The Global OS: A 2025 Macroeconomic Year-In-Review

For the final 2025 deep dive on iversonsoftware.com, we are zooming out to the “Global OS”: Macroeconomics. While microeconomics examines the behavior of individual “nodes,” macroeconomics analyzes the performance, structure, and behavior of the entire network. On this December 31st, we look back at a year defined by high-stakes “policy patches,” supply-chain refactoring, and a surprisingly resilient global output.

At Iverson Software, we view the economy through the lens of system stability. Macroeconomics is the study of the “Total Throughput” of a nation or the world. It tracks the massive variables—GDP, Inflation, and Unemployment—that determine whether the “Social Operating System” is thriving or crashing.

1. The Telemetry: 2025’s Key Indicators

To judge a system’s health, you need real-time telemetry. In 2025, the data revealed a paradox: an economy that grew faster than the “spec sheets” predicted, but with persistent “background noise” in the form of inflation.

  • GDP (The Throughput): Despite early-year fears of a “system crash” (recession), the U.S. economy solidified in Q3 2025 with a real GDP increase of 4.3%. Globally, India emerged as the “High-Speed Processor,” officially surpassing Japan to become the world’s fourth-largest economy.

  • Inflation (The Heat Sink): 2025 was the year of “Sticky Inflation.” While price increases slowed from their 2022 peaks, headline CPI remained stuck around 3.0% through September. Supply-side shocks—like the “Liberation Day” tariffs—introduced new “thermal pressure” on consumer prices.

  • Unemployment (The Capacity): The labor market remained “Low Hiring, Low Firing.” In the U.S., the unemployment rate ticked up slightly to 4.3%, reflecting a labor force adjusting to new immigration protocols and the rapid integration of AI-driven automation.

2. The Policy Levers: Fiscal vs. Monetary

Managing a macro-economy requires two distinct sets of administrative tools. In 2025, these two “Control Panels” often worked in different directions.

  • Monetary Policy (The Central Bank): The Federal Reserve spent 2025 in “Insurance Mode.” After initial rate cuts in late 2024, the Fed paused for much of 2025 to assess the impact of new tariffs. By December, the target range sat between 3.25–3.50%, a “neutral” setting intended to keep the system from overheating without triggering a shutdown.

  • Fiscal Policy (The Government): On the fiscal side, 2025 was defined by the “One Big Beautiful Bill Act” (OBBBA). This provided a significant “Stimulus Patch” to the economy through deregulation and targeted tax refunds, though it contributed to a federal deficit that reached $1.9 trillion (roughly 6.2% of GDP).

[Image comparing the tools of Fiscal Policy (Taxing & Spending) and Monetary Policy (Interest Rates & Money Supply)]

3. The 2025 “Feature Update”: Tariffs and AI

Two major “External Drivers” rewrote the economic logic this year:

  • Protectionism as a Protocol: The re-introduction of aggressive tariffs (the “Tariff Firewall”) forced a massive “Supply Chain Refactoring.” While intended to boost domestic manufacturing, the “Latency” (cost) was passed on to consumers, keeping inflation above the Fed’s 2% target.

  • The AI Productivity Boost: If there was a “Hardware Upgrade” this year, it was AI. Capital expenditure (capex) in AI infrastructure was a primary driver of Q3 growth. Economists are now debating whether this signals a “New Era of High Productivity,” where output-per-hour finally breaks its decade-long stagnation.


Why Macroeconomics Matters to Our Readers

  • Predictive Planning: For businesses, macro trends are the “Environment Variables.” Knowing that the Fed is likely to hold rates steady helps you plan your “Debt Architecture” for 2026.

  • Market Resilience: Understanding the “Opportunity Cost” of high deficits allows you to hedge against long-term interest rate volatility.

  • Global Context: In a multipolar world, recognizing the rise of the BRICS+ network is essential for anyone building software or services for a global user base.

The 2025 Audit: Public Policy and Administration Year-End Wrap-Up

As we close the final chapter of 2025 on iversonsoftware.com, we look back at a year that functioned less like a routine update and more like a total System Refactoring of the public sector. From the halls of Washington to local municipalities, Public Policy and Administration in 2025 was defined by a shift toward radical efficiency, digital sovereignty, and the dismantling of legacy bureaucratic structures.

At Iverson Software, we track the protocols of power. This year, the “Social Operating System” underwent a series of high-stakes deployments. As a new administration took the helm in the U.S. and global alliances shifted toward a multipolar architecture, public administrators were tasked with maintaining service delivery amidst a climate of unprecedented regulatory change.

1. Administrative Modernization: The “Unified API” Era

One of the biggest technical wins of 2025 was the long-awaited modernization of the IRS. After decades of “spaghetti code” and fragmented databases, the Unified API Layer project finally launched, streamlining compliance and enabling the agency to cut $2 billion in wasteful IT contracts.

  • GovTech Maturity: Governments moved beyond simple digitization to Proactive Service Design. Instead of citizens searching for benefits, systems now use “Integrated Eligibility” protocols to push services to users based on real-time data life-events.

  • AI Integration: Generative AI is no longer a pilot program; it is the “Front-end” for public inquiries. AI-driven agents now handle thousands of routine tasks, from benefits eligibility checks to license renewals, allowing human administrators to focus on high-complexity “Edge Cases.”

2. Policy Disruption: The “Zero-Based” Regulatory Shift

2025 saw a massive overhaul of federal policy through a series of “Executive Patches” (Executive Orders) that significantly altered the administrative landscape:

  • The Efficiency Mandate: A new focus on “Government Efficiency” led to the dismantling of DEI (Diversity, Equity, and Inclusion) offices across the federal workforce, with the administration citing a need to reduce “System Overhead.”

  • Tariff Protocols: The “Kuala Lumpur Joint Arrangement” and reciprocal tariffs on Mexico and China redefined trade as a security protocol, creating a “Firewall” around domestic manufacturing but introducing significant “Latencies” (inflationary pressures) in the consumer market.

  • Immigration Hardening: Enhanced enforcement and the termination of programs like DACA represented a major “Permission Reset” for the national border, impacting workforce availability in key sectors like agriculture and tech.

3. Operational Realities: The “Silver Tsunami” and Talent Gaps

While the tech was updated, the “Human Hardware” faced a critical shortage.

  • The Workforce Gap: The public sector continues to struggle with the “Silver Tsunami”—the mass retirement of long-serving experts. Recruitment has become a competitive “Bidding War,” with agencies struggling to match private-sector salaries.

  • Connected Compliance: To handle the increased regulatory speed, compliance teams have adopted “Intelligence-led” models. These systems use AI to scan for fraud and improper payments in real-time, preventing billions in “System Leakage” before checks are even cut.

4. Global Interoperability: The BRICS+ Network

Beyond U.S. borders, 2025 marked the formal expansion of the BRICS+ alliance. This shift created a “Parallel Global Network,” challenging the dominance of Western financial protocols. Public administrators now have to navigate “Multi-source Data Ecosystems” where different regions operate under vastly different legal and semantic standards.


Looking Ahead to 2026: The Resilient State

As we enter 2026, the theme is Resilience. The goal is no longer just “Efficiency,” but “Interoperability”—ensuring that local, state, and federal systems can talk to each other while remaining secure against expanding cybersecurity threats. At Iverson Software, we will continue to provide the “Reference Documentation” you need to navigate these shifting structures.

The Global Network: Navigating International Relations in 2025

For our final “system update” of the year on iversonsoftware.com, we are zooming out to the largest possible scale: International Relations (IR). If domestic politics is the internal logic of a single server, IR is the complex, often chaotic networking protocol that connects every nation-state on Earth.

As of December 31, 2025, the global “source code” has been rewritten. We are no longer living in the post-Cold War “monolith”; we have officially transitioned into a highly fragmented, multipolar architecture.

At Iverson Software, we analyze how power is “routed” across the globe. International Relations is the study of how states, intergovernmental organizations, and non-state actors interact. In 2025, the primary challenge isn’t just “keeping the peace”—it’s managing a world where the old “central server” (Western hegemony) is being challenged by decentralized regional clusters.

1. The Transactional Reboot: US Foreign Policy in 2025

The return of the Trump administration has introduced a “Transactional Kernel” to US diplomacy.

  • The “America First” Protocol: The US has shifted from a global security provider to a “pay-to-play” model, demanding higher defense spending from NATO allies and prioritizing bilateral deals over multilateral treaties.

  • The Tariff Firewall: Trade is no longer just about economics; it’s a security tool. The use of aggressive tariffs (up to 60% on China) has “air-gapped” certain sectors of the US economy, forcing a massive rewiring of global supply chains.

2. The Multipolar Cluster: The Rise of Middle Powers

The “G7” is no longer the only administrative body that matters. We are seeing the rise of Multi-aligned States—nations like India, Brazil, and Saudi Arabia that refuse to “ping” only one superpower.

  • BRICS+ Expansion: With its new members, the BRICS block now represents a significant portion of the world’s GDP and energy reserves, creating a “Parallel Network” to the Western financial system.

  • Regional Autonomy: From the African Union to the Gulf Cooperation Council, regional hubs are now writing their own “Local Protocols” for security and trade, rather than waiting for instructions from the UN or the US.

3. The New Frontlines: Tech and Resource Sovereignty

In the 20th century, IR was about “land and sea.” In 2025, it’s about “Minerals and Models.”

  • The Biotech Frontier: As seen in recent trade disputes, biotechnology has become a new “Geopolitical Chokepoint,” with nations racing to control the patents and data required for next-gen healthcare.

  • Critical Minerals: Control over lithium, cobalt, and rare earth elements is the new “Oil.” Diplomacy in 2025 is largely focused on securing the hardware necessary for the energy transition.

  • Space Security: With the “Year in Review” showing record space launches, the lunar surface and orbital paths are becoming contested “Real Estate,” leading to the first formal “Outer Space Traffic Protocols.”

4. The Climate Pivot: From “Planet” to “Competitiveness”

Following the limited progress at COP30 in Brazil, the international “Climate Logic” has changed.

  • Industrial Decarbonization: Climate policy is no longer framed as a moral obligation but as a “Competitive Edge.” Nations are subsidizing green tech not to save the world, but to ensure their industries aren’t “deprecated” in the new global market.

  • The Carbon Border: We are seeing the first widespread implementation of “Carbon Border Adjustment Mechanisms”—essentially a “Compatibility Tax” on products coming from nations with lower environmental standards.


Why International Relations Matters Today

  • Market Stability: For global businesses, IR is the “Environment Variable” that determines everything from shipping costs to regulatory hurdles.

  • Security Awareness: With 59 active military conflicts globally—the highest since WWII—understanding the “Realpolitik” of these regions is essential for managing risk.

  • The Future of Cooperation: Despite the fragmentation, “Global Problems” (like pandemics and AI safety) still require “Global API Calls.” Understanding how to navigate a multipolar world is the only way to build a sustainable future.

The Comparative Logic: Navigating Global Systems

For our latest entry on iversonsoftware.com, we step away from the specific “source code” of American politics to examine the entire “Global Repository”: Comparative Politics. If political science is the study of power, comparative politics is the methodology of A/B Testing the world’s governments to see which architectures perform best under different environmental conditions.

At Iverson Software, we know that no single program works for every user. In the same way, no single political system works for every nation. Comparative Politics is the branch of political science that systematically analyzes the differences and similarities between countries. It moves beyond just “knowing facts” to finding the underlying patterns that explain why some states thrive, some fail, and some transition from one regime type to another.

1. The Comparative Method: The Social Science Debugger

How do we know if a specific policy (like a universal basic income or a carbon tax) actually works? We use the Comparative Method.

  • Method of Agreement: We look at very different countries that share one common outcome (e.g., high economic growth) to find the single shared variable that might be the cause.

  • Method of Difference: We look at very similar countries that have different outcomes to isolate the one variable that changed.

  • The Goal: To move from “Correlation” to “Causation,” helping us understand the “System Requirements” for stable governance.

2. Regime Types: The Environments of Power

In our “Systems Architecture,” the Regime is the overarching environment in which politics happens. In 2025, we categorize these into three primary “Builds”:

  • Liberal Democracies: Systems with high “User Permissions” (civil liberties), regular elections, and a strong Rule of Law.

  • Authoritarian Regimes: Systems where power is centralized in a single “Administrator” or party, with restricted user access to the decision-making process.

  • Hybrid Regimes: The “Beta Versions” of governance. These systems may have elections (the UI of democracy), but they lack the underlying “Background Processes” of a free press or an independent judiciary.

[Image comparing presidential and parliamentary systems of government]

3. 2025 Trends: The Great Fragmentation

As we close out 2025, the comparative landscape has shifted significantly. Modern political scientists are currently tracking three major “Systemic Updates”:

  • The Populist Surge: Across Europe and Latin America, traditional “Centrist” parties are losing market share to populist movements that promise to “reboot” the system. We are seeing a global rise in anti-establishment sentiment driven by economic inequality.

  • The Return of Coalitions: In countries like India and Germany, the 2024-2025 election cycles have forced dominant parties to govern through complex coalitions. This moves the system from a “Single-Process” model to a “Distributed Power” model.

  • Digital Sovereignty vs. Globalism: Comparative politics is now analyzing how different states “firewall” their digital borders. While the EU focuses on security and regulation, emerging powers in the BRICS+ block are building alternative financial and data architectures.

4. Case Studies: Testing the Hardware

To understand the theory, we look at the “Case Studies”—the specific implementations of power:

  • The UK vs. The US: Comparing the Parliamentary system (where the executive is part of the legislature) to the Presidential system (where they are separate).

  • The Chinese Model: Analyzing how a system can achieve high economic “Throughput” while maintaining an authoritarian “Permission Structure.”

  • The Nordic Model: Evaluating how high-tax, high-service “Social Democracies” maintain high levels of user satisfaction and social stability.


Why Comparative Politics Matters Today

  • Policy Benchmarking: By looking at what other “Users” are doing, we can import successful “Modules” (like successful healthcare or education systems) into our own domestic frameworks.

  • Risk Assessment: For global businesses, comparative politics provides the “Threat Analysis” needed to understand which regions are stable and which are prone to “System Crashes” (revolutions or coups).

  • Intellectual Empathy: Understanding why a country chose a parliamentary system over a presidential one helps us realize that our own “Default Settings” aren’t the only way to run a society.