Politics

The Strait of Hormuz is a narrow waterway, but the energy and shipping that pass through it make political decisions around the strait a global economic issue.

Trust in government is easy to notice when it disappears and easy to overlook when it works. People depend on public institutions for documents, schools, hospitals, policing, courts, infrastructure and rules that make economic activity possible.

When households say life has become expensive, they are often describing the combined effect of many policies and market forces rather than a single government decision. Taxes, energy rules, transport policy, trade measures, housing policy, interest rates and public spending can all influence the final cost of living.