On Fri, Oct 3, 2008 at 10:17 AM, Sandwichman <[EMAIL PROTECTED]> wrote: > On Fri, Oct 3, 2008 at 9:47 AM, Jim Devine <[EMAIL PROTECTED]> wrote: >> Sandwichman wrote: >>> The conventional wisdom is that "new technology creates more jobs than >>> it destroys." >> >> My impression is that the conventional wisdom is that new technology >> destroys jobs in some sectors but creates jobs in others. The labor >> market then allows the easy and quick reallocation of labor between >> jobs, unless the government, labor unions, or other non-market forces >> blocks the process. >> -- > > Same thing, Jim. My point, though, is that this hoary conventional > wisdom was discarded -- for good reasons -- in the 1930s but > resurrected in the 1960s for no reason at all.
the very simple Harrod model of growth (a.k.a. Harrod-Domar) says that all else constant, technological change leads to falling employment. Thus, the real GDP needs to grow to absorb the unemployed. (In theory, a different measure of economic output could be used instead of real GDP. In that case, labor productivity (which rises due to technological change) would also be redefined.) -- Jim Devine / "Nobody told me there'd be days like these / Strange days indeed -- most peculiar, mama." -- JL. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
