44 votes
Accepted

Why is healthcare so expensive in the USA?

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 ...
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34 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 ...
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  • 42.4k
33 votes

Why is healthcare so expensive in the USA?

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 ...
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  • 529
23 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 ...
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  • 567
22 votes
Accepted

Why are real median household incomes stagnant?

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 ...
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  • 26.2k
22 votes

Car prices haven't changed in 20 years, no inflation?

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 ...
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  • 8,012
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 ...
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14 votes
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How do reserves move between the 12 federal reserve banks?

This is surprisingly subtle. When, for instance, when bank A in the Richmond Federal Reserve district sends $1000 in reserves to bank B in the Minneapolis Federal Reserve district, reserves are ...
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14 votes

Car prices haven't changed in 20 years, no inflation?

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 ...
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  • 249
14 votes

Why is healthcare so expensive in the USA?

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 ...
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  • 241
8 votes

Car prices haven't changed in 20 years, no inflation?

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 ...
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7 votes

How do reserves move between the 12 federal reserve banks?

Clearing for the US Banks is done through the Automated Clearinghouse System which is operated by the Fed. For transfers of central bank money, which would include transfers between reserve banks, the ...
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  • 2,700
6 votes

What is the necessity of the FDIC in the US banking system?

You provide a generally correct impression of history (i.e., there were lots of runs on banks by depositors in the US until federal deposit insurance was established— a good history is provided by ...
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6 votes

Why are real median household incomes stagnant?

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 ...
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  • 161
6 votes

A large spike in home ownership in the U.S. in 2020: why?

Warning up front - I am neither an expert in housing, nor in census data whatsoever. It's an interesting question though. My conclusion is that it is almost entirely a result of changes in data ...
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  • 1,756
5 votes

How leveraged are banks in the United States?

I'm trying to figure out how leveraged banks currently are. The leverage in the banking sector actually decreased. It is true that the reserve requirement were suspended, but at the same time Basel ...
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  • 42.4k
4 votes

The United States' position on the Laffer Curve

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 ...
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4 votes

The Fed pays 1.50% interest on reserves; so why are interest rates so low?

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 ...
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  • 4,694
4 votes
Accepted

What accounts for the high GDP of the United States?

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 ...
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  • 4,694
4 votes
Accepted

What is the purpose of taxes if central banks can fund deficit spending?

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 ...
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  • 42.4k
4 votes
Accepted

Why West Virginia is one of the least-vaccinated states in the country due to cash giveaway announcement?

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 ...
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4 votes

Did Biden's stimulus packages cause inflation in the US?

First of all there is no evidence inflation would be currently spiralling in the U.S. right now. Spiraling inflation occurs where price inflation feeds wage inflation and wage inflation feeds price ...
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  • 42.4k
3 votes

How does one asses the impact of a proposed policy?

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 ...
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  • 1,262
3 votes
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Today's value of the Louisiana Purchase?

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. ...
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  • 8,437
3 votes

Why are Massachusetts electricity costs so high?

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. ...
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  • 1,966
3 votes

What is the necessity of the FDIC in the US banking system?

A lot has already been written about this topic and there is absolutely no historical evidence that liquidity related problems should occur in a banking system without a deposit insurance (because of ...
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  • 169
3 votes
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GDP Growth QoQ vs YoY: Why do the figures not match?

Because those data are Seasonally adjusted annual rate: https://en.wikipedia.org/wiki/Seasonally_adjusted_annual_rate
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  • 146
3 votes

Are there any surveys of economists on the determinants of healthcare price increases in the US, particularly over several decades?

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 ...
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