However, a corrective slow down, or even recession now, may help rebalance the economy for faster growth later.
Just so we are clear on your motivations; you are advocating for involuntary unemployment at a time when half of workers are already struggling to pay for essentials and can’t put together $500 to meet unexpected emergencies? Can we assume then that you are well situated to ride out a manufactured recession and are willing to cause others misery for some goal that even most economists can’t define.
The Fed has been given the burden of managing the economy mostly because Congress is inept and cannot put together a working fiscal policy. If we are determined to use forced unemployment as inflation control then the government owes workers a properly administered safety net that doesn’t involve vilification of the victims for political gains. In fact, the government owes them the dignity of a job that pays a livable wage, becoming the employer of last resort.
A guaranteed job program, with participation at the discretion of workers, could replace the minimum wage and account for regional disparities in the cost of living by utilizing the fiat currency for funding but relinquishing control to local administration. It would have a distinct advantage over a universal basic income because it would be countercyclical to the business cycle, injecting federal money when needed to protect supply chains and would offer a stable of workers to business with all of their social and job skills intact.
If America can’t manage to shed the myths and misinformation based in gold standard logic, especially its irrational fear of debt, it will be ill-equipped to deal with the economic tsunami of AI that is about to crush its monetary system. A good place to start would be eliminating Treasury bonds and setting a base rate on excess reserves, as bonds no longer serve a function beyond providing leverage to the Fed in determining the overnight rate for loaned reserves to allow interbank transfers of private-sector loan proceeds.
