Collapse Quote by Milton Friedman
“The collapse of communism in essence added tens and tens of millions of people to the world labor supply, and the people who were added had previously been getting very low income, but they were not unskilled. Many of them were fairly well educated.”
About This Quote
Source Speech: Economic Commentary, 1970s
The end of communism added many low‑income, educated workers to the global labor pool, increasing competition and changing wage dynamics.
In simple terms: Communism’s fall added many educated low‑income workers worldwide.
Key Takeaway
Recognize how labor supply shifts affect wages.
Themes
economics
politics
labor markets
globalization
education
Mood
analytical
concerned
Type
economic
political
When to use this quote
- policy analysis
- career planning
- investment decisions
- immigration debates
Key Concepts
Supply and demand
human capital
income distribution
Questions to Reflect On
- How does increased labor supply affect wages in different sectors?
- What policies can mitigate wage pressure?
A Different Perspective
Assumes all added workers are unskilled, ignoring skill variation.
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