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The alternative to an efficient labor market is an inefficient labor market. One with regulations, unemployment insurance, unions, all kinds of subsidies (educa

by rsj_hn 5y ago

The alternative to an efficient labor market is an inefficient labor market. One with regulations, unemployment insurance, unions, all kinds of subsidies (education grants are subsidies for the labor market) etc. Indeed, worrying about the efficiency of labor markets is a mug's game. We should be worrying about creating productive ecosystems and acquiring skills, and leave the labor market to be inefficient.

lotsofpulp 5y ago
Those can all co-exist with price transparency to create a more efficient market than without price transparency. I fail to see why society would not want to benefit from the price signals and have as much of a head start as possible on adjusting labor supply and demand rather than failing to and then having to suffer while trying to correct. Here is a real world example I know from someone suffering due to their lack of interest in real world prices. Pay for most pharmacists has been flat since 2011, and declining since 2016. This is known from pharmacist sharing their pirate offers on pharmacy forums. However, 22 year olds entering pharmacy school were not paying attention to this information, and instead were relying on the BLS's predictions that pharmacy demand would go up 10% and the schools' marketing showing that even though they will spend $200k on tuition, they will come out with amazing pay. Now, if you read the forums, they are full of pharmacists regretting going into pharmacy, being crushed by hundreds of thousands of dollars of debt, and not doing their jobs properly of double checking prescription medications in order to ensure they still have a job because they have that student loan debt gun to their head. So due to lack of pay transparency, there are tens of millions of Americans going to CVS and Walgreens getting medications from overworked pharmacists who themselves admit cannot properly vet the prescriptions to the degree they should. In the meantime, the schools that inflated tuition and class sizes got to benefit and taxpayers are left holding the bag by subsidizing these student loans.

by rsj_hn 5y ago

lotsofpulp 5y ago

Those can all co-exist with price transparency to create a more efficient market than without price transparency. I fail to see why society would not want to benefit from the price signals and have as much of a head start as possible on adjusting labor supply and demand rather than failing to and then having to suffer while trying to correct. Here is a real world example I know from someone suffering due to their lack of interest in real world prices. Pay for most pharmacists has been flat since 2011, and declining since 2016. This is known from pharmacist sharing their pirate offers on pharmacy forums. However, 22 year olds entering pharmacy school were not paying attention to this information, and instead were relying on the BLS's predictions that pharmacy demand would go up 10% and the schools' marketing showing that even though they will spend $200k on tuition, they will come out with amazing pay. Now, if you read the forums, they are full of pharmacists regretting going into pharmacy, being crushed by hundreds of thousands of dollars of debt, and not doing their jobs properly of double checking prescription medications in order to ensure they still have a job because they have that student loan debt gun to their head. So due to lack of pay transparency, there are tens of millions of Americans going to CVS and Walgreens getting medications from overworked pharmacists who themselves admit cannot properly vet the prescriptions to the degree they should. In the meantime, the schools that inflated tuition and class sizes got to benefit and taxpayers are left holding the bag by subsidizing these student loans.