53 sats \ 4 replies \ @Undisciplined OP 25 Oct 2023 \ on: Meta Econ Takeover Day 9 meta
One that just occurred to me is that a huge share of low wage workers would quit their jobs and many basic services would stop existing until prices and wages adjusted and drove them back to work.
The labor force dislocation would be pretty extreme.
Along those lines, covid style supply chain breakdowns. Truckers, longshoremen, all quit.
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I shouldn't have said "low wage". I had in mind that whole set of people who do pretty unpleasant, or difficult, but necessary jobs.
The correction will be slow too, because all the HR and payroll people who know how to do hiring will have also quit.
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Now we are getting to where my thought process was going. Demand for goods would skyrocket, while prices took time to meet demand but many would not understand they aren't rich and believe they didn't have to work. Supply chains would be a disaster. Businesses wouldn't open because they don't have enough employees. Everyone has a billion in their wallet but there would be rampant looting and theft.
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I just made the related point above, but this is a bigger problem than people not understanding that they aren't rich. If I'm only going to get paid a normal wage, say a couple hundred bucks a day, there's no reason to go to work with this billion dollars looming.
The problem is that there's also no way to adequately scale prices/wages during the week, because no one has enough money yet to pay them.
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