3 ms·
How is this a problem? It's like saying that there's a shortage of X because I have a business idea that won't work unless I can pay all my workers minimum wag
by sbov 11y ago
How is this a problem? It's like saying that there's a shortage of X because I have a business idea that won't work unless I can pay all my workers minimum wage.
- cortesoft 11y agoWhether it is a problem or not can be debated, but it IS a shortage. If we don't say this is a shortage, then nothing ever would be, unless there is literally 0 supply of something. As long as there is at least 1 of something, there will always be at least SOME price you could pay to get it. In economics, a shortage means the price of something fails to rise to reach an equilibrium, which is EXACTLY this situation: https://en.wikipedia.org/wiki/Shortage https://en.wikipedia.org/wiki/Shortage
- cortesoft 11y agoActually, I think I am wrong. The price HAS risen, but lots of people can't or won't pay. This doesn't meet the technical definition of a shortage: In common use, the term "shortage" may refer to a situation where most people are unable to find a desired good at an affordable price, especially where supply problems have increased the price. "Market clearing" happens when all buyers and sellers willing to transact at the equilibrium price are able to find partners. There are almost always willing buyers at a lower-than-market-clearing price; the narrower technical definition doesn't consider failure to serve this demand as a "shortage", even if it would be described that way in a social or political context (which the simple model of supply and demand does not attempt to encompass).
- deleted 11y ago[deleted]