In the 1970s, they predicted that unemployment would disappear if inflation were subdued. When, in the 1980s, unemployment remained stubbornly high despite low inflation, they proclaimed that whatever unemployment rate prevailed must have been “natural.”
Similarly, today’s free marketeers attribute the failure of inflation to rise, despite wage growth and low unemployment, to a new normal – a new “natural” inflation rate. With their Panglossian blinders, whatever they observe is assumed to be the most natural outcome in the most natural of all possible economic systems.
But capitalism has only one natural tendency: stagnation. Like all tendencies, it is possible to overcome by means of stimuli. One is exuberant financialization, which produces tremendous medium-term growth at the expense of long-term heartache. The other is the more sustainable tonic injected and managed by a surplus-recycling political mechanism, such as during the WWII-era economy or its postwar extension, the Bretton Woods system. But at a time when politics is as broken as financialization, the world has never needed a post-capitalist vision more. Perhaps the greatest contribution of the automation that currently adds to our stagnation woes will be to inspire such a vision. [Source]
I've been calling for the fiscalization (governmental money-creation, no borrowing, aka money financing) of the money supply to fund the Universal Living Wage (ULI) with other benefits because automation is coming and will replace our need to work, which is a good thing. Let's not spoil it by pushing for re-unionization (labor), Universal Basic Incomes (UBI) with no benefits or with neoliberalism or austerity or any other such nonsense.