3 ms·
It's called a buyer's market. It's normal that there's an oversupply of unskilled labor, so the buyers of that labor have more power. However, don't forget tha
by gridlockd 6y ago
It's called a buyer's market. It's normal that there's an oversupply of unskilled labor, so the buyers of that labor have more power.
However, don't forget that it's usually the same for a business and its customers: Ride-hailing itself is a buyer's market. Lyft and Uber are unprofitable. The only way for them to stay "in business" is to constantly burn money.
Supply and demand is not a free market ideal, it's a law of nature. Worker's rights or unions can't raise market prices above demand by fiat, all they can do is limit supply so that prices naturally rise. That means more people are out of a job, but those that are in the job might make a little bit more, if the overhead of running the union doesn't eat up the difference.
You can make the argument that limiting supply is justified, just like forcing people into pension or health care systems may be justified because people are fundamentally irrational. You just have to be able to phrase it that way and acknowledge the trade-off, otherwise you're just fooling yourself.
- sagichmal 6y ago> Supply and demand is not a free market ideal, it's a law of nature. In which nature? Not this one...