Earlier quoted context omitted.
> This is the evil of fiscal policy. Inflation is targeted not at 2%, but 2% plus erasing all the non-fiscal economoc gains of improved technology. This is a very confused comment. The part that's coherent enough to clearly identify what is wrong is that it refers to “fiscal policy” when it means “monetary policy”, which is the policy targeted at particular inflation rates. But even aside from that, the whole claim i…
The comment may be poorly worded, but the point is sound. Every bit of technological progress or economic optimization should result in naturally decreasing prices, just as we've come to expect in the technology sector. This goes for both offshoring in general as well as Walmart's replacement of locally-run businesses. Lower consumer prices would help make up for the reduced demand for labor. But rather than this bei…
Not in dollar terms, especially when dollars are being deliverately managed so that the dollar cost of a labor hour increases over time.
In terms of labor-hours, sure.
> Lower consumer prices would help make up for the reduced demand for labor.
No, lower nominal (dollar) prices would not. Lower real prices are an incoherent concept. Lower labor-hour-equivalent prices would if and only if lower labor demand meant equal employment but reduced hours, otherwise it would just exacerbate the tangible inequality resulting from reduced labor demand.
> But rather than this being allowed to just happen, the overt policy is to keep labor from realizing these gains so that everyone keeps working "full time".
But, it's not: that's not what targeting low positive inflation is. That would only be the overt policy if there was an overt policy to reatrict real wage gains.
While I do think (at least large portions of) one of the two major parties is actively and deliberately pursuing policies with that goal, it's very much not an overt policy.