Topic: Is full employment possible with a fully privatize of money creation? (Read 1039 times)

If some work can not be replaced by the machine, people usually get higher salary, for example baby sitters and pirvate teacher

But it's possible to let thousands of people mine digital money. Imagine that all the USD has to be mined by people using a specific tool at factory working full time, instead of generated by FED without any work, what will happen?

You can't see that possibility because you are used to current banking and government system which has been running for hundreds of years, what if this system totally collapsed and you are going to need another type of new social structure?

Historically, economics always closely related to politics, since the decision making power is in the hand of politicians, not professors of universities, so all the current economy knowledge you can get from the school more or less serves for the existing governance structure

Money creation is always a special business that has endless demand, historically only during gold rush, this business can be operated by average normal people, most of the time it is operated exclusively by government and central banks

My point is, the gold rush proved that if money creation can be operated by any private person, then there will be boom and full employment

Just wanted to add: The reason gold washing and donkey transport and hand picking potatoes is not profitable at this stage, is that capital has been hoarded making the productivity of work going up. Labour is a general resource that easily move to different production. Therefore salaries are relatively uniform. Mining, transport and food production is still profitable, but you need capital like bulldozers, trucks and tractors to make it so. Other types of production has not been able to increase productivity through use of capital, and have therefore disappeared.

No... as long as Taco Bell exists, farts aren't scarce and can't be used as currency.

IF everybody could fart some gold , all the problems will be solved , right?

Do you f**** undestand that it's not possible anymore to send thousands of people with shovels to mine gold?
There are just not enough places (deposits) big enough for all of them to work.

You're just talking about a fantasy world where certain things are possible. But this is not fairyland.

That's the reason we must create such a branch: Easy entry, easy to make money. Actually construction work are such type of job, but unfortunately what they constructed will become someone's debt, so that won't solve the jobless problem, just make it worse

During past division of work， when one branch fully automated, people will move to another branch, since there are many demand to fulfill. But now people's life already get better and there are less and less demand in almost all the branches, the only obvious demand is money, nothing else

Please ignore the technical details and focus on the true meaning behind gold rush: If everyone can produce money, and that money has credibility, there will be boom

What I suggested will not hurt existing jobs, and it does not hurt productivity either, just digest the extra labor force and create more income for everyone

But if you outlaw tractors and bus, trams, you first hurt the productivity thus reduce the wealth creation, and then you will create another group of jobless people since they do not have the skill to use camels

Did you thought for a moment that mining for gold with a shovel might not be the brightest idea ?

The days when you can mine by yourself or when you can run a farm with a horse and a donkey are long gone.

Dude, the way gold was mined in 1849 was COMPLETELY DIFFERENT from the way it's mined now. You needed a pan and a shovel back then. These days you need guys with PhDs in geology and millions of dollars of mining equipment.

Look at California gold rush, just because lots of people have ways to produce money, it created the boom of the whole western coast

I'm disappointed that many replies here only copied concepts from economy books. and it is just those books lead us into today's mess. I don't believe those economy books any more after I have personally experienced all the strange things that never described in those books

I have another idea...

For hundred and thousands of years salt has been trasported in Africa via camels. Due to the long journey , arid season only one trip for a caravan a year. Imagine the amount of man power required for this , not only the men in the caravan but the ones involved in camel breeding , accesories , the ones growing food.

After that , the trucks came and instead of 1000 people you could do the job with one driver and a mechanic.

So , based on your assumption and your idea to send people to mine gold ))))

We could outlaw tractors and bus,trams etc.
All agricultural work and public trasport should be done by horses!!!

Can you imagine the amount of jobs this would create?

of course it is, with enough wage slavery   
 
on a more serious note, besides the distortions that governments and central banks cause, one large reason for unemployment is technological innovation in automation that puts workers out of business. This innovation may create new jobs, but it takes time. Often it used to be generations. Nowadays this process could be faster though. So the best thing to do for the jobless is always to spend the time to learn something new. Who pays for that training is another question.

Gold production follows the price of gold with a time lag due to the time to decide on investing in gold mining eqipment, then to build the mine. Maybe as much as 10 years.

At this stage, personal gold mining like washing gold out of river sand, has low impact.

Reduction of salary has effect on the job market, but it is individual, some will work more to compensate the income loss, some will work less because it is not worth it. Inversely with increasing salaries. It is individual.

Unvoluntary joblessness is caused by governmental intervention (also unions when they use violence) in the form of minimum wages, job protection and unemployment benefits. Raise  those parameters, and you have incresed unemployment. This is hard to grasp for many people.

Are you high? You think that recessions in economies on the gold standard are shortened by people digging gold out of the ground?

I mean this seriously: how do you think gold is mined out of the ground? I suspect I would be deeply amused by whatever mental image you're entertaining. Are you imagining dudes with metal detectors and garden shovels?

Full employment is never possible.

When gold is used as currency, money issurance is privatized. If lots of people lost their job and the economy went into recession, isn't it a natural choice for those jobless people to dig out more gold? Is that the reason that recessions in gold standard are all shortlived?

In a recession, everywhere is short of money, so demand for products/services is down but the demand for money is up. This means, part of the labor force should be shifted to gold production to increase the money supply, and this will also solve the jobless problem

However, if more than enough people are digging out gold, then there will be a shortage of real products/services, so that more production is needed in those area, and the gold value will drop, so some of the gold miners will move back to produce real products/services, thus rebalance the gold value

The question is, will this kind of system automatically balance itself so that everyone either produce real products or money, and always reach full employment? Is it still possible that both money creation and real goods production don't need more workers?

I think the key here is that money production should have the lowest barrier of entry and any one without any training can do it, but it is a full time work, once you are doing money production you can not do anything else. In such a way, it can effectively absorb the excessive amount of labor force no matter which branch they were coming from. At the same time the return should be as low as possible for each worker so that unless they are running out of other options they will not be interested in creating money

So, if you could not find any job after graduate, you can start make a living by creating money, but when you advanced in your career, you might move to making real products since that will make you more money