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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Is it possible for a country to grow its economy without foreign investment?

China's economic development is often heavily attributed to direct foreign direct investment (FDI) during the late 70's through 90's. Is FDI absolutely necessary for a country to grow its industry? If ...
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34 votes
7 answers
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What is the reason for the high US inflation rate in 2022?

As reported in the news, for example the Guardian, US current inflation rate is above 8% in annual rate, close to a 40-year high. Can someone please help me understand the root cause? I started ...
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14 answers
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How is printing money different from taxing people?

From what I understand, printing money gives the government more money while, in time, decreasing the value of the rest of the money in circulation (or reducing how much the value of the currency ...
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4 votes
4 answers
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What is the wealth gap in the USA?

According to this article, India's richest 1% controls 73% of the country's wealth. What is the scenario in the USA? What percentage of the richest controls what percent of the wealth in the USA?
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Who is benefiting from the Ukrainians and the Russians killing each other?

I read this internet article recently, which argued that weapon manufacturers are benefiting from war between Russia and Ukraine. Did this article get it right? Do weapon manufacturers benefit from ...
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2 votes
0 answers
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What fraction of DAVOS participants are billionaires (and not corporations or political leaders) and who decides which ones can go?

The Late Show with Stephen Colbert's May 21, 2022 Crypto Celebs Silent As Market Melts Down | Billionaires Get Ready To Trip At Davos cites Business Insider's August 27, 2020 (updated) Davos 2021 is ...
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Is the Ruble exchange rate a reliable indicator of economic stability in Russia?

Back in February 2022, it seemed like the Ruble would rapidly collapse. However, nowadays, the USD/RUB exchange rate looks better than at any time in the past year: You could argue that this is a &...
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3 votes
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What incentives does a high-income group need to let go of a portion of their income? [closed]

I am doing research, and my question is: What incentives does a high-income group need to let go of a portion of their income? My idea, which I haven't found sources for, is that rich people could ...
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8 votes
3 answers
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Are there critics against supporting Ukraine based on an economical viewpoint?

I understand that there are several reasons politicians consider when they decide about sending military or financial aid to Ukraine. But in the end, these aids are financed by US/UK tax payers. The ...
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Can the difference in development between India and China be explained on one of them (China) embracing free markets before the other?

They both have similar levels of population although one is projected to rival the USA for superpower status while the other still has huge rates of poverty. Authoritarian countries seem to have ...
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Are Estonia, Iceland, Hungary and Greece in a similar economical level? [closed]

I was wondering whether the Estonian or the Icelandic economies, despite being small, are relatively close to the Hungarian and the Greek economies, or whether they are much smaller Therefore, are ...
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What are the societal and economic benefits of Britain's military spending?

The United Kingdom spends considerably more on defense as a percentage of Gross Domestic Product (GDP) among countries with a similar need. According to Wikipedia, the United Kingdom spends 2.2% of ...
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2 answers
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American Companies against Russia [closed]

One of the things that happened with the Ukraine-Russia war was the exodus of American companies from Russia. Standard oil of New Jersey kept supplying Hitler oil till the very end during his Russian ...
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-1 votes
1 answer
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What checklist a country would have before making bilateral currency exchange with Russia?

Bilateral currency exchange like in between India or China with Russia at this moment is risky because the currencies would be pegged to Euro when the Rouble is losing value more than the former two's ...
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7 votes
1 answer
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Is the UK taking any steps towards better regulation of foreign investments after Russia started the invasion of Ukraine?

The Guardian suggests that Russian oligarchs used some legal loopholes to invest in UK, thus managing to secure some of their assets. The same article cites possible solutions for happening this in ...
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How did the alleged Chinese debt trap cause the economic crisis in Sri Lanka?

Sri Lanka is facing the biggest economic crisis since its independence. Its policy was wrong in some cases: Chinese debt trap. Due to lack of industrial growth, the Government of Sri Lanka provided ...
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2 votes
0 answers
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How did consumer gas prices change in Latvia relative to Germany, following the substantial reduction of Russian imports in Latvia 2015-2021?

The 3 Baltic countries have announced that they apparently import zero Russian gas now. More interestingly, this was a gradual reduction, e.g. In 2015, nearly 100 per cent of Lithuania's gas supplies ...
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Has an income ceiling policy been tried in a free market economy?

Some countries have implemented some very high tax rates, but did any country, in recent history, implement a ceiling on all earnings (wages and capital gains) in an, otherwise, self-regulated market? ...
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After stopping production of opium, how does Afghanistan's government plan to offset the lost inflow of money going forward?

Thought some of the sources it cites are ten years old or more, Wikipedia's Afghanistan; Economy; Agriculture says Agricultural production is the backbone of Afghanistan's economy and has ...
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22 votes
6 answers
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Why did the Russian Federation never stress economic growth as China did?

China stressed economic development and GDP growth in the 1970s when Deng Xiao Ping proposed the economic reform in 1978. China never stopped after that. Regarding the USSR, Gorbachev tried to bring ...
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27 votes
6 answers
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Is there a food crisis linked to the Ukrainian war or a massive speculation?

As of now at the end of March 2022, it is quite common to find articles in the media and also some declarations by world leaders talking about a food crisis caused by the Ukrainian war. Here are some ...
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4 answers
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What makes it hard for Southeast Asian countries (including India) to replace China and become new "world factory"?

Many people argue that it is hard for Western countries to pose economic sanctions on China by banning all (or most) imports from China, due to China's huge role in the world supply chain. I wonder ...
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12 votes
6 answers
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Does banning importing oil from Russia damage its economy in the short term?

Tucker in this video said that sanctions against Russia aren't hurting Putin and its side-effects are just hurting US people by raising gas price. Do US sanctions against Russia really not have any ...
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13 votes
5 answers
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Do Western countries want for Russia to default or not on its foreign debt?

According to TASS, Russia should be able to avoid defaulting on its foreign debt because now, as opposed to 1998, it has enough financial reserves. However, the issue is that a big fraction of its ...
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3 votes
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Is Bank for International Settlements (BIS) still providing financial services to Afghanistan?

After the Taliban takeover of Afghanistan in August 2021, most of the major central banks such as the Fed, Bank of England, and Bundesbank froze FX reserves of the Afghan central bank (DAB). As of ...
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30 votes
4 answers
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Is there any meaningful purpose in stopping selling consumer goods to Russia?

So, my newsfeed had an item about "H&M" stopping selling things to Russa, as well as a score of other random retailers (Nike? etc...). I can sort of see the possible argument about ...
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12 votes
5 answers
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Why is Russia continuing to attack Ukraine even with a number of sanctions imposed?

Russia is essentially being blocked out of trade, and also, some western services (e.g., Apple) as a result of their war with Ukraine. The Russian currency is also collapsing quitea much. However, the ...
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3 votes
0 answers
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Can BP still sell its share in Rosneft?

Yesterday, BP announced they would be selling their $14 billion share in Rosnef. The London-headquartered oil firm announced on Sunday that it was offloading its 19.75% voting stake in Rosneft, ...
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24 votes
3 answers
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Why can't the West just ban Russia from trade?

President Biden has announced new sanctions on Russia after Russia invaded Ukraine unprovoked. From CNN: President Joe Biden on Thursday unveiled harsh new sanctions on Russia meant to punish the ...
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6 votes
1 answer
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What is Russia's plan to cope with invasion-related economic damage to itself?

Russia has been under sanction since 2014 for the annexation of Crimea. Now, the West imposed more sanctions, and the construction work of the NordStream-2 pipelines has also been suspended. What is ...
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30 votes
10 answers
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Why should nations that stand to benefit from climate change have to contribute to the fight against it?

Based on this article, this article and this article, global warming could benefit some countries in the world. The first article (withdrawn later as pointed out by LShaver) says the warming of ...
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3 answers
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How does Dubai get its money?

I have seen many claims that Dubai has no income tax. Yet, since the Government of Dubai clearly does spend lots of money, how does money flow to the Government of Dubai?
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34 votes
4 answers
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Why first world countries have astonishing amount of foreign debts, but third world countries don't?

USA, for example, having a total foreign debt of over 23 trillion dollars (according to the statistics provided in 2019), is still on the frontline of those countries which are considered to be ...
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13 votes
1 answer
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How has demonetization affected India in hindsight?

On 8 November 2016, the Government of India announced the demonetization of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series. It also announced the issuance of new ₹500 and ₹2,000 banknotes ...
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1 vote
0 answers
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Do the Workers in China own the means of production? [duplicate]

China is ruled by a party that calls itself communist. From my sociology class in university, I learned that one of the core ideals of Marxist theory is the dictatorship of the proletariat: the ...
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3 votes
1 answer
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Why does Russia sell jet engines to China?

China manufactures a number of aircraft that use Russian-made jet engines. For instance, JF-17 uses a Russian RD-93 engine, etc. Similarly, Russian sells AL-31 jet engines for Chinese J-10C jets. ...
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3 votes
0 answers
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What was the effect of the fall of the Soviet Union on African economies?

In a speech about Aleksandr Solzhenitsyn, Jordan Peterson claims that the fall of the Soviet Union had a very good effect on Africa, he claims that African economies are booming like mad now and that ...
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Did China borrow from Amazon's playbook? (provide a place for business to grow, then just "take over" when they're successful)

Background: CNN's Jamie Dimon says he regrets joking about the Chinese Communist Party says of JPMorgan (JPM) CEO Jamie Dimon: At one point, Dimon compared the political and economic approaches in ...
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5 votes
2 answers
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Have any capitalist libertarians asked if the free market destroys itself (due to the efficiency of organised crime)?

I am aware of, though not read in, the most influential capitalist libertarian thinkers (Hayek, Friedman, Nozick, Rand, etc). As far as I understand it, their general point is that an unrestricted ...
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-1 votes
2 answers
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Is it possible that the US will default on its debt in foreseeable future? [closed]

The US has a history of having its debt grow, increasing the debt ceiling and repeating the cycle: Source Normally, the states don't default on debts denominated in their own currency, because they ...
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1 vote
1 answer
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How do UK leaders explain that their country suffered a contraction similar to that of Italy and France rather than that of US or Canada, last year?

CNN recently mentioned that: the UK economy suffered a bigger contraction than any other G7 country last year at 9.8% Wondering how the rest of G7 fared in more concrete terms, I found an older ...
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17 votes
9 answers
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Why is India diverting its resources to build its second mission to Mars?

The only gain I can think of for going to Mars is that it will bring glory based on the achievement. Are there any tangible benefits for India going to Mars with respect to common people? Note: ...
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3 votes
3 answers
411 views

How can the Harm Principle be adjusted to fit Social Democracy and Social Liberalism

Beyond Libertarianism: Interpretations of Mill's Harm Principle and the Economic Implications Therein The harm principle does not stipulate strict rights of the individual, applied uniformly. To ...
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-4 votes
1 answer
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Which countries have the same international importance, influence and power as Sweden? [closed]

Sweden is not a superpower at all and it's not a country with a high level of influence (such as Russia or China). However, it has a relatively large GDP for its population and it's known that Sweden ...
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Why are African countries using direct and indirect taxation against their farmers to tax them at a rate twice as high than anywhere in the world?

Why are African countries using direct and indirect taxation against their farmers to tax them at a rate twice as high than anywhere in the world? I found this in a research paper entitled Why kill ...
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3 votes
3 answers
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Do political systems evolve with economic progress?

Do political systems evolve with economic progress? In a lot of sci-fi movies you don't see government evolve with technology and economy, but in Star Trek, I believe, the political system ended up ...
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6 votes
1 answer
189 views

Why is Switzerland holding such a large foreign exchange reserve?

According to Wikipedia's List of countries by foreign-exchange reserves: Why is Switzerland holding such a large foreign exchange reserve? Asian countries decided to maintain a large foreign exchange ...
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33 votes
2 answers
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Why are the Netherlands, Sweden, and Denmark among the countries with the largest wealth gaps in the world?

Wealth Inequality By Country 2021 Here are the 10 countries with the highest wealth inequality: Netherlands (0.902) Russia (0.879) Sweden (0.867) United States(0.852) Brazil (0.849) Thailand (0.846) ...
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6 votes
1 answer
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Biden's goal is 15% minimum tax rate, when Corporate Tax is already higher?

I do not understand the Biden Corporate Minimum Tax Rate proposal. Biden wants to set it at 15% per this article and few others. However, the minimum corporate tax rate is already 21%. Wikipedia ...
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1 vote
0 answers
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Can the IMF Special Drawing Rights be used to combat the need for negative interest rates in order to fiscally stimulate the global economy?

Can the IMF Special Drawing Rights be used to combat the need for negative interest rates in order to fiscally stimulate the global economy? I am wondering if the U.S. can use the IMF in order to ...
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