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But wouldn't letting markets allocate labor resources be a more optimal solution? Private investment can handle the re-training challenges.



In the small case I'm all for it, but when systemic changes are made to the economy I think it would be reasonable to consider helping the translation by redirecting some capital toward that realignment. The existing method of using transfer payments from the new growth to sustain the displaced resources as you wait for them to reallocate takes to long and is itself inefficient.


Private investment can handle the re-training challenges.

It could, but it won't as long as the labor market is soft.




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