# Tag Info

44

There are several reasons for that, following Papanicolas et al (2018): High regulatory and administrative burden. US has one of the highest regulatory and administrative burdens. US healthcare market might be unregulated in terms of prices and range of services and procedures you can get but it is actually quite heavily regulated when it comes to licensing,...

33

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 production and non-supervisory workers looked like this: If we extrapolate to 50s then the real earnings are now higher overall. However, this being said the ...

32

In Milton Friedman's view, the cost of health care in the USA is high because consumers don't pay for it directly, and the people paying don't directly care whether it's a good value for the money spent. Consumers pay premiums driven by average costs but pay little of the marginal cost of their health care. Insurers don't care much about reducing costs ...

23

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 orders of magnitude safer, much more comfortable and has a whole bunch of new features that didn't exist back then. Houses as such haven't changed that much, ...

22

The metric of median household income is also used by others to argue the presence of income inequality: https://en.wikipedia.org/wiki/Income_inequality_in_the_United_States#Causes However, it seems that it is not only the median but also the mean that stagnates: (I used family instead of household income because I could not find a time series for mean ...

22

Inflation is measured against a basket of goods. It's a symptom of what's going on in markets. Some products go up in price over time. Some go down in time. Some stay the same price, but change their specification. So it's looking down the wrong end of the microscope, to ask why inflation hasn't affected car prices. Car prices are part of inflation. Changes ...

15

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 they were writing. One thing to keep in mind is that the mix of spending has changed, as well as the characteristics of products. E.g., modern cars appear to be ...

14

You also didn't look at car prices in general but rather just the Toyota Camry. For example a 2001 BMW M3 was ~\$46,000 while a 2018 BMW M3 is ~\$66,000. Most cars have increased in price over the last 20 years, but some manufacturers will always have a cheap car in their lineup .

14

It may not explain the entire difference, but GDP isn't a very good way to compare the amount of income that residents of different countries might spend on healthcare for a number of reasons. Usually this has to do with the structure of the economy, but GDP can also be distorted by high trade deficits, the effects of international tax avoidance, or specific ...

8

Specifically treating car prices, well, the prices are determined globally and not necessarily in dollars In the last 20 years: Car manufacturers move factories across borders to save costs, China and India have become major market player both as major manufacturers and as a major consumers As a result of these causes, an additional major impact was added,...

6

Three points - one which has already been raised much better by denesp: Are household sizes the same (we see the answer as no)? How about amount of earners per household? What about the amount of goods and services that these household incomes can buy? Should wages be increasing if a dollar can get more goods and services, thanks to technology? Many ...

4

There are several issues here: There are banks offering close to $1.5\%$, some well-known such as Goldman Sachs and American Express Most banks currently have excess reserves deposited in the Federal Reserve System which they could use for lending if they wanted to, so they are not missing profitable commercial lending opportunities due to lack of deposits ...

4

Question B in the link answers your question: most participants believe that taxable income would not rise enough to offset the tax cut, indicating that they do not believe we are on the wrong side of the Laffer Curve.

4

Looking at gross output (which includes using the outputs of other industries) and value-added (largely wages and profits) by industry you get numbers like this for 2017 in USD trillion. Adding up the value-added gives total GDP, and you can see that there is a lot more to the economy than manufacturing ...

4

Because Fed or any central bank cannot fund 100% of a budget without any adverse effect. I do not know where you heard such argument but it is blatantly false. First, it is virtually unanimously agreed by top policy economists that government cannot fund arbitrary amount of real spending (i.e. spending on real goods and services). This question was actually ...

4

I am not sure why West Virginia is the least vaccinated state* in the US but If vaccination is progressing poorly in your state the government is more likely to try and encourage it by all sorts of measures - like vaccine lotteries/cash giveaways. Thus it is not the giveaways that cause low vaccination rates, but rather the other way around. There has to ...

3

Being an economist, I'd say that carrying out a quantitative forecast ("the policy will create/cost x jobs") would require setting up a model, feeding appropriate data and applying appropriate estimations. You would require decent data on the firm level and a detailed model dealing with lots of production factors. In other words, lots of work and probably ...

3

The video has a transcript with the references. The \$0.25B figure is obtained from here (after adjusting for inflation). Unfortunately, the author does not provide a source for the \$1.2B figure. However, there are estimates of the value of land elsewhere. For example, here. Their estimates on a map: These estimates consider the value of land only, ...

3

To answer this I have to make some guesses because this is not an area of research for me, but having a spouse from there and having spent time there, I think I could make a somewhat educated guess. Especially because it uses a market system rather than a rate setting system for generation. First, Massachusettes has the third highest population density of ...

3

3

This was actually already indirectly answered by the IGM forum. In this question the forum asks economists the following: The US spends roughly 17% of GDP on healthcare, according to the OECD; most European countries spend less than 12% of GDP. Higher quality-adjusted US healthcare prices contribute relatively more to the extra US spending than does the ...

3

Yes there are other factors at play. Inflation is change in a price level. The price level, according to classic textbook monetary equation, is determined as follows: $$P = \frac{MV}{Y}$$ Where $M$ is the money supply, $V$ velocity of money (how much is one dollar used in the economy) and $Y$ is the real output. So beside money supply and real output ...

2

Bureaucratic history time! Yes, this agency (and its predecessors) have always been responsible for GDP; GDP was created a couple decades after the Department of Commerce and the Department of Labor split up. The full answer is that the Bureau of Economic Analysis (BEA) was created in 1972 as a bureau in the Social and Economic Statistics Administration (...

2

The fear is that higher interest rates would damage the economy. The problem with that worry is that the Federal Reserve could buy bonds itself, to cancel out the foreign selling. The hidden assumption is that this selling would have to be very rapid. If the foreign reserves managers liquidated their Treasury holdings over five years (for example), the ...

2

It wouldn't "ruin the US economy". The US (the country as a whole, not the government) bought goods and services from rest of the world by selling them IOUs. So far, the world has been content to let the US roll over these obligations. If the world decided that they wanted to trade these IOUs for goods and services, the US would have to start running current ...

2

Are there any estimates on how many US Dollars are lost or destroyed annually? By "lost or destroyed", I mean permanently removed from circulation because the currency is no longer usable. The link I offered as a comment covers this question nicely. When Currency Is Physically Destroyed Obviously, not all money is electronic. Just look at your ...

2

There are different arguments here, depending on the points of view of the government and the insurance providers. I'm trying to answer to the general question on the title. Insurance providers aim at minimizing their costs with healthcare and the probability of health issues. Free birth control not only prevents unwanted pregnancy, but might also have ...

2

To be the wrong side of the Laffer curve would require there to be another lower tax rate which produced the same or greater tax revenues That is not what was being said: Question A addressed the sign of the impact on GDP, not on tax revenues; Question B addressed the sign of the impact on tax revenues; nobody agreed and the large majority disagreed ...

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