We have a supply crunch. The way that works out is that those in the supply crunch can ask for more, and those outside it ask for more but end up not getting it

We have a supply crunch. The way that works out is that those in the supply crunch can ask for more, and those outside it ask for more but end up not getting it. Plans are forced into reality by market action - which is how capitalism works. The result will be some firms failing and some people transferred to the unemployment queue. Since we have a system where the threat of unemployment is used to tame wage claims, that is where it will end - with those thrown on the unemployment queue taking the real loss in their consumption. There is a rebalancing going on. Certain labour is scarce. Prices of that labour will therefore rise until excess demand is eliminated. The excess demand is the wages of those currently being paid who will end up on the unemployment queue when the firm they work for doesn't get the price rises they planned to get, and can't therefore pay the current price for their supply.