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Cheap money should make investing in machinery easier and make labor productivity go up. The opioid crisis should make workers and their availability more unre

Cheap money should make investing in machinery easier and make labor productivity go up. The opioid crisis should make workers and their availability more unreliable. This should also lead to businesses investing in machinery and improving labor productivity. Lack of universal health care and SS should make workers more expensive and again provide an incentive to improve labor productivity. All these may or may not be problems but none of them are a reason for productivity to stay low. In fact, quite the opposite.

bgnn 2y ago
not the way I see it. Cheap money just caused to create a ridiculous amount of billionaires, the fraction of it is invested. One big example is how the chip fabs in the west wanted govt subsidies instead of financing via the market because money markets in the west doesn't have the stomach for it. Same with the auto industry, Tesla being the exception. Actually this is very similar to the Dutch disease []. Cheap money, like cheap energy, hurts productivity. [] https://en.m.wikipedia.org/wiki/Dutch_disease https://en.m.wikipedia.org/wiki/Dutch_disease