It's one thing to describe a faulty economic theory; it's quite another to aggrandize it with the name 'fallacy', implying that it arises from faulty reasoning, rather than faulty assumptions. The term 'fallacy' lends an incorrect connotiation of logical rigor, and even an erroneous theological certitude, to the alternative theory. Whether this reflects some subtle attempt at mind control on the part of laissez-faire capitalists remains to be seen.

Dogma is bad; no force of economics applies all the time, over the whole world. In times when the capacity to extract and process natural resources is growing, the amount of available work is not fixed, and the lump-of-labor idea fails. However, the idea indeed applies in limited areas, for limited periods of time (e.g. market lag), especially in areas of limited natural resources. In such circumstances, the amount of available work is indeed fixed, or even contracting.

Another thing that remains to be seen is whether the Earth's natural resources are limited enough to create a situation like this all over the world.