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The whole situation is a bit mystifying TBH. The 'standard' answer to a labor shortage in our (capitalist) economy is to offer higher wages which would incentiv

The whole situation is a bit mystifying TBH. The 'standard' answer to a labor shortage in our (capitalist) economy is to offer higher wages which would incentivize workers to move into those jobs. On the other hand, workers having more money is blamed for higher inflation which the Fed desperately wants to curb. Keep in mind, higher wages do contribute somewhat to inflation, however they are by no means the only factor. Supply side effects and opportunistic corporate price gouging are documented contributory factors in the latest bout of inflation [1] [2] So what's the solution here? Does this mean that the only solution is that workers have to accept ever lowering standards of living as one UK central banker recently recommended [3]? [1] https://www.epi.org/blog/corporate-profits-have-contributed-disproportionately-to-inflation-how-should-policymakers-respond/ https://www.epi.org/blog/corporate-profits-have-contributed-... [2] https://rooseveltinstitute.org/2023/01/10/why-todays-inflation-is-a-supply-side-story/ https://rooseveltinstitute.org/2023/01/10/why-todays-inflati... [3]https://news.sky.com/story/bank-of-england-rate-setter-urges-people-to-accept-they-are-poorer-in-fight-against-inflation-12866426 https://news.sky.com/story/bank-of-england-rate-setter-urges...

runnerup 3y ago
> So what's the solution here? 1) Pay salaries as needed to get people to move across the country. 2) Manufacture enough housing/food/goods to satisfy at least the inelastic portion of demand driven by high salaries. 3) For wherever actual high salaries don’t attract enough workers, import labor with a friendly visa system. The Federal Reserve acknowledges that half of inflation is demand driven, but also that half of it is driven by supply shortages. Federal government should be attacking the supply side by supporting additional manufacturing and expanding ports and transportation systems.
- Haga 3y ago
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flangola7 3y ago
Large government civil projects funded by new corporate taxes would do a wonder for many of these charts.

runnerup 3y ago

> So what's the solution here? 1) Pay salaries as needed to get people to move across the country. 2) Manufacture enough housing/food/goods to satisfy at least the inelastic portion of demand driven by high salaries. 3) For wherever actual high salaries don’t attract enough workers, import labor with a friendly visa system. The Federal Reserve acknowledges that half of inflation is demand driven, but also that half of it is driven by supply shortages. Federal government should be attacking the supply side by supporting additional manufacturing and expanding ports and transportation systems.

Haga 3y ago
[dead]

flangola7 3y ago

Large government civil projects funded by new corporate taxes would do a wonder for many of these charts.