Laeserin on Nostr: Switching wouldn't drive up wages that quickly, as those are contract-based (sticky ...
Switching wouldn't drive up wages that quickly, as those are contract-based (sticky and slow to change) and employers can respond by increasing automation or relocating production.
But it tends to immediately lower costs and spending for each household, which would quickly have a deflationary effect on consumer goods pricing, which would reduce the income needed, which would again drive down prices...
Deflationary spiral.
Would probably also lower public outlays, for instance, for after school programs and childcare subsidies, health and medicine, and etc.
And expand the possibilities for where one family can live and work.
So, that would be 3 deflationary effects.
But it tends to immediately lower costs and spending for each household, which would quickly have a deflationary effect on consumer goods pricing, which would reduce the income needed, which would again drive down prices...
Deflationary spiral.
Would probably also lower public outlays, for instance, for after school programs and childcare subsidies, health and medicine, and etc.
And expand the possibilities for where one family can live and work.
So, that would be 3 deflationary effects.