23

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

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 .


9

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,...


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

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

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 ...


3

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


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

No. Such interstate taxes are prohibited by the Commerce Clause as they would be "undue burdens on interstate commerce". The Commerce Clause is an evolving doctrine that has been largely developed by the courts (in particular the US Supreme Court). The most recent development was South Dakota v. Wayfair (2018). Section A gives a summary of this doctrine's ...


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

A fairly standard measure to use would be Gross Domestic Product (GDP). Over the past 30 years, US GDP has been growing at approximately 2.5%. According to trading economics The US economy expanded an annualized 2.3 percent on quarter in the first quarter of 2018, below 2.9 percent in the previous period but beating market expectations of 2 percent ...


2

The entry “offering amount” is the total par value that is being auctioned. (In the example given, this is a reopening of an existing issue, so it is the increase of par value for the issue.) From the perspective of a bidder, the “par value” is what they are awarded, which will only be a portion of the total par value of the issue. (There is a maximum bid ...


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 ...


2

The exact details of payment systems vary from country-to-country. The payments systems handle the multitude of transactions. But if we are willing to simplify away the complexity of payment processing, private banks do have an account at the central bank, and transfers between banks are effectively transfers between those accounts. The central bank is a ...


2

You're not considering that today's $23,000 car might not be the same car as the one from 20 years ago, or that the costs of its manufacture might not be the same. While the "basket of goods" another answerer referred to has simple items in it like rice, soap, tee-shirts and hammers, a car is a very poor item to measure inflation with, because of its ...


1

A quick search led me to this (rather outdated) page indicating that average new car prices actually went down for some time, when corrected for inflation. So it is definitely not the case that prices don't increase, but perhaps not as fast as you see other things increase. https://seekingalpha.com/article/81546-real-prices-for-new-cars-keep-going-down ...


1

My understanding is that theories and empirical methodologies demonstrating the relationship between declining union membership and wages risk overestimating the causality of the relationship. Anyone who argues that businesses do NOT, in a relevant share of cases, endeavour to suppress union formation, activities or recruitment, whether individually or ...


1

Pay as you go vs Fully funded pension plan distinction is relevant here. Also known as Defined benefit vs Defined contribution. If everyone saved for their own pension via payroll taxes or otherwise (Pay as you go/ Defined contribution), then the ratio of retiring to contributing people indeed would not matter. However, most governments pay current ...


1

The answer is yes, also because the global economy is highly interconnected in total. If there would be no trade possible between two economic areas, it would have an impact on the economy globally. The Germany US example would change Germany a lot. The US is an important market for the car manufacturers, the chemical and pharma industry. Eight of thirty DAX ...


1

One answer and one comment here make the false claim that tariffs are equivalent to currency depreciation, playing around with the exchange rate of your currency can "eliminate" a tariff, and so forth. I think they are being confused by a well-known equivalence result, which says that a simultaneous import tariff and export subsidy at the same rate is ...


1

Assume that a chinese company is selling a product for 100 RMB or 16 USD. With the 10% tariff the cost for an american importer rises to 17.6 USD. If the the RMB depreciates 8% and the price in RMB is unchanged the importer pays 8% less in USD or 16.192 USD. Depreciating the RMB by 8% offsets (almost all of) the effect of the 10% tariff. This ...


1

I cannot believe no one answered this. Someone could have easily given a one phrase answer, its called Triffins Paradox. The core of Triffin's Paradox is that the issuer of a reserve currency must serve two entirely different sets of users: the domestic economy, and the international economy, but you will not be able to make both sets of users happy. So ...


1

Suppose a camera is made in Japan and sold in the US. If the maker of the camera wants 10k Yen for it, and the ultimate buyer is paying dollars, then somewhere along the line, dollars have to be exchanged for dollars. For instance, the company that imports the camera might go out and buy 10k Yen, then give the Yen to the company that made the camera. They ...


1

Interest on reserves is not that significant a factor in a low interest rate regime. If the bank did not hold reserves, it would hold Treasury bills as a liquidity buffer, and they pay about the same amount as the policy rate. I believe the reserve ratio is 10%, so the difference between paying and not paying interest on reserves is worth 15 basis points (....


1

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 (...


1

Google and Wikipedia are your Friends... BEA was formed at the start of 1972; BEA wiki: https://en.wikipedia.org/wiki/Bureau_of_Economic_Analysis BLS wiki: https://en.wikipedia.org/wiki/Bureau_of_Labor_Statistics BLS only does labor market-related things. BEA estimates a variety of macroeconomic indices, the primary one is, of course, the GDP.


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