Wednesday, March 31, 2010

What about Caplan's Economic model?

Caplan discusses his bet with Mish:
All you need to employ any number of people at any state of technology is for prices and wages to adjust.
Technology adjusts faster when resources are distorted. There seems to have been surplus technology in the wings ever since the early 1800s.

I take Caplan's side in the debate, but agree with Mish's model.

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