Opher Ganel
1 min readJun 30, 2024

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Indeed, supply-chain disruptions constrain supply, which pressures prices upward.

As for wages rising when the supply chain heals, I'm not sure. Wages rise when labor supply is tight and corporations are forced to pay more to hire and retain the workers they need. I don't see this as relating to supply chains, except very indirectly.

As for AI, I think it's a double-edged sword. On the one hand it will almost inevitably lower labor costs, which will allow companies to reduce prices. Whether or not they do so is uncertain. They may well decide to pocket the extra profit.

On the other hand, the way AI will reduce labor cost is by doing away with many jobs, making it harder for most people to find well-paying jobs.

One possible solution will be a form of UBI, however, that's political poison in the US, so I'm not confident it could be enacted until and unless the alternatives are even less politically palatable (think roving bands of starving looters in the street).

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Opher Ganel
Opher Ganel

Written by Opher Ganel

Consultant | systems engineer | physicist | writer | avid reader | amateur photographer. I write about personal finance from an often contrarian point of view.

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