A $1,000 per month cash handout would grow the U.S economy by $2.5 trillion, new study says

[DonFerrari]

Pemalite said:

DonFerrari said:

Probably not all jobs are going to be replaced by new jobs on the same market, but new jobs on other markets... just look at economy distribution of labor in USA 200 years ago and now. People moved from agro, to manufacture, to services in the time between. So it will be much more people oriented and services heavy economy than production.

Same thing happened with Australia.
We used to be heavy into manufacturing, making stuff like cars, washing machines... You name it.
Then our Manufacturing imploded... Our high minimum wages (Almost $18 an hour) didn't help matters.
We transitioned our economy to resources, services and tourism and high-skilled work and it turned out... It was better for everyone anyway.

China right now is undergoing it's own Industrial revolution, it's difficult for anyone who isn't an emerging economy to compete with that, I personally think Brazil, Indonesia and India are probably the best equipped nations to take on manufacturing after China starts to falter/gets to expensive. And that is okay.

Economies transitioning is a natural process propelled by capitalism, it shouldn't be seen as a bad thing in my eyes.

Totally agree on the premisse, but prospecting the future is always uncert, so maybe these countries will or not be the next boom on manufacturing.

But the truth is that one way or another the market will keep shifting and no economy will make sense with everyone unemployed and no circulation of goods and money, so new jobs and positions will appear that people that at first had to work 14h a day just to eat will have to work less than 1h to eat and that work wouldn't be muscle work but new things that we didn't even thought as a need before.