One limit of the theory is that while it does state the new equilibrium will be “15 hot dogs in 15 buns” (ie, enhanced production and no more unemployment), and that has been verified in the past, it doesn’t state at which rate the new equilibrium will be reached, nor what will happen in the transition period.
One possible hypothesis is that if the rate of change is too fast, no equilibrium can’t be reached, the economy can’t adjust fast enough to new technology.
I don’t think it’s the case right now—technology isn’t going significantly faster than it was for most of the 20st century. But I think it’s worth an entry in the FAQ.
One limit of the theory is that while it does state the new equilibrium will be “15 hot dogs in 15 buns” (ie, enhanced production and no more unemployment), and that has been verified in the past, it doesn’t state at which rate the new equilibrium will be reached, nor what will happen in the transition period.
One possible hypothesis is that if the rate of change is too fast, no equilibrium can’t be reached, the economy can’t adjust fast enough to new technology.
I don’t think it’s the case right now—technology isn’t going significantly faster than it was for most of the 20st century. But I think it’s worth an entry in the FAQ.