Friday, July 17, 2020

What happens when coronavirus makes a plant an unsafe place to work?

The coronavirus pandemic hit meat-packing plants hard. The owners of the plant have responded many ways (WSJ, July 2020).
  1. The demand for PPE increased. What do you think happened to prices for PPE?
  2. The supply of labor decreased; people don't want to work where the probability of getting sick is high. What happened to the price of labor?
  3. Owners are substituting machines for people to pack meat. Would they substitute more and faster when the price of labor is low or when it is high?
Are the responses by owners what a benevolent social planner would order?

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