Comment by rglullis

1 day ago

Labor costs are not the limiting factor on production.

If they were suddenly cut to near zero, a lot of projects that were previous uneconomical become viable.

  • "Becoming viable" does not mean "automatically put into execution". You still need to take overall demand in account.

    Consider this: if demand was not a factor, anyone living in a moderately wealthy country would be practicing labor arbitrage and sending money to poorer places. Ask yourself why this doesn't happen.