Labor shortage does not mean what you think it does. If we use the logic you presented, then we can say "There is no such thing as a shortage of Cabs, try offer

Labor shortage does not mean what you think it does. If we use the logic you presented, then we can say "There is no such thing as a shortage of Cabs, try offering $100 for a cab ride and there will be people pulling their personal cars next to you to take you where you want to go". Well Duh. A shortage of a good means that there if there can be pending buy and sell orders in a market book, then there are a lot of pending buy orders, but just not for the price at which sellers are willing to sell. What SV is saying that there are a lot of people who would buy a lot of goods, if they can be produced cheaply (and it isn't because they're poor, it's just because the consumers don't value that good that much). If Netflix raised their fees to $90 per month then it means that a lot of people would cancel their subscription (and not all would do because at $90 they will be unable to meet their rent).