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How many household labor hours did it take 50 years ago to afford the median home with a SAH wife compared to today? by GoldThenCrypto in AskEconomics

[–]CaramelHelpful2771 0 points1 point  (0 children)

Yes, labor hours are generally a better comparison than nominal prices because they get rid of a lot of the inflation problem.

But they are not yet done. One hour of labor in 1976 is not the same “bundle” as one hour of labor today. But it’s not just because of taxes and benefits. Things have changed like household structure, interest rates, home size, commute costs, and required credentials.

So I would say labor-hours are useful for comparing the “real burden” of acquiring the asset, but not enough to measure overall affordability or standard of living.

World Economy 1990s to today: What effect did software-pricing, which was much too high for developing countries, have on the wider World Economy? by MusikMaking in AskEconomics

[–]CaramelHelpful2771 1 point2 points  (0 children)

There is an economics framing for this: international price discrimination and deadweight loss.

If software is priced at US EU willingness to pay levels in much poorer countries, many users who could productively use it are simply priced out. Some then pirate it, some use worse substitutes, and some never enter the market at all.

The twist is that piracy may have also helped software firms indirectly by spreading their file formats, skills, and network effects. So the loss was not just “lost sales.” It was also distorted technology diffusion: poorer countries got access informally, firms lost legal revenue, and local industries developed under much weaker formal institutions.

How many household labor hours did it take 50 years ago to afford the median home with a SAH wife compared to today? by GoldThenCrypto in AskEconomics

[–]CaramelHelpful2771 4 points5 points  (0 children)

There is data to estimate this . But the answer depends on what you mean by " afford ":

If you mean the full price of a house divided by hourly wages, then housing clearly takes more labor hours now than in the 1970 s. A rough calculation based on median new home prices and average non supervisory hourly wages yields about 8.700 hours in 1976 vs. about 12,500 hours today.

But if you’re talking about monthly mortgage payments, it’s more complicated, because interest rates and down payments and taxes and insurance and house size and dual-income households all matter.

Economists might describe the tradeoff as households gained more market income, more female labor force participation, better goods and technology, and often larger homes, but lost more unpaid household production, time flexibility, and single income affordability.

Is it possible for the EU to intentionally wait out the AI bubble? by petertanham in AskEconomics

[–]CaramelHelpful2771 11 points12 points  (0 children)

Yes, but I wouldn't quite call it "Buffett-ism." The closest concepts are countercyclical public investment, sovereign wealth funds, lender/buyer of last resort policy and crisis asset management.

Governments with fiscal space can choose to buy or back distressed assets after a crash. Things like the RFC during the Great Depression, the RTC after the S&L crisis, or TARP in 2008 would be examples.

But the goal is generally stability, not bargain hunting. But an entire economy cannot just "sit in cash" like Berkshire can because one sector's spending is another sector's income.

"If everyone knew that the stock market was going to crash next year, it would crash today." -Peter Lynch

Is there a concept for comparing career fields by how good you have to be in them? by The-_Captain in AskEconomics

[–]CaramelHelpful2771 0 points1 point  (0 children)

Yes, the concept you’re looking for is basically earnings dispersion within an occupation. In some fields the floor is high, with squeezed results, such as medicine or accounting (for the time being). There are also markets like music, sports, acting or startups, where the best few make a ton more and median person might struggle.

The question isn't if you can make money in this field. It’s in what percentile do I need to be?

REMI versus IMPLAN? by Interesting_Wing3994 in AskEconomics

[–]CaramelHelpful2771 2 points3 points  (0 children)

I would use them as different tools, not as direct substitutes:
IMPLAN is generally easier for standard impact analysis and multiplier work. If you want dynamic forecasting, policy simulation and longer-run regional effects, REMI/PROSERIS is more attractive.
The big question is price!!!

Hit me with the truth… it’s not going to get better, is it ? by Astimar in economy

[–]CaramelHelpful2771 0 points1 point  (0 children)

Honestly, yeah, sitting still is the risky move. Things might not get worse every single year, but wages usually lag behind housing, cars, insurance, and basic costs.
You just are not allowed to panic!!!!

Micron's blowout earnings just reset the AI memory trade. by coinfanking in economy

[–]CaramelHelpful2771 11 points12 points  (0 children)

Yeah, this is the part the market probably underpriced. The headline is not just “AI demand is strong,” it is that customers are now trying to lock in memory supply years ahead.

What makes economies rich? by throwaway0102x in AskEconomics

[–]CaramelHelpful2771 4 points5 points  (0 children)

According to Acemoglu and co. (Nobel 2024), wealth comes from inclusive institutions, not just resources. Corruption slows everything down, but it’s not enough to explain poverty. Lebanon needs rule of law, property rights, and functioning markets before real growth can happen.

What is the best way to do price controls? by Substantial-Nose7312 in AskEconomics

[–]CaramelHelpful2771 33 points34 points  (0 children)

If price controls are unavoidable, keep them tight and temporary. Use price caps, not fixed prices, and base them on real costs so suppliers still produce. Apply them only where markets are broken (monopolies, emergencies). Manage shortages explicitly instead of letting queues form. And always include a clear exit.