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> This is economics 101 - supply and demand. What everyone learns in their first course in economics. But most economists are paid to espouse a political perspe
by andrewmutz 8y ago
> This is economics 101 - supply and demand. What everyone learns in their first course in economics. But most economists are paid to espouse a political perspective, so most choose to ignore it.
While I agree that employers should raise wages, I disagree that things are that simple or that economists are generally being paid to lie to people about it.
It's a question of how much the supply of the thing we are talking about will go up when people are willing to pay more for it. If you choose the example of housing in San Francisco, it is clear that it takes more than just people being willing to pay more for something in order for the supply to increase.
- kbenson 8y agoIf prices go up enough, more people in San Francisco will decide to sell, same as anywhere else. That itself doesn't increase the actual number of houses in San Francisco, but it does increase the number available to buy in the market, exactly as supply and demand would predict. Barring physical constraints and local laws, that would also likely spur more building to increase actual units. That isn't likely to happen to any large degree because there are physical constraints and laws, and that's probably what you were thinking of.