3 ms·
I gather you're of the belief that the economy is like a pie of fixed proportions to be divided rather than an ever changing pie which can grow bigger every yea
by whb07 9y ago
I gather you're of the belief that the economy is like a pie of fixed proportions to be divided rather than an ever changing pie which can grow bigger every year with productivity ?
I once read a wonderful thought experiment on the Mises page about a Dorothy sized storm. Imagine a tornado swept by and grabbed a large number of hard working and smart people randomly and placed them in a random town.
While people are temporarily shuffled, the brain surgeon(or some highly skilled technical person) is forced to pick up another trade like carpentry or any other less technical job in the meantime to provide and be productive in this new economy/town. The storm swept up and carried him elsewhere and so is temporarily stopping his highly skilled activity to become productive in some other one.
The same is to be said of the economy at large. People are shuffled due to many events and will never be at "full" productivity due to unforeseaable events, for example, a bad weather event.
Jobs come and go. Same goes for industries. Even more so for trends.