Dear Bill McBride, Thank you for bringing up the so-called "lump-of-labor fallacy" in your Calculated Risk blog post,"Older Workers and the Lump of Labor Fallacy.<http://www.calculatedriskblog.com/2010/12/older-workers-and-lump-of-labor-fallacy.html>I think this is an important topic because it brings to light one of the most dogmatically held and utterly baseless convictions of conventional economists -- that anyone who doesn't assume a self-propelled, perpetually-expanding economy is guilty of some bizarre "fallacy". Of course, to be consistent economists would also have to accuse advocates of * any* "job creation" strategy whatsoever of the fallacy. After all, the amount of work to be done isn't fixed! In some mythological long run the demand for labor is determined solely by its supply. But consistency isn't the strong suit of lump-of-labor fallacy claimants...
http://ecologicalheadstand.blogspot.com/2010/12/older-workers-and-phony-lump-of-labor.html -- Sandwichman
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