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When demand outstrips supply, one thing that can happen is that prices rise until demand matches supply. That's what is happening now. That's not a shortage. T

When demand outstrips supply, one thing that can happen is that prices rise until demand matches supply. That's what is happening now. That's not a shortage. There are all sorts of restrictions on what type of labor is legally allowed. Age restrictions, hours, licensing, unions, plenty of other regulation. But when there is a story on this site about how employers say there is a shortage of workers, the typical answer is "there is no shortage, raise wages". That's because the typical reader of this site isn't someone trying to run a low margin business, the typical reader of this site is someone who moved to one of the most expensive areas of the world and subsequently realized that for some reason, housing is expensive there, so the government needs to make changes. But that's not a shortage. Just because you can't afford something at the market clearing price doesn't mean there's a shortage. And just because you can't afford something at the market clearing price doesn't necessarily mean the government needs to make changes. You might need to make changes instead.

ch4s3 4y ago
> That's not a shortage. That's literally the definition of a shortage[1], "a condition where the quantity demanded is greater than the quantity supplied at the market price". > But that's not a shortage. Just because you can't afford something at the market clearing price doesn't mean there's a shortage. And just because you can't afford something at the market clearing price doesn't necessarily mean the government needs to make changes. You might need to make changes instead. In the case of housing, the government creates the condition whereby there is not enough housing in places where there is the most economic activity. It's a huge drag on the overall economy and well documented. [1]https://www.investopedia.com/terms/s/shortage.asp https://www.investopedia.com/terms/s/shortage.asp

ch4s3 4y ago

> That's not a shortage. That's literally the definition of a shortage[1], "a condition where the quantity demanded is greater than the quantity supplied at the market price". > But that's not a shortage. Just because you can't afford something at the market clearing price doesn't mean there's a shortage. And just because you can't afford something at the market clearing price doesn't necessarily mean the government needs to make changes. You might need to make changes instead. In the case of housing, the government creates the condition whereby there is not enough housing in places where there is the most economic activity. It's a huge drag on the overall economy and well documented. [1]https://www.investopedia.com/terms/s/shortage.asp https://www.investopedia.com/terms/s/shortage.asp