Earlier quoted context omitted.
> These "mass unemployment events" aren't anything new, and they historically haven't caused long-lasting unemployment. No, what they cause is long-lasting shifts in the distribution of the rewards of production to more heavily favor capital than labor, rather than causing long-lasting unemployment. As long as people have some use in productivity, and need to work to eat (limiting price elasticity of labor supply on…
As long as people have some use in productivity, and need to work to eat (limiting price elasticity of labor supply on the low end), technology won't produce long-lasting unemployment, just, under ceteris paribus assumptions, long-lasting reductions in the ratio between the market-clearing price for the average unit of labor and the value of the total output of the economy. Technological change can be classified as l…
No, I'm discussing the effect of capital-augmenting technological change, and specifically why I would expect depressed wages rather than long-lasting unemployment to be the principal durable effect of such change.
I'm not making any claim about the distribution of technological change among labour-augmenting, capital-augmenting, and labor-neutral categories.