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Technically, a shortage is a situation where price is unable to rise. When something external prevents you from paying more, like the government imposing a pric
by randomdata 7y ago
Technically, a shortage is a situation where price is unable to rise. When something external prevents you from paying more, like the government imposing a price ceiling.
A good example in the labour market is doctors. While experience may vary, at least in the jurisdiction I live, it is illegal for a doctor to accept more money from me in order to prioritize my care. Instead, the law mandates that patients are prioritized first by need, second by order of contact (i.e. first come, first served). If the doctors are busy, there is no legal priced-based mechanism for me to incentivize directing their services to me, thus there can be a shortage.
I am doubtful that there could be a shortage in the trucking industry. I'm certain if I offered a 30% raise to just about any truck driver, they would jump ship to my operation in a heartbeat. I know of nothing external that would prevent me from doing that. Realistically, I might not be able to pay that much, but that simply means I was never in the market in the first place (as your comment about Tesla alludes to).
It is funny how the term shortage is used differently in the labour market when compared to other markets, like cars. I often wonder if it is because people once heard about doctor shortages, which can legitimately happen (depending on local laws), misinterpreted what was being said, and extended that misinterpretation to all types of labour.