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You're acting as if there are a fixed number of jobs. More people with jobs -> more people with money -> more demand for goods/services when they spend that mon
by emmab 11y ago
You're acting as if there are a fixed number of jobs. More people with jobs -> more people with money -> more demand for goods/services when they spend that money -> more jobs to produce those goods/services.
How do you expect it would work otherwise? Countries with too many people would run out of jobs? Is it population density by land area that determines whether we run out of jobs?
- true_religion 11y agoI know that price elasticity is a commonly known, and well-studied field. I wonder if wage elasticity is similarly studied. I'd expect that in the short term, more qualified candidates suddenly entering a field (due to institutional barriers being torn down), would drive wages lower. In the long term, things might stabilize towards the previous status quo. However what is 'short term', and what is 'long term'? This is something I'd love to know if it has been researched, or if we're still floundering for an answer.