Category: economy
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Supply Chain Woes Turns Out to be the Main Culprit of COVID-era Inflation
Inflation can occur when too much money chases too few goods and services, but it can also result from supply disruptions, rising production costs, or global economic shocks. It suggests that inflation can come from either the demand side (a surge in demand or money), or the supply side (a shortage of supply). So here…
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The Tariff Game will Most Likely Benefit the US in the Long Run; Short-term Pain not be Ignored
It seems that everyone is hurting from the ongoing tariff wars. But I believe the US will emerge as the winner very soon, even though its citizens will have to bear some of the negatives in the shorter run. My belief is derived from three key facts: (1) The US remains the largest and most…
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The real threat to American prosperity
Given that I just wrote about the dominant status of US on the global economy, it seems strange that I now write about the downfall of the US. Well, while the US is still ahead, I am also convinced that the danger is real. Financial Times recently published a long article by Daron Acemoglu titled…
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Why the US is still the engine of the world economy
Recently I listened to a podcast between its host Barry Ritholtz and Torsten Slack, chief economist at Apollo, which gave me some fresh insights on why the US economy is firing on all cylinders despite the political turmoil going on. Also, he shed lights on why China is not going to be able to a…
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The American Civil War was a War on Supply Chains
I love to look at the Early Modern Period and the Modern Age through a capitalist lense. I see the significance of capitalism in almost every turn of historical events when I read the excellent book “Americana: A 400-year history of American Capitalism” by Bhu Srinivasan. After I read the chapter on the American Civil…
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The Transportation sector is much larger than the entertainment industry… but why do people think the other way?
This is a simple post about building the right perspective on sizes of different industries. I was listening to one of favorite supply chain management podcasts “Freightvine“, hosted by Dr. Chris Caplice at MIT, where he mentioned an interesting fact that the trucking industry is about 10 times larger than the music industry, which we…
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Why China’s Economy is in Trouble
This is a short post reflecting on how exactly China’s economy is doing. There are a lot of statistics floating around such as GDP or export. But recently I watched a few videos which drew me to a single measure: Labor share of GDP. Labor’s role in GDP is important for several key reasons: Labor…