Sunday, May 7, 2017

A Tale of Two Economic Interventions

Tale One: Luddites.

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

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

Result:
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.

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

Result:
Ten years of economic hell.

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