Saturday, September 27, 2025

How Gender Equality Boost Economic Growth

 In the article, "How Gender Equality Boosts Economic Growth," the author analyzed the barriers gender created for economic productivity by country.  As industrial policy and protectionism have started to return to high-income countries, low and middle-income countries need to make sure they have efficient human capital to keep up. Women, for centuries, have had low labor force participation rates, as they are usually doing household chores, which, although they are jobs, do not fall into the LF participation rate. If barriers are removed, there could be a 15-20% increase in countries. Looking at countries worldwide, such as Egypt and Peru, if gender disparities were to decrease, then Egypt's income would rise by 24%, while Peru's would see a smaller, yet still impactful, increase of 5%. 

The main issue is the demand side, with discrimination by employers and supply distortions that have resulted. Barriers for women that have pushed them to adhere to social norms of staying home. By removing these demand-side issues, there can be a positive change for the supply side.  Would investment in gender equality be a smart move for governments to implement? Or would forcing equality ruin people's drive to work harder and maximize competition? 

Article: https://www.project-syndicate.org/commentary/gender-equality-boosts-economic-growth-at-low-cost-by-pinelopi-koujianou-goldberg-2025-09

Sunday, September 21, 2025

Inflation stayed steady last month as Trump’s tariffs hit some prices — here’s what might feel most expensive

 Inflation in the U.S. is currently 2.7%, still higher than the Federal Reserve’s 2% goal. Prices are also much higher than before the pandemic—on average, things cost about 24% more than they did in early 2020. While inflation has dropped a lot since its 2022 peak, it’s not improving as quickly now because tariffs and higher import taxes are pushing up costs. Many businesses are passing these higher costs to shoppers, which is why prices for everyday items like coffee, eggs, beef, and even used cars are still rising. Core inflation, which leaves out food and energy, is at 3.1%, showing that the underlying price problem hasn’t gone away.

Economists expect inflation to stay elevated for a few more years, especially if tariffs remain high. This has made the Fed cautious about cutting interest rates further, which means borrowing money (for cars, credit cards, or homes) will stay expensive. For consumers, the big picture is that prices will likely keep rising slowly, and money doesn’t go as far as it used to. Even though inflation is much better than in 2022, it’s still a problem that affects shopping, saving, and planning for the future.


Source : https://www.bankrate.com/banking/federal-reserve/latest-inflation-statistics/ 

How Russia’s besieged economy is clinging on

 Russia’s economy, which has faced setbacks because of sanctions, war-expenses, and rising costs, has shifted from growth toward stagnation. GDP growth has slowed down and some indicators—like manufacturing purchasing manager indices—suggest real activity is contracting. Corporate cash flow has been weaker, wages are falling, and stock markets are under pressure. The authorities are pulling back on expansive fiscal stimulus, which tightens monetary policy, and trying to contain inflation through high interest rates. Despite the hardships, unemployment remains low and many Russians claim their individual economic situation remains reasonably good, largely because real wages are still relatively strong. 

It’s surprising that the Russian economy has managed to stay afloat under all the pressure. The fact that many citizens are still seeing slight improvements in wages and a relatively consistent quality of life is also surprising. Still, the strength of the economy is weaker than it seems. At the end of the day, Russia is still experiencing slow growth, falling profits, and rising inflation.


Source https://www.economist.com/finance-and-economics/2025/09/21/how-russias-besieged-economy-is-clinging-on