> It would also incentivise investing into production companies rather than passive investments like real estate.
It would do the opposite. Investments with low to no labor costs would see increased investment as the returns are protected against rising labor costs.
High labor costs also incentivize automation of low level tasks traditional performed by low wage labor. Anybody who’s used a self checkout kiosk knows how that works.
Kiosks break down requiring service calls. They need software teams to keep them updated, and a not-insignificant portion of the population still just refuse to engage with them. That's why almost all of the ones you see around in stores have attendants still.
It would do the opposite. Investments with low to no labor costs would see increased investment as the returns are protected against rising labor costs.
High labor costs also incentivize automation of low level tasks traditional performed by low wage labor. Anybody who’s used a self checkout kiosk knows how that works.