An article in the Economist [2007f, p. 42] tells the story of an economist who once visited

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An article in the Economist [2007f, p. 42] tells the story of an economist who once visited China during the rule of Mao Zedong. He sees hundreds of workers building a dam with shovels and asks,

“Why don’t they use a mechanical digger?” The foreman replies, “That would put people out of work.” How does this comment relate to the

“labor game” discussed in the chapter?

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Public Finance

ISBN: 9780073511351

9th Edition

Authors: Harvey Rosen, Robert Guell, Ted Gayer

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