While traveling by car during one of his many overseas travels, a famous economist spotted scores of road builders moving earth with shovels instead of modern machinery. When he asked why powerful equipment wasn’t used instead of so many laborers, his host told him it was to keep employment high in the construction industry. If they used tractors or modern road building equipment, fewer people would have jobs was his host’s logic. “Then instead of shovels, why don’t you give them spoons and create even more jobs?” the Nobel Laureate inquired. Who used this story to illustrate the power of human capital enhanced by productivity?
While traveling by car during one of his many overseas travels, a famous economist spotted scores of road builders moving earth with shovels instead of modern machinery. When he asked why powerful equipment wasn’t used instead of so many laborers, his host told him it was to keep employment high in the construction industry. If they used tractors or modern road building equipment, fewer people would have jobs was his host’s logic. “Then instead of shovels, why don’t you give them spoons and create even more jobs?” the Nobel Laureate inquired. Who used this story to illustrate the power of human capital enhanced by productivity?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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While traveling by car during one of his many overseas travels, a famous economist spotted scores of road builders moving earth with shovels instead of modern machinery. When he asked why powerful equipment wasn’t used instead of so many laborers, his host told him it was to keep employment high in the construction industry. If they used tractors or modern road building equipment, fewer people would have jobs was his host’s logic.
“Then instead of shovels, why don’t you give them spoons and create even more jobs?” the Nobel Laureate inquired.
Who used this story to illustrate the power of human capital enhanced by productivity?
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