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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4answers
688 views

Why are so many countries subsidizing the electrical vehicle industry?

I am creating a presentation about main subsidies and taxes for the EV (electric vehicle) market. When I dived deep into this — the question became: why do governments invest in this market? What ...
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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, ...
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3answers
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Why does Berlin have debt issues in opposition to many other European capital cities?

According to this article Berlin seems to be a strange capital city when it comes to debt: In almost every European country the capital is the engine of the economy. But a new study shows there ...
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4answers
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Why aren't nationalizations in Russia described as socialist?

I read in a 2015 PIIE brief titled "Russia’s Economy under Putin: From Crony Capitalism to State Capitalism" that: After nationalizing Yukos, the Russian government started taking control of ...
6
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1answer
127 views

Do any countries besides the UK have a “triple lock” on pensions?

The Economist wrote before the 2017 UK general election: The average incomes of retired households are now higher than those of working ones, once housing costs are accounted for. Small wonder that ...
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5answers
3k views

Why did Roosevelt decide to implement a maximum wage through taxation rather than a simple ceiling?

In 1942, FDR asked Congress to implement a 100% tax on all incomes over $25,000 (around $375,000 today). This was backed by the unions and a clear majority of the voting public. In fact, such a tax ...
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3answers
377 views

What are the main reasons for the massive increase in CEO pay inequality over the last thirty years?

Using Switzerland as a paradigmatic case, the ratio of CEO pay to the worker with lowest pay increased from 6x in 1984 to 43 x in 2011 (source: The Guardian). What specific policy or policies have ...
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3answers
1k views

How to interpret 'economic zones'?

This was an exam question conducted in Feb 2019: write an Essay on "New war fronts lie in economic zones." Since the question seemed to be open ended, to me at least, I would like to know what ...
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4answers
832 views

Why do many countries not offer a fixed rate 30 year mortgage?

I recently moved from the US to the UK and was bewildered by the myriad subtle and not so subtle differences in mortgage products offered by banks. It struck me that the variety of federal ...
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7answers
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Why are 150k or 200k jobs considered good when there are 300k+ births a month?

It would seem that most people who are born will eventually enter the workforce. Maybe that entry is delayed due to college or enlistment or that very important backpacking trip through Europe, but it ...
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4answers
583 views

What is the motivation for a specifically $15 per hour minimum wage?

In the United States, various politicians and activists are advocating for a $15 per hour minimum wage. However, I'm not sure how this value was chosen. One reason given for increasing the minimum ...
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1answer
517 views

Why do American farmers buy tractors from John Deere?

https://hardware.slashdot.org/story/19/03/27/1851206/elizabeth-warren-calls-for-a-national-right-to-repair-law-for-tractors?sbsrc=md Farmers operating John Deere tractors have been fighting against ...
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0answers
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How did Roger Douglas convince the labour party to carry a liberal economic reform?

Roger Douglas the Minister of Finance of New Zealand from 1984-1988 made a huge liberal economic reform in his era (reducing the size of the state) it was so famous it was called "Rogernomics", but he ...
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2answers
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Universal basic facilities [duplicate]

I was reading a question about universal basic income and it seemed to me that there are basic flaws that are seldom or never mentioned. First, some people are not capable of managing money, second, ...
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3answers
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What does “breaking up” a company mean?

Oversimplify it for me, what does "breaking up" a company mean when used commonly among politicians? What would a broken up wells fargo look like? Google? Is there historical legislation doing this, ...
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2answers
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What type of political instruments can a government use in order to keep housing rental prices in check? [duplicate]

Background I live in Malta (expat), where the rental prices have exploded over the last 5-6 years due to a heavy influx of expats in finance and online gaming, that have higher disposable income and ...
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3answers
7k 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 ...
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10answers
687 views

Why do governments encourage saving resources instead of simply raising the price on them?

Every day we hear messages from the government about the importance of saving fuel, natural gas, water, electricity, etc. Governments pass laws requiring that showers are not too powerful, cars ...
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4answers
374 views

In what ways economy influence slavery and end of it?

Most people think slavery is prohibited because it's "wrong". If that's true, we would have ended slavery thousands of years ago. It seems that industrialization makes labor more "precious". Each ...
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3answers
411 views

What exactly is “Human Capitalism” and does it conflict with the function of capitalism?

Recently Andrew Yang has announced his run for the 2020 Presidential election. He calls himself a "human capitalist" Now, I like his ideas generally - but I do not understand what exactly "human ...
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1answer
198 views

Why would a company invest in American infrastructure based on one administration?

Right now, we have an administration that is considered to be business friendly. I would prefer that this part not go debated, because it isn’t the focus of the question. Let’s say any administration ...
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1answer
77 views

How is the individual person affected by economic changes as a result of Brexit? [closed]

I have a few questions regarding the following topic: How is the individual person affected by economic changes as a result of Brexit? How are people in the age between 25 and 35 predicted to be ...
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1answer
132 views

How will brexit affect the British export and import? [closed]

Will there be any positive consequences that are expected from Brexit or is it mainly expected to be bad for the British trade?
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3answers
995 views

Why does France have systematic difficulties in obtaining a budget deficit below 3%?

According to this article France plans for a budget deficit slightly over the EU allowed limit of 3%: France's budget deficit is likely to overshoot the European Union's limit of 3 percent of GDP ...
4
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1answer
512 views

How much money did the United States spend on the Iraq war, and how much money did US oil companies gain as a result of the new Iraqi constitution?

This is just a cost benefit analysis, any discussion about US motivations in engaging in the Iraq war I would consider out of scope. Iraq nationalized oil production in 1972 (source). Following the ...
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1answer
179 views

What “certain conditions” are applicable on Henry George Theorem?

The Henry George theorem, named for 19th century U.S. political economist and activist Henry George, states that under certain conditions, aggregate spending by government on public goods will ...
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1answer
203 views

What fiscal backbone is there for employees who are now on “leave without pay” due to government shutdown?

Well considering a shutdown takes quite some time, it means there are lots of people with various skillsets who are literary thumbling thumbs. Just to wait till they can get their job back. Since not ...
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26answers
40k 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 ...
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1answer
191 views

Regarding the Economically Weaker Section ( EWS ) 10% quota approved by the Indian Parliament

I am reading an article in a leading newspaper of India, in which the author says: As per the India Human Development Index ( IHDS ), the annual household incomes of 98% of households are less than ₹...
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2answers
275 views

Is there a “healthy” value / interval for unemployment rate?

A TV show depicting US politics features a fictitious big political program called AmericaWorks or AmWorks. Its goal is to greatly reduce unemployment (virtually to zero or "Universal Employment"). Of ...
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0answers
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What is the rationale of capping interbanking rates to values significantly lower than inflation rate?

Romania’s finance ministry announced some sort of "tax on greed" for banking sector: Romania’s finance ministry plans to introduce a tax on banking assets from 2019, seeking to cap the interbank ...
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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 ...
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1answer
173 views

Did the New Economic Policy ever end?

Migrate to history as needed. The USSR was a Neoliberal Social welfare state. It privatized everything under Lenin. I just wonder to what extent this mattered. What percentage of the firms privatized ...
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3answers
251 views

Why doesn't the EU collectively establish taxation based on profits gained in a country?

As I understand it, the problem with corporations taxation is there are international agreements countries would not tax products in the country where the enterprise isn't registered. So wouldn't it ...
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2answers
266 views

Why doesn’t China negotiate trade deals with each state in US?

Say, let each state send representatives to bid for import quota of specific categories of merchandises, therefore making intra-US cooperation among states into inter-state competition; just like how ...
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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 ...
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1answer
414 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 ...
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3answers
540 views

Why doesn’t the U.S. have a bracketed corporate tax?

This might be a question better-suited for Economics StackExchange, but I figured I'd try my luck here first. In the U.S. we have a bracketed tax system for personal income tax, which serves to ...
9
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1answer
390 views

What were the positive and negative effects of the French ISF?

The Impôt de Solidarité sur la Fortune (ISF, or wealth solidarity tax), is easily the most controversial part of French tax policy, and its removal by Emmanuel Macron was probably the most ...
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1answer
4k views

What are the reasons presented by the French government to explain why the price of diesel fuel increased so much in France?

Many media channels are covering the "fuel protests". According to BBC, the main reason behind these protests is fuel (especially diesel) prices raising: The price of diesel, the most commonly used ...
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1answer
90 views

Causes of a sovereign debt crisis?

What are the causes of a sovereign debt crisis? How can countries get out of a sovereign debt crisis?
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21answers
14k 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 ...
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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 ...
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2answers
352 views

Why is Italy pushing its budget?

Why is the Italian government trying to push its budget, which would make their national debt skyrocket even further, while the Italian Audit Office says it's a bad idea and the EU isn't too keen on ...
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2answers
795 views

Why is the concept of Trickle Down economics still popular with US conservatives? [closed]

US conservatives seem to still believe in the concept of 'Trickle Down Economics', while it has shown very limited results in the past and if anything, it only made the rich richer and the poor poorer....
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5answers
2k views

What are the arguments for and against a flat income tax rate?

Let's say that the national income tax is 5% for everyone with no loopholes (i.e. no tax reduction). In theory the rich would contribute more to total tax revenue. What are the arguments for and ...
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1answer
248 views

What possible laws have been proposed to modify limited liability of corporations?

I wonder if there’s a workable tweak to the limited liability of shareholders that would make it less profitable for those who wish to indirectly indicate to their flunkie ceos that they better cut ...
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2answers
310 views

Can't a country grow its GDP without foreign investment?

Whenever various developing countries around the world talk about growing their economies, they talk about facilitating foreign investments and they put so much emphasis on it as if a country's ...
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1answer
402 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 ...
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2answers
787 views

Hypothesis: “globalization makes a ”strong“ economy the hostage of its own success?”

What do you think about the hypothesis that globalization makes a "strong" economy the hostage of its own success? What do I mean by that?. Two countries deal with each other for a long time. One of ...

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