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hacksoncode t1_it7y3oi wrote

Reply to comment by jffrybt in [OC] Inflation rate and nominal interest rate by giteam

> If there were fewer job openings than job seekers

At current offered wages. The only way to fix that, ironically, is inflation.

>They cannot employ enough people to keep up with demand.

Not because those people don't exist, presently (as in Japan's case), but because of external factors.

But even if they didn't exist, though, the only answer other than "everyone just suffers" would be more automation... which requires... capital that high interest rates make scarce.

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jffrybt t1_it82ube wrote

Automation is its own supply and demand and growth limitations. You could flood it with capital, but if every company seeks to increase automation simultaneously, you won’t see an actual increase in automation. You’ll see an increase in the price of automation and an increase in job listings in automation.

Exact same position we are in.

Supply building is slow.

Demand is now.

And you can bet your ass companies are building automation. Long term job destruction is happening behind all of this.

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