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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1answer
94 views

How do wage subsidies support industrial decentralization?

How do wage subsidies support industrial decentralization? I am busy reading a paper that says, "The industrial decentralization policy in South Africa made some inroads, but disintegrated once wage ...
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How to rebuild a broken state?

Afghanistan (CPI index of 172/174) or Somalia (CPI Index of 174/174). These countries are the most corrupt countries in the world (according to the 2014 Corruption Perspectives Index). According to ...
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1answer
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Do POWs typically get paid for their prison time?

The recent release of Craig Bergdahl has me wondering about the status of prisoners of war from a strictly economic standpoint. When a soldier is POW, he is clearly not in a position to be able to ...
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1answer
298 views

Importance of tax to Indian goverment

Currently in India there are many scams running rampant which involve illegal use of money by politicians. This is money which comes from taxes paid by the Indian people. Why should one pay such taxes ...
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190 views

How to create an economy for low skilled people in a high-cost country? [closed]

Think of a substantial amount of migration taking place within a larger country with significant differences in income levels in different parts of the country, but a still federal but somewhat ...
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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 ...
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1answer
180 views

Cronyism In Economy

What are the differences between crony capitalism and crony socialism ? These terms have been in the news very frequently.
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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 ...
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1answer
374 views

What does inequality look like when measured in man-hours employed?

There are numerous measures of inequality in income and wealth, like the Gini coefficient for instance. But I'm wondering about a different measure: the amount of labor, measured in man-hours, that ...
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2answers
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Couldn't those threatened with asset freezes simply move their money?

There's all this rhetoric about freezing the assets of certain Russians. What I'm asking is, aren't governments issuing these threats simply giving people warning in time to move their money out of ...
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7answers
4k views

Why fund the research in pure mathematics?

I post this question on politics.se, as suggested by this answer of Bjørn Kjos-Hanssen. The research in pure mathematics has (generally) no other choice that being funded by public organizations ...
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3answers
542 views

Feasible peak to minimum wage?

A number of US minimum wage advocates seek regular increases in the minimum wage. As a matter of political and economic feasibility, how high can the hourly minimum wage be set? I assume this would ...
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1answer
138 views

Example of Ostrom's 2nd principle applied to common peer-production resources

I'm writing a paper on StackExchange and building a comparison with Elinor Ostrom's principles for governing commons. While I understand most of the principles, I have some problems getting exactly ...
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3answers
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Why do some governments still continue applying rationing and maximum prices?

For example in Cuba and Venezuela the governments apply rationing and maximum prices. I have studied in the history that these policies, instead of improving living standards, always bring a ...
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1answer
132 views

Is modern wealth disparity a mitigated form of noble priviledge?

A long time ago, people were born into social estates. Some were nobles and rich and some were peasants, villains or even, serfs. Today, theoretically it's possible to earn as much money as you want....
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4k views

Why does Venezuela have such high inflation?

Background: In late 2013, Venezuela's inflation rates increased even higher, to 54.3%, As of January 2014, the official exchange rate is 1 USD to 6.3 VEF while the black market exchange rate is ...
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3answers
1k views

How much more do men earn than women for doing the same job?

Yesterday on the State Of The Union address, Barack Obama mentioned something that I have heard a number of times in the past. This information is taken directly from the White House website: On ...
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1answer
928 views

What is Nixon's wage and price control

In August 15th, 1971 Nixon froze prices and wages change. What was Nixon's wage and price control's impact on the economy, why was it necessary and what happened when it was released, that caused ...
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1answer
571 views

When will the US hit the debt ceiling again?

After the debt ceiling showdown of October 2013, the US debt ceiling (basically the total amount of outstanding debt the US is allowed to have at a time) was suspended from October 16, 2013 until ...
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4answers
945 views

What is the necessity of the FDIC in the US banking system?

A bank's basic function is to "borrow short and lend long". In other words, it borrows money from depositors over the short term, promising to repay it on demand, while it lends most of that money out ...
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2answers
885 views

Was the Icelandic economic crisis of 2008 a product of lax government oversight or big government?

US libertarians, and some of those who share their rhetoric on the right, are strong proponents of laissez-faire economics and limited government. However, in the case of Iceland and its banking ...
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3answers
764 views

Why is there concern about the growing income gap, and is there an ideal level?

I was listening to NPR this morning about the growing income gap between rich and middle class and it got me thinking about how people's incomes would be distributed in a simple, perfect world, where ...
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1answer
357 views

What are the main obstacles for implementing a Resource Based Economy as proposed by Jacque Fresco?

I couple of years ago I saw these movie about The Venus Project and was very exited about it but after reading a couple of books (The Blank Slate, How the mind works) from Steven Pinker it seems to me ...
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2answers
162 views

How has the “too big to fail” problem been mitigated in other circumstances?

In the financial crisis of 2008/2009, many countries bailed out their banks. The United States not only bailed out some of its banks, but also AIG, a non-bank which was deemed to be "systemically ...
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1answer
166 views

Has anyone produced a time series of the Gini coefficient to current political party?

Has anyone ever done a global or regional time series of the Gini coefficient* mapped against the current ideological faction** in power? The more countries in the time series, the more informative ...
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1answer
110 views

Is it possible for the US to borrow money from other countries, after the shutdown?

After the government shutdown and the startle of debt default, is it possible for the US government to issue bonds, and borrow money from other countries?
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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 ...
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Why did Russia default on its domestic bonds in 1998 when it could simply print money?

Russia defaulted on its domestic debt in 1998. It did not have to do so because the bonds were denominated in Russian Ruble and the government could simply have printed money to pay the bonds. Why ...
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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 ...
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7answers
3k views

Why is there no economics theory largely accepted or considered true?

An exact science is any field of science capable of accurate quantitative expression or precise predictions and rigorous methods of testing hypotheses, especially reproducible experiments involving ...
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4answers
2k views

Why would a country ever store its gold deposits abroad?

I just learned from this question that Germany is storing its gold reserves around the globe. Why would a country store any of its gold reserves abroad, instead of well-protected inside the country? ...
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1answer
279 views

Do any countries have Country of Origin Food Labeling laws?

There is quite a bit of push back to the request in the US to have country of origin food labels. Has any other country implemented Country of Origin Food labeling? If so have their been any issues ...
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4answers
2k views

Why don't we pay food stamps and unemployment benefits indefinitely to stimulate the economy?

A Moody's Analytics study found that expanding unemployment benefits stimulated the economy by 1.64 times the amount spent on the program. In findings echoed by other economists and studies, he ...
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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 ...
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1answer
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What would be the economic impact of eliminating all tax deductions in the US?

What would be the broader economic impact of eliminating all personal income tax deductions in the United States, across the board? Take two basic scenarios: a) eliminating all income tax deductions, ...
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1answer
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Ministry of Knowledge Economy of South Korea

South Korea had a ministry called Ministry of Knowledge Economy. In 1948, it was Ministry of Commerce in the First Republic of South Korea. In 1993 it was merged with the Ministry of Energy, ...
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3answers
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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 ...
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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 ...
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1answer
242 views

How significant is social cohesion to long term economic growth?

The EU has a long track record of pushing for more social cohesion and the debate on a new round of cohesion policies is ongoing. Hopefully it will result in a cohesive set of guidelines for the 2014 -...
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1answer
330 views

Why would Cyprus be “forced” to leave the Eurozone if it defaults?

I don't understand the statements being made that Cyprus (and before it, Greece) would be "forced" to leave the Eurozone if it defaults on its debt? Would it be "forced" by the other Eurozone ...
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1answer
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Why doesn't the Shadow Chancellor give the UK budget response?

Why is the budget response just given by the Leader of the Opposition rather than the Shadow Chancellor, who sits next to him?
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1answer
515 views

How much of the deficit would be reduced by increasing taxes on the top 1% to 1990s levels?

President Obama has talked about raising taxes on the super-rich as one way to balance the national budget. This New York Times opinon piece says: We can achieve significant deficit reduction ...
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2answers
189 views

What analogues exist for the Dutch Centraal Planbureau outside The Netherlands, if any?

In The Netherlands, the Centraal Planbureau (Central Planning Bureau, Bureau for Economic Policy Analysis) is an independent government agency that delivers economic analysis of policy plans, among ...
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2answers
586 views

Repaying high debt in a country, without get ruined, is it possible? Example?

In another question it was asked what it means to a country if it has a high debt. I'd like to know whether there are there examples of a country paying back high (100%+ Debt to GDP ratio) debt? I ...
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0answers
911 views

For the average American, what would the consequences be if the USA defaulted on the national debt? [closed]

First off, we know that currently the USA owes about $16.5 trillion. Of that though, nearly $5 trillion is intergovernmental holdings. That debt would not directly affect the average American, because ...
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803 views

Are Minimum Wage laws correlated with higher poverty levels?

Minimum Wage laws are promoted as a way to ensure that people earn a living wage, and are not living below the poverty line. Research on the subject disagrees about the effectiveness of such ...
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2answers
2k views

What can be done to limit the power of trade unions without hurting the right of assembly?

Some claim that trade unions are essential for ensuring workers rights. At the same time, some powerful trade unions are being blamed for using their power to extort extremely high salaries and ...
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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 ...
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1answer
220 views

Has a government minted this much money at once before?

There are discussions on the internet of a scheme by which the United States government could continue to function without raising the debt ceiling. This scheme boils down to the use of a loophole ...
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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 ...