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Markets don't account for the human capacity for self-deception. For a market to work, there needs to be sufficient information on both sides to decide whether
by rickydroll 2y ago
Markets don't account for the human capacity for self-deception. For a market to work, there needs to be sufficient information on both sides to decide whether to buy or walk away. There also needs to be enough logic to make a cold decision and not let emotions, hopes, desires, fantasies, or hallucinations influence your decision in any way.
Market participants count on the human capacity for self-deception, asymmetrical information, and emotion-based decision-making. In the case of teachers, there will always be some unwise rationalization based on the kids they'll be helping, how beautiful San Francisco is, how nice it is to be on the ocean, etc., which will cause them to make a bad decision about taking a job in San Francisco.
Maybe that's a job for AI. Tell it your job offer and how you spend your money, and it will tell you whether or not you can afford to take the job or run away.
- s1artibartfast 2y agoCorrect. Markets function on the desires humans act on. They dont optimize for how humans "should" act but dont. I think there is far more moral hazard in having the government overrule the preferences people act on and enforce the solution they think people should select. Some people make mistakes. People learn and society learns. Markets take time to search for and find equilibrium. Preventing markets which are out of equilibrium from progressing towards equilibrium often triggers a cascade of secondary problems.
- azinman2 2y agoWhat you’re suggesting, if I understand you correctly, is the market is suggestion it’s irrational for any teacher to go to SF? And thus SF shouldn’t have any teachers because richer people can afford to displace them?
- s1artibartfast 2y agoI'm sorry if you got that impression.Im saying the exact opposite. I'm saying we should let the schools get to the point of teacher shortages, and then teacher salaries will increase until the they can afford to live in the area. The current solution is stupid. We keep paying them unsustainable salary and work them in garbage conditions, but 1/10 wins the free housing lottery and gets below market housing.
- azinman2 2y agoYou can only increase teacher salaries so much before tuition becomes unaffordable. Private schools can only charge so much before demand falls off, and public schools have a max budget before they have to close schools (happening now in SF) and growing class room sizes, thereby negatively affecting future society. Free market doesn’t optimize across society’s needs, which is why we have government to redistribute / ease things via taxation.