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> The only short term ways to increase supply are immigration and outsourcing. Which is why the parent says that rising price eliminates any superfluous demand
by randomdata 10y ago
> The only short term ways to increase supply are immigration and outsourcing.
Which is why the parent says that rising price eliminates any superfluous demand.
Demand is an economic principle that describes a consumer's
desire and willingness to pay a price for a specific good
or service. Holding all other factors constant, an increase
in the price of a good or service will decrease demand, and
vice versa.
If we take it to the logical extreme and assume there is only one good developer in a local area, the business most willing to pay the price will get that person. Those not willing to pay the price are not demand, and thus don't necessitate supply.
A shortage, by definition, is a scenario where price is unable to rise. For instance, where the government enforces a price ceiling. In my local jurisdiction that happens for medical care providers. A shortage of doctors is very much possible. It is less clear what could cause a shortage of developers.
Having said that, there is another way to increase the supply: Attract others (back) into industry. There are plenty of people who find themselves doing other, perhaps more lucrative, things that would be suitable for the kinds of jobs these companies seek. For the right amount you can attract them into these jobs, but without better offers there is no incentive for them to stop doing what they are already doing.