The free market applies at every level, but it does take time to find it's level. Is the problem that people won't just raise the wages, like the other poster d

The free market applies at every level, but it does take time to find it's level. Is the problem that people won't just raise the wages, like the other poster described? Absolutely not. The location that doesn't raise it wages will end up losing in the end if there truly is a labor supply problem. They may refuse to raise their wages, but they will get the lower quality applicants, lower quality workers, and maybe not any workers at all if they don't raise it enough. The fact is it takes time for market to adjust and those that don't follow the market get left behind. The businesses that aren't efficient enough to run on fewer employees will get left behind. Companies don't go bankrupt overnight but they do go bankrupt eventually if they aren't as efficient as other companies. Those that make bad decisions, that raise wages to much, will get hurt, and those that don't raise them enough will get hurt. The fact is wages are only one factor and in a free market it will always find the correct level over time.