00:01
There are a lot of reasons why different types of resources are not always mobile and willing to move.
00:06
So, for example, let's just take two cities, city a and city b, and explain why it might be difficult to move city a's resources to city b, where they may be more productive or useful, where they're needed more, things like that.
00:19
So first, let's take the idea of labor.
00:22
So we have maybe our two workers over here, and city b really wants this worker because they really need.
00:30
This worker's skills a lot more than city a does right well one reason why it may be tricky to move labor towards most needed is because people uh they are they're more than their job right they have lives this person may have a love interest in the city or a friendship or family or a whole network that this person is very reluctant to um to leave behind right so i'm just going to draw this broken heart as sort of a representation of why it may be hard to move labor right because people don't want to uproot their lives just for added productivity or efficiency of city b's economy, right? let's maybe talk about capital, right? so we have maybe financial capital, people wanting to invest from citi a to citi b, right? so maybe citi b, citi b's government might have some regulations on the flow of capital, right? they might restrict, they might have quotas...