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> Of course, this theory works best in a dynamic economy where people and capital can move around with a minimum amount of friction. This assumption is akin to
by piva00 2y ago
> Of course, this theory works best in a dynamic economy where people and capital can move around with a minimum amount of friction.
This assumption is akin to a spherical cow, frictionless surface, etc.
In the real world capital and people won't ever move around with a minimum amount of friction, nor will people retrain for other jobs easily.
- FredPret 2y agoDishwashers can easily move to other low-wage jobs if they exist
- dfxm12 2y agoSpherical cows are more or less a natural impossibility. The economic system in the US is designed to add friction for people like those in these types of situations to switch jobs, retrain, etc. That's an important distinction.