entrant companies employing disruptive minimill process technology entered through low-end beachheads; they have attacked relentlessly upmarket ever since.

Distribution of individual income tax filers shows that average income growth from all sources, including salaries, business income, earnings from deposits etc. was a modest 5.6 per cent over the decade ending FY24, barely matching inflation. Earnings from equity markets for an average earner remains low at 5 per cent despite the robust expansion.

The Shah threw himself into a modernization and Westernization of the country, the white revolution: He carried out land reform where land was redistributed to farmers, landlords were compensated for their land by shares of privatized state-owned factories, transport networks were expanded, dam and irrigation projects carried out, malaria

Markets facilitate the energy transformations that result in work by distributing information on relative scarcity using symbols we call prices. People respond to price, wage and return differences, or gradi- ents, that signal profitable opportunities to redeploy resources. In flow markets, we call the result supply and demand. In asset markets, we

Thanks to Europe’s monetary policies driven by the needs of Germany—a strong euro and low interest rates—the deficits showed up primarily in peripheral Europe. Before the creation of the euro, Italy, Spain, France, Greece, and Portugal had occasionally run fairly large trade deficits—in total they show up among the top ten deficit countries

And it continues to grow; the United States is running large deficits (5% of GDP) during a period of low unemployment for the first time since the Vietnam War. In other words, we now have significant structural government budget deficits rather than just temporary cyclical/recession deficits:

As I will show, some of these responses require an unsustainable increase in debt, and so are temporary. There are, it turns out, two sustainable responses to a forced increase in the savings rate in one part of the economy. The first is an equivalent increase in productive investment. The second is an increase in unemployment.

Analysts have been trying to forecast or spot a recession in the United States for years, looking for the classic disinflationary recession. And maybe we’ll still get one in the year ahead. But fiscal dominance is a different environment than the past four decades in the United States, and in many ways the United States already went through an