Category Archives: Original Articles

Original Articles February 27, 2022 3 Comments

The Economics Behind Fast Fashion

Written By: Arshiya Chaudhary

A world without shifting consumer preferences is difficult to imagine, especially when it comes to the textile industry, since fashion evolves constantly. The ardent need to stay with the trend often forces consumers to shop every few weeks, propelling them to indulge in fast fashion, because who doesn’t love cheap, fast-moving, up to the minute clothes, right?

Fast fashion follows a linear business model. Brands acquire raw materials, transform them into apparel, and then sell them to the customers. As straightforward as it sounds, the actual process is quite the opposite.

Original Articles February 14, 2022 4 Comments

The Russia-Ukraine Crisis Or: How I Learned About Economic Deterrence

Written By: Sumeet Dhatt

Happy Xmas (War is Over)

Christmas Day, 1991 – The United States watches as the golden hammer and sickle that once flew over much of the East, representing the antithesis of their ways of life, is lowered from the Kremlin for the last time—the Soviet Union has collapsed, Merry Christmas, the war is over. In its ashes rises the newly democratic and independent states of Ukraine and the Russian Federation (7).

Over the three decades since the collapse of the Soviet Union, NATO – the North Atlantic Treaty Organization created to promote democratic ideals through political and military means – has expanded their influence, and are closing in on the Kremlin. The Russian Federation, formerly the head of the Soviet Union, watches as their once large sphere of influence reduces to ash.

Original Articles January 24, 2022 No comments

Is Protectionism Incompatible With Its Own Aims?

Written By: Arshiya Chaudhary

“The philosophy of protectionism is a philosophy of war” – Ludwig Von Mises. Cited by a renowned libertarian economist, this quote communicates the popular perception behind trade protectionism. But, can protectionism ever be a good idea? Or does it always contradict its own purpose?

Simply put, Protectionism is a policy that restricts free trade. In terms of world trade, it restricts imports from other countries using control methods like tariffs, quotas, production standards and government regulations. Protectionism within a country can be implemented to protect small firms and businesses from competition, by regulating taxes and subsidies.

Original Articles December 21, 2021 No comments

Beware Environmental Evangelism

Written By: Andrew Gibson (04/10/2021)

In the past weeks, China hasn’t only been busy with concerns of financial delinquency contagion stemming from the liquidity problems of its second largest real estate developer (6). The world’s second largest economy is now struggling with an energy crisis. The cause? In part, its own environmental commitments (3). Naturally, the question arises: how could the environmental obligations be so short-sighted as to cause such a severe shortage? Of course, they aren’t, and they didn’t, right? Surely there’s something else afoot. But, does it matter? Not really. In a world of narrative economics, the story can sometimes be more compelling than the facts. Indeed, surging power demand, a cessation of Australian coal imports, lagging coal production and a resulting depletion of inventories (4) make it seem as though the energy problem is arising from market forces, not concerns for the environment. Yet, many Chinese are pointing the finger at government policy. Interestingly, they might not be wrong for doing so.

Original Articles November 4, 2021 1 Comment

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).