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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/

101
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21answers
22k 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 ...
96
votes
26answers
34k views

What is capitalism's answer to constant economic growth hitting the limit of the planet's finite resources?

We keep hearing a lot about economic growth in the media and this answer shows us why it is so important: Therefore, we have three options: A constant increase in unemployment. (Generally ...
93
votes
11answers
29k 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 ...
81
votes
4answers
16k 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 ...
76
votes
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 ...
59
votes
17answers
21k views

Why would the government force its population to save for retirement?

Here in Denmark we pretty much have "forced" retirement saving. Almost everybody in regular employment pays about $15 a month plus 12% of their monthly salary into a pension fund. [1] You can save ...
58
votes
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 ...
56
votes
3answers
14k views

What is Canada's case for applying tariffs on US dairy?

Donald Trump has been making a lot of noise the past few days about Canada's protection of its dairy industry, and cites that practice as the justification for the steel and aluminum tariffs he has ...
51
votes
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. ...
47
votes
8answers
19k views

Is it possible to be a socialist and a capitalist?

I don't know how to label my economic belief system, and it's frustrating when getting into discussions with other people. I believe in Capital. I believe that people have a right to earn more than ...
46
votes
3answers
8k views

Do separatist nations inherit any national debt?

Do separatist nations inherit any national debt? For example, given Spain has a debt level of £1.1 trillion at the time of writing, if Catalonia becomes an independent nation is there any legal ...
39
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9answers
9k views

How could the free market limit the effects of net neutrality's repeal?

How could the free market limit the effects of net neutrality's repeal? Specifically, how will consumers' internet access be protected without government regulation?
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 ...
39
votes
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 ...
38
votes
3answers
8k views

What was Eisenhower's warning about?

Eisenhower in his farewell address warned the American people about the United States Military Industrial Complex and its emerging power. According to Wikipedia The US spends more on the military ...
36
votes
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 ...
33
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5answers
11k views

If the eurozone budget deficit limit is 3%, why is the European Commission telling Italy it must revise its 2.4% deficit budget?

The BBC reports that the European Commission has told Italy to revise its budget, saying that the draft presents particularly serious non-compliance with Eurozone rules. Yet the maximum permitted ...
31
votes
21answers
13k views

How does Capitalism facilitate happiness? [closed]

I would like to preface this with the disclaimer that I am fresh to Stack Exchange, so any pointers on what may have been a better Stack for my question, or simply how to better frame it, are greatly ...
30
votes
10answers
10k 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
votes
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 ...
24
votes
1answer
7k views

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 ...
23
votes
13answers
7k views

Why not have a wealth dependent income tax?

Usually states implement a progressive tax. So people with a higher income have to pay a higher tax rate. However I think that this is not helping much to distribute wealth more equally. Instead I ...
22
votes
6answers
14k views

Does currency exist in communism?

I've thought about this before, but never heard any explanation as to how this works. My understanding of communism is: Everyone works. Everything is rationed out equally. Since there is no ...
22
votes
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 ...
21
votes
3answers
6k views

Did Germany profit from the (third) Greek bailout?

From an article published in June 2018 on thelocal.de: Berlin has been one of the main lenders to Greece during its debt crisis. While conservative parties warned that supporting Greece would come ...
21
votes
8answers
5k views

Why do the USA and the European Union treat GMOs so differently?

According to the sources cited within this paragraph, there is a scientific consensus that "currently available food derived from GM crops poses no greater risk to human health than conventional food, ...
21
votes
2answers
3k views

What have been the arguments against VAT in the US?

The majority of countries in the world have implemented a Value Added Tax (VAT) - sometimes called a Goods and Services Tax (GST) - why hasn't the US? EDIT - I would assume that if a VAT were ...
19
votes
3answers
6k views

Does the US government have any planning in place to ensure there's no shortages of food, fuel, steel and other commodities?

Every time we go shopping store shelves are full of food, gas stations are stocked up on gas, car dealerships have no shortage of cars, etc. But who is ensuring that all of the complex processes ...
19
votes
3answers
1k views

Why did local authorities in England and Wales stop building homes?

From the 1970s–1980s, UK government local authorities stopped building homes: (Source: BBC News) Or, with raw figures from the Ministry of Housing, Communities & Local Government spreadsheet, ...
18
votes
3answers
3k views

Dealing with crime in cryptocurrency based economies

Most cryptocurrencies are anonymous where the origin of coins is not known and transactions are also anonymous (this may not be 100% true but lets assume perfect anonymity). The society prevents ...
16
votes
3answers
5k views

What reasons do pro-trade politicians use to justify retaliatory tariffs?

The general "neoliberal" position towards trade is that it benefits both sides and low tariffs/subsidies are beneficial. This has been the dominant trend in wealthy nations for the last thirty plus ...
16
votes
3answers
7k 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 ...
16
votes
3answers
3k views

Who is lending the money for a nation's debt?

It seems most governments (certainly the US, Europe, Australia) have racked up a national debt - but who are the lenders that these governments are indebted to? Where does the government get the ...
16
votes
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, ...
16
votes
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 ...
16
votes
2answers
6k views

What happens if a country becomes bankrupt?

What happens to the citizens of the country? What happens to the sovereignty of the country? What happens to the neighbors? For example, what will happen if Greece becomes bankrupt?
16
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5answers
779 views

Agricultural subsidies of the EU: Why didn't / don't developing countries impose import tariffs on agricultural products?

A common criticism against the agricultural subsidies (mainly against export subsidies) of the European Union is that it leads to dumping in developing nations (say, for example, Ghana) and destroys ...
15
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2answers
3k views

Why there was no Marshall plan for 1990s Russia?

Just imagine the completely different world today if Russia were a part of Free World, member of NATO and a prosperous democracy, like Germany. Was it ever discussed, and if so, why wasn't it ...
14
votes
5answers
8k views

Is Venezuela an example of socialism?

I've been hearing a lot about Venezuela in the news lately. And it seems there is a big debate over whether it was socialism or not, or whether it was implemented properly. Is it safe to assume that ...
14
votes
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? ...
14
votes
3answers
983 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 ...
14
votes
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 ...
14
votes
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 ...
13
votes
2answers
3k views

Why are sugar subsidies so prevalent in spite of their apparent issues?

According to this article there seem to be lots of countries that subsidy sugar production: Pakistan struggles to export sugar surplus as global prices plunge Morocco sees sharp rise in ...
13
votes
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 ...
13
votes
1answer
2k views

Why does EU seem to disfavor e-books when compared to physical books?

According to this article EU court decided that e-books should not benefit from tax reductions that are applied to physical books: E-books must be subject to the full rate of value-added tax (VAT), ...
13
votes
1answer
1k views

Is China really Communist?

Having read Karl Marx, and seeing the 10 tenets of Communism, I find it hard to consider China as a Communist country. Just trying to stick to the 10 tenets. Abolition of private property, ...
13
votes
7answers
956 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 ...
13
votes
5answers
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 ...
13
votes
4answers
2k views

Is the economics theory of Karl Marx regarding technological progress realistic to the end?

Marx claimed that the introduction of more and more advanced machinery would lead to unemployment of workers, which decreases the ability of the society to buy things, which is a vicious cycle. ...