3 ms·
"what about the theory of the second best? This theory — which is just basic micro — says that when some markets are distorted, for whatever reason, social cost
by robl97 12y ago
"what about the theory of the second best? This theory — which is just basic micro — says that when some markets are distorted, for whatever reason, social costs and benefits across the economy don’t correspond to private costs, so that unprofitable, even seemingly wasteful activities can sometimes be beneficial. And an economy in which millions of willing workers can’t find work is surely one with massive distortions of some kind."
- conistonwater 12y agoYes, notice the part > And an economy in which millions of willing workers can’t find work is surely one with massive distortions of some kind. He is talking about very specific economic circumstances (defined by macroeconomic conditions, and which should happen only rarely), whereas you are talking about "any work in the future".