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This. The 20% haircut to the value of the companies' equity is a paper difference to their wealthy majority shareholders. But the 10% of staff they lay off hav
by notahacker 5y ago
This. The 20% haircut to the value of the companies' equity is a paper difference to their wealthy majority shareholders. But the 10% of staff they lay off have no income at all, and the remaining staff don't exactly feel better off because their bosses are poorer either. Levelling down isn't any sort of solution to wealth inequality.
- lend000 5y agoIf there were no other options besides asset stimulus and doing nothing, I may agree with you. But we can do other things (like UBI) that improve equality of opportunity, provide a safety net, and are probably net positive to the overall value of the economy in the long run (compared to the modern bailout/asset inflation economy, anyway).
- wallacoloo 5y agoBut during a labor shortage, that’s largely moot. Whatever staff gets fired, if they’re remotely competent, can walk down the street and get a job at a better performing company with ease.
- notahacker 5y agoSure, but you're replying to a comment about policy for recessions, not for when the job market's looking great for everyone, so it's bringing up labor shortages that's moot. People weren't walking down the street to get jobs at any sort of company with ease in 2008, or in the middle of lockdown.