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I don't really understand this: why should capital availability increase in the face of a labor shortage? Making capital doesn't actually create more labor, so
by skohan 5y ago
I don't really understand this: why should capital availability increase in the face of a labor shortage? Making capital doesn't actually create more labor, so wouldn't this just re-allocate labour towards those with more access to cheap capital?
- rjtavares 5y agoI'm not suggesting capital availability increased because of labor shortage. I'm saying capital availability has been high for a while (one of the reasons for the low interest costs). EDIT: just noticed I missed an "and" in the original comment. It should be "If Capital is not scarce, and Labour is scarce"