Quote:
Originally Posted by ebacon
Drought and natural disasters are not part of macroeconomic theories.
Abundance theory is much simpler. Suppose an economy needs four things, food, clothing, housing, and defense. A trivialized implementation of abundance theory would say that it doesn't matter if we remove all well paying jobs from the clothing and food sectors. After all the workers will invent work elsewhere.
What might happen in that scenario?
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... and therein lies the problem with a lot of economic theory - detachment from reality and an inability to deal effectively with all the relevant input variables.
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As long as the roots are not severed, all will be well in the garden.
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