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12-10-2013, 04:49 AM
RE: Ask an Economist
(11-10-2013 09:31 PM)blackatom Wrote:  
(11-10-2013 07:28 AM)Chas Wrote:  A whole lot of retirement accounts would be gutted. Mass poverty among the retired. Armed insurrection.

Aren't the retired covered through SS security? We are talking money that is already borrowed and gone, the money being paid out now comes from money's paid in and taxes, etc. Even if it isn't feasible, i was more interested in knowing how our economy would respond to only having 2-3 trillion in actual debt.

Retirement accounts have government debt securities as part of their value.

SS income allows one to live at the poverty level. Not exactly 'covered'.

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12-10-2013, 02:22 PM
RE: Ask an Economist
(11-10-2013 09:33 PM)blackatom Wrote:  
(11-10-2013 07:33 AM)earmuffs Wrote:  I lol'd

That is total owed to foreign lenders. The rest is held by us in the form of Bonds, pensions, etc. and owed to programs like SS. American citizens and U.S. institutions owns the bulk of our nations debt.

I know.

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12-10-2013, 11:37 PM (This post was last modified: 13-10-2013 12:07 AM by Chippy.)
RE: Ask an Economist
(03-10-2013 07:21 AM)platypusman Wrote:  I'm trying to understand why so many people believe that there will be some sort of global financial meltdown if the US is a little late on some interest payments.

My understanding of this matter is that it is connected with the US currency being the world's reserve currency. The US dollar has had this special status since the post-war period. It remains the world's reserve currency but fears relate to the loss of this status.

US government fiscal and monetary policy has been predicated on the US dollar's reserve status. The fear is--to what extent it is justified I don't know--that if the US defaults on its debts its currency will lose reserve status and this will cause an inflationary spike in the US economy and this in turn will produce a global economic crisis.

PS:- I was experiencing the tip-of-tongue phenomenon whilst I write the above and the word came to me after posting. The term I was seeking is seigniorage. The USA government gains a revenue in the form of seigniorage revenue because it is the world's reserve currency. Seigniorage also provides--in effect--interest free loans (from other countries) to the US government at the mere cost of printing currency. The USA will also lose most of its seignorage revenue if US currency ceases to be a reserve currency. This too will have an inflationary effect.
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14-10-2013, 08:11 AM
RE: Ask an Economist
(12-10-2013 11:37 PM)Chippy Wrote:  
(03-10-2013 07:21 AM)platypusman Wrote:  I'm trying to understand why so many people believe that there will be some sort of global financial meltdown if the US is a little late on some interest payments.

My understanding of this matter is that it is connected with the US currency being the world's reserve currency. The US dollar has had this special status since the post-war period. It remains the world's reserve currency but fears relate to the loss of this status.

US government fiscal and monetary policy has been predicated on the US dollar's reserve status. The fear is--to what extent it is justified I don't know--that if the US defaults on its debts its currency will lose reserve status and this will cause an inflationary spike in the US economy and this in turn will produce a global economic crisis.

PS:- I was experiencing the tip-of-tongue phenomenon whilst I write the above and the word came to me after posting. The term I was seeking is seigniorage. The USA government gains a revenue in the form of seigniorage revenue because it is the world's reserve currency. Seigniorage also provides--in effect--interest free loans (from other countries) to the US government at the mere cost of printing currency. The USA will also lose most of its seignorage revenue if US currency ceases to be a reserve currency. This too will have an inflationary effect.

As the US Dollar becomes prone to higher inflation and destabilization it will not be held as the de facto world currency. This has already started to shift, particularly in the Far East. The Federal Reserve's penchant to print massive amounts of dollars which is tied to nothing (fiat system) and artificially manipulating interest rates and creating financial bubbles will have negative long term consequences. We are starting to see them now.

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23-11-2013, 12:39 PM
RE: Ask an Economist
(26-05-2013 04:25 PM)Thomas Wrote:  I teach and hold an advanced degree in Economics.
If you have any questions on economics I'll attempt to answer them.
Always willing to help if I can.
But please, I can't do your take home exam for you.

Hi there, I'm not particularly sure how to even frame the question but I will try.

I'm interested in learning more about the current economic phenomena (if in fact it is one) that is the influx of small business owners thanks to the advances of ecommerce and globalization.

More specifically I have a theory that a better redistribution of wealth will be possible as more commerce is done with smaller businesses than the traditional conglomerate approach.

My question I guess is: Is there a name for this movement or economic model?

Any insights on sites or articles I could read up on would be great.

Cheers,
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27-11-2013, 01:10 PM
RE: Ask an Economist
(26-05-2013 04:25 PM)Thomas Wrote:  I teach and hold an advanced degree in Economics.
If you have any questions on economics I'll attempt to answer them.
Always willing to help if I can.
But please, I can't do your take home exam for you.

I was just reading <http://www.npr.org/blogs/money/2012/07/19/157047211/six-policies-economists-love-and-politicians-hate>, and point number four stuck out to me:

"Four: Eliminate all income and payroll taxes. All of them. For everyone. Taxes discourage whatever you're taxing, but we like income, so why tax it? Payroll taxes discourage creating jobs. Not such a good idea. Instead, impose a consumption tax, designed to be progressive to protect lower-income households."

If taxes tend to discourage the thing being taxed (and indeed are often used this way, for example, in so-called "sin taxes"), is there any evidence to show that a consumption tax would inhibit spending? And if so, wouldn't inhibited spending make economies slow? I'm no economist by any measure, but I was under the impression that large numbers of people earning money and then spending it again were what make economies vibrant.
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27-11-2013, 05:47 PM
RE: Ask an Economist
I'm having trouble in my ECON class understanding Fiscal policies, mostly when and what types would the government issue them. Do you think you could give me a small run down? (It's not a test question, just something I've been struggling with for a few weeks)

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06-12-2013, 02:17 PM
RE: Ask an Economist
(26-05-2013 04:25 PM)Thomas Wrote:  I teach and hold an advanced degree in Economics.
If you have any questions on economics I'll attempt to answer them.
Always willing to help if I can.
But please, I can't do your take home exam for you.

Describe the ethical assumptions behind mainstream economic approaches.
Discuss the roots of this approach developed by Smith, Marshall, and Robbins.
Then proceed to describe important ethical and moral limitations to the
mainstream analysis. Such things as equity, liberties and rights, needs, negative
and positive freedoms, etc. drawing on Hausman and McPherson, Vickrey,
Dasgupta, and Rawls. Be sure to include policy examples and illustrate how one
would reach different conclusions applying ethical considerations excluded in the
standard evaluation of the policy.
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06-12-2013, 04:49 PM
RE: Ask an Economist
Econgirl7 was that a joke? I strongly hope it was.

I prefer fantasy, but I have to live in reality.
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06-12-2013, 04:53 PM
RE: Ask an Economist
I have an honest question. What are the implications of raising the federal min. wage in the US? Would it do more harm than good?

I prefer fantasy, but I have to live in reality.
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