Kick Open the Logjam

 

Some economies have high unemployment and little economic activity. People have little money and there are few new jobs. If any new money is put into the economy, inflation and little increase in the GDP results from no increase in production. Businesses raise prices with increased demand and don't have the money to invest. Consumers don't have the money to buy products and businesses don't have the ability to invest or the activity to expand. These economies can't prosper. It is a vicious cycle.

The untapped labor and other production resources are like a dammed river. The money rationing causes economic production to trickle compared to it's potential.

Now with the system proposed, consumers and businesses would be 'turned loose'. The logjam of money rationing would be 'kicked open'. Economic activity would 'explode'. Consumers would acquire goods, 'cleaning out' the stores, assuming greed. Massive orders for products would appear. Shortages of goods would instantly occur. The demand of products would translate into the demand for labor. The basic materials producers would necessitate plans to produce more commodities and hire more labor in mining, agriculture, chemicals, metals, recycling. New and alternative sources of materials would immediately become practical, like the sea and oceans, due to labor being, 'free'. With a massive untapped labor pool, inefficiencies may be ignored for the short term. The labor pool would be the only limit for worker intensive services. As labor shortages occur, then emphasis could be placed on productivity.

Everything costs something - muscle, love, pain, ideas, life itself. There are no freebies. The employment of human resources and other resources are the costs. The cost is called in economics, "opportunity cost". This means that resources, including time, machines, and people, etc., are unable to do different things, with the same resources, at the same time. Workers engaged in production of one product, that consumers want or need, can't produce others.

 

 

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