Are all 8 Billion people at their peak productivity? No.
There is slack in the economy.
If people don't want to work, it's a money printing problem. At constant $$ of say $1 Million annual salary, a lot more than 3% of the 38% slack will work.
The reason we don't pay $1 Million is because we don't think they will produce $1 Million worth of output. But, if we know that we are producing $100 T output, you'll pay them $1 M Dollars
If you print money and give it to trainers / mentors so that they can scale themselves to train more people for relevant skills.
Even in US, labor participation is 62%. So we have 38% slack. Now, think about India, Africa were able bodied and smart people don't have opportunities to use their body/mind and a significant portion.
Like I said, your understanding of economics is still basic.
tl;dr -- Unless all 8 Billion people are at peak productive capacity, there is always slack and wherever there is slack printing money (with the right incentives) is an easy solution
Also, inflation is not guaranteed at all. Let's say this hardware results in robots, which can produce near infinite amount of goods and services. That immediately puts downward pressure on prices.
Not all printing money results in inflation. If you print money just about the same rate of productivity gain, you will not get inflation at all
Nope, you have a fundamental misunderstanding of economics.
Thought Experiment : Let's say the world unemployment is 25% and we can build a magical nuclear reactor that produces near infinite clean energy, but it costs $50 Trillion to build.
Are you going to wait for the world to save $50 Trillion (which may take 50 years) to build this reactor or are you going to print $50 Trillion give those 25% jobs in creating the nuclear reactor?
The only precious commodity in the universe is time. If you don't print $50 T, you are wasting the time of 25% unemployed people.
If there is ROI for $100 Trillion, we (banks) will print $100 Trillion by a click of a button
Thought Experiment. If by a magic wand the world's productivity doubles overnight. How much extra money needs to be printed to maintain price levels?
Ding, Ding, Ding.... $100 Trillion (yes, there is velocity of money and stuff).
But, if a project has positive NPV, we can print money (and it's the right thing to do).
The worst investors are people who don't get this simple concept and are scared by Debt and Inflation
Are all 8 Billion people at their peak productivity? No. There is slack in the economy.
If people don't want to work, it's a money printing problem. At constant $$ of say $1 Million annual salary, a lot more than 3% of the 38% slack will work.
The reason we don't pay $1 Million is because we don't think they will produce $1 Million worth of output. But, if we know that we are producing $100 T output, you'll pay them $1 M Dollars