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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102
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21answers
23k views

What is the capitalist answer to automation?

While we are not currently at total automation, we are inching closer. An Oxford Study from 2013 indicates by 2033 upwards of 45% of our job force could be automated. This automation, causing a ...
76
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16answers
19k views

What ethical (if any) or economical arguments are offered in defense of the inheritance tax?

Although I am normally quite supportive of higher taxation, I've never really felt comfortable with the inheritance tax. I see no reason why the government should tax the money a parent wishes to ...
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 ...
58
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10answers
16k views

What will happen if China stops loaning money to the U.S.?

US's external debt to china is a staggering 1.1 trillion US dollars and according to many economists, it's highly unlikely that U.S. will be able to pay back the entire external debt to China in the ...
39
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9answers
4k views

Why is economic growth considered so essential, even in rich countries?

Whenever economic growth as a percentage of BNP drops close to zero, economists speak of a recession or even a crisis. In political debate, the focus is quite often on economic growth; in most ...
51
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4answers
18k views

Why has Venezuela's economy collapsed when Cuba's has not?

Cuba and Venezuela seem to share a lot in common. Both are effectively Socialist dictatorships. Cuba's government has been Communist for many years, while Venezuela has been socialist for much less. ...
17
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4answers
3k views

How would the trillion-dollar coin save the United States' economy?

Recently I read in a news post that the Treasury Department is able to order the coinage of a coin made of platinum with a value of 1,000,000,000,000 USD, or 1 trillion US dollars. You can read about ...
17
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3answers
2k views

Why was having a common currency in the EU seen as necessary?

When it was introduced, the € (Euro) was supposed to be the common currency for the entire EU, even if it turned out many countries (such as the UK) would stay in the EU without using the € currency, ...
7
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2answers
308 views

Can copyright be interpreted as a liberal economic policy?

Note: This question refers to liberal as in Liberalism, not as in American Liberalism! As copyright is considered a state-guaranteed monopoly for the creators of works, could it be considered a true ...
17
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3answers
8k views

Why do some countries forbid working on Sunday rather than strictly regulating it?

According to this source, Poland will gradually forbid commerce on Sundays: Poland’s ruling party approved a law that will gradually impose a ban on Sunday shopping, meeting the demand of its ...
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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1answer
120 views

How is the employment rate defined for OECD countries?

I have a few question about the employment rate. I'm sure there are different definition but maybe there is a general UN or OECD definition which can be used. I'm interested in precisely how it is ...
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 ...
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 ...
30
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10answers
11k views

Why do farms need subsidies? [duplicate]

The title is slightly misleading, farms need subsidies because it's difficult to make them financially viable, but... Why do farms in developed countries require state subsidies (CAP in Europe, I ...
28
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4answers
15k views

Who was the last US President to oversee a reduction in debt?

As of 2012, the United States currently has ~16 trillion in debt. The last five presidents have all added to the overall debt*. Who is the last US president to decrease the total amount of debt ...
11
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1answer
468 views

Is there any evidence that public transport splitting, corporatisation or privitisation affects quality?

In Europe in the last 10–30 years, many public transportation companies have been split up in parts, with some parts corporatised and some parts privatised. This has partly been motivated by an ...
8
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4answers
2k views

Why couldn't Russia grow its economy as fast as China did?

Russia has a population comparable to Japan. But, the size of its GDP is below South Korea. Why couldn't Russia grow its economy as fast as China did? What factors prevented Russia from becoming an ...
6
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3answers
9k views

Does standard of living correlate with higher education?

This question aims at the correlation between a societies standard of living and standard of formal education. For example, over the past century, America has had the fortune of being a place with a ...
2
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3answers
3k views

How can a currency be manipulated?

How can a country manipulate its currency? For example: Canada actively purchases US dollars in an effort to control the US/Canadian rate. What are the ways Canada can use purchased USD to benefit ...
13
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7answers
1k views

Do new jobs always contribute to the welfare of a country?

In Sweden, where I live, I often hear politicians argue that it's good when new work opportunities are created, mainly because these will generate tax income for the state that in turn can be used to ...
10
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4answers
887 views

Is there any better estimate of the cost of a completed US-Mexico border wall?

First, I realize that this question was asked back in Jan 2017, but it was difficult to obtain useful data because the details of construction were not available. This question arises as a spin-off ...
9
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6answers
2k views

What major flaws does this particular Universal Basic Income model have, if any?

On Reddit there's currently a news article titled Chinese factory replaces 90% of human workers with robots. Production rises by 250%, defects drop by 80% This of course brought up the discussion of ...
5
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3answers
17k views

What does the US produce?

I have heard several times that the USA has the largest GDP in the world and also the largest economy. But I hardly can remember a single thing made in the US that I ever used. My auto is made in ...
4
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4answers
823 views

How come no bank chiefs in the US & UK went to prison for the financial crash of 2008?

This story by Forbes points that the only bank chiefs in the financial crisis that engulfed the Western world in 2007/8 were from Iceland: This is where the worlds only bank chiefs imprisoned in ...
4
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2answers
543 views

Why focus on reduction of public debt when private debt is much larger?

According to the OECD, in The Netherlands, public debt is 78% of GDP and private household debt is 277% of GDP. Eurozone rules require a budget deficit of no more than 3% (not sure if this depends on ...
4
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1answer
474 views

What prevents a large corporation from subdividing itself in order to avoid internet sales taxes? [closed]

I'm afraid I'm not overly familiar with the bill or the minutiae of it, particularly as a foreigner to US politics. From what I understand, though, US businesses trading online and with annual sales ...
4
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1answer
288 views

Would companies having to raise minimum wage to $15 mean raising the prices on their goods a great deal?

If minimum wages are raised to $15 an hour then would these companies that are forced to raise wages not increase their prices exponentially in order to maintain their current profit? And, if this ...
3
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2answers
1k views

Why is Turkish Lira sliding?

What is the fundamental reason that Turkish Lira is tumbling down during the last few months? Kindly, explain in layman's terms and in short.
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2answers
6k views

How do governments stop hyperinflation?

After reading this, I wonder "How can a government stop hyperinflation?" What can other governments do to help? And for completeness, How do governments keep currency stability?
1
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1answer
219 views

What if campaign money was used to fund government programs?

I was reading that billions of dollars are raised/spent during US political campaigns (president, senate, etc). I'm no expert in how this all works, but it seems to me that this money is used solely ...
16
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4answers
857 views

What are the practical effects of having too large a debt load?

My understanding is that Japan has a debt-to-gdp ratio of approximately 200%. It is considered to be one of the worst in the world. The United States is only in the 100% range. What effects would ...
11
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2answers
3k views

Is there a correlation between political system and economic growth?

I would like to know whether there are any pieces of scientific research indicating that some political systems are more likely to produce a large economic growth than others. Which systems are they? ...
9
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5answers
2k views

Is there a stated goal in the US “Trade War”?

I'll call it a Trade War, because I don't know that there is a more appropriate phrase. Initially I understood the administration's goal was to stimulate US producers to be more productive, so as to ...
8
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2answers
494 views

Are Libertarians for or against prohibitions on insider trading?

Now, unless I'm missing something, I'm fairly certain that Libertarians aren't PRO insider trading. That said, are they for or against rules prohibiting it? Or do they view it kinda like hostile ...
8
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5answers
820 views

If medication prices in the US are higher than in other countries, why not import from there?

In the United States, many medications are much more expensive than in other countries (see for example How the U.S. Pays 3 Times More for Drugs). This is a serious problem for many patients, and ...
8
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1answer
1k views

UK migration: why the focus on EU only, not global?

One of the key issues in the General Election last year, and Brexit now, is around immigration to the UK. All of the focus that I hear in the media is only about migration from inside the EU, and I ...
8
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1answer
337 views

Why does the Hungarian government want to allow delaying payment for overtime for such a long time (up to three years)?

Protests have broken out in Hungary following the government's desire to increase the overtime limit and payment timeframe for this: Protests have broken out in Hungary after the country's ...
6
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2answers
351 views

Macron's “lead climbers” (vs. trickle down)

Are there more details on Macron's vision of how tax cuts will positively affect (French) society? I found a story from last year his rejection of the well-known “trickle-down” economics narrative, ...
6
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1answer
339 views

How were farmers affected by demonetization in India?

In 2016, The India government declared ₹500 and ₹1000 banknotes of the Mahatma Gandhi Series invalid. This announcement led to significant economic disruption. It is said that farmers were affected ...
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 ...
5
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3answers
402 views

Does the U.S. have any remaining economic or diplomatic ties with North Korea?

After North Korea's provocative activities recently, the United States announced they would put further sanctions on North Korea. Does this mean the U.S. still has any sort of economic or diplomatic ...
5
votes
5answers
384 views

What steps can be taken to combat unfunded state and federal pension liabilities in the U.S.?

It's the growing problem that no politicians want to talk about: unfunded pension liabilities. Business Insider ran an article last year which focused on the many upcoming challenges facing U.S. ...
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 ...
4
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1answer
423 views

Is it possible to create a single global government, economy and currency [closed]

I understand that this might be hard to answer but in a scenario where every action results in a positive outcome and everything needed gets the thumbs up and goes well (spoiler: this never happens) ...
4
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2answers
805 views

Do sanctions really serve their purpose?

Does economic sanctions on a country serve any purpose at all other than make the ordinary citizens suffer? Most of the times sanctions are placed on a country which is either not democratic or less ...
3
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1answer
522 views

Under what criteria is a minimum wage law superior to an earned income tax credit based system?

Under what criteria is a minimum wage law superior to an incentive compatible earned income tax credit (EITC) system like the one in the United States? Some of the criteria I think are important for ...
3
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0answers
117 views

Are there political answers to AI-induced mass unemployment? [duplicate]

Artificial Intelligence (AI) is widely discussed at the moment, e.g. on numerous occasions at the World Economic Forum 2017 and 2018 in Davos (https://www.youtube.com/watch?v=rw4aWeL3v5g) (2018 ...
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 ...
2
votes
2answers
363 views

Where can I find a scatter plot of welfare spending vs. immigrant rate?

Where can I find a scatter plot of welfare spending (per capita, % of spending, or % of GDP) vs. immigrant rate (per capita, or % of population)? By state or by country would be fine. I tried to ...