Earlier quoted context omitted.
As with almost all optimization problems, applying twice the resources (in this case, work hours) won't bring you back twice the (net) bacon, due to diminishing returns. However, I think on net it is still more economically productive, at least in a large portion of cases. It's unlikely that housework and childcare would optimally take up a full 50% of our entire reservoir of workable-hours, especially in the age of…
Great point and I agree with most of your sentiment, but I'm not sure you got all of my point. What I'm saying, and a big component of what I'm thinking about is housing costs, is that we're chasing the same things with more dollars. If household incomes double, expect the price of houses to follow suit. Assuming supply doesn't change, it doesn't help to earn 2x the money when all the bidders in the marketplace also…
you're missing the part where more demand creates more supply.
Sure, sometimes the market is distorted due to zoning, like in SF, and also land is finite, but generally speaking the market responds to the added demand by creating more housing, possibly denser housing. Same with other goods. Those are not empty dollars that got added into the system by fiat - they represent additional productive work done, and the goods / services they create is added to the economy.