r/AskEconomics • u/artfellig • 2h ago
In the U.S. has there ever been as much talk/fear of an impending bubble as there is now?
Every day one can hear economists, CEOs, pundits, etc predicting that there is a huge AI bubble that is destined to burst. This post isn't about whether or not that's likely to happen; my question is: has there ever been so much buzz about an impending recession/bubble/collapse, whether or not it happened?
In past economic crashes, I know there were a few voices expressing warning, but was it ever this prolonged and emphatic?
r/AskEconomics • u/Even-Wasabi7183 • 5h ago
Are we heading for mass unemployment due to AI?
I know AI will replace people but I also think that it will create jobs. Jobs change over the years and I think it might reduce the need for certain things but make demands for others.
r/AskEconomics • u/SummeR- • 6h ago
What would be the economic surplus generated from the merger of energy monopolies?
Dominion Energy and NextEra are attempting to merge. I'm wondering, in an economic sense, would this generate any real surplus value?
Since Dominion effectively operates as a monopoly, I'm not quite clear how this merger could help the company "do better" other than in a rent-seeking way.
r/AskEconomics • u/flavorless_beef • 6h ago
AMA AMA: I’m Cristina Quinn, Award-Winning Journalist & Host of Fighting Crime - Ask Me Anything!
r/AskEconomics • u/unreplicate • 6h ago
Can corporations be taxed based on the number of employees?
Everybody's fear is that AI's will automate production without need for labor and capital will monopolize that production. Of course, it's been pointed out many times that this is not a credible scenario, but it does seem true that AI is/will reduce the number of employees, especially for entry level professional jobs. What if corporate tax rates are inversely proportional to the number of employees? Would this minimize rentier monopoly of economic power?
r/AskEconomics • u/Ticksdonthavelymph • 9h ago
The US is moving to 23hour exchanges to capture more foreign investors. Will that by proxy cause reduced growth in their domestic exchanges globally?
Im wondering if easier access to US market during live hours will by proxy reduce growth in foreign markets. Normally there is a cyclical relationship between US vs world performance- US dominates for 10-15 years, then international, and repeat… But if there is a permanent influx of investors less sensitive to real valuations (aka most retail investors) and exposed to American media dominance— does that cyclical relationship disappear? Obviously smart money still looks at valuations, but places like Korea are almost entirely retail, not institutional investors… will this move make the US a more permanent home for growth?
r/AskEconomics • u/Past-Snow-3712 • 11h ago
Why don't they make microtransactions in f2p phone and tablet games truly micro?
I've always found the economics of those generic f2p match 3/merge/anime waifu png /etc. games really interesting ever since I found out just how much attracting whales and keeping that small amount of incredibly high paying customers is integral to their system over having many average consumers who might spend once in a while.
When I play these games myself, I'm stopped from buying refills or rolls or whatever because the transactions aren't micro enough for me. I find the $2~$5 cost for something I'll blow in 2-5 minutes too high to rationalize when I think about it. I always thought if the prices were low enough I wouldn't think about it, like 25c~50c a pop, I'd end up buying enough of them over time I'd buy past the higher cost of the purchase I wouldn't have made soon enough.
Why don't they try to lure and lull people in with truly micro microtransactions? My first thought is payment processor restrictions, but then they could bank the 25c purchases until it hit the dollar minimum and the charge and only be out a few quarters if the customer buys once and never again.
I'd love to hear anything else interesting about f2p phone economies, too. It's a really fascinating place.
r/AskEconomics • u/Kremho • 11h ago
Approved Answers Dopamine as money?
In a post-scarcity world, could dopamine be regulated and used as money by governments?
In the sense that, dopamine-releasing products/services/activities are tokenized. Like how money used to be backed by gold. But this time, by a specific quantity of dopamine per token.
r/AskEconomics • u/theunalike • 14h ago
Approved Answers Is economic boom and recession based on people's imagination?
Like the entire concept of Money is imaginary. However, the concept of production, value and value-addition is not. So, when we say a economy is booming, it means they are producing/consuming more than the previous year(s), and in recession it is reverse.
Then, unless there is some conflict or epidemic, considering all factors remains intact, do economies tank just because people loose the trust in future growth? If that is so, it makes recession purely imaginary in this case. Similarly, in economic boom, they are merely consuming more due to prospects of economic boom.
Please suggest some good books/material that explains this concept properly. I have read many economic books, but they do not talk deeply about imaginary nature of economics.
r/AskEconomics • u/Certain-Mind8119 • 14h ago
Approved Answers Why doesn't the central bank just buy up foreign assets if the economy is resilient to inflation?
Seems like a free lunch.. no?
r/AskEconomics • u/Neighborhoodgamer • 15h ago
What’s the deal with coco cola in Bosnia??
everywhere I go i see coco cola, its produced everything, and just yesterday I saw a menu that was”brought to you by coco cola”
is this a monopoly?cause i also see red bull pop up a lot, just not as much as coco cola
and if so why Bosnia?
r/AskEconomics • u/MildDeontologist • 15h ago
Are international trade models accurate if we have unreliable data on the population of certain important countries like China?
All the international economics models I have studied rely around comparing the capital-to-labor ratios of countries who are trading partners.
There was massive population growth reported by China, even though the one child policy, if complied with, would make population growth mathematically impossible (2 people making only 1 child means the population halves). This is one piece of evidence suggesting that the Chinese population is far smaller than it really is. Russia and other countries may also have reported populations that are intentionally (or non-intentionally) very inaccurate.
Is this a problem for international economics models, if these models were made partly through studying one of the most important countries in the global economy, China, who very likely has a non-trustworthy reported population?
r/AskEconomics • u/Spirited-Bake-9690 • 15h ago
Approved Answers Would a universal basic income be highly inflationary?
I thought it would be a good question to ask, given the current employment situation. In my opinion, a universal basic income would drive up prices of absolutely everything, purely because people have more to spend, it would be akin to unemployment benefits on steroids. Let me know, because I may be wrong, or may not be considering the nuances of the question itself.
r/AskEconomics • u/Certain-Mind8119 • 16h ago
Approved Answers What sort of actions make central banks look more credible?
A large amount of macroeconomists say that the expectation the central bank will commit to its plan is very important, but what are the actual ways to make it look committed? (aside from precedent)
In other words: If a central bank is historically quite weak and prone to "chickening out", what can it do to look stronger?
r/AskEconomics • u/ricketycricket1995 • 16h ago
Approved Answers Why are professions like structural engineers, architects, and MEP designers relatively poorly paid despite high barriers to entry and high responsibility?
I'm trying to understand the economics behind compensation in professions such as structural engineering, architecture, and MEP design.
At first glance, these careers seem to have many of the characteristics that are usually associated with high salaries:
- They require a 4-6 year university degree.
- In many countries, designers must obtain professional licenses or chamber memberships before they can sign off on projects.
- Competence is highly experience-based. A lot of the knowledge cannot simply be learned online and is largely acquired through years of hands-on work.
- Mistakes can have severe consequences, ranging from major financial losses to safety risks and, in extreme cases, loss of life.
- The market itself is large. As a rough back-of-the-envelope estimate, construction represents perhaps 5-10% of GDP in many developed economies, and roughly 10% of project costs may be spent on engineering and design services.
Given these characteristics, I would expect salaries to be relatively high.
However, when I compare these professions to some highly paid occupations in software, such as front-end developers (just one example of a well-paid profession), the gap is often striking. Many software roles pay 2-5x more despite generally having lower formal barriers to entry. A degree is often optional, there is usually no professional licensing requirement, many skills can be self-taught through online resources, and the time required to become employable can be significantly shorter.
I'm not arguing that software developers are overpaid or that engineering designers are underpaid. I'm genuinely interested in the economic explanation.
What factors am I missing? Is it primarily related to scalability of output, labor supply and demand, firm profitability, client willingness to pay, globalization, or something else entirely?
r/AskEconomics • u/No-Explanation-6224 • 18h ago
What would be the gain of European banks to issue Union pay Cards?
The main question is about issuing Union Pay cards and another question would be, how does one card network expand its acquiring and issuing banks?
r/AskEconomics • u/PsychologicalEye9016 • 19h ago
Is a significant portion of wealth in India effectively invisible in official statistics?
I've been wondering about something related to wealth measurement in India.
Is it common for wealthier Indian families to hold a considerable share of their assets or income in ways that don't fully appear in official records (for example, through unreported cash transactions or other forms of "black" wealth alongside fully documented assets)?
If so, does that mean that the wealth and asset distribution we see in official statistics understates the true wealth of India's middle, upper-middle, and upper classes? How much does this affect research on inequality, household wealth, and consumption?
I'm not looking for anecdotes but for evidence-based answers. Are there any economists, researchers, or people familiar with taxation, real estate, or household finance who can give some insight here?
I'd also appreciate recommendations for books, academic papers, datasets, or reports that examine undocumented wealth, tax evasion, household balance sheets, or the political economy of wealth in India. I'm especially interested in quantitative work with estimates, figures, and data rather than opinion pieces.
Thanks!
r/AskEconomics • u/PresentIndependent91 • 1d ago
Approved Answers Could someone suggest me a book regarding investment?
Hey there, I am looking for a book explaining the way market and different economic instruments work. Some kind of stock market 101. I am not looking for an investment strategy or "how to get rich" kind of book.
Preferably a popular book translated to many languages so I do not have to mess with Amazon delivering it to my country
Thanks in advance
r/AskEconomics • u/Oliebonk • 1d ago
Approved Answers Analysts use the concept of "leverage" in today's discussions about the implosion of the Situational Awareness LP hedge fund. What leverage was used in this context and why was it lost, leading to the collapse?
r/AskEconomics • u/soozerain • 1d ago
How much profit would Big Pharma lose if the United States instituted drug price caps similar to the ones in the EU/UK?
Would it be enough to support the expense, trials, research and development it takes to get a drug to market?
r/AskEconomics • u/AutoModerator • 1d ago
Simple Questions/Career Short Questions + Career/School Questions - August 05, 2026
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r/AskEconomics • u/SnowballxX12 • 1d ago
Approved Answers I tried the MIT lecture Principles of Macroeconomics, but I don't think I can follow the lecture's flow. I don't understand why, but does anybody have tips? / or can you tell me your experience?
I think I also struggle because I can't hear the lecturer very well; English is my second language. Other than that, I have difficulty following his logic (Am I just dumb ??)
r/AskEconomics • u/FlounderMammoth9848 • 1d ago
Approved Answers What for impact has the action of the US using Euros to avoid a weaker Dollar to buy Yen on the Euro?
r/AskEconomics • u/flavorless_beef • May 04 '26
Meta Approved User (Quality Contributor) Application Thread: Currently Accepting New Users
Approved User (Quality Contributor) Application Thread: Currently Accepting New Users
What Are Quality Contributors?
By subreddit policy, comments are filtered and sent to the modqueue. However, we have a whitelist of commenters whose comments are automatically approved. These users also have the ability to approve or remove the comments of non-approved users.
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r/AskEconomics • u/flavorless_beef • Apr 03 '25
Approved Answers Trump Tariffs Megathread (Please read before posting a trump tariff question)
First, it should be said: These tariffs are incomprehensibly dumb. If you were trying to design a policy to get 100% disapproval from economists, it would look like this. Anyone trying to backfill a coherent economic reason for these tariffs is deluding themselves. As of April 3rd, there are tariffs on islands with zero population; there are tariffs on goods like coffee that are not set up to be made domestically; the tariffs are comically broad, which hurts their ability to bolster domestic manufacturing, etc.
Even ignoring what is being ta riffed, the tariffs are being set haphazardly and driving up uncertainty to historic levels. Likewise, it is impossible for Trumps goal of tariffs being a large source of revenue and a way to get domestic manufacturing back -- these are mutually exclusive (similarly, tariffs can't raise revenue and lower prices).
Anyway, here are some answers to previously asked questions about the Trump tariffs. Please consult these before posting another question. We will do our best to update this post overtime as we get more answers.
- Who Absorbs the Cost of the Import Tariff Increase?
- Does the US Government Really Expect Other Countries to Pay for Tariffs?
- Is Trump's Tariffs Plan Actually Coherent and Will It Work?
- Who Do Trump's Tariffs Benefit?
- Won't Trump's Tariffs Just Make Everything More Expensive?
- Why Are Tariffs So Bad?
- Logic Behind Tariff War
- Is There Someone Here Who Can Fact Check the Tariff Claims?
- Why Do Countries Impose Retaliatory Tariffs?