Questions tagged [economy]

Questions relating to the politics of economic theory or economic policy of any country or the international community. General economic questions can be asked on Economics.SE https://economics.stackexchange.com/

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4
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2answers
104 views

How big is the total bailout (“trade aid”) that Trump gave to US farmers since the trade war began?

News from 2018 mentioned $12B: [07/24/2018] Agriculture Secretary Sonny Perdue on Tuesday unveiled a three-part, $12 billion plan to ease the sting of retaliatory tariffs on U.S. farmers through a ...
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6answers
647 views

Has there ever been a true instance of unregulated capitalism?

Has there ever been any place that used unregulated capitalism? No regulations. No restrictions. No government interference.
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5answers
2k views

How can Germany increase investments in Russia while EU economic sanctions against Russia are still in place?

According to Wikipedia EU economical sanctions against Russia are still in place: The sanctions by the European Union and United States continue to be in effect as of May 2019. In July 2018, the ...
5
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1answer
184 views

Have the EU countries been diverging economically for the past two decades, despite rules convergence?

By divergence or convergence I don't mean in terms of rules, they clearly have been trying to converge in those terms. But was that fast enough to translate into economic convergence? I mean, have the ...
-4
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2answers
238 views

What is the best way to implement the top solution to climate change politically? [closed]

Please don't answer without citing scientific research which has a general consensus or article from a reputable source based on verifiable research citations. I recently read this article about a ...
0
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3answers
190 views

Could a government's standing military forces be entirely hired away by private interests? [closed]

Say, for example, a corporation obtains enough money to pay all the military (which isn't hard- investment banks manage trillions, the military salaries are a fraction of that). Then, the military ...
6
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0answers
127 views

How is the US-China trade war viewed in Australia?

A pretty good question on econ.SE has highlighted the close relationship between the Australian and Chinese economies. So, I wonder, how is the US-China trade war viewed in Australia, at a political ...
-4
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1answer
176 views

Why do corporations not take over the government? [closed]

Government is fundamentally based on the military having soldiers willing to defend it. If people operated on individual self interest, then corporations would offer soldiers a higher salary to leave ...
7
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2answers
279 views

Why does the IMF insist on maintaining the privatization of state entities as a reform policy as a prerequisite for borrowing states?

Why does the IMF insist on maintaining the privatization of state entities as a reform policy as a prerequisite for borrowing states? https://www.soas.ac.uk/cdpr/publications/papers/file24328.pdf ...
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4answers
12k views

Can Brexit be undone in an emergency?

In case Brexit has already happened, can it be reversed after a short time? Legally, the answer is no, I think. But I can imagine a situation where, during the first few days after Brexit, all ...
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1answer
140 views

Why is mobile data so expensive in Cyprus? [closed]

A few days ago a relative who lives in Cyprus told me that mobile data is very expensive in Cyprus and that, as he is not living in a city, has to rely on an ADSL connection. This article confirms ...
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1answer
165 views

US trade war with China: what is in total with trade balance for today? [closed]

Trade war between US and China lasts nearly since Trump's election. One of claimed goals was to shorten US trade deficite. There is a hoard of different news and bright claims about trade war, but ...
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1answer
173 views

Why is China the only country that build infrastructure for natural resources rights?

Why is China the only country that build infrastructure for natural resources rights? https://ecommons.cornell.edu/bitstream/handle/1813/30639/dpz6.pdf?sequence=1&isAllowed=y It proposes R4I ...
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0answers
165 views

Has the solidarity tax been successful in any country? [closed]

I have recently saw an older recording of an economist arguing that he does not know of any "successful implementation" of the solidarity tax. I have searched a little bit about this and found this ...
11
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2answers
1k views

Cost of oil sanctions to world's consumers

Crude oil prices could sink by as much as $30 a barrel if China decides to buy Iranian crude oil in retaliation to the latest U.S. tariff measures, according to Bank of America Merrill Lynch. CNBC ...
3
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2answers
236 views

Has any president benefited in elections from partially repairing the economy after damaging it?

I've seen evidence that the American people (and no doubt people in other countries) tend to be rather myopic when it comes to deciding who to elect, specifically they only tend to look at the last ...
5
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2answers
444 views

What happens if a country redefines itself?

Consider the following possible scenarios for a country A: The legislature decides to change the name to B After a successful revolution or coup d'état, a new country is established having the same ...
7
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2answers
348 views

Is the success of Chinese economic model in Africa a threat to Western interests?

Rwanda's economic development has been fantastic in the last couple of years allowing Rwanda to become a model of development success. Is this success a good thing considering that its model of ...
6
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2answers
291 views

Why Turkey's president thinks that by cutting interest rate it will lower inflation?

Recently, President Erdogan sacked the head of Turkey’s central bank because he didn't want to cut interest rates. He even said: “We said that if rates fall, inflation will fall. He didn’t do what was ...
18
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2answers
5k views

If SWIFT is headquartered in Europe, why does the EU need to create a SWIFT alternative to be able to do transactions with Iran?

If SWIFT is headquartered in Europe, why does the EU need to create a SWIFT alternative to be able to do transactions with Iran? It seems that the U.S. has significant control over SWIFT although ...
5
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3answers
183 views

If the US government is running deficits valued at 5% of GDP, is the economy really growing?

From the White House Budget Office Deficit records: The US government is currently running a projected 2019 deficit of 5.1% of GDP (somewhere around $1.05 Trillion). The Bureau of Economic analysis ...
4
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1answer
200 views

Why use tariffs instead of a tax on foreign investment to remedy the “trade deficit”?

Many people and politicians in the United States lament the trade deficit, or more precisely, the current accounts deficit. The necessary corollary to a current account deficit is a capital account ...
2
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1answer
279 views

Is Facebook's Libra a threat to the U.S. dollar as a reserve currency? [closed]

Is Facebook's Libra a threat to the U.S. dollar as a reserve currency? I've heard that Libra would diminish the need to hold U.S. dollars and thus diminish the power of the U.S. dollar as less people ...
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1answer
170 views

Can left and right be reduced to who takes care of whom? [duplicate]

In my country (Belgium) there are quite some discussions between left- and right-wing political parties, but do those terms mean? I've developed my own definition, and I'd like to verify it here on ...
41
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9answers
20k views

Why don't countries like Japan just print more money?

Modern Monetary Theory says that a sovereign countries will never go bankrupt. It can just print more money. Of course, printing more money would lead to inflation. But some countries have the ...
2
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1answer
193 views

Are there political reasons why the Chinese government doesn't or is not allowed to buy U.S. stocks?

Are there political reasons why the Chinese government doesn't or is not allowed to buy U.S. stocks? I am asking, because I am wondering why the Chinese government always buy U.S. securities when it ...
41
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3answers
10k views

Why did the World Bank set the global poverty line at $1.90?

In early 2019 Bill Gates tweeted an infographic during the 45 meeting of the World Economic Forum at Davos that showed that the proportion of people living in poverty had decreased from 94% in 1820 to ...
4
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1answer
127 views

What are the incentives for CFA countries to remain under France's financial umbrella?

https://www.youtube.com/watch?v=42_-ALNwpUo It seems that France benefits a lot from having its former colonies rely on France's financial system, but the former colonies don't really seem to derive ...
34
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8answers
9k views

How do governments keep track of their issued currency?

If a government issues currency and it ends up in bank accounts abroad, what stops banks from making a 'mistake' during a transfer, accidentally duplicating the currency? Is there some central ...
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1answer
213 views

Why are none of Trump's opponents pointing out that he's lying about the economy? [closed]

Trump lies constantly about economic growth. With respect to at least GDP growth, stock market growth, wage growth, and job number growth, he's claimed "record" performance, and if you look at the ...
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1answer
127 views

Are there correlation/causation between abortion legalization and economic growth?

There are 4 ways to deal with abortion Criminalize Legalize Legal and Free (I've heard in Israel) Legal and free. Also mandatory for welfare recipients. I suppose the more pro-abortion a state is ...
2
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2answers
263 views

Why did Italy decide to join the Belt and Road Initiative when other European countries were initially against it?

Why did Italy decide to join the Belt and Road Initiative (BRI) when other European countries were initially against it? Was there an official reason given by the Italian government? What does Italy ...
11
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1answer
3k views

Why did British Steel have to borrow 120 million pounds (from the government) to cover its ETS obligations?

Can someone clarify why British Steel had to receive a UK government loan for this sum of 120 million pounds? Did British Steel need this money to buy ETS allowances, or were these fines for not ...
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0answers
40 views

Where does the EU ETS fine money go?

An EU ETS factsheet says: A business is penalised if it does not surrender enough allowances. It has to buy allowances to make up the shortfall, is “named and shamed” by having its name ...
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0answers
22 views

Does the EU ETS primary auction money pass through the “EU coffers” at all?

As far as I could discover, although the EU runs a centralized Union Registry for ETS transactions, in which all member states must participate (well the UK was suspended at the beginning of this year)...
12
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2answers
783 views

How does the EU Emissions Trading Scheme account for increased emissions outside the EU?

If a third country (say China) is not beholden to the same emissions trading scheme, market forces should push steel production into the countries where costly emissions credits are not needed and ...
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1answer
130 views

Why does Japan spend more on Pharmaceutical R&D than the UK? [closed]

Japan spends 13% of the world's total Pharma R&D while the UK spends 6% less (source). Are there any reasons existing within the health system of Japan which allow this to happen?
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3answers
374 views

Did the Nazi regime resort to any nationalizations?

I'm aware that the "national socialist" (Nazi) party was by most accounts only socialist in name, e.g.: Unfortunately for [Otto Strasser], he had taken seriously not only the word “socialist” but ...
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4answers
642 views

Why are so many countries subsidizing the electrical vehicle industry?

I am creating a presentation about main subsidies and taxes for the EV (electric vehicle) market. When I dived deep into this — the question became: why do governments invest in this market? What ...
1
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1answer
332 views

Is Chinese Communism with market economy based on any Marxist theory?

Does any Marxist theory allow market economy the way the Chinese have it? Did any Marxist author write anything on this happening in a socialist state? Can a plan economy transform after a while, ...
6
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3answers
377 views

Why does Berlin have debt issues in opposition to many other European capital cities?

According to this article Berlin seems to be a strange capital city when it comes to debt: In almost every European country the capital is the engine of the economy. But a new study shows there ...
16
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4answers
4k views

Why aren't nationalizations in Russia described as socialist?

I read in a 2015 PIIE brief titled "Russia’s Economy under Putin: From Crony Capitalism to State Capitalism" that: After nationalizing Yukos, the Russian government started taking control of ...
4
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0answers
78 views

Do any countries besides the UK have a “triple lock” on pensions?

The Economist wrote before the 2017 UK general election: The average incomes of retired households are now higher than those of working ones, once housing costs are accounted for. Small wonder that ...
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3answers
2k views

Why did Roosevelt decide to implement a maximum wage through taxation rather than a simple ceiling?

In 1942, FDR asked Congress to implement a 100% tax on all incomes over $25,000 (around $375,000 today). This was backed by the unions and a clear majority of the voting public. In fact, such a tax ...
10
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3answers
351 views

What are the main reasons for the massive increase in CEO pay inequality over the last thirty years?

Using Switzerland as a paradigmatic case, the ratio of CEO pay to the worker with lowest pay increased from 6x in 1984 to 43 x in 2011 (source: The Guardian). What specific policy or policies have ...
2
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3answers
725 views

How to interpret 'economic zones'?

This was an exam question conducted in Feb 2019: write an Essay on "New war fronts lie in economic zones." Since the question seemed to be open ended, to me at least, I would like to know what ...
10
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4answers
675 views

Why do many countries not offer a fixed rate 30 year mortgage?

I recently moved from the US to the UK and was bewildered by the myriad subtle and not so subtle differences in mortgage products offered by banks. It struck me that the variety of federal ...
2
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7answers
10k views

Why are 150k or 200k jobs considered good when there are 300k+ births a month?

It would seem that most people who are born will eventually enter the workforce. Maybe that entry is delayed due to college or enlistment or that very important backpacking trip through Europe, but it ...
11
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4answers
520 views

What is the motivation for a specifically $15 per hour minimum wage?

In the United States, various politicians and activists are advocating for a $15 per hour minimum wage. However, I'm not sure how this value was chosen. One reason given for increasing the minimum ...
4
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1answer
302 views

Why do American farmers buy tractors from John Deere?

https://hardware.slashdot.org/story/19/03/27/1851206/elizabeth-warren-calls-for-a-national-right-to-repair-law-for-tractors?sbsrc=md Farmers operating John Deere tractors have been fighting against ...