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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6
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1answer
350 views

Was Ted Cruz the only 2016 Republican candidate who's completely against government subsidies for private companies?

After doing some preliminary research on the 2016 Republican field about their positions on subsidies I'm left with the conclusion that Ted Cruz is the only reliably anti-subsidy candidate. Even Rand ...
39
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6answers
12k views

Why does Spain's government want to increase the minimum wage by such a large percentage at once?

According to the BBC, Spain wants to increase the minimum wage by more than 20%: Spain's minimum wage will jump by 22% in 2019 - the largest annual increase in more than 40 years. It means ...
4
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1answer
194 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 ...
5
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2answers
431 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 ...
9
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4answers
2k views

Why is Hawaii's unemployment rate so low when they have such little economic freedom?

Hawaii's unemployment rate is the lowest in the nation (2.1%). https://www.bls.gov/web/laus/laumstrk.htm Yet they are almost last in economic freedom (#48). https://www.freedominthe50states.org/...
6
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2answers
316 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 ...
4
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1answer
140 views

Is there a study that measures the effectiveness of lotteries in increasing VAT revenue?

Quite recently, several countries began using (VAT) lotteries to offer an incentive for people to request a receipt when purchasing goods and services. These countries include Malta, Poland, Slovakia, ...
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
179 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 ...
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 ...
3
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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
165 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 ...
0
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2answers
196 views

Does the stock market hurt the economy directly? [closed]

In 1929 America experienced its first stock market crash within a relatively close time period of the ushering in of phone booths . The first stock market crash in history may have been around 1750 ...
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 ...
-12
votes
1answer
290 views

Does legal abortion reduce the costs of welfare and violent crime? [closed]

Does abortion benefit some conservatives' agendas? Abortions and Crime: Freakonomics Movie, (which, according to youtube commentator Matt Mitchell, is a disingenuously biased abridgement of the more ...
42
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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
votes
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 ...
35
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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 ...
-5
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1answer
123 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 ...
-8
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1answer
200 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 ...
7
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5answers
2k views

What are the arguments for and against a flat income tax rate?

Let's say that the national income tax is 5% for everyone with no loopholes (i.e. no tax reduction). In theory the rich would contribute more to total tax revenue. What are the arguments for and ...
2
votes
2answers
236 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 ...
4
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1answer
183 views

Below-zero interest rates vs. inflation?

The Economist contemplates three advantages that could result from getting rid of cash in favor of electronic payments only ("with credit cards, mobile phones, and even watches"). It also mentions ...
6
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1answer
244 views

Has any government made the unwinding of their US bonds and currency reserves a core public policy plank or a legal requirement?

The betting odds (at time of writing) on a partial US debt default this year were 6/4 - Default and 1/2 - No Default. Considering the odds, this is something of a wake-up call for nations and ...
9
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1answer
147 views

Are counter-tariffs to the Trump tariffs going through the WTO?

Under WTO rules there is a dispute settlement process which WTO member states are expected to go through to settle trade disputes. Trump has sidestepped this process by declaring the steel and ...
12
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2answers
777 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 ...
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 ...
1
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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)...
-2
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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?
40
votes
1answer
4k views

If the US switched to the metric system, what would the net 20-year economic savings be?

If the United States were to adopt the metric system of units, as commonly used in all other advanced industrial economies, there would clearly be switching costs for the economy as a whole, and there ...
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 ...
8
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4answers
625 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 ...
5
votes
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 ...
1
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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, ...
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 ...
11
votes
2answers
784 views

Why did the EU not unify the financial systems when the Euro was created?

It could be argued that many of the problems plaguing the EU in the recent years stem from a lack of integration among the various countries in the union. These missing "integration points" include, ...
4
votes
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 ...
2
votes
1answer
210 views

Trump's pre-election claims. How many are in progress? [closed]

Trump's pre-election company was bright. There were big pre-election claims: breaking disadvantageous deals wall on Mexican border removing 'Obamacare' moving embassy to Jerusalem new workplaces for ...
93
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11answers
31k views

Why is globalisation so disdained?

From what I can tell via the definition of the word on Google, globalisation seems like a fairly reasonable course of action. Trade makes everyone better off in the long run, and it isn't as if we ...
10
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3answers
343 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 ...
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 ...
2
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3answers
495 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
votes
4answers
639 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 ...
82
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4answers
17k views

Is there any record of Trickle Down Economics improving the economy?

Since the senate passed the tax bill this month that's left me confused. I try to look at both sides of partisan politics rather than joining one team and hating everything about the other. Now to ...
-4
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1answer
377 views

Why don't people who are upset about economic inequality donate to the poor?

The middle-class American often moans about economic inequality, but there's another aspect to the same issue as well: yes, the middle-class American makes far less than Donald Trump or Bill Gates, ...
13
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8answers
9k views

Are worker cooperatives socialist, capitalist, or their own category?

This question inquires about private ownership vs. state ownership. However, there is a 3rd category that may or may not be considered as private ownership: Worker cooperatives. In the model of ...
10
votes
3answers
810 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 ...
11
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4answers
515 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 ...