Yeah, I think this is an important point to make: There are lots of instances where adding more workers allows specialization. When it comes to literally an entire economy, though, things can get weird/complicated—which is why I think there are much better ways to explain why welfare-heavy states and open borders don’t mix well than by appealing to diminishing marginal returns to labor.
Yeah, I think this is an important point to make: There are lots of instances where adding more workers allows specialization. When it comes to literally an entire economy, though, things can get weird/complicated—which is why I think there are much better ways to explain why welfare-heavy states and open borders don’t mix well than by appealing to diminishing marginal returns to labor.