If Bitcoin fans think it's easy for workers to "adjust to a world in which their paychecks shrink, so long as their money grows in value even faster," they need to explain why that didn't happen in 2008-9, or 1930-33! https://reason.com/archives/2018/07/22/bitcoin-standard-ammous-blockchain-gold#comment … @DavidBeckworth @NickSzabo4
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I'd be interested in a
@NakamotoInst article on nominal wage cuts (and how, even under the gold standard, economy seemed to choose unemployment to nominal wage cuts) How will this ("money illusion") work in an all BTC world?
The way it worked for about 99% of history, modulo some further opportunities that might arise in the 21st century for contractual innovation.
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I'm no expert here (and this will be a sweeping general statement) but: pre-1800, both productivity growth and population growth was low. In this pre-1800 world, a fixed supply money (like BTC) would not entail secular long term nominal wage cuts or issues w/ "money illusion"?
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