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Managing a contracting economy

RobertU

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Both neoliberals and conservatives are hopeful that future prosperity can be taxed to make up for the huge deficits being generated to bail out the COVID economy. But what if the economy limps along for the foreseeable future?

Does anyone have plans for a permanently contracting economy? Some options: Reductions in salaries and/or hours worked and executive compensation to keep more people employed instead of laid off. Repurposing vacant properties: Converting, for example, office or retail space into residential use or indoor agriculture.

Given that employees may have to move often to get new jobs as old ones dry up, traditional pension plans, already shrinking, could be replaced, perhaps by an enhanced Social Security system that includes larger copayments by government.

High job mobility may also call into question the value of a home as an investment as frequent relocation costs would eat into equity. Medicare-for-all would also seem to be a more efficient than a system in which one constantly changes health plans, often with gaps, as one constantly changes jobs.

Economic contraction will likely deflate high housing prices but the opportunity for young families to exploit that is sometimes countered by deliberate attempts to keep vacant properties off the market. Perhaps a tax on vacant housing would discourage that.

Ultimately, the only way to pay off some government deficits may be through high estate taxes on the accumulated wealth of the rich.

There may be a self-correcting mechanism. As the unemployed put off becoming parents, the contracting population will create labor shortages, which will raise wages. A similar trend, fueled by high parenthood costs, may have already been in place before the pandemic hit.
 
The economy will be fine...if idiots will just let businesses and consumers get back to being businesses and consumers.

But the last thing we want is some outside force "managing the economy".
 
Instagram founders Mike Krieger and Kevin Systrom said that Mark Zuckerberg actually forced them to sell their service, including threats to destroy it.
Where would you read about fair competition, lack of corruption, and the Invisible hand of the market in the United States?
 
Both neoliberals and conservatives are hopeful that future prosperity can be taxed to make up for the huge deficits being generated to bail out the COVID economy. But what if the economy limps along for the foreseeable future?

Does anyone have plans for a permanently contracting economy? Some options: Reductions in salaries and/or hours worked and executive compensation to keep more people employed instead of laid off. Repurposing vacant properties: Converting, for example, office or retail space into residential use or indoor agriculture.

Given that employees may have to move often to get new jobs as old ones dry up, traditional pension plans, already shrinking, could be replaced, perhaps by an enhanced Social Security system that includes larger copayments by government.

High job mobility may also call into question the value of a home as an investment as frequent relocation costs would eat into equity. Medicare-for-all would also seem to be a more efficient than a system in which one constantly changes health plans, often with gaps, as one constantly changes jobs.

Economic contraction will likely deflate high housing prices but the opportunity for young families to exploit that is sometimes countered by deliberate attempts to keep vacant properties off the market. Perhaps a tax on vacant housing would discourage that.

Ultimately, the only way to pay off some government deficits may be through high estate taxes on the accumulated wealth of the rich.

There may be a self-correcting mechanism. As the unemployed put off becoming parents, the contracting population will create labor shortages, which will raise wages. A similar trend, fueled by high parenthood costs, may have already been in place before the pandemic hit.

Let's raise the minimum wage so Labor can create more Demand and pay more Taxes, and so right wingers can no longer complain about the Poor not paying their fair capital share of taxes.
 
The economy will be fine...if idiots will just let businesses and consumers get back to being businesses and consumers.

But the last thing we want is some outside force "managing the economy".

If we all yell at COVID-19 loudly enough, maybe it will stop being that outside force.
 
For humanity to endure, we MUST learn how to have an economy without, ECOnOMIC EXPANSION. We must invent, a sustainable economy. Our current system requires CONSTANT expansion, to pay the interest. Otherwise we go into recession or depression. That is KILLING the planet. It is fueling climate change. It is depleting resourses. It is polluting.

MAN MUST create a NEW PARADIGM. Problem is, we, as well as everyone else, will demand that the other guy do it first. NATIONALISM, is the murderer of humanity. It causes war, scarcity, race to extinction.
 
Would it be practicable to circulate commodity money by a Government when commodity prices are high to help discourage debasement until the next boom in that market?
 
If we all yell at COVID-19 loudly enough, maybe it will stop being that outside force.

COVID isn't the outside force. It didn't tell all businesses they have to shut down.
 
For humanity to endure, we MUST learn how to have an economy without, ECOnOMIC EXPANSION. We must invent, a sustainable economy. Our current system requires CONSTANT expansion, to pay the interest. Otherwise we go into recession or depression. That is KILLING the planet. It is fueling climate change. It is depleting resourses. It is polluting.

MAN MUST create a NEW PARADIGM. Problem is, we, as well as everyone else, will demand that the other guy do it first. NATIONALISM, is the murderer of humanity. It causes war, scarcity, race to extinction.

So...nobody's lot in life will allow to be improved (if they want it to).
 
COVID isn't the outside force. It didn't tell all businesses they have to shut down.

Considering the reaction has been the same worldwide, the commonality being COVID-19, the virus is what resulted in businesses shutting down. We went at it half assed compared to most countries, and now our whole asses are suffering from the results.
 
Soon as the vaccine is out, the economy will come roaring back.


If you seriously believe the economy will be in a perpetual downward trend, buy gold.

Put your money where your mouth is.


I invest in the S&P 500. I believe the economy will rebound.
 
Considering the reaction has been the same worldwide, the commonality being COVID-19, the virus is what resulted in businesses shutting down. We went at it half assed compared to most countries, and now our whole asses are suffering from the results.

LOL!!

Yeah...just like the notion that a "vehicle drove into a crowd of people". Damn those vehicles!! They have a mind of their own...just like COVID.

:roll:
 
LOL!!

Yeah...just like the notion that a "vehicle drove into a crowd of people". Damn those vehicles!! They have a mind of their own...just like COVID.

:roll:

That is not really an apt comparison unless you are talking about a self-driving Tesla. COVID-19 is more autonomous than the vehicles I have seen driven into crowds.
 
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