I believe the bonus UI payments are reducing labor supply, but it’s striking that the restaurant owner rhetoric @tylercowen is platforming here would also work as an argument in favor of serfdom. https://marginalrevolution.com/marginalrevolution/2021/05/from-the-comments-on-restaurant-labor.html">https://marginalrevolution.com/marginalr...

What’s missing is a case that a temporary UI-induced contraction of the labor supply is bad FOR AMERICA not bad for a particular set of restaurant owners.

Some cases you might run:

1) Delaying labor force reentry will be more harmful to workers’ long-term job prospects than they realize

2) Inflationary pressure will push premature Fed rate hikes

3) Welfare losses to diners exceed gains to workers and UI-recipients