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I don't know about that. I do think it's way way better than helicopter money and PPP loans, but I don't think it'd help this particular issue. Flushing people
by chomp 5y ago
I don't know about that. I do think it's way way better than helicopter money and PPP loans, but I don't think it'd help this particular issue. Flushing people out of a local maximum (in terms of effort to compensation) will just have them searching for a new local maximum. A lot might find that their old local maximum was one of the least optimal. Furloughing people gives them time to better optimize. Which in my opinion is good for the workers, but I think you'd still see some people hunting around- they just wouldn't have a fire lit under them.