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215

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 ...


192

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 ...


167

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 ...


146

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'...


137

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 ...


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 ...


97

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 ...


97

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 ...


92

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 ...


92

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 ...


86

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 ...


86

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. Manufacturing is on the decline while capitalism thrives. (...


81

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 ...


80

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 ...


69

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.


66

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 ...


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

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. ...


61

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 ...


60

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" ...


59

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 ...


56

What you are describing is a Mixed Economy. Essentially the state takes over certain markets either through direct control or regulation while letting others be more free-market. Numerous economies ranging from the United States to Cuba fit into that model to varying degrees. Going further, the concept of a Universal Basic Income combined with state ...


56

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 ...


55

It appears the problem isn't the deficit (the loss from an individual budget) but the size of the existing debt itself. From a report in the Guardian Italy’s public debt is worth more than 130% of the country’s GDP, the second-highest level in the EU after Greece and more than double the bloc’s limit of 60%. In effect, the EU don't believe that the ...


54

Mostly because Japan doesn't actually have deflation at the moment (although it may have between 1998 and 2008). In the last ten years, Japan's inflation rate has been as high as 3.7%. Another way of saying this may be that they already did fix their problem. Japan had deflation, primarily between 1998 and 2008 with occasional returns since. But ...


54

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 ...


51

If the debt were to be transferred, it would be because of negotiations between Catalonia and Spain for Catalonia to take that debt on and at what level. It would seem reasonable to me for negotiators from Spain to ask for it, since supposedly the people of Catalonia might have contributed to it and since the Catalans are in essence asking Spain for ...


50

"Can it happen"? Sure, the laws of the EU are set by the members of the EU, if the members want to change the rules they can. They can re-admit the UK or not. If there is a law against it, the EU can just change the law. With sufficient political will on both sides it is possible. "Will it happen"? After years of causing problems, how likely is it that the ...


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