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One strength of an economy is the speed with which workers can shift between different jobs/tasks/roles in response to market changes. Suppose we discover a ne
by Nifty3929 4y ago
One strength of an economy is the speed with which workers can shift between different jobs/tasks/roles in response to market changes.
Suppose we discover a new gold mine in a rural area. Would it be wrong for a mining company to spin up in that area and start hiring like crazy? When the mine runs out, would it be a mistake for them lay everybody off? I don't think so in either case. True even if "gold" turns out to be fools-gold in the end.
A lot of CEO's would have been punished for not hiring quickly enough during the boom. Similarly during the housing bubble a lot of lenders would be (or were) punished for not loosening lending standards enough. And then blamed later for having too-loose lending standards.