Thats the normal debate against a UBI (as if there couldn’t be both). There would seem to be a great deal of private sector work thats not increasing successful capacity in addition to increasing aggregate demand. Im uncertain what percentage of employment in any locale could be considered as a contributor to productive capacity. But there are certain jobs that donate to the overall GDP and perhaps exports like as in the case of the entertainment industry, but that kind of work is not increasing the roof for demand, I’d think.
So why and how is a restricted productive capacity heading to cause prices to go up during such a “scarcity” event. Folks are ones that receive the money. JG (and lots of really important federal government spending) would continue the demand if more companies just made a decision to cull back investment with budget cuts and reduced result.
Sure. Luckily people still have the income to buy things. And the productive capacity has, per se, not decreased because those people never have left the workforce completely as soon as the private sector needs them, they will be prepared to be hired again. In the meantime, theres reduced output and popular. There’s probably a lot of firms that could reinvest in more work at the existing wage floor and take that risk to accommodate demand.
But within an extreme case, they might not be able to do this despite a huge JG pool of workers ready for hire because of the wage bill. So maybe they take a risk in raising their prices a bit? And its a one-off price increase just, and the general public accepts it, and infrastructure is rebuilt to regain productive capacity, all dates back to normal then. But if its something long lasting just like a “peak” resource event, subsidies to various efficient tech would be needed to regain this productive capacity. So when a complete lot of people talk about how JG productive capacity in a way that is anti-inflationary, I get just a little confused why that might be.
- Boeing (BA) – income of $41.10
- Rental housing
- Receive direct or indirect distributions from a PFICs
- A: UK single stocks
It never occurred to me that there is any inflationary pressures from employers not being able to find anyone within the Unemployed buffer stock. Maybe because they don’t really need to spend too much time training these new employees? Maybe because the employees, through having experience, will produce more goods using their wages than previously unemployed people? I dont start to see the inflationary strain on the supply side, on the cost-push side, with minimal employment in the private sector. I am neglecting demand Perhaps.
It seems untrue if you ask me that consumer prices will get bet up with consumer product shortages. Or supply string shortages even. Produces are just producing the products they can to show a profit. Just via some opportunism by the part of whatever industry? A business saying “we sell all of our supply, I wish we could make more, you will want to improve the price and find out if demand continues despite the price increase?” that seems like an ill-advised risk in a whole lot of situations.