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In a consumer economy such as the US such inefficiencies are a economic benefit because gains of labor tend to increase the velocity of money in ways gains from
by throwaway48476 2y ago
In a consumer economy such as the US such inefficiencies are a economic benefit because gains of labor tend to increase the velocity of money in ways gains from capital do not.
- snapplebobapple 2y agoThat's not really true on any reasonable timeframe because most of the gains actually go to the consumer as competition turns inefficiencies into price decreases on goods and services. I mean it's what some really far out in left field economists want to be true and they certainly goal seek macro data and publish papers on what they want to be true but it just isn't true except in the sense I already talked about where gains to capital were being juiced by market power pushing labor prices below the efficient market clearing rate (which does happen more than we would like to admit, it's just unlikely to be happening here).
- throwaway48476 2y agoOn an individual level the marginal value of money exists. The economy is made up of people.