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Lump of labour fallacy - Wikipedia, the free encyclopedia
The lump of labour or lump of jobs fallacy is an argument generally considered to be fallacious that the amount of work available to labourers is fixed. Contending that the amount of work is flexible not static, most economists oppose such arguments. Another way to say this is that it treats a quantity as if it were an exogenous variable, when it's not. It may also be called the fallacy of labour scarcity, or the zero-sum fallacy, from its ties to the zero-sum game.
Is it really a fallacy? Some of the counter-arguments are probably correct when applied to a national economy but maybe not to the global economy.

We have met the enemy, and he is us — Pogo
by Migeru (migeru at eurotrib dot com) on Thu Jan 3rd, 2008 at 10:34:12 AM EST
[ Parent ]
It is a nice Orwellian touch that we now try to maximize the amount of work put into the economic system, and see it as a good thing.

And I kinda doubt the fallacy, with the way UK and France have about the same amount of hours worked ; the greater UK work participation rate due to, well, shorter weeks on average.

Auferre, trucidare, rapere, falsis nominibus imperium; atque, ubi solitudinem faciunt, pacem appellant.

by linca (antonin POINT lucas AROBASE gmail.com) on Thu Jan 3rd, 2008 at 01:25:02 PM EST
[ Parent ]
Suppose you have a lump of labour. Then, the higher the (weekly) minimum wage the longer the average week and the larger the unemployment rate.

We have met the enemy, and he is us — Pogo
by Migeru (migeru at eurotrib dot com) on Thu Jan 3rd, 2008 at 04:54:59 PM EST
[ Parent ]
That depends on how the labour week length is flexible... I'm not so sure many people would work more if they earnt more. I know I wouldn't.

Auferre, trucidare, rapere, falsis nominibus imperium; atque, ubi solitudinem faciunt, pacem appellant.
by linca (antonin POINT lucas AROBASE gmail.com) on Fri Jan 4th, 2008 at 06:31:15 AM EST
[ Parent ]

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