r/explainlikeimfive 13d ago

Economics Eli5: how have supply chains not recovered over the last two years?


I understand how they got delayed initially, but what factors have prevented things from rebounding? For instance, I work in the medical field an am being told some product is "backordered" multiple times a week. Besides inventing a time machine, what concrete things are preventing a return to 2019 supplys?

r/explainlikeimfive 19d ago

Economics ELI5: When a company gets bailed out with taxpayer money, why is it not owned by the public now?


I get why a bailout can be important for the economy but I don't get why the company just gets the money. Seems like tax payer money essentially is "buying" the company to me but they get nothing out of it.

Edit: whoa i woke up to a lot of messages! Some context to my question is that I am not from the US myself but I see bailout stuff in the news and as I understand it, the idea of capitalism is understood that "if you succeed then you make money and if you fail you go bankrupt and fold or get bought out" hence me wondering why bailouts are essentially free money to a company to survive which in my head sounds like its not really fair because not all companies are offered that luxury.

r/explainlikeimfive 18d ago

Economics ELI5 how does life insurance make sense, like how does $40/month for 10 years get you 500,000 life insurance?


I'm probably just stupid 😭

r/explainlikeimfive 20d ago

Economics ELI5 how do pharmacies work? Do they just have every kind of medication at all time? How is a prescription ready within an hour?


ETA thank you everyone for taking the time to respond! I know it seems super obvious as to how it works, this was a late night thought I had and needed to know 😂

r/explainlikeimfive 24d ago

Economics ELI5: Why do large companies with net negative revenues (such as DoorDash and Uber) continue to function year after year even though they are losing money?


r/explainlikeimfive 18d ago

Economics ELI5: Why people who bought a home with a historically low mortgage rate can "never move out"?


Seeing a meme on Tiktok about people lamenting the fact that they brought a home at mortgage rates lower than 3.0% between 2020-2022 and how they will never be able to move into a new home.

Not sure if it's supposed to be a bit of a humblebrag in the sense that it makes other future home purchases feel like a bad deal, or if there's something else I'm not putting together that makes the purchase an actual bad investment.

r/explainlikeimfive Feb 02 '23

Economics ELI5 How does raising wages worsen inflation ?


r/explainlikeimfive Jan 26 '23

Economics eli5 what do people mean when they say billionaires dont get taxed


r/explainlikeimfive Feb 22 '23

Economics ELI5: Why is a housing market crash a bad thing?


I can't seem to find an answer online that's dumbed down enough for me to understand. I can't see the downside to houses getting cheaper. What kind of struggles do homeowners go through when the market is down? What else changes besides the price of their home? I know almost nothing about economics so a simple explanation would be appreciated.

r/explainlikeimfive 15d ago

Economics ELI5: What is accounting for the spike in house prices and historically speaking, have house prices ever come down?


r/explainlikeimfive 23d ago

Economics eli5 Why is the Sherman Antitrust Act of 1890 and Clayton Antitrust Act of 1914 so ineffective against companies today?


How have companies such as Vanguard and Blackrock or Nestle, Pepsi, Coke, grown to be as big as they are with these 2 Acts in place. It should prohibit them from growing to these sizes but they only seem to be getting bigger.

r/explainlikeimfive 13d ago

Economics Eli5: How do countries recover from hyper inflation?


Pretty much what it says on the tin. I just seen a post showing a picture of a stack of (at least) 1000 notes of 20's in VB (Venezuelan Bolivar), which is apparently only equal to 1 US dollar.

How can they bounce back from this? Is it going to get worse? Countries in the past have experienced inflation and gone back to normal, like Germany, how is this done?

r/explainlikeimfive 22d ago

Economics ELI5: Bank sends wrong person $ and it immediately has to be returned or charged will be filed. If I Zelle the wrong person, I am straight SOL. Why the difference?


Exactly what title says, why is there no way to recoup zelle definitely or wire transfer(maybe?) but if banks send money to wrong person there are severe penalties for not returning.

r/explainlikeimfive 22d ago

Economics ELI5 how do you start a bank?


How does someone start a bank. I understand that you have to have a shit ton of money, but how does someone actually start/open a bank of their own? Can mr joe shblow, given that he is able to come up with previously mentioned “shit ton of money”, go out and open his own bank? Obviously it takes time, but what’s the process of doing so?

r/explainlikeimfive 21d ago

Economics ELI5: How do banks fail and what happens next?


Hey everyone. Been seeing a lot of articles about Silicon Valley Bank failing. Says it was the first big bank since 2008 to do so.

How does this happen, what does this mean, what happens next?

r/explainlikeimfive 12d ago

Economics ELI5: Copyright vs Trademark


Can anyone explain the differences between copyright and trademark?

r/explainlikeimfive Mar 01 '23

Economics ELI5: If a borrower is high-risk, why do banks make it harder for them to pay off loans?


It seems like hiking interest rates for loans for higher risk borrowers is counterintuitive. If they have to pay significantly more, aren't they more likely to default?

r/explainlikeimfive 20d ago

Economics ELI5 Why is the US’ credit rating so exceptional despite the amount of debt it takes on?


I’m a United States citizen. Moody gives the US a AA+ credit rating (it was downgraded from AAA in 2011).

How can this be, despite the substantial amount of debt the US holds that only continues to grow?

Is it GDP, defense capabilities, the dollar being the de facto currency almost worldwide? A combination of these? Or is there another huge factor(s) I am missing?

r/explainlikeimfive 1d ago

Economics ELI5:Why do we exclude the price of things like Food, Housing and Energy costs when looking at the total number for inflation?


I’ve been looking for a reasonable explanation for this for a while and literally cannot find one. SO help me understand, please. ❤️🤷‍♀️

r/explainlikeimfive Dec 30 '22

Economics ELI5: When you take a loan, the bank can "sell" your loan to an investor. What does that process look like, and why would an investor want to buy loans?


r/explainlikeimfive 3d ago

Economics ELI5: Why do hard pulls on your credit make it go down?


r/explainlikeimfive 13d ago

Economics ELI5: What is the difference between Median and Average?


I was looking up the average networth of 30 year olds in the United States and it said: "The average net worth is $122,000 and the median net worth is $35,112" my brain is too smooth please help.

r/explainlikeimfive 10d ago

Economics Eli5: Why do bond investments loose money when interest rates rise?


I’m confused why bond markets are loosing money as interest rates keep rising? I thought it would be the opposite, bonds should be returning a higher profit when the interest rates rise?

r/explainlikeimfive Jan 12 '23

Economics ELI5: Where did the 5 Day Work week come from?


r/explainlikeimfive Jan 15 '23

Economics eli5: Why were some ancient cities like Palmyra and Machu Picchu left to ruin and fall apart over hundreds of years instead of being repopulated?