If in some wage ranges the supply curve of labor is backward bending, if raising very low or very high wages lowers supply while lowering those wages raises supply, then we might say labor turns into an asset in those wage ranges and need for liquidity drives the market behavior more than the exchange of services for money.
Smooth market behavior requires traders to be in a position to withhold their goods and services from the marketplace. In situations where liquidity is an issue traders are moving from easy choices to hard choices. When we move into the range of hard choices we move into the realm of extraction and unsustainability. People cannot indefinitely sustain hard choices. At some point the choices become involuntary.
Conjecture: market failure is about the interference of liquidity and the availability or unavailability of asset stocks in the functioning of funds.
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