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I wish there was something mentioning the tightness of the labor market. If workers are plentiful, is there as much incentive to automate?
by Ericson2314 5y ago
I wish there was something mentioning the tightness of the labor market. If workers are plentiful, is there as much incentive to automate?
- snidane 5y agoThe fundamentals of this are described by Ricardo and George through Law of Rent, which defines 'wage' in the context of rent and limited supply of land. With infinite supply of quality land, 'workers' and 'wages' would not need to exist as everybody could just be an entrepreneur/capitalist. Similar to Coases's theory of transaction costs, without which companies would not need to exist as everybody could transact freely amongst each other.