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Theoretically, the price of corn would rise until demand falls to meet it at that price. Demand falls because consumers turn to substitutes (e.g. sugar vs corn
by Aliabid94 5y ago
Theoretically, the price of corn would rise until demand falls to meet it at that price. Demand falls because consumers turn to substitutes (e.g. sugar vs corn syrup)
- FalconSensei 5y agoOnly in case corn has something to substitute. Think like... doctors. If you don't have enough doctors graduating, the hospitals still need them. It's not like they can hire veterinarians or mechanics instead
- darkwizard42 5y agoYeah, but the GP comment is using corn (generally substitutable) to make a point about service/line-level food workers. That role isn't exactly specialized labor. It is pretty clear in this case that the supply exists, just not willing to enter the market at the clearing price.
- pchristensen 5y agoWith lower supply of doctors, then price goes up for patients (in wait times) and insurers ($$). Some marginal health issues will be ignored, deferred, or seen by nurse practicioners. Boom - equilibrium!
- renewiltord 5y agoThis is non-congruent with the use of the word “shortage” in economics. Under this model, the word shortage is not well-defined. This is certainly a model but it makes discussion hard when two models are using the same signifiers to represent different concepts.
- deleted 5y ago[deleted]
- jacobr1 5y agoThere has been a big push to diversify supply with Nurse Practitioners and PAs. They aren't able to perform all the actions an MD can perform, but have a lower entry bar but still can treat and prescribe in a large array of cases.
- KennyBlanken 5y agoIronically the price of sugar is kept artificially high by the government to protect sugar cane growers, by means of import controls. That's why corn syrup became so popular. Its price isn't controlled. The price of corn has now been pushed higher by idiotic ethanol mandates. That's why you see a lot of "real sugar" products these days. Sugar's become more attractive in price as the price of corn products go up. Unfortunately corn prices going up has been a serious burden on Mexican households where corn is a huge part of the diet.
- soco 5y agoComing back to the topic, if there are 3 programmer jobs and 2 programmers, no matter how much you raise the pay one job will be left empty.
- dgfitz 5y agoThis doesn't add up. In "the real world" a programmer making less at a different company would take that 3rd role.
- missedthecue 5y agoImagine in the world, there are 105 million programmer jobs and 100 million programmers. Companies can raise wages, but theyre only poaching from other companies.
- dgfitz 5y agoAnd now we know why programmers make the salaries they do!
- TheCoelacanth 5y agoYes, so the most valuable 100 million jobs get done, the least valuable 5 million don't. Meanwhile, people who can't currently complete the job are incentivized to learn how to do it by rising wages so the overall supply gradually rises. That's how free markets are supposed to work.
- missedthecue 5y agoOk but to the point of our discussion, most of the jobs currently available aren't jobs that require training. There are 5 million people that just stopped working.
- dgfitz 5y agoYeah, because the pay isn't high enough
- mistrial9 5y agocorn is a uniquely terrible example, because of a) long-term, very large price subsidies by government to certain farms, and b) the completely manufactured, and enormous, corn use for glucose syrup, and its derivitive "high-fructose corn syrup", in the USA and export markets..
- kristjansson 5y agoOnly insofar as demand is elastic and sufficient substitutes are available? An exogenous shock like that (a famine/blight, a war) can obliterate the market's ability to clear over the short-run...