| ▲ | imtringued 2 days ago | |
The paradox is that the general principles of the market work, but the market is invisibly dysfunctional in its details. It is generally true that higher income jobs are allocated to higher productivity workers, but it does not follow that high incomes imply high productivity and vice versa for low incomes. If you combine the above with a disequilibrium market where supply of labor exceeds the demand for labor, then from a naive perspective it would appear as if the unemployed would deserve their unemployment. After all, the most productive members are all employed and rewarded for their efforts. The unemployed are just lazy (voluntarily unemployed) and incompetent (society is better off without them). Any form of punishment is seen as justified and not some structural failing of the system. The problem is that if there is a labor market disequilibrium, there will always be unemployed people and even if you think the productivity ranking is a good thing, it just means that if one of the "lazy" people suddenly becomes "hard working", they will just take the place of someone else and nothing has changed other than that the standard for laziness has risen. Even if people notice that the system is fundamentally broken, they realize that individually, they are either a beneficiary of the system and therefore don't see a reason to change it or they don't have the ability to change the system and rather focus on taking someone else's place. This will result in an artificial Darwinian rat race where people see each other as competitors to defeat. This is my explanation for why immigrants make a good scapegoat even though immigration doesn't affect the rules of the game at all. Here is an analogy via a game of musical chairs. There is the perception that more immigrants means more players competing for chairs. This is a naive interpretation that looks obvious. What is being forgotten is that each player is bringing a new chair and the number of missing chairs is a percentage of the number of players. The truth is that having more immigrants means you can take their chair away for yourself. So immigration is not causative here. The problem is that there were never enough chairs to begin with no matter how many people are playing the game. | ||