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I agree that, if full employment is the goal in a free market, wages have to go down and/or capital costs have to go up.

Capital costs will rise when we run out of cheap energy, but I doubt that will be sufficient.

IMO, the ethical way to get there is through a basic income guarantee (http://en.wikipedia.org/wiki/Basic_income_guarantee).

With it, minimum wages could be abolished. Then that flood of low-paying jobs will materialize, not out of thin air, but out of China. It will, likely, also bring back jobs in shoe repair and the like.




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