Samuelson, Paul A - In: Journal of Political Economy 96 (1988) 2, pp. 274-82
Ricardo is shown to be right that machinery can hurt wages and reduce output. A dramatic robot example reveals Knut Wicksell's erro r in believing that Pareto optimality calls for no drop in total outp ut from a viable invention. Under Ricardo's axiom that labor supply a djusts to keep wages at...