4.2.04

THE LUMP OF LABOR FALLACY. Virginia Postrel treats a blunderer kindly. My reaction to statements such as "There are only a finite number of jobs in the US economy - once a critical mass number have been offshored we enter the cascading unemployment phase - when those jobs dependent on the offshored jobs and industries likewise disappear." Put bluntly: Jobs can neither be created nor destroyed, only changed in form. Scarcity of resources, with competing uses, implies at any time there is more work to be done than workers to do it. The trick is to convert the work into a form where workers (particularly those with a poor understanding of calculus and a high opinion of themselves?) can do it.

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