Sunday, May 7, 2017

A Tale of Two Economic Interventions

Tale One: Luddites.

Luddites suffered an economic setback. The demanded minimum wages, pensions, etc.

Kill the Luddites. Luddite activities were outlawed upon pain of death.

Textile jobs exploded. After the adoption of the machines, the textile industry's growth demanded orders of magnitude more employees.

Tale Two: 1930s.

Stock exchanges suffered an economic setback. Just like the Luddites, they demanded the government solve the problem.

The dole, the disguised dole in the form of make-work, free loans, and eventually a minimum wage.

Ten years of economic hell.

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