Steven Chai

02/11/15
8-2A

Economics HW Article Summaries

1) The Economist: On the Dragons Tail 05/20/15
In recent weeks and days, economists at Goldman Sachs, the World Bank
and the International Monetary Fund have forecasted that Indias economy
will grow slightly more quickly than Chinas economy within a year or two.
However, this date came much earlier than possibly predicted. Startling
figures announced in April showed an 7.6% year on year GDP rise in the
fourth quarter of 2014. China having previously had its economic strength
disputed, perhaps today is the day to question Indias findings.
Unstaggering car sales, little, unsatisfactory demand for credit, the trudgy
revenue growth reported by many listed firms, as well as notably unbuoyant tax revenue, have perhaps been overcome by sharp peak in
deflation, which plays a big part in much of this alleged growth. It seems
that perhaps India is on a good road of success for the future.
2) The Economist: American Shopper 02/09/15
Recently, it has seemed that the world has been too strongly reliant on
the power of American shoppers to power economic growth worldwide.
Around a decade ago, reckless and borrowing American debtors shopped
for imported goods, which inevitably pushed worldwide economic growth.
However, since the recent American recession, the trade deficit has only
widened, much harming the economies of exporting nations such as China
and Germany. Although currently a strong American economy is regarded
as necessary to the economies of other locations, they must not be over
reliant upon something that is not permanent and will not last forever.
3) Forbes: Fluctuating Oil Prices Won't Slow The Texas Economy Down
02/12/15
The U.S. economy was on a modest growth path early in the second
quarter with home resales falling in April and manufacturing activity on
the backfoot in May, although the labor market continued to tighten.
Growth is struggling to rebound strongly after slumping at the start of the
year, weighed down by bad weather, a strong dollar, port disruptions and
deep energy spending cuts. However, last month's drop in sales could be
temporary, amid signs that supply is gradually improving, as higher house

prices encourage more sellers to put their properties on the market. This
momentum is expected to continue.