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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3
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2answers
224 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
436 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 ...
6
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2answers
322 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 ...
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
180 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 ...
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1answer
195 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
268 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 ...
-1
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1answer
167 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
188 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
119 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 ...
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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
203 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
124 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
240 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 ...
3
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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
778 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
129 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?
5
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2answers
297 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 ...
8
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4answers
626 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 ...
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1answer
323 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
364 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 ...
7
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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
344 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
505 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
642 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
516 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
295 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 ...
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0answers
65 views

How did Roger Douglas convince the labour party to carry a liberal economic reform?

Roger Douglas the Minister of Finance of New Zealand from 1984-1988 made a huge liberal economic reform in his era (reducing the size of the state) it was so famous it was called "Rogernomics", but he ...
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2answers
89 views

Universal basic facilities [duplicate]

I was reading a question about universal basic income and it seemed to me that there are basic flaws that are seldom or never mentioned. First, some people are not capable of managing money, second, ...
6
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3answers
614 views

What does “breaking up” a company mean?

Oversimplify it for me, what does "breaking up" a company mean when used commonly among politicians? What would a broken up wells fargo look like? Google? Is there historical legislation doing this, ...
4
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2answers
156 views

What type of political instruments can a government use in order to keep housing rental prices in check? [duplicate]

Background I live in Malta (expat), where the rental prices have exploded over the last 5-6 years due to a heavy influx of expats in finance and online gaming, that have higher disposable income and ...
18
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3answers
6k views

Does the US government have any planning in place to ensure there's no shortages of food, fuel, steel and other commodities?

Every time we go shopping store shelves are full of food, gas stations are stocked up on gas, car dealerships have no shortage of cars, etc. But who is ensuring that all of the complex processes ...
6
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10answers
500 views

Why do governments encourage saving resources instead of simply raising the price on them?

Every day we hear messages from the government about the importance of saving fuel, natural gas, water, electricity, etc. Governments pass laws requiring that showers are not too powerful, cars ...
3
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4answers
334 views

In what ways economy influence slavery and end of it?

Most people think slavery is prohibited because it's "wrong". If that's true, we would have ended slavery thousands of years ago. It seems that industrialization makes labor more "precious". Each ...
2
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3answers
332 views

What exactly is “Human Capitalism” and does it conflict with the function of capitalism?

Recently Andrew Yang has announced his run for the 2020 Presidential election. He calls himself a "human capitalist" Now, I like his ideas generally - but I do not understand what exactly "human ...
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1answer
182 views

Why would a company invest in American infrastructure based on one administration?

Right now, we have an administration that is considered to be business friendly. I would prefer that this part not go debated, because it isn’t the focus of the question. Let’s say any administration ...
2
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1answer
76 views

How is the individual person affected by economic changes as a result of Brexit? [closed]

I have a few questions regarding the following topic: How is the individual person affected by economic changes as a result of Brexit? How are people in the age between 25 and 35 predicted to be ...
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1answer
130 views

How will brexit affect the British export and import? [closed]

Will there be any positive consequences that are expected from Brexit or is it mainly expected to be bad for the British trade?
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3answers
811 views

Why does France have systematic difficulties in obtaining a budget deficit below 3%?

According to this article France plans for a budget deficit slightly over the EU allowed limit of 3%: France's budget deficit is likely to overshoot the European Union's limit of 3 percent of GDP ...
4
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1answer
441 views

How much money did the United States spend on the Iraq war, and how much money did US oil companies gain as a result of the new Iraqi constitution?

This is just a cost benefit analysis, any discussion about US motivations in engaging in the Iraq war I would consider out of scope. Iraq nationalized oil production in 1972 (source). Following the ...
2
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1answer
162 views

What “certain conditions” are applicable on Henry George Theorem?

The Henry George theorem, named for 19th century U.S. political economist and activist Henry George, states that under certain conditions, aggregate spending by government on public goods will ...
0
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1answer
188 views

What fiscal backbone is there for employees who are now on “leave without pay” due to government shutdown?

Well considering a shutdown takes quite some time, it means there are lots of people with various skillsets who are literary thumbling thumbs. Just to wait till they can get their job back. Since not ...
97
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26answers
38k views

What is capitalism's answer to constant economic growth hitting the limit of the planet's finite resources?

We keep hearing a lot about economic growth in the media and this answer shows us why it is so important: Therefore, we have three options: A constant increase in unemployment. (Generally ...