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>And that leads to the other core issue few address: "supply and demand" still rules, and the economy would merely shift prices to drive beneficiaries right bac
by crdoconnor 11y ago
>And that leads to the other core issue few address: "supply and demand" still rules, and the economy would merely shift prices to drive beneficiaries right back where they were before. If you don't have to actually do anything to buy a gallon of gas or a loaf of bread, prices will rise until you once again have to work about 20 minutes of menial labor to earn whatever "extra" you need to buy it.
That's not how supply and demand works. The supply elasticity of a price of bread in particular is very high because it's trivially easy to ramp up production. It's the same for most industrial goods - industrial slack (google it) means that increases in demand do not correspond to increases in price.
The price of goods and services which have a constrained supply (low elasticity goods) would go up in price to match the new level of spending. The only one I can think of that would qualify these days is land, but it would be trivially easy to throttle spending on that at the same time by raising taxes on it.