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LVT ignores that there are other resources that may be hoarded. In particular, companies can hire all the employees with the skills necessary to build a competi
by IX-103 2y ago
LVT ignores that there are other resources that may be hoarded. In particular, companies can hire all the employees with the skills necessary to build a competitor and have them do busy work to avoid having to innovate or compete on the merits of their products.
This is essentially the same thing as buying up land and leaving it fallow, but with human resources instead of land. In some ways this is worse, as society has already invested in training those workers.
- pydry 2y agoEmployees are not a finite resource. Pay enough to hire half of the chartered accountants and that will drive the creation of more. Demand follows supply. Land is finite. Buy half of all the land and that won't exactly drive the creation of more land will it? It'll just drive up the price of existing land. This is in a nutshell why some things in America are dirt cheap (e.g. electronics, clothes) while houses keep getting more and more absurdly priced.