>>12911536>The vast majority would not continue working as they did before and at the very least reduce hours massively.>wage rates go up because of supply shock>more people start working>equilibrium is reached at some retardedly high base wage rate>all low skill labour is automated away or outsourcedNow the scenario breaks into two timelines, depending on taxation levels. Option 1, massive taxation/ money printing to pay for it all:
>tax burden starts slowly outweighing otherwise business friendly environment, high skill labour force and capital abundance in USA>le capital flight>consumption rises in the medium run as poors are able to spend their govt bux on random shit>economy collapses in the long run as USA becomes the first country in the world to collapse into the medium income trap from being previously high income consumption economyOption 2, moderate taxation:
>corporations can't do anything about it, bc where are they gonna move, China?>inflation >economy reorients into post-post-capitalist consumption/high value service economy>south africa tier wealth stratification ensues as society splits into high value labourers and consumer class>otherwise life is good, basically socialist paradise 