3 ms·
Who will produce them if employee costs go up though? Both sides of the supply/demand curve are affected.
by snovv_crash 5y ago
Who will produce them if employee costs go up though?
Both sides of the supply/demand curve are affected.
- sokoloff 5y agoExactly. I think of forces of this type as analogous to negative feedback in amplifiers. When a system gets out of whack, a system with negative feedback tends to stabilize. Too much inflation? People buy less. Too little inflation? People buy more. Labor too expensive? Less labor is used (perhaps via automation). Labor too cheap? More labor is soaked up on projects that would have been marginal or automated otherwise.