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> demand for daycare increases, but supply doesn't grow to meet it. The price goes up. Exactly as what we would expect based on the rules of supply and demand.
by maxsilver 8y ago
> demand for daycare increases, but supply doesn't grow to meet it. The price goes up. Exactly as what we would expect based on the rules of supply and demand.
So, by your logic, demand for daycare workers should rise, supply hasn't grown to meet demand, so the wages for daycare workers should spike up. Exactly what you would "expect".
Except it hasn't. Daycare wages are effectively flat. (In real world dollars, they're actually dropping, once you factor in CoL/inflation).
If "everything is just basic supply and demand", how do you explain all the instances like this where supply and demand are fundamentally broken.
- bduerst 8y agoIt's weird that you two are arguing over the child care market as a hypothetical, because in Seattle the supply growth has been capped by a licensing bureaucracy. You can read more about the wage issue here: https://www.king5.com/article/news/local/parents-struggling-with-daycare-waitlists-and-costs-in-washington/281-580894588 https://www.king5.com/article/news/local/parents-struggling-...
- manfredo 8y ago> So, by your logic, demand for daycare workers should rise, supply hasn't grown to meet demand, so the wages for daycare workers should spike up. Exactly what you would "expect". You're changing topics. In the previous comment you were talking about the price of daycare, now you're talking about the wages of daycare workers. Those are two different markets. Perhaps there's plenty of people willing to work as daycare workers, but there aren't enough daycare centers being opened because of restrictive permitting processes. So the supply of daycare workers is still high (and thus, wages don't go up) but the supply of daycare centers is insufficient.