realprogressives.substa…

I must recant. Indexation won't prevent disinvestment, because profitability must fall in any case. Some activity can be maintained if only to preserve whatever remains of potential gross capital income.

Productivity gains could thus reduce real GDP / capita through a diminution of activity, congruent with lower wages – unless maybe non-profit activity takes over.

UBI indexation thus appears as a formula for (capitalist) crisis. The silver lining is that it would free workers for a non-profit market economy in which labor becomes both optional and well-paid. The transition period could be tough though, making expropriation a sensible precondition.