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I do think relying on production has it's limits. Countries would rather save up on apples, be self sufficient for a rainy day rather than spend them. Given ho
by oreally 4y ago
I do think relying on production has it's limits. Countries would rather save up on apples, be self sufficient for a rainy day rather than spend them.
Given how my (non-western) dollar converts to USD, I wouldn't hire a US person for grunt work unless he/she had specific expertise to teach or a local knowledge bias for when my firm expands to the US. So there's less inflow to the US, and only to a select few people. So where does that lead us to? The US printing money and doing as much as it can to mitigate the side effects.
So your population has only a select few who get the inflows. And you can tax them for distribution.
And chances are you're not going to get other countries to spend their apples. You could get workers to accept lower pay rates, but I highly doubt it's possible without upsetting stability. Are you doomed to huge amounts of money printing then? Maybe you'd get away with it since you're the US after all.