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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
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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
862 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
838 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
650 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
341 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
156 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
107 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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0answers
211 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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3answers
1k views

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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3answers
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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
273 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
109 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
1k views

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
1k views

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
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 ...
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1answer
424 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
229 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
320 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
1k views

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
448 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
160 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
575 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
886 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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4answers
772 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
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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
843 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
210 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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4answers
2k 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 ...
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1answer
3k 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 ...
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1answer
164 views

What was the official explanation of the Laotian “new economic mechanism”?

In 1986, the communist government of Laos introduced several economic reforms, which were clearly in discord with what is generally understood to be the communist ideology. I would be interested to ...
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2answers
514 views

Where one can find the data on Shorrocks index for the world?

Shorrocks index is an index of estimated income mobility (in other words, how likely is it for someone who was in bottom 20% by income in their country to increase their income in N years to move to ...
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1answer
335 views

What socio-economic measurement system may become an alternative to the economic growth percentage?

I live in Israel where the government constantly brags about a high economic growth percentage, while many claim that this datum isn't sufficient for describing the true nature of the socio-economic ...
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4answers
2k views

Does lowering the capital gains tax encourage investment and increase economic growth?

Capital gains are taxed lower than other types of incomes in several nations.The rationale I have heard for this is that a lower tax on capital gains is supposed to encourage investment and increase ...
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2answers
308 views

If robotics starts replacing human workers, what will the less wealthy workers do? [closed]

According to TechChrunch, Foxconn is planning to fully replace workers with robots. If this would continue and spread to other manufacturers, what changes to the current system would be feasible to ...
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3answers
506 views

In US politics, what are the grounds for the Republican opposition to alternative energy?

(DISCLAIMER: I am asking this in the most non-partisan way possible. Please no arguments or mudslinging!) What are the Republican party's premises for opposing alternative energy in place of fossil ...
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2answers
307 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 ...
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8answers
8k 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 ...
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1answer
418 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 ...
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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? ...
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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 ...
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1answer
46 views

Analyzing Governmental Debt

When looking at the Federal debt there are a lot of ways to interpret the data. You can look at the dollar amount which is currently ~16 trillion or you can analyze it as a percent of the GDP. Are ...
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2answers
364 views

Does the Corporate tax rate negatively affect the economy?

I've heard from many sources that the corporate tax rate has a detrimental effect on the economy, and that lowering it not only has the effect of stimulating the economy, but actually raises more ...
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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 ...