Saturday, December 30, 2006

economic entropy

http://www.economist.com/printedition/displayStory.cfm?Story_ID=1429429

If the economy suddenly doubled in size, and the number of jobs increased by 2, then what would happen?

half the employees would leave their jobs, and some of the companies would fail. the resulting surplus of companies would then also fail etc.
 like the expansion of a gas, irreversibly.

even if you guyaranteed jobs, then companiees would fail, and vice versa.  there is atradeoff between safety of capital (companies) and safety of workers.  this should not be.  tightly interlinked capital and workers would prevent this.


 

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