2011-01-24, 10:21 AM
When there's too much supply of workers and not enough demand for them, it causes wages to drop as people go underemployed or unemployed. It's a race to the bottom. How much more simple can it be?
My assumption with your statements is to allow open borders - those who want to come here to work can come as they please.
There's also a current issue in Japan, which is also a capitalistic economy, where supply = demand and that has caused huge issues there. No one wants to leave their jobs because no other jobs are available, and no other jobs are available because no one wants to leave their jobs. Wages have fallen there and very few jobs are being created/destroyed. In a system such as this, adding more people to the system does relatively little other than creating more poor people.
My assumption with your statements is to allow open borders - those who want to come here to work can come as they please.
There's also a current issue in Japan, which is also a capitalistic economy, where supply = demand and that has caused huge issues there. No one wants to leave their jobs because no other jobs are available, and no other jobs are available because no one wants to leave their jobs. Wages have fallen there and very few jobs are being created/destroyed. In a system such as this, adding more people to the system does relatively little other than creating more poor people.