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Showing posts with label inflation. Show all posts
Showing posts with label inflation. Show all posts

Wednesday, August 27, 2025

Democratic Upsets in Red Districts: Signs of a Swinging Pendulum or Just Anomalies Ahead of 2026?



Democratic Upsets in Red Districts: Signs of a Swinging Pendulum or Just Anomalies Ahead of 2026?

In a pair of special elections that jolted the political landscape, Democrats notched notable victories—or near-victories—in deeply Republican areas of Iowa and Georgia this week. These results in what are often described as “ruby red” districts have ignited debate: Is the political pendulum finally swinging back toward Democrats? Are persistent price increases under President Donald Trump eroding Republican voter loyalty? Or are these just one-off anomalies in low-turnout contests, unlikely to signal a broader shift before the 2026 midterms?

A closer look suggests that a mix of economic discontent and local dynamics is giving Democrats openings, but the road to a true “blue wave” is far from guaranteed.


The Upsets: Cracks in Trump Country

The most decisive flip came in Iowa’s 1st State Senate District, a conservative bastion in the state’s northwest corner. Democrat Catelin Drey defeated Republican Christopher Prosch by roughly 10 percentage points—an outcome few would have predicted given that Donald Trump carried the district by 11 points in 2024.

The victory is significant. By breaking the GOP’s supermajority in the Iowa Senate, Democrats can now block gubernatorial appointments and force more bipartisan negotiations. In a state that has not elected a Democratic governor since 1982, this is no small shift.

Meanwhile in Georgia, Democrats made inroads in a different way. In the special election for the 38th State Senate District, covering heavily Republican suburbs of Atlanta, Democrat Debra Shigley finished first with a double-digit lead over her GOP opponents. The race advances to a runoff against the top Republican candidate, but Shigley’s strong performance in a district Trump carried comfortably just last year has energized Democrats. The seat became open after the GOP incumbent resigned amid scandal—providing Democrats with a rare opening in hostile territory.

These victories fit a pattern. In 2025, Democrats have flipped multiple Republican-held seats in special elections across the country, outperforming expectations even in Trump-won areas. Iowa alone has seen two such flips this year, suggesting that when conditions align, voters are willing to cross partisan lines.


Why Now? The Economy and Local Backlash

The central question is whether these results are isolated quirks—or part of a larger backlash against the Trump administration’s handling of the economy.

Inflation was a major factor in Trump’s 2024 comeback victory. Voters frustrated with high grocery, housing, and energy costs under Biden-Harris helped sweep him back into office. Yet six months into his second term, polling now shows widespread discontent with Trump’s own economic management.

  • A Harvard CAPS/Harris Poll earlier this month found that 34% of voters rank inflation and affordability as the country’s top issue, slightly higher than in previous months.

  • A Marquette Law School national survey reported that just 28% of Americans believe Trump’s policies will reduce inflation, while 60% expect things to stay the same or worsen.

  • A Reuters/Ipsos poll in April pegged Trump’s economic approval at just 37%, down sharply from post-inauguration highs.

Consumer sentiment reports for August highlight rising mentions of “high prices,” reflecting real sticker shock at grocery stores and gas stations.

In Iowa, Catelin Drey’s campaign leaned heavily into affordability, healthcare, and education, themes that resonated in a district hit by rural inflation and volatile farm prices. She also painted her opponent as an extremist on social issues, a message that may have alienated moderate Republicans already uneasy about costs.

In Georgia, Debra Shigley benefited from scandal-driven GOP disarray, but her campaign also emphasized the impact of Trump’s tariffs on consumer prices—a potent message for suburban families squeezed by higher costs. Demographics mattered, too: college-educated independents and women in suburban Atlanta appear increasingly open to Democratic candidates when pocketbook concerns outweigh partisan loyalty.

Still, it’s important to note that special elections often hinge on local circumstances. Scandals, candidate quality, and turnout matter as much as national trends. In both contests, Democratic enthusiasm was high, while Republicans may have grown complacent in districts long assumed safe.


Beyond the Specials: What It Means for 2026

Do these upsets foreshadow a broader “blue wave” in 2026? History suggests the president’s party almost always loses ground in midterms: on average, 28 House seats and 4 Senate seats. With Republicans holding only narrow majorities in both chambers (53–47 in the Senate and a razor-thin edge in the House), even modest Democratic gains could flip control.

Polling trends bolster Democratic hopes. As of late August, Democrats lead the national House generic ballot by 2–3 points—a reversal from 2024, when Republicans held the advantage. Suburban and working-class voters show signs of softening support for Trump’s GOP, with inflation once again emerging as the defining issue.

However, structural realities temper expectations:

  • Gerrymandering locks in a large share of House districts as safe for one party.

  • Redistricting fights in states like Georgia and Iowa could further cement GOP advantages.

  • Trump’s loyal base remains highly mobilized and could swing back if inflation moderates under deregulation or energy expansion policies.

Democrats will also need strong candidates and a unified message. Without both, the party risks squandering opportunities even in a favorable climate.


Conclusion: Momentum, Not Yet a Wave

The Democratic breakthroughs in Iowa and Georgia reveal genuine cracks in the GOP’s red wall, driven by voter frustration with rising costs and Republican missteps. They suggest that the pendulum is beginning to swing—but whether it swings far enough to reshape Congress in 2026 remains uncertain.

For now, Democrats can claim momentum. If inflation continues to bite and Republicans fail to broaden their appeal beyond Trump’s base, the midterms could deliver significant Democratic gains. But as history shows, wave elections require sustained economic pain, disciplined messaging, and a measure of luck.

In short: Democrats have reason to celebrate these early wins. But the real battle—the 2026 midterms—has only just begun.




लाल गढ़ों में डेमोक्रेटिक उलटफेर: 2026 से पहले झूलता पेंडुलम या सिर्फ़ अपवाद?

आयोवा और जॉर्जिया की दो विशेष चुनावी सीटों में इस हफ्ते हुए अप्रत्याशित नतीजों ने अमेरिकी राजनीति में हलचल मचा दी। डेमोक्रेट्स ने गहरे रिपब्लिकन गढ़ों में जीत—या लगभग जीत—दर्ज़ कर ली। इससे सवाल उठ रहे हैं: क्या राजनीतिक पेंडुलम आखिरकार डेमोक्रेट्स की ओर झुक रहा है? क्या ट्रम्प प्रशासन के दौरान लगातार बढ़ती कीमतों ने रिपब्लिकन समर्थन को कमजोर करना शुरू कर दिया है? या फिर ये सिर्फ़ कम-टर्नआउट वाले चुनावों की संयोगवश घटनाएँ हैं, जिनसे 2026 के मिडटर्म चुनावों में किसी "ब्लू वेव" की भविष्यवाणी करना जल्दबाजी होगी?

करीबी नज़र डालने पर यह स्पष्ट होता है कि आर्थिक असंतोष और स्थानीय कारक मिलकर डेमोक्रेट्स को अवसर दे रहे हैं—लेकिन एक बड़े स्तर पर राजनीतिक भूकंप की घोषणा करना अभी जल्दबाज़ी होगी।


उलटफेर: ट्रम्प देश के गढ़ों में दरार

सबसे बड़ा उलटफेर आयोवा की प्रथम स्टेट सीनेट डिस्ट्रिक्ट में हुआ, जो राज्य के उत्तर-पश्चिमी हिस्से में स्थित एक रूढ़िवादी इलाका है। डेमोक्रेट कैटेलिन ड्रे ने रिपब्लिकन क्रिस्टोफर प्रोश को लगभग 10 अंकों से हराकर सीट पलट दी। ट्रम्प ने 2024 के चुनाव में यहाँ 11 अंकों से जीत दर्ज की थी।

यह जीत मायने रखती है। इससे आयोवा सीनेट में रिपब्लिकन की सुपरमैजॉरिटी टूटी और अब डेमोक्रेट्स गवर्नर की नियुक्तियों को रोक सकते हैं तथा रिपब्लिकन को द्विदलीय वार्ताओं के लिए मजबूर कर सकते हैं।

जॉर्जिया में भी डेमोक्रेट्स ने महत्वपूर्ण बढ़त दर्ज की। 38वीं स्टेट सीनेट डिस्ट्रिक्ट (अटलांटा के उपनगरीय क्षेत्र) की विशेष चुनावी सीट पर डेमोक्रेट डेबरा शिग्ली ने प्रारंभिक मतगणना में रिपब्लिकन उम्मीदवारों पर दो अंकों की बढ़त बनाई। सीट GOP विधायक के एक घोटाले में इस्तीफा देने से खाली हुई थी। अब चुनाव रनऑफ में जाएगा, लेकिन गहरे लाल जिले में यह प्रदर्शन डेमोक्रेट्स के लिए ऊर्जा का स्रोत बन गया है।

यह कोई अलग घटना नहीं है। 2025 के दौरान डेमोक्रेट्स ने कई विशेष चुनावों में रिपब्लिकन सीटें पलटी हैं। खासकर ट्रम्प-प्रभावित जिलों में यह रुझान दिखना एक संकेत है कि सही परिस्थिति में मतदाता पार्टी लाइन पार करने को तैयार हैं।


क्यों हो रहा है बदलाव? अर्थव्यवस्था और स्थानीय प्रतिक्रिया

मुख्य सवाल यह है कि क्या ये नतीजे केवल स्थानीय परिस्थितियों का परिणाम हैं या फिर ये ट्रम्प की आर्थिक नीतियों के खिलाफ़ व्यापक असंतोष को दर्शाते हैं।

2024 में महँगाई का मुद्दा बाइडेन-हैरिस प्रशासन के खिलाफ़ ट्रम्प की वापसी में अहम था। लेकिन अब उनकी दूसरी पारी के छह महीने बाद, सर्वेक्षण बताते हैं कि मतदाता लगातार बढ़ती कीमतों के लिए ट्रम्प को दोषी मान रहे हैं।

  • हार्वर्ड CAPS/हैरिस पोल (अगस्त) में 34% मतदाताओं ने महँगाई और जीवन-यापन की लागत को देश की सबसे बड़ी समस्या बताया।

  • मारक्वेट लॉ स्कूल सर्वेक्षण में केवल 28% अमेरिकियों ने माना कि ट्रम्प की नीतियाँ महँगाई कम करेंगी, जबकि 60% ने कहा स्थिति वैसी ही रहेगी या और बिगड़ेगी।

  • रॉयटर्स/इप्सोस पोल (अप्रैल) में ट्रम्प की आर्थिक स्वीकृति रेटिंग 37% रही—उनके शुरुआती उच्च स्तर से काफी नीचे।

आयोवा में ड्रे ने सस्ती शिक्षा और स्वास्थ्य पर जोर देते हुए प्रोश को सामाजिक मुद्दों पर चरमपंथी बताया। ग्रामीण मतदाताओं को, जो पहले से कृषि कीमतों की अस्थिरता और बढ़ती लागत से परेशान थे, यह संदेश भाया।

जॉर्जिया में शिग्ली को रिपब्लिकन घोटाले से लाभ मिला, लेकिन उन्होंने ट्रम्प के टैरिफ़ और उनके कारण उपभोक्ता लागत बढ़ने की आशंका पर भी चुनावी अभियान चलाया। उपनगरीय महिलाएँ और उच्च-शिक्षित स्वतंत्र मतदाता महँगाई की मार से सबसे अधिक प्रभावित दिखे।

हालाँकि, विशेष चुनाव अक्सर स्थानीय कारकों पर आधारित होते हैं। उम्मीदवार की छवि, स्कैंडल और टर्नआउट इन नतीजों में निर्णायक रहे।


2026 की ओर: क्या आ सकती है "ब्लू वेव"?

इतिहास गवाही देता है कि राष्ट्रपति की पार्टी आमतौर पर मिडटर्म में सीटें खोती है—औसतन 28 हाउस सीटें और 4 सीनेट सीटें। रिपब्लिकन के पास वर्तमान में दोनों सदनों में संकीर्ण बहुमत है (सीनेट: 53-47, हाउस: मामूली बढ़त)। ऐसे में डेमोक्रेट्स को थोड़ी भी बढ़त मिलना संतुलन बदल सकता है।

राष्ट्रीय स्तर पर डेमोक्रेट्स हाउस जनरल बैलट में 2–3 अंकों से आगे हैं। उपनगरीय और कामकाजी वर्ग के मतदाताओं में GOP समर्थन कमजोर होता दिख रहा है। शिक्षा का अंतर भी उभर रहा है: कॉलेज-शिक्षित मतदाता—जिन्होंने 2024 में हैरिस का समर्थन किया—मिडटर्म में डेमोक्रेट्स के पक्ष में रुझान दिखा रहे हैं।

लेकिन चुनौतियाँ बनी हुई हैं:

  • गेरिमैंडरिंग के कारण अधिकांश हाउस जिलों में प्रतिस्पर्धा नहीं रहती।

  • पुनर्विभाजन लड़ाइयाँ रिपब्लिकन को और मजबूती दे सकती हैं।

  • ट्रम्प की रैलियाँ और उनका करिश्माई प्रभाव GOP बेस को पुनः सक्रिय कर सकता है।


निष्कर्ष: रफ्तार है, लहर अभी नहीं

आयोवा और जॉर्जिया में डेमोक्रेटिक सफलता महज़ संयोग नहीं है। यह मतदाताओं की बढ़ती लागतों से उपजी झुंझलाहट और स्थानीय परिस्थितियों का मेल है। यह पेंडुलम के झुकने का संकेत देता है—लेकिन 2026 में कांग्रेस का चेहरा बदलने के लिए और सबूत चाहिए।

अभी डेमोक्रेट्स के पास जश्न मनाने का कारण है। अगर महँगाई यूँ ही डसती रही और रिपब्लिकन अपने दायरे से बाहर अपील करने में विफल रहे, तो 2026 मिडटर्म चुनाव GOP के लिए कठिन साबित हो सकते हैं। लेकिन लहर (वेव) तभी बनेगी जब आर्थिक पीड़ा बनी रहे, डेमोक्रेट्स का संदेश एकजुट रहे और GOP गलतियाँ करे।

संक्षेप में: शुरुआती जीतें डेमोक्रेट्स को ऊर्जा दे रही हैं, लेकिन असली लड़ाई तो अब शुरू हो रही है।



Monday, August 18, 2025

Stagflation or Resilience? America’s Mid-2025 Economic Gamble



Stagflation or Resilience? America’s Mid-2025 Economic Gamble


Introduction: The Ghost of the 1970s

The word “stagflation” once carried the sting of a uniquely 1970s malaise, a grim economic condition marked by high inflation, stagnant growth, and rising unemployment. It was thought by many to be a relic of the past, born of OPEC’s oil embargoes and the end of the Bretton Woods system. For decades afterward, stagflation was studied in economics textbooks but rarely uttered in forecasts about the U.S. economy.

Yet as of mid-2025, the specter has returned with unsettling force. With sweeping tariffs on imports and large-scale deportations reshaping both the cost structure and labor supply of the American economy, economists across the ideological spectrum are asking: Is the U.S. heading for stagflation once again?

The debate is not merely academic. The stakes are profound—shaping Federal Reserve policy, business investment decisions, electoral outcomes, and America’s credibility on the world stage. What unfolds in the next two years could determine whether the U.S. experiences a 1970s-style stagnation trap or leverages technological innovation to prove itself uniquely resilient.


The Policy Shocks of 2025

Two seismic policy moves define this moment:

  1. The Tariff Shock
    In April 2025, the Trump administration announced “Liberation Day” tariffs—a broad package covering imports from China, the European Union, Mexico, and even allies like Canada. Rates ranged from 10–25% on key categories: steel, semiconductors, consumer electronics, and autos. Agricultural tariffs were imposed in retaliation for EU protections.

    Tariffs function as a negative supply shock: they raise costs for businesses reliant on imported inputs and push consumer prices upward. They also invite retaliatory tariffs, reducing export competitiveness. Unlike demand-side inflation, this variety of inflation is harder for central banks to tame without triggering recession.

  2. The Deportation Drive
    Simultaneously, mass deportations have reduced the U.S. workforce by an estimated 1–2 million workers annually, particularly in agriculture, construction, hospitality, and logistics. These sectors, already reliant on migrant labor, face acute shortages. Wages are rising as employers scramble to fill roles, but output is falling as crops go unpicked and projects stall.

Together, tariffs and deportations constrict both the supply of goods and the supply of labor, creating inflationary pressure even as economic growth slows.


The Data: Signs of a Stagflationary Drift

By summer 2025, leading indicators began flashing yellow:

  • GDP Growth Downgraded: Forecasts fell from 2.4% in 2024 to ~1.5% in 2025.

  • Inflation Sticky at 4%: Despite Fed tightening, consumer prices remain stubbornly high.

  • Jobs Market Softening: Payroll growth slowed, while ISM Services reported a spike in “Prices Paid.”

  • Dollar Weakening: Currency depreciation added to import costs.

  • Corporate Earnings Warnings: Firms in retail and manufacturing cited tariffs as a drag on margins.

These trends align with the textbook profile of stagflation: slowing growth + rising prices + labor disruptions.


Historical Echoes: From the 1970s to Japan’s “Lost Decades”

Economists naturally draw parallels to the 1970s, when the oil shocks forced Americans to endure gas lines, double-digit inflation, and stagnating real incomes. The Federal Reserve, led by Paul Volcker, eventually crushed inflation through punishingly high interest rates—but only at the cost of a deep recession.

Some analysts also point to Japan’s “lost decades” (1990s–2010s) as a cautionary tale. There, the combination of demographic decline, financial overhang, and policy missteps locked Japan into a cycle of stagnation. The U.S., however, faces an inflationary version of stagnation—Japan with rising prices instead of falling ones.

The lesson from both precedents is sobering: once economies enter low-growth traps, whether inflationary or deflationary, escape is painfully difficult.


Mainstream Consensus: Stagflation Risks Are Real

A wide array of prominent economists and institutions have sounded the alarm.

  • Paul Krugman (NYT) has argued that Trump’s tariffs are a “self-inflicted wound,” likening them to a 1970s-style stagflationary trap.

  • Torsten Slok (Apollo Global) emphasizes that tariffs, deportations, and a weakening dollar “simultaneously boost prices and weigh on growth.”

  • Mohamed El-Erian (Allianz) warns that tariffs risk stagflation, though targeted ones might yield limited benefits.

  • Justin Wolfers (University of Michigan) calls current policy “stagflationary by design.”

  • EY & Pantheon Macroeconomics forecast that tariffs will reduce GDP by 1–1.4% in 2025–26 while adding 1 percentage point to inflation.

  • Bank of America economists expect no Fed rate cuts in 2025, citing sticky inflation from deportations and tariffs.

These warnings are not confined to left-leaning economists. Even centrist institutions like EY and Pantheon—normally cautious—have published reports projecting stagflation as a baseline risk.


Dissenting Perspectives: Optimism Against the Tide

Not everyone agrees. Some economists argue the stagflation narrative is overstated, citing offsetting dynamics:

  • Nouriel Roubini (Project Syndicate) argues that an AI-driven productivity boom could propel growth above 3%, offsetting policy shocks.

  • Moody’s Analytics sees “modest stagflation” but not a crisis—slower growth without outright recession.

  • Oxford Economics predicts GDP growth around 2% in 2025, with deportation effects overstated if native hiring and automation step in.

  • Even Bank of America, in alternate reports, suggests technology investment and reshoring could help the U.S. avoid worst-case scenarios.

Pro-Trump economists like Stephen Moore and Arthur Laffer argue that tariffs accelerate reshoring, protect jobs, and create long-term competitiveness. Their case is that short-term pain equals long-term gain.


The Federal Reserve’s Dilemma

The Federal Reserve is caught in a trap. If it raises rates to combat tariff-driven inflation, it risks deepening stagnation. If it cuts rates to support growth, it risks fueling inflation. This “Scylla and Charybdis” dilemma mirrors the 1970s, when central banks lost credibility by wavering between priorities.

Fed Chair Jerome Powell has so far maintained a cautious stance, signaling that rate cuts are unlikely in 2025. But internal debates reflect the uncertainty: some argue the Fed should accept higher inflation to preserve growth, while others warn that credibility is paramount.


Global Repercussions: Trade Wars and Confidence Shocks

The stagflation debate is not confined to U.S. borders. Tariffs have triggered retaliation from trading partners, leading to a fragmented global trade environment reminiscent of the 1930s Smoot-Hawley era. Allies like Canada and the EU have imposed counter-tariffs, while China has shifted exports toward emerging markets.

Meanwhile, global investors are reevaluating the dollar’s role as the world’s reserve currency. If confidence erodes, capital flight could accelerate, further weakening the dollar and stoking inflation.


The Technology Wildcard: AI and Productivity

Amid the gloom, one potential lifeline stands out: technology. The U.S. leads the world in artificial intelligence (AI) and digital infrastructure, and many analysts believe a productivity boom is underway. If AI-driven efficiencies boost labor productivity by 2–3% annually, the U.S. could offset some of the drag from tariffs and deportations.

This is the heart of the optimists’ case: that America’s unique technological dynamism will prevent a 1970s-style malaise. Unlike that decade, the U.S. today sits atop the commanding heights of the digital economy.


Political Consequences: Economics as Destiny

The politics of stagflation are unforgiving. Voters may tolerate high inflation for a time, or low growth for a time—but not both simultaneously. The late 1970s collapse of Jimmy Carter’s presidency is a stark reminder.

By 2025, economic anxieties are already shaping the presidential race. Trump’s supporters frame tariffs as patriotic defense of American industry, while critics warn of creeping stagflation. The electoral verdict in 2026 will likely hinge on whether households feel inflation easing or stagnation deepening.


Conclusion: America’s Gamble

The U.S. stands at a fork in the road.

  • On one path lies a replay of the 1970s: a stagflationary spiral of weak growth, sticky inflation, and political malaise.

  • On the other lies a path of resilience, powered by AI, reshoring, and productivity gains that could offset policy-induced shocks.

What makes this moment historic is that the outcome is not preordained. America is running a high-stakes experiment—testing whether its technological and institutional resilience can overcome the self-inflicted wounds of tariffs and deportations.

The coming years will reveal whether the U.S. has entered a stagflationary trap—or whether it will once again defy predictions and reinvent its economy.

Either way, the gamble will shape not only America’s next election but also its role in the global economy for decades to come.






ठहराव या लचीलापन? अमेरिका की मध्य-2025 की आर्थिक बाज़ी


प्रस्तावना: 1970 के दशक की परछाई

“स्टैगफ्लेशन” शब्द कभी 1970 के दशक की अनूठी बीमारी माना जाता था—एक भयावह आर्थिक स्थिति जिसमें मुद्रास्फीति ऊँची, विकास दर ठहरी हुई और बेरोज़गारी बढ़ती चली जाती थी। इसे लंबे समय तक बीते जमाने की घटना समझा गया, जो ओपेक तेल प्रतिबंध और ब्रेटन वुड्स व्यवस्था के अंत से उपजी थी।

दशकों तक स्टैगफ्लेशन केवल पाठ्यपुस्तकों में पढ़ाया जाता रहा। परंतु 2025 के मध्य तक यह भूत फिर लौट आया है। व्यापक आयात शुल्क और बड़े पैमाने पर निष्कासन (deportations) की नीतियाँ अमेरिकी अर्थव्यवस्था की लागत संरचना और श्रम आपूर्ति दोनों को झकझोर रही हैं। अब प्रश्न यह है: क्या अमेरिका फिर से स्टैगफ्लेशन की ओर बढ़ रहा है?

यह बहस केवल अकादमिक नहीं है। इसके दांव गहरे हैं—फेडरल रिज़र्व की नीतियों से लेकर व्यापारिक निवेश, चुनावी नतीजों और वैश्विक स्तर पर अमेरिकी साख तक। अगले दो वर्षों में जो होगा, वही तय करेगा कि अमेरिका 1970 के दशक जैसी ठहराव-फुलाव की जकड़ में फँसता है या तकनीकी नवाचार के बल पर अपनी लचक साबित करता है।


2025 की नीतिगत झटके

दो बड़े कदम इस समय को परिभाषित करते हैं:

  1. टैरिफ़ झटका
    अप्रैल 2025 में ट्रंप प्रशासन ने “लिबरेशन डे” शुल्क की घोषणा की—चीन, यूरोपीय संघ, मैक्सिको और कनाडा जैसे सहयोगियों तक को निशाना बनाते हुए। इस पैकेज में स्टील, सेमीकंडक्टर, इलेक्ट्रॉनिक्स और ऑटो पर 10–25% तक शुल्क लगाया गया। यूरोपीय कृषि संरक्षण के जवाब में अमेरिकी कृषि उत्पादों पर भी शुल्क लगा।

    शुल्क मूलतः आपूर्ति-पक्षीय झटका होते हैं: वे आयातित वस्तुओं की लागत बढ़ाते हैं, उपभोक्ता मूल्य ऊपर धकेलते हैं, और निर्यात प्रतिस्पर्धा घटाते हैं। मांग-पक्षीय मुद्रास्फीति की तरह इन्हें ब्याज दरों से नियंत्रित करना आसान नहीं होता।

  2. निष्कासन अभियान
    साथ ही, बड़े पैमाने पर निष्कासन से अमेरिकी श्रमशक्ति सालाना लगभग 10–20 लाख श्रमिकों तक घट रही है। कृषि, निर्माण, आतिथ्य और लॉजिस्टिक्स जैसे क्षेत्रों में इसकी मार सबसे गहरी है। वेतन दरें बढ़ रही हैं क्योंकि नियोक्ता श्रमिक खोजने में जूझ रहे हैं, लेकिन उत्पादन गिर रहा है—फसलें अधपकी रह जाती हैं, परियोजनाएँ ठप हो जाती हैं।

दोनों मिलकर वस्तुओं की आपूर्ति और श्रम की आपूर्ति को संकुचित कर रहे हैं। नतीजा: मुद्रास्फीति दबाव + विकास की सुस्ती।


आँकड़े: स्टैगफ्लेशन की दिशा में सरकाव

गर्मी 2025 तक कई संकेतक चेतावनी दे रहे थे:

  • जीडीपी वृद्धि घटकर 1.5% (2024 में 2.4% से)।

  • मुद्रास्फीति 4% पर अटकी, सख़्ती के बावजूद।

  • रोज़गार वृद्धि सुस्त, आईएसएम सेवाएँ सूचकांक “प्राइसिज़ पेड” में उछाल।

  • डॉलर कमजोर, आयात और महँगे हुए।

  • कंपनी मुनाफ़ा चेतावनी, खुदरा और विनिर्माण फर्मों ने शुल्क को मारक बताया।

यह सब क्लासिक स्टैगफ्लेशन की तस्वीर है: धीमी वृद्धि + ऊँचे दाम + श्रम व्यवधान।


ऐतिहासिक गूंज: 1970 का दशक और जापान के “खोए दशक”

1970 के दशक के तेल झटके सबसे प्रमुख सन्दर्भ हैं। उस दौर में मुद्रास्फीति दो अंकों तक पहुँची, पर विकास ठहर गया। अंततः पॉल वोल्कर के नेतृत्व में फेडरल रिज़र्व ने ब्याज दरों को आसमान पर पहुँचा कर मुद्रास्फीति तोड़ी—पर गहरी मंदी की कीमत पर।

कुछ लोग जापान के “खोए दशकों” का भी उल्लेख करते हैं। वहाँ जनसांख्यिकीय गिरावट और नीति विफलताओं ने स्थायी ठहराव पैदा किया। फर्क इतना है कि जापान में यह मंदी + अवस्फीति थी, जबकि अमेरिका के लिए खतरा मंदी + मुद्रास्फीति का है।

सबक यह है: एक बार अर्थव्यवस्था ठहराव में फँस गई, तो निकलना बेहद कठिन होता है।


मुख्यधारा सहमति: स्टैगफ्लेशन का खतरा वास्तविक

कई प्रमुख अर्थशास्त्री और संस्थान चेतावनी दे रहे हैं:

  • पॉल क्रुगमैन: “स्व-प्रेरित 1970 जैसा जाल।”

  • टॉर्स्टन स्लॉक (अपोलो ग्लोबल): शुल्क + निष्कासन + डॉलर कमजोरी = “स्टैगफ्लेशन की धक्का।”

  • मो. एल-एरियन (एलायंज़): शुल्क स्टैगफ्लेशनकारी, निष्कासन से श्रम संकट और गहरा।

  • जस्टिन वॉल्फर्स: “नीति डिज़ाइन से ही स्टैगफ्लेशन।”

  • ईवाई व पैंथियन मैक्रोइकॉनॉमिक्स: जीडीपी 1–1.4% घटेगी, मुद्रास्फीति +1%।

  • बैंक ऑफ अमेरिका: 2025 में ब्याज दर कटौती असंभव, मुद्रास्फीति बनी रहेगी।


भिन्न मत: आशावाद की दलीलें

परंतु कुछ आवाज़ें कहती हैं कि यह भय अतिरंजित है:

  • नूरियल रूबिनी: एआई उत्पादकता उछाल से 3%+ वृद्धि संभव।

  • मूडीज़ एनालिटिक्स: “मामूली स्टैगफ्लेशन,” गहरी मंदी नहीं।

  • ऑक्सफोर्ड इकोनॉमिक्स: जीडीपी ~2%, निष्कासन प्रभाव अतिरंजित।

  • बैंक ऑफ अमेरिका (अन्य रिपोर्ट): तकनीकी निवेश और रीशोरिंग राहत देंगे।

ट्रंप समर्थक अर्थशास्त्री (स्टीफन मूर, आर्थर लैफ़र) तर्क देते हैं कि शुल्क दीर्घकाल में प्रतिस्पर्धा और उद्योग सुरक्षा लाते हैं।


फेडरल रिज़र्व की दुविधा

फेडरल रिज़र्व क्लासिक जाल में है।

  • दरें बढ़ाएँ → मुद्रास्फीति पर रोक, पर मंदी गहरी।

  • दरें घटाएँ → विकास राहत, पर मुद्रास्फीति तेज़।

यह वही “स्किला और कैरीब्डिस” स्थिति है जो 1970 के दशक में देखी गई थी। चेयर जेरोम पॉवेल अभी दरें ऊँची रखने के पक्ष में हैं।


वैश्विक असर: व्यापार युद्ध और विश्वास संकट

टैरिफ़ ने प्रतिशोध को जन्म दिया। ईयू और कनाडा ने शुल्क लगाए, चीन ने निर्यात मोड़ा। यह स्मूट-हॉले 1930 जैसा माहौल बना रहा है।

साथ ही, डॉलर पर वैश्विक भरोसा दरक सकता है। यदि निवेशक पीछे हटे, तो पूँजी पलायन और मुद्रास्फीति दोनों बढ़ेंगे।


तकनीकी तुरुप का पत्ता: एआई और उत्पादकता

निराशा के बीच उम्मीद की किरण तकनीक है। अमेरिका कृत्रिम बुद्धिमत्ता (AI) और डिजिटल ढाँचे में अग्रणी है। यदि उत्पादकता सालाना 2–3% तक बढ़ी, तो शुल्क-निष्कासन के असर कुछ हद तक संतुलित हो सकते हैं।

यही आशावादियों की मुख्य दलील है: आज का अमेरिका 1970 का नहीं है।


राजनीतिक परिणाम: अर्थशास्त्र ही नियति

स्टैगफ्लेशन का राजनीति पर असर घातक होता है। मतदाता महँगाई झेल सकते हैं, या मंदी झेल सकते हैं—पर दोनों साथ नहीं। 1970 के दशक में जिमी कार्टर की पराजय इसका सबूत है।

2025 तक यह बहस पहले ही चुनावी मुद्दा बन चुकी है। ट्रंप समर्थक शुल्क को देशभक्ति बताते हैं, विपक्ष इसे स्टैगफ्लेशन की सीढ़ी मानता है।


निष्कर्ष: अमेरिका की आर्थिक बाज़ी

अमेरिका आज चौराहे पर खड़ा है।

  • एक राह: 1970 का पुनरावृत्ति—ठहराव, ऊँचे दाम, राजनीतिक निराशा।

  • दूसरी राह: लचीलापन—एआई, रीशोरिंग और उत्पादकता से नई ताक़त।

यह परिणाम पूर्वनिर्धारित नहीं है। अमेरिका उच्च-दांव की आर्थिक बाज़ी खेल रहा है। आने वाले वर्षों में तय होगा कि वह स्टैगफ्लेशन के जाल में फँसता है या फिर से अपनी अर्थव्यवस्था का कायाकल्प करता है।

जो भी हो, यह दांव सिर्फ अगले चुनाव को नहीं बल्कि आने वाले दशकों में अमेरिका की वैश्विक भूमिका को तय करेगा।







The Convergence Age: Ten Forces Reshaping Humanity’s Future
Kalkiism: The Economic And Spiritual Blueprint For An Age Of Abundance
The Last Age: Lord Kalki, Prophecy, and the Final War for Peace
The Protocol of Greatness (novel)
A Reorganized UN: Built From Ground Up
The Drum Report: Markets, Tariffs, and the Man in the Basement (novel)
World War III Is Unnecessary
Grounded Greatness: The Case For Smart Surface Transit In Future Cities
The Garden Of Last Debates (novel)
Deported (novel)
Empty Country (novel)
Trump’s Default: The Mist Of Empire (novel)

The 20% Growth Revolution: Nepal’s Path to Prosperity Through Kalkiism
Rethinking Trade: A Blueprint for a Just and Thriving Global Economy
The $500 Billion Pivot: How the India-US Alliance Can Reshape Global Trade
Trump’s Trade War
Peace For Taiwan Is Possible
Formula For Peace In Ukraine
A 2T Cut
Are We Frozen in Time?: Tech Progress, Social Stagnation
The Last Age of War, The First Age of Peace: Lord Kalki, Prophecies, and the Path to Global Redemption
AOC 2028: : The Future of American Progressivism

Thursday, August 14, 2025

14: Inflation

Kalkiism: The Economic And Spiritual Blueprint For An Age Of Abundance
The Last Age: Lord Kalki, Prophecy, and the Final War for Peace
The Protocol of Greatness (novel)
A Reorganized UN: Built From Ground Up
The Drum Report: Markets, Tariffs, and the Man in the Basement (novel)
World War III Is Unnecessary
Grounded Greatness: The Case For Smart Surface Transit In Future Cities
The Garden Of Last Debates (novel)
Deported (novel)
Empty Country (novel)
Trump’s Default: The Mist Of Empire (novel)

The 20% Growth Revolution: Nepal’s Path to Prosperity Through Kalkiism
Rethinking Trade: A Blueprint for a Just and Thriving Global Economy
The $500 Billion Pivot: How the India-US Alliance Can Reshape Global Trade
Trump’s Trade War
Peace For Taiwan Is Possible
Formula For Peace In Ukraine
A 2T Cut
Are We Frozen in Time?: Tech Progress, Social Stagnation
The Last Age of War, The First Age of Peace: Lord Kalki, Prophecies, and the Path to Global Redemption
AOC 2028: : The Future of American Progressivism

Don’t write off the Putin-Trump summit just yet – its outcome might confound critics Like many such confabs before it, the Aug. 15, 2025, Alaska red carpet rollout for Russian President Vladimir Putin is classic Donald Trump: A show of diplomacy as pageantry that seemingly came out of nowhere, replete with vague goals and hardened expectations about the outcome from Trump supporters and opponents alike before the event has even taken place. .......... he has always made it clear that his priority is to restore a good relationship with Russia, rather than save Ukraine from defeat. ......... Trump’s track record of admiration for Putin, and the summit format that excludes both Ukraine and its European allies, has provided ample fodder for critics of U.S. policy under Trump. ......... Meanwhile, in Moscow, despite Trump’s vague talk of a “land swap” that implies Ukraine could regain some lost territory, the uniformly pro-government Russian press is already hailing the upcoming summit as a victory for Putin and a “a catastrophe for Kyiv”,“ as the MK newspaper declared. .........

Respected Russian émigré journalist Tatyana Stanovaya, for one, has argued that the meeting offers the "first more or less real attempt to stop the war.”

............ In June, he joined Israel’s airstrikes against Iran, Russia’s biggest ally in the Middle East. On Aug. 8, he hosted the presidents of Armenia and Azerbaijan at the White House to sign a historic peace deal – a huge diplomatic defeat for Russia, which historically has dominated the politics of the south Caucasus region. ........... Trump’s ongoing global trade war is also alarming for Russia. On Aug. 7, Trump slapped punitive new tariffs on 90 countries that failed to make deals before his deadline. Trump has shown himself willing to use American power to bully trade partners who cannot effectively retaliate — such as Brazil, Canada, Switzerland and now India. .............. Indeed, Trump noticed that India bought US$80 billion of Russian oil last year — more than China. On Aug. 6, the same day that Trump announced the Alaska meeting, he imposed 50% tariffs on India, which will not come into effect for 21 days unless India cuts back on imports of Russian crude. ........... With the Russian economy under strain and with global oil prices falling, Russia risks losing critical revenue from selling oil to India. That could conceivably be the tipping point for Putin, persuading him to halt the war. ............. India may ignore Trump’s oil sanction. Key Indian exports to the U.S., such as iPhones and pharmaceuticals, are exempt from the 50% tariff, and they account for about $20 billion of India’s $80 billion annual exports to the U.S. ............. the global oil market is highly adaptable. Russian oil not bought by India could easily be picked up by China, Turkey, Italy, Malaysia and others. Even if Russia lost $10 billion to 20 billion as a result of the India sanctions, with overall government revenue of $415 billion a year, that would not derail Moscow’s ability to wage war on Ukraine. .................. It remains unclear what Trump actually wants to achieve in Alaska. The details of the deal he is trying to persuade Putin to accept are unclear. For the Trump administration, the basic idea for ending the conflict appears to be land for peace: an end to military action by both sides and de facto recognition of the Ukrainian territory currently occupied by Russian forces. ............ One glaring problem with this formulation is that Russia does not control all the territory of the four Ukrainian provinces that it claims. They occupy nearly all of Luhansk, but not all of Donetsk, and only 60% of Zaporizhzhia and Kherson. If Russia insists on taking all of Donetsk province, for example, Ukraine would have to hand over about 2,500 square miles (6,500 square kilometers), with 200,000 people, mainly in the cities of Kramatorsk and Slovyansk. ............. It is hard to imagine President Volodymyr Zelenskyy agreeing to such a concession. ........... Yet it is equally hard to see Putin giving up his claim to all four provinces, which were formally incorporated into the Russian Federation in October 2022. In a June 2024 speech to the Russian foreign ministry, Putin laid out his most thorough analysis of the “root causes” and course of the conflict. He stated that the legal status of the four provinces as part of Russia “is closed forever and is no longer a matter for discussion.” ..........

Both Ukrainian and Russian societies are tired of a conflict that neither of them wanted. But at the same time, in neither country does most of the public want peace at any price.

............. If Trump can persuade Putin to agree to give up his claims to the entire territory of the four provinces in Ukraine’s east, that would be a substantial concession – and one that Zelenskyy may be well-advised to pocket. Putin would also expect something in return — such as the lifting of international sanctions and restoration of full diplomatic relations with the U.S. Then Putin could fly back to Moscow and tell the Russian people that Russia has won the war. ........... given Putin’s apparent confidence that Russia is winning the war, it remains unlikely that he will be persuaded by anything that Trump has to offer in Anchorage.

MAGA’s Feelings Don’t Care About Your Facts Reality is what Trump says it is ............ Just under two weeks ago the Bureau of Labor Statistics reported a sharp slowdown in job growth — consistent with independent surveys that also show a slowing economy. Donald Trump responded by firing the Bureau’s head and wants to replace her with an unqualified right-wing hack — let’s be honest, OK? — whose big idea for dealing with troubling job numbers is to stop releasing them. ..........

This week Trump seized control of the Washington DC police force and sent in the National Guard to deal with what he claims is a runaway crime wave, even though crime in the District has been falling rapidly.

............... What these two stories have in common is this: MAGA’s feelings don’t care about your facts. And the rejection of data Trump doesn’t like will surely extend to many areas beyond jobs and crime. .......... About jobs: E.J. Antoni, Trump’s pick for BLS Commissioner, has actually said that we should define a recession not on the basis of things like employment data or GDP but by how people “feel.” Now, that criterion wouldn’t serve him or his master very well if we look at surveys of public opinion. The American people appear to feel really bad about the economy: ......... Antoni is saying that we should define a recession by how Trump feels. And since he insists we’re in a boom, it’s all good. ........ About crime: If Trumpists wanted to make a semi-serious argument for occupying Washington, it would be that

while DC crime is falling, it’s still high compared with relatively low-crime cities like New York or Los Angeles.

............

the idea that the NYPD is rigging the crime data to make liberal mayors look good is simply hilarious.

............. Trump’s tariffs are already starting to show in the inflation numbers, and the vast majority of independent economists believe that we’ll be seeing a lot more of that in the months ahead. .......... My guess is that the next frontier in feelings-over-facts will involve public health. .......... New York City, which aside from being a dystopian hellscape is one of the few places in America that has life expectancy comparable to other advanced countries. ............ a lot of this has to do with New Yorkers being less likely than other Americans to die in traffic accidents. .............. we now have an anti-vaxxer, who reportedly doesn’t even accept the germ theory of infectious diseases, serving as America’s top health official. ............ around 17 million Americans will lose health insurance over the next few years. And there’s clear evidence that loss of insurance will lead to higher mortality. .............. we’re clearly entering an era of policy driven by feelings rather than facts.

Donald Trump's approval rating dropping with Republicans
Opinion: Inflation or recession? Either way, Trump’s tariffs will leave lasting scars.
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Report: Shoppers Spending $47 More Per Month Under Trump's Tariff Regime

Kalkiism: The Economic And Spiritual Blueprint For An Age Of Abundance
The Last Age: Lord Kalki, Prophecy, and the Final War for Peace
The Protocol of Greatness (novel)
A Reorganized UN: Built From Ground Up
The Drum Report: Markets, Tariffs, and the Man in the Basement (novel)
World War III Is Unnecessary
Grounded Greatness: The Case For Smart Surface Transit In Future Cities
The Garden Of Last Debates (novel)
Deported (novel)
Empty Country (novel)
Trump’s Default: The Mist Of Empire (novel)

The 20% Growth Revolution: Nepal’s Path to Prosperity Through Kalkiism
Rethinking Trade: A Blueprint for a Just and Thriving Global Economy
The $500 Billion Pivot: How the India-US Alliance Can Reshape Global Trade
Trump’s Trade War
Peace For Taiwan Is Possible
Formula For Peace In Ukraine
A 2T Cut
Are We Frozen in Time?: Tech Progress, Social Stagnation
The Last Age of War, The First Age of Peace: Lord Kalki, Prophecies, and the Path to Global Redemption
AOC 2028: : The Future of American Progressivism

This isn’t how wars are ended − a veteran diplomat explains how Trump-Putin summit is amateurish and politically driven the unconventional meeting and why it’s likely to produce, as he says, a photograph and a statement, but not a peace deal. ........... Wars end for three reasons. One is that both sides get exhausted and decide to make peace. The second, which is more common: One side gets exhausted and raises its hand and says, “Yeah, we’re ready to come to the peace table.” ........... And then the third is – we’ve seen this happen in the Mideast – outside forces like the U.S. or Europe come in and say, “That’s enough. We’re imposing our will from the outside. You guys stop this.” ........... the role that Trump and his administration are playing right now is that third possibility, an outside power comes in and says, “Enough.” ..........

Russia is maybe a former superpower, but a power, and it’s got nuclear arms and it’s got a big army. This is not some small, Middle Eastern country that the United States can completely dominate. They’re nearly a peer.

............. we go back to 1938. Germany said, “Listen, we have all these German citizens living in this new country of Czechoslovakia. They’re not being treated right. We want them to become part of Germany.” .............. The prime minister of Great Britain, Neville Chamberlain, went and met with Hitler in Munich and came up with an agreement by which the German parts of Czechoslovakia would become part of Germany. And that would be it. That would be all that Germany would ask for, and the West gave some kind of light security guarantees. ..............

Czechoslovakia wasn’t there. This was a peace imposed on them.

............ And sure enough, you know, within a year or two, Germany was saying, “No, we want all of Czechoslovakia. And, P.S., we want Poland.” And thus World War II started. .......... compare Putin to Hitler, but he is a strongman authoritarian president with a big military. ............. Security guarantees were given to Czechoslavakia and not honored. The West gave Ukraine security guarantees when that country gave up its nuclear weapons in 1994. We told them, “If you’re going to be brave and give up your nuclear weapons, we’ll make sure you’re never invaded.” And they’ve been invaded twice since then, in 2014 and 2022. The West didn’t step up. ............. Here’s what usually happens in most countries that have a big foreign policy or national security establishment, and even in some smaller countries. ........... The political leaders come up with their policy goal, what they want to achieve. ........... And then they tell the career civil servants and foreign service officers and military people, “This is what we want to get at the negotiating table. How do we do that?” ........... And then the experts say, “Oh, we do this and we do that, and we’ll assign staff to work it out. We’ll work with our Russian counterparts and try to narrow the issues down, and we’ll come up with numbers and maps.” ............... They’ve also fired the senior level of civil servants and foreign service officers, and a lot of the mid-levels are leaving, so that expertise isn’t there. ........... That’s a real problem. The U.S. national security establishment is increasingly being run by the B team – at best. ................... It’s going to be two political leaders meeting and deciding things, often driven by political considerations, but without any real idea of whether they can really be implemented or how they could be implemented. ............ People who understand the process of diplomacy think that this is very amateurish and is unlikely to yield real results that are enforceable. It will yield some kind of statement and a photo of Trump and Putin shaking hands. There will be people who believe that this will solve the problem. It won’t.

Kalkiism: The Economic And Spiritual Blueprint For An Age Of Abundance
The Last Age: Lord Kalki, Prophecy, and the Final War for Peace
The Protocol of Greatness (novel)
A Reorganized UN: Built From Ground Up
The Drum Report: Markets, Tariffs, and the Man in the Basement (novel)
World War III Is Unnecessary
Grounded Greatness: The Case For Smart Surface Transit In Future Cities
The Garden Of Last Debates (novel)
Deported (novel)
Empty Country (novel)
Trump’s Default: The Mist Of Empire (novel)

The 20% Growth Revolution: Nepal’s Path to Prosperity Through Kalkiism
Rethinking Trade: A Blueprint for a Just and Thriving Global Economy
The $500 Billion Pivot: How the India-US Alliance Can Reshape Global Trade
Trump’s Trade War
Peace For Taiwan Is Possible
Formula For Peace In Ukraine
A 2T Cut
Are We Frozen in Time?: Tech Progress, Social Stagnation
The Last Age of War, The First Age of Peace: Lord Kalki, Prophecies, and the Path to Global Redemption
AOC 2028: : The Future of American Progressivism

Tuesday, July 15, 2025

15: Tariff, Inflation

World War III Is Unnecessary
Grounded Greatness: The Case For Smart Surface Transit In Future Cities
The Garden Of Last Debates (novel)
Deported (novel)
Empty Country (novel)
Trump’s Default: The Mist Of Empire (novel)
The 20% Growth Revolution: Nepal’s Path to Prosperity Through Kalkiism
Rethinking Trade: A Blueprint for a Just and Thriving Global Economy
The $500 Billion Pivot: How the India-US Alliance Can Reshape Global Trade
Trump’s Trade War
Peace For Taiwan Is Possible
Formula For Peace In Ukraine
A 2T Cut
Are We Frozen in Time?: Tech Progress, Social Stagnation
The Last Age of War, The First Age of Peace: Lord Kalki, Prophecies, and the Path to Global Redemption
AOC 2028: : The Future of American Progressivism

World War III Is Unnecessary
Grounded Greatness: The Case For Smart Surface Transit In Future Cities
The Garden Of Last Debates (novel)
Deported (novel)
Empty Country (novel)
Trump’s Default: The Mist Of Empire (novel)
The 20% Growth Revolution: Nepal’s Path to Prosperity Through Kalkiism
Rethinking Trade: A Blueprint for a Just and Thriving Global Economy
The $500 Billion Pivot: How the India-US Alliance Can Reshape Global Trade
Trump’s Trade War
Peace For Taiwan Is Possible
Formula For Peace In Ukraine
A 2T Cut
Are We Frozen in Time?: Tech Progress, Social Stagnation
The Last Age of War, The First Age of Peace: Lord Kalki, Prophecies, and the Path to Global Redemption
AOC 2028: : The Future of American Progressivism

World War III Is Unnecessary
Grounded Greatness: The Case For Smart Surface Transit In Future Cities
The Garden Of Last Debates (novel)
Deported (novel)
Empty Country (novel)
Trump’s Default: The Mist Of Empire (novel)
The 20% Growth Revolution: Nepal’s Path to Prosperity Through Kalkiism
Rethinking Trade: A Blueprint for a Just and Thriving Global Economy
The $500 Billion Pivot: How the India-US Alliance Can Reshape Global Trade
Trump’s Trade War
Peace For Taiwan Is Possible
Formula For Peace In Ukraine
A 2T Cut
Are We Frozen in Time?: Tech Progress, Social Stagnation
The Last Age of War, The First Age of Peace: Lord Kalki, Prophecies, and the Path to Global Redemption
AOC 2028: : The Future of American Progressivism

World War III Is Unnecessary
Grounded Greatness: The Case For Smart Surface Transit In Future Cities
The Garden Of Last Debates (novel)
Deported (novel)
Empty Country (novel)
Trump’s Default: The Mist Of Empire (novel)
The 20% Growth Revolution: Nepal’s Path to Prosperity Through Kalkiism
Rethinking Trade: A Blueprint for a Just and Thriving Global Economy
The $500 Billion Pivot: How the India-US Alliance Can Reshape Global Trade
Trump’s Trade War
Peace For Taiwan Is Possible
Formula For Peace In Ukraine
A 2T Cut
Are We Frozen in Time?: Tech Progress, Social Stagnation
The Last Age of War, The First Age of Peace: Lord Kalki, Prophecies, and the Path to Global Redemption
AOC 2028: : The Future of American Progressivism

World War III Is Unnecessary
Grounded Greatness: The Case For Smart Surface Transit In Future Cities
The Garden Of Last Debates (novel)
Deported (novel)
Empty Country (novel)
Trump’s Default: The Mist Of Empire (novel)
The 20% Growth Revolution: Nepal’s Path to Prosperity Through Kalkiism
Rethinking Trade: A Blueprint for a Just and Thriving Global Economy
The $500 Billion Pivot: How the India-US Alliance Can Reshape Global Trade
Trump’s Trade War
Peace For Taiwan Is Possible
Formula For Peace In Ukraine
A 2T Cut
Are We Frozen in Time?: Tech Progress, Social Stagnation
The Last Age of War, The First Age of Peace: Lord Kalki, Prophecies, and the Path to Global Redemption
AOC 2028: : The Future of American Progressivism

Saturday, May 31, 2025

Adjusted for Productivity: A New Way to Rethink Wages and Economic Fairness




Adjusted for Productivity: A New Way to Rethink Wages and Economic Fairness

For over a century, “adjusted for inflation” has been the standard way economists and policymakers measure the real value of wages and economic growth over time. But what if we introduced a new metric—Adjusted for Productivity? What if we assessed worker compensation based not just on purchasing power, but on how much more productive each worker has become due to advances in technology, processes, and education?

This seemingly simple idea could have radical implications for the economy, public policy, corporate practices, and the very fabric of how we define fairness in capitalism.


The Productivity-Wage Gap: A Brief History

Since the 1970s, productivity in advanced economies—especially the United States—has soared, thanks to automation, software, AI, and globalization. But wages have stagnated for the average worker. According to data from the Economic Policy Institute, between 1979 and 2020:

  • Productivity grew by 61.8%

  • Hourly compensation grew by just 17.5%

In a world “Adjusted for Productivity,” real wages would be much higher. If compensation had kept up, median workers would be earning tens of thousands of dollars more per year than they do today.


What Would "Adjusted for Productivity" Mean in Practice?

It could be used in three ways:

  1. A new wage benchmark – Employers, unions, and governments could use productivity-adjusted compensation as a guideline for setting fair wages.

  2. A policy framework – Tax incentives, wage floors, or profit-sharing laws could align pay with productivity.

  3. A public narrative shift – Just as “adjusted for inflation” changed how we view prices, “adjusted for productivity” could reframe how we view economic fairness.

Imagine a society where workers say, “I don’t just want a raise to beat inflation—I want my fair share of the productivity I helped generate.”


Counterarguments – And Why They Fall Short

1. "We can’t raise wages or we’ll hurt competitiveness."

This is the most common refrain from opponents of wage increases. But if productivity has risen, then businesses are getting more output per worker. Higher wages in this case don’t reflect inefficiency—they reflect shared success. In fact, higher wages can lead to:

  • Better employee retention and morale

  • Increased consumer demand (because workers have more to spend)

  • Incentives for further innovation (to maintain margins)

Moreover, companies enjoying record profits while suppressing wages are not protecting competitiveness—they are extracting surplus value.

2. "Some workers aren’t more productive—they just benefit from tech."

True, much of the productivity gain comes from systems, not individual effort. But this is a flawed argument. Companies adopt new technology because it enhances the value of their workforce. It’s a symbiotic relationship. If your software allows one worker to do what used to take three, that gain should be shared.

We don’t blame the steam engine for productivity gains in the 19th century—we credit the companies and workers who adapted it. Same goes today.

3. "Markets set wages, not fairness."

Yes—but markets are not neutral. They are shaped by power. When unions are weak, worker bargaining power is low. When monopolies dominate sectors, they can suppress wages. “Market wages” don’t always reflect value—they reflect who has leverage.

Adjusting for productivity wouldn’t override the market. It would inform it, giving us a clearer lens through which to understand what workers truly contribute.


Potential Economic Impacts of Widespread Productivity-Linked Compensation

1. Stronger Consumer Economy

More income for workers = more spending = stronger demand = more economic activity. This is especially vital in a consumer-driven economy like the U.S., where 70% of GDP is tied to household spending.

2. Reduced Inequality

If the gains of AI, automation, and global supply chains were shared fairly, it would close the gap between the wealthy and the working class. The billionaire class would still be rich—but the middle class would not be hollowed out.

3. More Political Stability

Economic despair breeds political extremism. Fairer distribution of productivity gains could reduce populist backlash, anti-globalization sentiment, and distrust in democratic systems.

4. Business Innovation

If companies can’t rely on wage suppression to maintain margins, they may lean harder into true innovation—better products, better systems, more value creation.


Why This Matters Now

We are at the dawn of the AI era. The potential for productivity to skyrocket is real. If we don't build fair compensation systems now, we risk repeating the mistakes of the last 50 years—where gains go to capital, not labor.

“Adjusted for Inflation” was the tool of the 20th century.

Adjusted for Productivity” should be the standard of the 21st.


Call to Action: Policymakers, business leaders, and citizens should begin integrating productivity-adjusted thinking into wage debates, economic modeling, and collective bargaining. A better economy isn’t just about more—it’s about fairer




The 20% Growth Revolution: Nepal’s Path to Prosperity Through Kalkiism
Rethinking Trade: A Blueprint for a Just and Thriving Global Economy
The $500 Billion Pivot: How the India-US Alliance Can Reshape Global Trade
Trump’s Trade War
Peace For Taiwan Is Possible
Formula For Peace In Ukraine
The Last Age of War, The First Age of Peace: Lord Kalki, Prophecies, and the Path to Global Redemption
AOC 2028: : The Future of American Progressivism

Velocity Money: Crypto, Karma, and the End of Traditional Economics
The Next Decade of Biotech: Convergence, Innovation, and Transformation
Beyond Motion: How Robots Will Redefine The Art Of Movement
ChatGPT For Business: A Workbook
Becoming an AI-First Organization
Quantum Computing: Applications And Implications
Challenges In AI Safety
AI-Era Social Network: Reimagined for Truth, Trust & Transformation

Remote Work Productivity Hacks
How to Make Money with AI Tools
AI for Beginners

Saturday, June 04, 2022

4: Abortion, Ukraine, Inflation

Wonking Out: How Low Must Inflation Go? , the politics of inflation are dominated by concerns about gasoline and food prices — precisely the prices over which policymakers in general, and the president in particular, have the least influence. ...... underlying inflation is running at something like 3.5 to 4 percent. ........ By 1984, and for the rest of the 1980s, the Fed felt comfortable about inflation because it was running at around only 4 percent .....

during Ronald Reagan’s second term, America’s underlying inflation rate was roughly what it is now

........ in 2010 Olivier Blanchard, then the chief economist of the International Monetary Fund, made the case for an inflation target as high as 4 percent. I made similar arguments to the European Central Bank a bit later. ........ right now we face a different question: How much are we prepared to pay to get back to 2 percent? ........ if the Fed were to apply the standards that prevailed in the 1980s, it would consider the current rate of inflation acceptable and declare victory. Instead, it’s putting a squeeze on credit markets and risking at least a mild recession to get us down to 2 percent from 4 percent. Why? It’s not because there’s a compelling economic case. ......... They fear that if they ease off at, say, 3 percent inflation, markets and the public will wonder whether they will eventually accept 4 percent, then 5 percent and so on. ...... What we’re seeing instead is monetary policy driven by softer, vaguer concerns about credibility. We live in peculiar times.


I Created the F.B.I.’s Active Shooter Program. The Officers in Uvalde Did Not Follow Their Training. Last Monday, the F.B.I. designated 61 shootings in 2021 as active shooter attacks, up from 40 in 2020 and 30 in 2019. We aren’t preventing the shootings ..........

the 78 minutes that the police in Uvalde waited before confronting the gunman at Robb Elementary

........... In the first few years after the massacre at Sandy Hook Elementary School in December 2012, the F.B.I. spent more than $30 million to send agents to police departments around the country. The goal was to train local officers how to handle active shooters so they would know how to go after a shooter with confidence and neutralize the threat. ......... In the past two years, the Uvalde school district has hosted at least two active shooter trainings .......... Current protocol and best practices say officers must persistently pursue efforts to neutralize a shooter when a shooting is underway. This is true even if only one officer is present. This is without question the right approach. .......... We need to understand why that protocol was not followed in Uvalde. ........ Last year, active shooters killed 103 people and injured 140 others in 30 states. Five of those attacks were in Texas. Most of our more than 800,000 law enforcement officers in the United States are in small departments. ......... After Sandy Hook the federal government adopted the run, hide, fight model, which instructs students and teachers to run first if they can, then hide if they must and, finally, fight to survive.




The Coming Rage of the Money Hawks

Inflation in the United States has probably peaked.

......... there is a substantial group of economic commentators who always believe the Fed is printing too much money. They believed this during the depths of the Great Depression; they believed this in the aftermath of the 2008 global financial crisis.


No One Can Hide From This Weapon in the War in Ukraine All wars have their iconic weapons, from the AK-47 to the I.E.D. In Ukraine, it’s the drone. ........ Drone operators are the new snipers, even though they are often miles from the battlefield. ........ the video, which was shared on Twitter late last month by Anton Gerashchenko, an adviser to the Ukrainian government. ......... In Ukraine, drones have brought international audiences right up to the front lines, documenting the destruction of cities and capturing footage of attacks against Russian ships and tanks, men and matériel. This mix of off-the-shelf drones and their larger military-grade brethren has experts watching the conflict closely and pondering what it means for future wars. .......... In Ukraine, winning and holding international support is as critical to the war effort as battlefield victories, which makes information operations vital. “These machines — in conjunction with social media and the internet — give a virtual panopticon of the conflict” ........... Drones are attractive to armies because they deliver one of the most costly and complex aspects of warfare — aerial operations — on the cheap. ........ Unmanned aerial vehicles have been used in Ukraine to surveil enemy troops and attack them with small explosives or in kamikaze attacks. They’ve been used to document the vast destruction that Russian artillery has inflicted on cities like Mariupol. They’ve captured what is said to be the execution of civilians. A drone may have been used to distract the Russian flagship Moskva while two missiles screamed in to sink it. ............. A wide range of drones has helped the Ukrainian Army punch above its weight on the battlefield, and the footage of attacks against ships and troops, tanks and helicopters has given Ukraine an easily shareable stream of videos for the global information war. ............... Drones carry their own moral hazards ....... “What a video surveillance can reveal is that a target was hit or not hit,” Dr. Kaag said. “What it can never reveal is the legitimacy of that particular target.” ............. drone operators are also vulnerable to the moral injury and post-traumatic stress that can affect troops on the ground. ............. It’s easy to cheer the destruction of yet another Russian tank and forget that the crew members being incinerated in the dramatic explosion are someone’s sons, possibly conscripted into a conflict beyond their control. ............... Misinformation is its own currency in war. .......... for a short time, the United States was essentially the world’s lone drone superpower. ........... rebels in Yemen launching attacks against Saudi infrastructure. ....... the clash between Azerbaijan and Armenia in Nagorno-Karabakh in 2020, where Azerbaijani drones destroyed hundreds of Armenian tanks, munitions and armored vehicles. ......... a crowdfunding campaign by the Ukrainian government that solicited donations of commercial drones and sought people with skills to fly them. ........ Drone warfare is pushing human pilots to the side. Some next-generation military drones rely on artificial intelligence to circle over an area, pick out enemy units and destroy them. In the coming years, drone technology will improve, and the cost of drones will decline. As they do,

the frightening truth is that troops and civilians in future conflicts will find fewer and fewer places to hide from the gaze of both man and machine

.




MATH 101: How to Get Better Introductions The best way to get that introduction? The forwardable email.





What Roe Did The question of abortion rights will re-enter the realm of electoral politics in a way it hasn’t for 50 years. ...... she argues for a “dignitarian feminism.” Bachiochi embraces women’s gains in professional and civic life but holds that techno-pharmacological birth control, the sexual revolution and the legalization of abortion have created a sexual and family culture that has ultimately been devastating to women’s well-being. ........ the post-Roe playbook for some Republicans: tighter abortion restrictions combined with a robust slate of family policies — some of which would be even bolder than the Biden administration’s proposals to date. ......... why the “gender revolution” has stalled; her belief that market logic has come to dominate our understandings of family, parenting, sex and feminism; her critique of modern “hookup” culture; and her pro-family economic agenda ........ whether it’s realistic to encourage the use of natural fertility regulation over hormonal contraception, how abortion relates to single motherhood and poverty, whether stricter abortion laws might benefit or hurt poor women, what role the law should play in teaching moral behavior, whether progressives have become too “Lockean” in their understanding of bodily autonomy, whether the sexual revolution gave people too much choice

6 Takeaways About Haiti’s Reparations to France How did the modern world’s most successful slave revolt give birth to a desperately poor nation? ......... A failed state. An aid trap. A land seemingly cursed by nature and human nature alike. When the world looks at Haiti, one of the poorest nations on the planet, sympathy for its endless suffering is often overshadowed by scolding and sermonizing about corruption and mismanagement. ........

Haitians overthrew their notoriously brutal French slave masters and declared independence in 1804 — the modern world’s first nation born of a slave revolt.

......... two decades later, when French warships returned to a people who had paid for their freedom with blood, issuing an ultimatum: Pay again, in staggering amounts of cold hard cash, or prepare for war. .......... For generations, the descendants of enslaved people paid the descendants of their former slave masters, with money that could have been used to build schools, roads, clinics or a vibrant economy. ...........