nathanwww
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How should the general public evaluate economic arguments?
Accepted answer
5 votes

For most purposes, economics is not effectively understood in 10-second segments or catchy phrases used by politicians. Generally, a willingness to openly acknowledge that something is complex, and ...

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Criticism of Math in Economics
3 votes

To start with, it can be noted that the rise in mathiness in economics is substantially related to increased data processing power, whether in support of theoretical demonstration or empirical ...

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When people talk about “Companies Hiding Money Overseas” to avoid taxes, what does this really mean?
3 votes

Re: main question. It can range from a) companies fraudulently charging above/below market prices among departments/subsidiaries in order to fraudulently lower tax liabilities in a particular ...

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Why shouldn't governments use Forex reserve to pay their debts?
3 votes

If you had 12,000 dollars owing on a loan, 10,000 dollars cash in the bank and 1000 dollars monthly expenses, but you weren't sure if incoming cash flow could stop for 6 or 12 months, any time, with ...

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Does immigration help to sustain welfare in rich European countries?
2 votes

The typical analyses which tend to pretty unambiguously show net positive impact of immigration on the economy (despite the likelihood that some specific labour market segments may experience lower ...

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Why is it a problem if China starts "dumping" US Treasuries? What does it mean to be dumping?
2 votes

It would increase the total supply of US treasuries available at any point in time, which would require a higher interest rate for the market to clear. Higher interest rates would increase the cost of ...

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Can biotechnology be a bad thing?
2 votes

If a biotechnology advance lowers the production price of corn from 3.50 dollars a bushel to 3 dollars, then farmers who do not have access to this technology now must sell at 3 dollars without ...

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Abolishing all tariffs without reciprocity
2 votes

You get cheaper access to inputs. For a large advanced economy that is relatively diversified, it is possible that unilateral tariff reductions across many or all sectors can be good for the economy ...

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What amount of share buy-backs are legitimate?
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2 votes

If the company has excess cash or excess liquidity that it cannot effectively deploy in capital investments, and it has reason to believe that the expected value of returns from purchasing shares will ...

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how does the USA maintain the value of it currency in light of $800 billion trade deficits
Accepted answer
2 votes

Trade deficits enable to export USD-denominated debt which is held by others, which is extremely linked to the ability to maintain reserve currency status. If the US were to pay off all its debt, or ...

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Why is bargaining more common in poor countries?
2 votes

Time is money When the average daily wage is 5 dollars, and many others survive on 1-2 dollars a day, it's worth it to many people to take a few minutes to try to get an extra nickel or dime out of ...

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Why do different countries have different currency?
2 votes

So they can set their own monetary policy for good reasons such as to improve macroeconomic stability. So they can set their own monetary policy for bad reasons such as to print increasingly ...

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Do mainstream economic models use the blank-slate view of humans?
1 votes

This would mainly be observed as "endowments", such as in intergenerational macro models which use (e.g.) 1 or more representative households in relation to resources initially available to ...

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If house prices appreciate, why do developers sell them?
1 votes

People buy houses because they want to live in them, and hope the real market price will appreciate. People who buy (or buy shares in) investment properties do so with the expectation to earn a rental ...

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Is choosing an investment by a bank only due to its regulatory capital charge a form of moral hazard?
1 votes

"moral hazard" is probably not a good word to describe this, although it clearly can be related. "moral hazard" (in this context) is when the bank makes riskier-than-optimal loans under the ...

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Real wage stagnation and union membership
1 votes

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 ...

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What economics theory explains changes in purchasing different types of goods?
1 votes

If you research "discount rates", "time preference" or similar, you'll find all sorts of stuff about seemingly inconsistent decisions, some of which can in fact be explained quite well and some of ...

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Can the stock market grow faster than GDP indefinitely?
1 votes

If survivor bias means that more successful firms more typically list on a public exchange and less successful firms do so less often, then it would be possible for "the stock market" to grow faster ...

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Why are prices considered the best information we could have?
1 votes

Prices are easy to observe. However, they do not contain information about externalities (or other market imperfections), so while they are the most commonly used source of information by consumers ...

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Incentive differences payroll and income tax
1 votes

Payroll taxes tend to have specific benefits accruing to the workers who pay them, and thus also benefit employers via impacts on labour supply. For example, there is a difference between taking a ...

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What happens if an expensive thing goes into high supply for a limited time?
1 votes

It depends if it's expensive to warehouse or stockpile it. It depends if it will be just as useful in 1 year or 5 years time. For example, you can stock a lot of iPhones in a small space, but no one ...

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Is there merit to the argument of reducing the US trade deficit
1 votes

Just because you have a trade deficit with the grocery store does not mean you would be better off growing your own food.

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Value vs. Price and its relation to tariffs
1 votes

At a market equilibrium, marginal cost and marginal utility are equal. This does not mean that the cheaper good is preferred. Note that the US imports primarily higher quality steel at a higher price,...

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GDP and production
1 votes

GDP is a statistical indicator which is an estimate of production that has already occurred, or an estimate of the current or future level of production. The units are generally nominal, or adjusted ...

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Why is UK infrastructure so expensive?
1 votes

Rights to good working conditions and a decent environment costs money. Which is good, because yourself and/or other people get to enjoy those rights. However, that also applies to Germany, France ...

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Are there any examples of tariffs working?
1 votes

While overall effects to the economy may be argued as negative, in cases where there is limited state capacity to collect income taxes or sales taxes, border tariffs on both imports and exports may be ...

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The economics of a "no deal" Brexit
0 votes

How much is sovereignty worth? This should be balanced against potential short-term costs of Brexit. Among other things, one will retain the ability to purchase "champagne" from its region of ...

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Why not say the buyer will *definitely* buy at price X?
0 votes

If he obtains 1 util of value from an apple that costs 1 util, then he neither gains nor loses from purchasing the apple and consuming it. He might buy it, or might not, and at that price will be ...

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What is economics?
0 votes

Theoretical propositions in introductory economics typically assume that people do not make wrong choices. Like most other assumptions, this enables to teach some core concepts and relevant math ...

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References for particular definitions of risk and uncertainty
0 votes

It is incorrect to say that uncertainty is an extension of risk, because (among other possibilities) if there is uncertainty, there remains the case of risk being nil but you just don't know it. "...

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