What parts of the economy should be centrally controlled


Problem

Assume you are the leader of an island country that has enjoyed prosperity because of its citizens' expertise as master weavers, a skill handed down from generation to generation. A breakthrough in digital innovation on the mainland has suddenly taken away the livelihood of most of your citizens, replaced by robots. The citizens are obviously distressed about unemployment, potential homelessness as people can no longer afford rent or mortgage, and scarcity of resources in general. Assume that that moving off the island is not an option and re-training for other well-paying jobs will take years. As the leader, how do you plan to address basic economic issues such as income (UBI or some other system), allocation of resources, and property rights? What parts of the economy should be centrally controlled by the government, and what social goal are you aiming for as you make your choices?

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