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218

Why would capitalism have an answer? Your question presumes that economic systems should be fully planned out into perpetuity, but that's just a false premise. You might as well ask what democracy's answer to peak oil is, or what individualism's answer to FTL travel would be. All capitalism means is that people are able to earn money off of things that ...


199

There are critics of globalization both on the progressive and on the conservative side of the political spectrum. One of the most relevant progressive anti-globalization NGOs is the European Attac. The main concern from the left-wing perspective is not globalization in theory but rather the way it is currently being implemented in practice: with a focus on ...


171

What arguments are typically offered by those supportive of this taxation technique, both ethically and economically, in order to defend and promote its use? Inheritance Taxes As Taxes In Lieu of Income Taxes Inheritance taxes aren't taxes on dead people who paid taxes on what they earned during life. The dead people are dead. They suffer no harm and ...


153

In 1800, more than 90% of everyone were farmers. Modernly in the United States, which is a net exporter of food, less than 5% of everyone are employed on farms. That's a reduction of 85%, much higher than 45%. Far from causing the end of capitalism, it launched the industrial age. In short, the capitalist answer is that there is always something else ...


149

What the other answers fail to address is a fundamental flaw in capitalism for certain types of business: Your average human places their continued survival above all other priorities. This concept is called 'inelastic demand'. In order for supply and demand to work properly, both entities need to be free to disengage and seek other options. But when one'...


107

How free is the US health care market really? The reason that free competition has not made health care in the US cheaper is that free competition has in fact been severely restricted for decades. As described in this article, regulation of the health care industry has been continuously expanded (decreasing the supply of drugs, doctors, etc.), while ...


106

Almost all high-speed broadband Internet service providers, except in high-density urban populations, have limited competition, if not full monopolies. A small start-up would have to build out their own infrastructure with no existing customer base, which isn't going to happen, in most cases. This is why so many people want to treat the providers like a ...


103

I can't speak for Rebecca's judgement in interpreting those words of Trump, but for instance a NYT article says: “Our people want to return to work,” Mr. Trump declared Tuesday on Twitter, adding, “THE CURE CANNOT BE WORSE (by far) THAN THE PROBLEM!” In essence, he was raising an issue that economists have long grappled with: How can a society assess ...


96

It seems that Canada and the US use two different systems to protect their respective domestic dairy producers. In Canada "Under a system called supply management, the Canadian government controls how much milk dairy farmers produce and how much it sells for" thereby guaranteeing sustained dairy milk farming. In the US, milk dairy farmers are supported by ...


95

It needs to be stated that "Trickle-Down Economics" is not actually a thing. The phrase itself was coined by Democrats who opposed Reagan's tax plans in order to mock the idea of Supply Side Economics. Therefore, there is no record of Trickle-Down Economics ever having worked -- or having been even tried, because the so-named policy is a fallacious ...


93

The reason Venezuela's economy collapsed was its over-reliance on oil exports. In the last half of the 20th century, the Venezuelan economy focused on growing its oil industry, while relying on imports for most other products. This worked quite well while the oil prices were exceptionally high. It stopped working in 2014 when the global oil price plummeted ...


91

Not all parts of the economy consume finite resources equally. In fact, only a minor portion of it is related to the manufacturing of goods in the industrialized countries. Most of the economy there is services by now and, even more related to your question, most of the growth is growth in services there. Manufacturing is on the decline while capitalism ...


90

Wait up a minute. Who says Cuba didn't fail spectacularly? Miami (and Florida in general) have a huge Cuban population. Generally, because Cubans did anything they could to leave that country during the 90's - even to the extent of risking their lives trying to boat/raft/etc their way up north. Here is the story of a person who grew up in Cuba after the ...


82

There are some assumptions being made by this question that don't reflect how the international economic order works. Countries do not ever have to pay off all of their debt A nation's finances are not like a person's. A person has a finite lifespan, and creditors take this into account when giving a loan. A country does not have a finite lifespan, and ...


82

The premise of the question that Ghana does not do well despite being a democracy appears to be flawed. Ghana became a multi-party democratic republic in 1993. Since then: The GDP increased by a factor of 6 The per-capita GDP increased by a factor of 4 There has been a stable economic growth every year Over 50% of the GDP is created in the service industry ...


81

You're looking at the policy economically rather than politically. Spain has to have a general election by July 2020. The government are contemplating having it earlier, possibly in May 2019 (to coincide with regional elections). So announcing a flagship policy of the "look what we're doing for our people" variety, a few months before an election, keeps ...


76

An example I could think of is Singapore. The country became independent from Malaysia after the Malaysian Parliament voted to expel Singapore, due to a combination of racial, economic and political tensions (Wikipedia has a relatively informative article regarding this). This came two years after a union was formed between Malaysia and Singapore (both ...


72

Are there any tangible benefits for India going to Mars with respect to common people? Rhetorical question: Are there any tangible benefits for India maintaining the Taj Majal with respect to the common people? Bulldoze it down and sell the land to developers. That's a bit over the top as the Taj Mahal is definitely a plus to the Indian economy. But what ...


70

The market was somewhat more free before the rent freeze (it was not completely free, see antipattern's excellent answer), and this had effects that some Berliners considered undesirable. The article describes what some of those effects were: ...in recent years, rents have skyrocketed...pushing middle-class families from Berlin's central residential ...


68

The obvious answer is that people get older and (presumably, hopefully) retire from the workforce. If your country's demographic is otherwise more or less stable, it means that by the time those 300,000 people age up to enter the work force, a similar number of people retire from the work force and hopefully live on their pension plan.


65

If your country also has a welfare system, and someone doesn't save for their retirement, they'll end up on welfare when they stop working. So the government is going to have to pay their expenses either way. The forced retirement savings ensures that this won't all come out of public funds, but will instead come from money they put into the system earlier. ...


64

This modern theory is far from commonly accepted. One comment is that printing itself out of debt may be possible for country that is a global reserve currency, but only as long as it is a global reserve currency. This status changes over time. If Japan were to print, investors would demand more interest for government and private debt. That's known as a ...


64

Their economies are radically different otherwise. Greece has a weak economy in most fields, with the exception of tourism. Japan is a manufacturing and scientific powerhouse. Greece runs recurring high deficits and had rarely, if ever, shown inclination to stop doing so. While Japan was criticized at the start of their financial decline for insisting on ...


63

The claim that constant economic growth within a planet of finite resources is impossible is false. Natural resources can be physically finite while being economically infinite. That is, regardless of the physical amount of any given resource exists in the world, it is possible to have the entire supply necessary to meet human demand. In "capitalist" ...


62

Eliminating national debt is not necessarily a good thing because a country's economics are a lot less like personal finance and far more like business finance. Businesses (and countries) take on debt because they believe they can use the debt to spark growth far in excess of the interest on the debt. That's why using a personal frame of reference is ...


58

First, who is #2 is highly subjective, if you discount nuclear arsenals. Second, this question is like asking Compared to a Ferrari a Mustang outruns tons of Priuses, Civics and SUVs. And it costs a lot less. Does that mean a Mustang is anywhere close to a Ferrari in speed? The US is, by virtue of its spending, #1, no question. It deliberately has ...


57

The main practical problem with globalism is implied right there in your question: Trade makes everyone better off in the long run, and it isn't as if we can just pretend that we don't live on a planet anyways, right? "Makes everyone better off in the long run" sounds nice, but it's not accurate. It makes an average member of population - and population ...


57

The Wikipedia page for Bourgeoisie is informative, and worth the read. Strictly speaking, there was no equivalent of middle, upper, or lower classes (in the modern usage of the terms) prior to perhaps the 17th century. The bourgeoisie were the wealthiest segment of commoners under feudal aristocracies, all the way back to the 11th century: tradesmen, ...


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