# Tag Info

17

To answer the question: Yes, the 1% is relatively stable. From The Economist: Membership in America's 1% is relatively stable; three-quarters of the households in the percentile one year will still be there the next. Also your "belief" that the vast majority of the income that the 1% receive is variable, from borrowing, etc, isn't actually true. The ...

17

I've not see a strict analysis of the top one percent but I have seen an analysis of the top 400 tax payers, the very highest income taxpayers: Who are the rich? It depends who you ask and when. Since 1992, the IRS has tracked the top 400 earners in terms of adjusted gross income—the so called fortunate 400. ... Most importantly, this IRS report ...

11

Most manufactured products are sold domestically, but even so a strong dollar will (usually) cause a decline in sales and profitability of US manufacturers. The reason for this is that a strong dollar makes foreign products relatively cheaper, not just manufactured products, but all products. Therefore it becomes cheaper for person to buy, say a foreign-made ...

9

This happens all the time and is normal. It's due to measurement error. It is hard to measure these things in real time and as time goes by more data comes in, which allows measurement of GDP and other macroeconomic variables to be better so they are revised. Sometimes the revisions can be quite large. Typically the latest data is also the least reliable. ...

9

Some major benefits include: Seigniorage on currency acts as a source of government revenue, allowing for lower taxes and higher spending. One paper (Neumann (1992)) puts this at about \$15 billion a year. Lower borrowing costs on public and private debts due to greater demand for financial assets denominated in the currency, particularly credit risk-free ... 8 tl;dr: it's basic engineering: efficiencies improved between 1970 and 2010. Additionally, net USA imports increased from 0.75 trillion cubic feet in 1970 to 3.8 trillion cubic feet in 2007 I think there may be some misunderstandings. Firstly: the first chart shows domestic gas production. "Domestic" doesn't refer to residential-only use - it just means ... 6 Weighted Average Maturity of Marketable Debt 5 @BB King's answer is good, but I want to make one point very clear: The Fed did not change the data. The Bureau of Economic Analysis revised the data as a part of its 2013 comprehensive revision process, which it engages in every five years using data from the most recent Economic Census. It may be worth noting that the BEA, which is the agency that is ... 5 Bills don't last that long. The Federal Reserve estimates that$100 bills last about 15 years. Therefore, old bills are fairly rapidly rendered quite rare. Bills that look really odd (like the rare ones) are likely to warrant a second glance from the acceptor and later, if the counterfeiting is uncovered, much more likely to be traceable back to the forger. ...

4

Countries don't wage war, Governments do. GDP is the economic production of a country, which is usually much larger than what the government has as available annual income. Historically government expenditure in the US has amounted to ~20% of GDP since 1940 (and was lower than that previously). (Source) In general, if a government needs to spend more on a ...

4

The ECB faces a unique challenge in that the Eurozone is a monetary union without a fiscal union. Because each country has autonomy over their own fiscal policy and there is no separate Eurobond, it is unclear which countries' bonds the ECB would buy to perform Quantitative Easing. In the US this is easy because of the presence of US Treasury Bonds that the ...

4

The table you are looking at is a GDP expenditure measure. But this ignores the fact that services are involved in the costs of goods purchased, and that goods are involved in the cost of services purchased. For example, if you buy a cake in a supermarket, the price reflects not just the food manufacturing industry, but also agriculture, transportation, ...

4

There are some semantic issues here. A more careful statement of the MMT position is that there is no economic reason for the Treasury to issue bonds. However, there is a self-imposed institutional need to do so: the Treasury has a balance at the Federal Reserve, and the rules it follows appears to imply that the balance cannot go negative. Issuing a ...

3

US A snapshot of Poverty for the US is here. The key is Figure 5, which shows alternative measures of poverty, using different data and methods. (see text for details). Basically, they show that there is plenty of variation from alternative criteria, ranging from 0% to 5%. This is likely to be an explanation of why sometimes evidence seem to be ...

3

The Canadian provinces implement most of the welfare state programmes. The role of the Canadian Federal Government is to set out guidelines, and undertake fiscal transfers to allow provinces to stay near national standards. Since they have much larger budgets, they necessarily end up absorbing more of the economic cycle as being an automatic stabliser (i.e. ...

3

Here is one paper that may be of interest: Analyses of the effects of election outcomes on the economy have been hampered by the problem that economic outcomes also influence elections. We sidestep these problems by analyzing movements in economic indicators caused by clearly exogenous changes in expectations about the likely winner during ...

3

This is an excellent question and I will do my best to give you a well thought out answer. Many observers believe the U.S. dollar (USD) will lose its status as the world's reserve currency. In fact, I got pushback from another forum regarding finance about this. These doomsday dollar folks cite agreements between China and Iran on settling trade in their ...

3

I agree with @BrianRomanchuk +1 answer which is written in the context of modern monetary theory (MMT), but an important thing to note here is that MMT is not widely accepted monetary theory in economics and in fact it has been criticized a lot by mainstream economists (See for example this paper, Krugman's blog, Cochrane's blog and so on). Since your ...

3

Economically speaking the taxes are equivalent. There should not be any difference in collected tax between them in principle. However, in practice these differ in terms of what administrative burden they impose on firms and more importantly how easy it is to avoid paying taxes under each system. This can ultimately have some effect on the revenue that is ...

2

The data you're asking for doesn't exist. Most data on things like this are captured through the taxing authority, which means that there are entities that want to collect taxes and therefore care very much where you do something and where your inputs came from. That's very true when there are international borders involved, and it's true to a much lesser ...

2

Wars increase public debts only if the Government does not have enough money to finance the costs of war. As a war is always very costly, governments end up borrowing to finance it, but the relation between going to war and borrowing money is not automatic, it is rather an 'imperfection' of the money market. Asking what would have happened if the US had ...

2

To a certain extent it can. But not too much, else it will create a run on the dollar. If speculators no longer trusted the dollar, they would sell it for other stores of value (like Euros, gold, etc...). Foreign dollars would have to come home and be redeemed by real wealth which means less real wealth for the US domestic economy and inflation. This can ...

2

In Europe there is typical more regulations and more and higher taxes on profits, financial transactions, and on products and services. This means there is less incentive for entrepreneurs to create their businesses since they face for example higher yields and higher interest rate coupons, environmental regulations, state bureaucracy which increases the ...

2

In former times, seignorage was a de facto fee charged by a government authorized mint for converting precious (or semi-precious) metals into de facto trademarked hard currency. Typically a mint would charge about a ten percent fee for this service. Anyone in possession of the hard currency could "redeem" the currency by melting it down back into the ...

2

The Eurozone has lower interest rates right now as the Federal Reserve in the US has been steadily raising rates in the past two years. The EU is still in a period of low interest rates to encourage spending and spur economic growth/inflation and are only now beginning to eliminate Quantitative Easing. Both of these factors, the low rates and QE, lead to the ...

2

Inflation forecast is higher in the US than the rest of countries. US here: https://www.statista.com/statistics/244983/projected-inflation-rate-in-the-united-states/ Spain here: https://www.statista.com/statistics/271077/inflation-rate-in-spain/ Japan here: https://www.statista.com/statistics/270095/inflation-rate-in-japan/ UK here: https://www.statista....

1

Short answer, yes, they are considered Chinese imports. Your excellent question speaks to the flaw in using Gross Domestic Product as a measurement of the health of a nation's economy. The flaw is that the simplistic assignment of "import" and "export" completely misses the reality of modern manufacture and trade, where parts come from multiple nations. If ...

1

The Penn Wolrd Tables have the data you need.

1

I am unsure about rates in Europe or the United States. In any case one can debate about how poor "the poor" in Europe and the US really are compared to people that have to survive on a dollar a day (see e.g. Tim Haab on the difference between inequality and poverty). That is not to say that these people aren't suffering or hungry, but at least not as hungry ...

1

Redding and Weinstein in their paper "A Unified Approach to Estimating Demand and Welfare" develop a unified price index that nests all existing major price indexes. Existing price indexes can be thought of as arising from the imposition of parameter restrictions on their unified index. Their examination with barcode data suggests that standard methods of ...

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