At 0:52, you state that "skilled labour has insufficient or no savings...", but I don't see how that necessarily follows from their being (effectively) subsidised.
The meaning is that over time, when skilled labour is held in a line of production via government intervention, the necessary expansion of the money supply to pay what is in effect a subsidy, and which creates inflation, makes it very difficult or impossible for skilled labour to set aside and/or save money, which they could temporarily have lived off, in lieu of wages, had the government not intervened. This is a moral hazard, and is an invalid substitute for judgement about risk.
At 0:52, you state that "skilled labour has insufficient or no savings...", but I don't see how that necessarily follows from their being (effectively) subsidised.
LawsOfRobotics 2 years ago
The meaning is that over time, when skilled labour is held in a line of production via government intervention, the necessary expansion of the money supply to pay what is in effect a subsidy, and which creates inflation, makes it very difficult or impossible for skilled labour to set aside and/or save money, which they could temporarily have lived off, in lieu of wages, had the government not intervened. This is a moral hazard, and is an invalid substitute for judgement about risk.
charlessmyth 2 years ago