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84 votes
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Why do economists disagree so much?

Some areas of economics have more consensus and predictive power than others. Most economists would agree on the effects of trade barriers, could fairly accurately forecast the effects of a price ...
Ubiquitous's user avatar
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79 votes

A law against selling any house cheaper than it was bought for, what consequences would that have?

That would be really, really bad. Any house that loses value will be unsellable, and thus virtually worthless. Most people living in such a house would be prevented from moving. They cannot sell it, ...
Klas Lindbäck's user avatar
79 votes
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If women are paid less for the same work, why don't employers hire just women?

There could be several reasons here are just few: Principal-agent problems. Firms are typically not managed by their owners but by managers (agents) who act on the behalf of owners/shareholders (...
1muflon1's user avatar
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41 votes

People pathologically hoard so much cash that they impoverish the entire nation

But when people pathologically hoard so much cash that they impoverish the entire nation This sentence seems to imply that we should fault the rich not because they are rich, but because they do ...
Alecos Papadopoulos's user avatar
40 votes

Why do low-income earners tend to spend more?

Marginal propensity to consume is the proportion of an aggregate raise in pay that a consumer spends on the consumption of goods and services, as opposed to saving it. If someone gets extra income $\\...
1muflon1's user avatar
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37 votes

Could eliminating all taxes and only creating new money theoretically work?

It would not work. Historically speaking, governments that try to fund their operations primarily via the printing press experience not just inflation but hyper-inflation. Why? Well, one explanation ...
Topher Brennan's user avatar
36 votes

If women are paid less for the same work, why don't employers hire just women?

Quite simple. If women are paid less, then that's because people believe their work to be worth less. The same believe, that womens work is worth less, then stops employers from hiring more women. (...
DonQuiKong's user avatar
34 votes

Why do different countries have different currency?

Two reasons: history and ability to control the money supply. History: paper-money started by being issued by trustworthy agents from kings/governments, as a way to be able to transfer the ownership ...
JoaoBotelho's user avatar
  • 2,155
32 votes

Did real incomes drop significantly since the 1950s?

Most of the US real earnings data which go only as far as mid 60s. According to the statista data presented in this article by world economic forum the evolution of real hourly earnings in the US for ...
1muflon1's user avatar
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31 votes
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Why is fuel more expensive on the high way in Europe?

Because there is no indication in your question that you are a student or practitioner of economics, I am writing an answer for a lay audience. Let me know if you would like more technical detail. A ...
Ubiquitous's user avatar
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31 votes
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Why do different countries have different currency?

I will focus on some economics reasons not mentioned explicitly so far. There are economic benefits to having your own currency. Your question essentially raises the question of so-called "Optimum ...
BB King's user avatar
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31 votes
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Why do many occupations show a gender bias?

I should say pre-emptively that I'm not satisfied with ideas that merely may explain the effect, as yesterday's question produced a proliferation of rationalisations and claims that lacked rigour. I'...
Alalalalaki's user avatar
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30 votes
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Do companies have non compete agreements between each other?

This is known as dividing markets or market allocation, and it is against the law in the US, the EU, and I imagine in most countries with antitrust laws.
Giskard's user avatar
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30 votes

If women are paid less for the same work, why don't employers hire just women?

Because women are not paid less for the same work when all the variables are taken into equasion. Caveat: below answer is a nearly verbatim copy of my earlier answer on Politics.SE on the topic In ...
DVK's user avatar
  • 708
29 votes

A law against selling any house cheaper than it was bought for, what consequences would that have?

And everyone is safe, the crash prevented and everyone will keep making millions simply by borrowing more for risk free "investing" in simply owning ones own house, right? It is true, your investment ...
Jeutnarg's user avatar
  • 401
29 votes

Does a store suffering increased theft generally cause higher prices?

prices should have already been set to maximize the trade off between profit-per-sale and volume sold But profit-per-sale depends on costs, which depends on the theft numbers, so if theft increases, ...
Giskard's user avatar
  • 29.2k
27 votes

How do economists explain why people contribute to Wikipedia?

Voluntarily contributing to a public good (such as Wikipedia) is a strong social norm. The tendency to follow such norms even if this is costly in the short run has developed over humans' evolutionary ...
VARulle's user avatar
  • 6,900
22 votes

Did real incomes drop significantly since the 1950s?

Average standard of living is massively higher today compared to the 1950s, primarly due to technological progress. Even a cheap low end car today is much better than the big cars of the 1950s, it is ...
quarague's user avatar
  • 882
22 votes

How do economists explain why people contribute to Wikipedia?

I wouldn't underestimate the role of learning by answering. Drafting a significant text typically forces a person to put their thoughts in order, to engage in research, and then to structure the ...
Steve's user avatar
  • 616
22 votes
Accepted

Are democracies more economically productive than autocracies?

In economics, it is accepted that countries with good 'inclusive' institutions, such as strong property rights, are more productive and able to develop faster (or even develop at all) than countries ...
1muflon1's user avatar
  • 56.7k
21 votes

Why do economists disagree so much?

In addition to Ubiquitous' excellent answer, I will also point out the general lack of experimental controls in economics. Your example about crash-testing a car is an easily designed, perfectly ...
Nuclear Hoagie's user avatar
20 votes

Why do we need to "get the economy moving again"?

Both Alice and Kate have bills to pay, regardless of whether they are earning money or not. Restaurants and salons have to pay rent and maintenance on their properties whether they are in business or ...
Darrel Hoffman's user avatar
20 votes

Does a store suffering increased theft generally cause higher prices?

What you're describing is retail shrink. It is taken into consideration when setting prices. A business will typically have consultants come in, measure their shrink to be X percent, and prices will ...
Aww_Geez's user avatar
  • 301
19 votes

Why do many occupations show a gender bias?

I'm hesitant whether to write this as an answer or as a comment for why this question should be closed as off-topic, since the reasons likely have little to do with economics. Since you did ...
reirab's user avatar
  • 430
18 votes

Could eliminating all taxes and only creating new money theoretically work?

tl;dr this would not work in either closed or open economy unless your proposal would include very large cuts to current social and welfare spending as only arguably small part of those could be ...
1muflon1's user avatar
  • 56.7k
15 votes

Did real incomes drop significantly since the 1950s?

The book “The Two Income Trap” (2003) by Elizabeth Warren (recent Democratic presidential candidate) and Amelia Warren Tyagi discussed this. They looked at spending breakdowns in the 1970s and when ...
Brian Romanchuk's user avatar
15 votes

How do economists explain why people contribute to Wikipedia?

tl;dr: There could be multiple explanations depending on how you want to treat Wikipedia. If you want to treat Wikipedia as public good where everyone contributes a small part towards its creation and ...
1muflon1's user avatar
  • 56.7k
14 votes

People pathologically hoard so much cash that they impoverish the entire nation

Her position isn't quite untrue. If you define poor and rich relatively, you cannot have "poor" without having "rich." However, this has little to do with hoarding. We often think of money in terms ...
Cort Ammon's user avatar

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