Wednesday, November 27, 2024
Inflation
As massive reshoring gets underway, the big downside will be wage/price inflation. This can be offset by an increase in productivity which can come from two main sources. First is the combination of new facilities and new processes combined with AI. The second from a reduction in regulations and this can be accomplished by Doge being run by Elon and Vivek. As they eliminate both projects and people the companies, relieved from the burden of regs, can devote their energies toward efficiency. As workers produce more they are entitled to more compensation. The big worry is the shortage of workers and thus high schools and trade schools must begin adjusting their curricula to meet the new demands. Immigration rules must use a merit based system to bring in the trained people needed. If all of these different agencies coordinate their efforts the country can achieve new growth without inflation.
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