All posts by Niharika Sharma

United States’ Default On Its Debt

Written By: Niharika Sharma

US were to default on its debt on October 18, 2021, when Treasury Secretary Janet Yellen informed that the country was reaching its debt ceiling which currently stands around $28tn. Both the Republicans and Democrats were in conflict with each other as to how to resolve the issue by playing the blame game (1). As a result, on 15 October 2021, the Congress voted for short term bill to raise debt ceiling till December giving the government some room to act. At the US Senate, the constitution requires both majority and opposition parties vote to make changes to the debt ceiling. This means that even if there are 50 Democrats at the senate, yet it still requires at least 10 Republicans to vote for the measure to pass. As the US government cannot keep increasing its debt ceiling, the Republicans agreed to extend Biden’s government request for temporary increment of the debt ceiling which will be voted again on 3 December 2021(1).

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Germany Tumbles Down Into Recession

What Is Happening?


Fall in the industrial production in Germany has landed the nation into recession. As defined by National Bureau of Economic Research (NBER)’s Business Cycle Dating Committee, a recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in production, employment, real income, and other indicators (Fund).

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Probability of eradicating poverty is getting closer to 1.

Poverty has always been holding mankind from achieving its potential. The inability to maintain the basic levels of survival is still high among 1.85 billion people of the world today. Poverty has been rising faster than the economic policies to eradicate them, even when the rich like Bill Gates, donate most of their incomes to charities. It turns out that just making these physical resources available to the poor, plays very little in uplifting them as has been proven by this year’s Nobel Prize Winners, Abhijit Banerjee, Esther Duflo and Michael Kremer.

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