2022-06-27 Olúfẹ́mi O. Táíwò fight inflation with surplus

Olúfẹ́mi O. Táíwò (@OlufemiOTaiwo): "Intervention in the realms of energy and transportation...can help relieve two major sources of the current inflationary pressure...rebuild the capacity to plan “on the fly” by embracing “unbalanced growth”- that is, the economics of surplus." https://www.noemamag.com/fight-inflation-with-surplus-not-scarcity/

"Across economic institutions, surplus capacity was engineered out, and systems were engineered to be as lean and efficient as possible. The emphasis was on increased efficiency of supply chains, utilizing just-in-time delivery of materials and relentless cost-cutting"

"After the construction boom and bust of the global financial crisis, for example, construction of new housing declined precipitously, and domestic producers of lumber and other construction materials decreased their capacity in response."

"Union power diminished, and with it, workers’ power to demand wage increases commensurate with productivity gains."

"The pandemic highlighted how vulnerable the U.S. economy now is to shortages, as American economic institutions could not ramp up production of vital medical supplies and technology fast enough to keep up with demand."

"There were suddenly not enough tests, life-saving drugs or hospital beds, and staffing levels at hospitals were not adequate to avoid overwork and burnout."

"what resources are scarce, why are they scarce, and should they be scarce? Most economists avoid these questions because they assume a given distribution of resources; how those resources were created or distributed is irrelevant to their models."

"When resources are scarce due to human decisions at the individual, firm or government level, direct action by the public sector can increase abundance."

" And if resources may become scarce due to predictable environmental outcomes created by climate change, policies to actively reduce carbon emissions or protect environments from likely weather patterns can likewise hedge against scarcity."

Pages that link to this page