Beet
Atlas Star
Posts: 29,018
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« on: January 28, 2012, 02:23:26 AM » |
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« edited: January 28, 2012, 02:37:00 AM by Beet »
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Forgive me of my ignorance, the longer I am out of school, and not working in the econ field, the more my knowledge atrophies, whereas the more the knowledge of professionals such as ag grows are they build up more experience, but:
Where is the connection between higher efficiency and "needing fewer workers"? If the marginal cost of production declines, under the perfect competition model, wouldn't all of the gain be captured in consumer surplus? Lower prices, growing volume, and all that (and as far as total market size must grow, in the 19th cent. it was imperialism, today globalization under Pax Americana, that opens up new markets; one truly wonders how capitalism will change when the market is finally saturated globally or if technological advance slows dramatically). As Gustaf said, labor shifts elsewhere. This time it hasn't. Why not?
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