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> The only thing that would change is the supply and demand curves. There would be more demand and less supply, making the only thing that would change would be
by notthemessiah 10y ago
> The only thing that would change is the supply and demand curves. There would be more demand and less supply, making the only thing that would change would be the equilibrium price point where those two intersect.
You assume that Say's law applies to labor markets, but this idea has been overturned by empirical evidence
https://en.wikipedia.org/wiki/Involuntary_unemployment https://en.wikipedia.org/wiki/Involuntary_unemployment
Involuntary unemployment cannot be represented with a basic supply and demand model at a competitive equilibrium
- malandrew 10y agoBut do the conditions that overturn Say's Law apply to this market. Just because it's been proven wrong under some circumstances doesn't mean it's still not broadly applicable in most cases (with caveats).