{"id":55730,"date":"2020-03-19T03:00:52","date_gmt":"2020-03-19T07:00:52","guid":{"rendered":"https:\/\/quotulatiousness.ca\/blog\/?p=55730"},"modified":"2020-03-18T12:06:13","modified_gmt":"2020-03-18T16:06:13","slug":"the-undifferentiated-labour-lump-fallacy-in-keynesian-grand-schemes","status":"publish","type":"post","link":"https:\/\/quotulatiousness.ca\/blog\/2020\/03\/19\/the-undifferentiated-labour-lump-fallacy-in-keynesian-grand-schemes\/","title":{"rendered":"The undifferentiated “labour lump” fallacy in Keynesian grand schemes"},"content":{"rendered":"

At the Continental Telegraph<\/em>, Tim Worstall<\/a> explains why old fashioned “shovel ready” infrastructure projects are no longer a viable way to address large scale employment needs:<\/p>\n

\"\"<\/a>

Top left: The Tennessee Valley Authority, part of the New Deal, being signed into law in 1933.
Top right: FDR (President Franklin Delano Roosevelt) was responsible for the New Deal.
Bottom: A public mural from one of the artists employed by the New Deal’s WPA program.
Wikimedia Commons.<\/p><\/div>\n

We still get some slavering at the thought that in economic hard times we just get everyone off digging ditches. We get to hear Woody Guthrie singing again or something. The mass ranks of peasants dying at the Belomors Canal. Or maybe the navvies building the railways, it’s always difficult to know which historical episode they’ve got in mind.<\/p>\n

Any economic down turn is always met with cries of “go build something” and they always do envision some mass mobilisation of labour to do it. The current one seems to be “insulate every house in the country and create jobs in every constituency”. The bit that is always missed being that most people haven’t a clue about how to do such work. The division of labour and specialisation have seen to that.<\/p>\n

[…]<\/p>\n

Having the diversity advisers \u2013 and this is a lovely thought even so \u2013 navvie the railways into being is going to be about as effective as having the navvies \u2013 and this is a lovely thought even so \u2013 doing the diversity advising. Division and specialisation of labor means the one is not a substitute for the other.<\/p>\n

It’s only in GuardianWorld that labour is such a lump that can be allocated as the Commissars wish. Which presumably means their economics pages are written by the sports desk which does, to be fair, explain a lot about that output.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

At the Continental Telegraph, Tim Worstall explains why old fashioned “shovel ready” infrastructure projects are no longer a viable way to address large scale employment needs: We still get some slavering at the thought that in economic hard times we just get everyone off digging ditches. We get to hear Woody Guthrie singing again or […]<\/p>\n","protected":false},"author":1,"featured_media":35193,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[25,84,28],"tags":[711,95],"class_list":["post-55730","post","type-post","status-publish","format-standard","hentry","category-economics","category-government","category-media","tag-infrastructure","tag-jobs"],"jetpack_featured_media_url":"https:\/\/quotulatiousness.ca\/blog\/wp-content\/uploads\/2016\/06\/favicon.png","jetpack_shortlink":"https:\/\/wp.me\/p2hpV6-euS","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/55730","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/comments?post=55730"}],"version-history":[{"count":1,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/55730\/revisions"}],"predecessor-version":[{"id":55731,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/55730\/revisions\/55731"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/media\/35193"}],"wp:attachment":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/media?parent=55730"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/categories?post=55730"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/tags?post=55730"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}