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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110
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22answers
25k 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 ...
4
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1answer
938 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, ...
9
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1answer
523 views

What's the difference between Cooperativism, Market Socialism, and Syndicalism?

What's the difference between Cooperativism (the replacing of Capitalist firms with worker co-ops like Mondragon), Market Socialism, and Syndicalism? Given that they're all systems where workers ...
80
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17answers
20k 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 ...
108
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18answers
14k views

Why hasn't competition between health insurance providers led to lower prices for consumers?

In the US, a common argument I've seen against a universal healthcare system is that removing the ability of private health insurance companies to compete will give rise to a natural monopoly in the ...
84
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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 ...
53
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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. ...
12
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1answer
798 views

What are the details of the Federal Reserve's $1.5 trillion injection?

According to the Wall Street Journal, in order to attempt to slow the economic contraction caused by the Covid-19 virus, the Federal Reserve has promised to inject $1.5 trillion into the economy, by ...
46
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9answers
5k views

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

Whenever economic growth as a percentage of GDP 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 ...
61
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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 ...
46
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3answers
13k views

During the COVID-19 pandemic, why is it claimed that the US President is making a trade-off of human lives for the economy?

This question posted recently makes a lot of assumptions, including the US President is currently making a trade-off of human lives for the economy or Trump's pro-economy death-permissive ...
50
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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 ...
24
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5answers
4k 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 ...
42
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9answers
7k views

Have any countries that are currently in lockdown published a detailed long-term exit plan?

Currently almost every country around the world is in a state of lockdown. However all of them seem to be in a state of 'indefinite' lockdown, with no long-term plan published anywhere. Has any ...
16
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1answer
2k 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, ...
19
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2answers
8k 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?
18
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3answers
3k 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, ...
18
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3answers
9k 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 ...
7
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2answers
331 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 ...
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 ...
7
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3answers
643 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 ...
6
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2answers
202 views

How big is the total bailout (“trade aid”) that Trump gave to US farmers since the trade war began?

News from 2018 mentioned $12B: [07/24/2018] Agriculture Secretary Sonny Perdue on Tuesday unveiled a three-part, $12 billion plan to ease the sting of retaliatory tariffs on U.S. farmers through a ...
5
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2answers
839 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
143 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 ...
100
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11answers
32k 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 ...
32
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10answers
15k views

Why did Berlin freeze the rent prices as opposed to letting the market set the price?

This EuroNews article tells us about the Berlin freezing of rent prices: Berlin is freezing the rents of 1.5 million apartments for the next five years starting this Sunday in a controversial ...
45
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10answers
22k views

Why don't countries like Japan just print more money?

Modern Monetary Theory states that a sovereign country will never go bankrupt. It can just print more money. Of course, printing more money would lead to inflation. But some countries have the ...
29
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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 ...
29
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4answers
17k 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 ...
12
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1answer
624 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 ...
23
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3answers
4k 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 ...
25
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10answers
4k views

How do leaders choose between lives and money?

Amid the current pandemic many governments imposed heavy social restrictions in an attempt to flatten the curve and thereby save lives, and those restrictions take their toll on the economies. For ...
13
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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 ...
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 ...
9
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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
11k 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 ...
5
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2answers
602 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 ...
2
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2answers
7k 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?
2
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3answers
4k 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 ...
25
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4answers
5k views

How does the credit rating of a country affect its populace?

I am coming from a UK perspective; we lost our AAA credit rating in 2013, and dropped again in 2017 after the referendum on European Union membership. It was reported last week that we are set to be ...
18
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4answers
989 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 ...
15
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5answers
3k views

How can Germany increase investments in Russia while EU economic sanctions against Russia are still in place?

According to Wikipedia EU economical sanctions against Russia are still in place: The sanctions by the European Union and United States continue to be in effect as of May 2019. In July 2018, the ...
14
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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 ...
12
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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? ...
11
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5answers
989 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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2answers
329 views

Is the public generally aware of lagged effects of economic policies?

New governments attributing to themselves economic success without paying any respect to lagged effects of economic policies of previous governments are probably as old as politics. (Exactly the same ...
8
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2answers
968 views

Why did Japan not raise taxes instead of borrowing to avoid having such a large debt ratio?

According to this article, Japan reached an enormous debt/GDP ratio of about 250%. The first two answers from here illustrate more about the structure of the debt. My highlights are: most ...
5
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3answers
1k views

Why is the Turkish Lira sliding?

What is the fundamental reason that the Turkish Lira is tumbling down during the last few months? Kindly, explain in layman's terms and in short.
5
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3answers
19k 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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1answer
312 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 ...