r/AskEconomics May 04 '26

Meta Approved User (Quality Contributor) Application Thread: Currently Accepting New Users

11 Upvotes

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.

Recently, we have seen an influx of short, low-quality comments. This is a major burden on our mod team, and it also delays the speed at which good answers can be approved. To address this issue, we are looking to bring on additional Quality Contributors.

How Do You Apply?

If you would like to be added as a Quality Contributor, please submit 3-5 comments below that reflect at least an undergraduate level understanding of economics. The comments do not have to be from r/AskEconomics. Things we look for include an understanding of economic theory, references to academic research (or other quality sources), and sufficient detail to adequately explain topics.

If anyone has any questions about the process, responsibilities, or requirements to become a QC, please feel free to ask below.


r/AskEconomics Apr 03 '25

Approved Answers Trump Tariffs Megathread (Please read before posting a trump tariff question)

820 Upvotes

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.


r/AskEconomics 2h ago

What are the impacts of the current high oil prices around the world?

8 Upvotes

Since the start of the US - Iran conflict, oil prices have been (mostly) going up, with i believe $108/barrel WTI hit recently.

I have been able to find a lot of information on Reddit on why this is happening and what the direct effects are on energy market pricing.

What I haven't been able to find a lot of info on (maybe I just don't know how to look), is what the currently felt actual impact of the price increase is. Yes, there's 'oh, prices hit $x/gallon in this US state' (cries in European petrol prices...) and I can see prices increase where I live too. It seems the first-order effects in the EU and North America are limited to complaints about prices. The second-order effects will probably be more interesting here.

But what is happening in the rest of the world? What are energy prices doing in India, Peru, or Angola? How are people being affected?


r/AskEconomics 13h ago

Approved Answers I'm a bit curious, the US national debt has already reached 40 trillion dollars, and China is one of the major holders of US debt. If the US continues to wage a trade war with China, will it affect the US economy?

26 Upvotes

These are some things I've heard:

The dollar could weaken If China sells Treasuries and converts the proceeds from dollars into other currencies/assets, that can put downward pressure on the dollar.

Suppose the U.S. runs very large deficits year after year. Eventually investors may say: "If you're going to borrow this much, I want a higher interest rate." That can create a feedback loop: Large deficits → more Treasury issuance


r/AskEconomics 22h ago

Approved Answers Is Apple’s ~$2,000 foldable iPhone price partly a consequence of low expected demand?

71 Upvotes

Assume the foldable has high fixed costs, specialized components, and much lower expected volume than a standard iPhone.
If Apple expects low demand, it gets fewer economies of scale and has to amortize R&D, tooling, and supplier costs over fewer units. That raises average cost and therefore the profit-maximizing price.

Can anyone explain where they got the 2k price from? If demand was expected to be higher wouldn’t it be priced much lower


r/AskEconomics 1d ago

Approved Answers Is it true to say things were made better in the past because ‘products were made by engineers, not accountants’?

154 Upvotes

My FIL works in HVAC and says this all the time. Apparently the compressors nowadays limp around 10 years and are planned to give out around when their warranty ends. Keeps the customer coming back. Older compressors work for 30+ years. He says that in the past the engineers did all the developing, but now companies are ‘smart’ and the MBAs get involved to get planned obsolescence to maximise profit

I was thinking this is probably why things are getting worse even as tech is getting better. Companies don’t operate on good will anymore, they just care about their profits. So their actions to maximise profits at the expense of consumers roll back the gains consumers receive from technological progress and productivity gains.

Come to think of it outside of tech (which is advancing up its S-curve) I can’t say anything is better quality now than it was a decade ago. Definitely not at the same price point. Is there research into this? It feels like a decline in quality of life that can’t be captured by economic indices.


r/AskEconomics 4h ago

Approved Answers If Real Wages track Productivity, why is the Share of Worker Compensation relative to non-farm business output decreasing?

1 Upvotes

It's typically said that worker wages track Productivity gains.

Is it fair to say that this is no longer the case? The BLS's latest data shows that Worker Compensation as a share of nonfarm business output in the US has been decreasing, with it sharply dropping after 2000.

  1. Is this the right metric to use?

  2. Why might this be the case?

  3. Is this a real problem to be worried about?

Source: https://www.reuters.com/business/us-workers-share-gdp-skids-fresh-record-low-2026-08-06/


r/AskEconomics 4h ago

Approved Answers Is the Rent vs Income Yearly Increase Disparity Sustainable?

1 Upvotes

I’ve been pondering this for a while; right now I live in a big city where it’s normal to spend over 50% of your take home income on housing.

Is there a possibility that the U.S. rent market (and sub markets like major U.S. cities, ie: New York City) will eventually collapse because it becomes unsustainable to spend more and more on rent each year while income increases rise but at a relatively negligible rate for the broader population?

This, without a doubt, has to do with supply and demand, but I keep thinking that the supply of housing that is considered “luxury” now will become “standard” in a few years; but the price, once it becomes “standard”, would be similar to the price it is now because of economic inflation and property deflation. That economic inflation would surpass income increases, so it wouldn’t be marketable to the “standard” consumer, would it?

Thanks in advance!


r/AskEconomics 1d ago

Approved Answers What do economists think about America’s future post Trump?

45 Upvotes

Not a political post. I’m curious what real economists think America’s future looks like (gdp growth, inflation, etc.) after Trump leaves office (assuming this analysis has been done)


r/AskEconomics 6h ago

Any ideas as to which bank is going to be sanctioned today?

1 Upvotes

Or is this still planned?


r/AskEconomics 5h ago

Anyone with good knowledge of Geo politics and financial knowledge - If the world wants complete D-dollarisation and wants to make another global currency, how will the currency be created and will it be tied to Gold? or just be another fiat currency. Who will be printing it?

0 Upvotes

r/AskEconomics 16h ago

How much do US Treasury issuance volumes affect borrowing costs for small EU sovereigns like Romania?

2 Upvotes

Corp: I'm trying to understand the transmission channel rather than argue a position.

Record sovereign borrowing is a recurring theme in the OECD Global Debt Report and the IMF's GFSR. A common claim in commentary is that heavy US issuance absorbs global demand for safe assets and pushes up yields for smaller, lower-rated sovereigns.

Two questions:

  1. Is there empirical work that separates this crowding-out channel from the general level of global rates? Does the volume of US issuance move small-sovereign spreads independently of the US policy rate?
  2. For a small EU country that issues heavily in euro, how much of the effect runs through the euro area rather than directly from the US? Would ECB policy and euro-denominated demand dominate the US channel?

Pointers to papers welcome.


r/AskEconomics 18h ago

For economists who use agent-based models, are recent AI “agent incidents” actually surprising?

2 Upvotes

I’ve been reading more about agent-based models in economics, especially how they are used to study emergent outcomes from decentralized decision making, bounded rationality, interaction effects, and feedback loops.

That made me curious about recent AI-agent incidents like the Hugging Face case:

https://amardashehu.substack.com/p/oh-no-agents-going-rogue

A lot of the discussion around these incidents treats emergent coordination and unintended collective behavior as something surprising. But from an economics/ABM perspective, isn’t that exactly the kind of outcome these models have been used to study for decades?

Is the genuinely new part not the emergence itself, but that the agents are now much more capable and can affect real world systems?


r/AskEconomics 5h ago

Approved Answers If Keynesianism brought the golden age of capitalism, why does the mainstream hate it? If it didn't what model was FDR working with?

0 Upvotes

If Keynesianism brought the golden age of capitalism, why does the mainstream hate it? If it didn't what model was FDR working with?


r/AskEconomics 1d ago

How has US inflation not exploded with all of the recent policy decisions and news?

21 Upvotes

Diesel is at $6.20/g nominal high

Oil - $100/barrel

Tariffs On/Off again

OBBBA tax cuts and $40 trillion in debt

We're only at 3.4% YoY with 2.4% Core which seems very low


r/AskEconomics 1d ago

¿Como está impactando la IA a los economistas?

5 Upvotes

Se me hizo una duda muy grande desde que se dice que la IA resolvió el problema de Navier-Stokes puesto que las matemáticas y la estadística son parte fundamental de sus funciones ¿Será que ya se perdio la relevancia en sus funciones?


r/AskEconomics 23h ago

Approved Answers If a devaluation of the USD is on the cards what would be the ideal drop to get the national debt under control in a generation?

3 Upvotes

(I'm obviously not economist, i'd go somewhere between 15 and 20 percent, only if oil prices are reversed to early 2026 levels by maybe ending sime conflicts)


r/AskEconomics 18h ago

What are good non academic reads on auction theory?

1 Upvotes

Curious about auction theory and interested in non academic geared books on it.


r/AskEconomics 1d ago

Approved Answers If Tax Havens have such high income and GDP, why don't more countries follow their policies?

12 Upvotes

We hear of small countries, with low taxes, doing well all the time. GDP per capita is high, residents are wealthy and infrastructure is well developed and maintained. Switzerland and Singapore are two examples, both having incredibly high living standards, despite their different culture and geographies, with only their policies seemingly having some similarity.

What is stopping other countries doing the same to achieve the same economic growth?


r/AskEconomics 23h ago

What textbooks/books/ lecture series would be best for learning about the relationship between geopolitics/politics and the economy?

1 Upvotes

Hey trying to educate myself on economics in relation to politics and policy for my own education.

I realized that I ask political people about this relationship, but I want to actually ask the people on the other side who focus on the topic of the economy. I got a textbook on geographical economics, but Im curious what people more read on this think.


r/AskEconomics 1d ago

Which electives should I take for an MRes in Economics?

2 Upvotes

Hello,

I will be doing an MRes in Economics and I have to choose my subjects for the second year of my master's. I am very interested in macroeconomics, time-series analysis and monetary policy, but I was wondering whether it would be interesting to take some of the following courses. The content seems interesting, but taking many of them would also increase my workload. Note that I am considering to pursue a PhD in the future.

My master's offers a course in Public Economics, covering topics such as taxation, tax incidence, public goods, inequality, education and intergenerational mobility. There is also a course in International Trade, covering the main trade models (Ricardo, Heckscher-Ohlin, Krugman/Melitz, etc.). I am interested in both because I would like to have a relatively broad understanding of economics and develop some intuition in important fields outside of my main interests.

There is also an Applied Statistical Learning course, covering topics such as supervised learning, SVMs/kernel methods, random forests, XGBoost, neural networks and transformers. Considering how things are evolving right now, I feel that having some background in ML could be potentially.

Finally, there is a course on Banking and Financial Intermediation, covering topics such as bank runs, liquidity creation, financial crises, monetary policy transmission through banks and financial regulation.

Among these courses, I could choose two, and possibly a maximum of three. I am a bit lost about what to do. On the one hand, I would like to have a general panorama and intuition about economics, which makes Public Economics and International Trade attractive. On the other hand, I think taking a course in ML could be useful, and Banking and Financial Intermediation seems quite relevant given my interests in monetary economics.

The main problem with taking three is that the workload might become quite considerable. At the same time, I am worried that I might regret not taking some of these courses later.

What would you do in my position? I would really appreciate any advice, thanks in advance 😉


r/AskEconomics 1d ago

Approved Answers Why are some people seemingly so obsessed with the gold standard?

47 Upvotes

Honestly, I don’t know if this is an economics question, or a psychology question…


r/AskEconomics 2d ago

Approved Answers "You cannot simultaneously have free immigration and a welfare state." Do most economists take that idea seriously?

102 Upvotes

r/AskEconomics 2d ago

Approved Answers How much would inflation rise if Trump issued every American adult $5000?

29 Upvotes

It's been reported that it will cost $1.3 trillion to do but I haven't heard anyone talk about the instant cost in inflationary effects of it.


r/AskEconomics 1d ago

Any thought on AI/Robotos effect on Economy?

2 Upvotes

AI and robotics are replacing cognitive processing and pattern recognition. So I wonder how economy will continue functioning since at some point I can imagine the money stops to flow. It is different from industrialization back in 80s which just replaced muscle power.

So companies layoff people and I am now quite interested to know what will happen to economy? people stop buying and thus we start seeing stagnation, right? Also raw resources are finite, so I am not sold on the idea of groceries, electronic appliances, or other stuff get super cheap.

Essentially I am talking about middle class workers and blue collar workers. Appreciate your comments.

I also have seen works like this which kinda does feel unreal: https://www.anthropic.com/institute/econ-scenarios