>> current market rate Many of the new positions being created in startups have no defined market rate, which causes more malinvestment (overpaying workers who

>> current market rate Many of the new positions being created in startups have no defined market rate, which causes more malinvestment (overpaying workers who don't produce well enough) or shortage of labor due to insufficient perceived compensation. Businesses will almost always err on the side of shortage of labor and keeping costs down when they can (though you could argue otherwise in the current ridiculous VC-backed industry), so this will always be a "problem" in the market.