4 ms·
That's what a shortage is, a short-term undersupply. Market forces will eventually correct the problem if allowed to operate normally (e.g. prices spike, incent
by Ajedi32 1y ago
That's what a shortage is, a short-term undersupply. Market forces will eventually correct the problem if allowed to operate normally (e.g. prices spike, incentivizing more supply), but like you said that takes time. If it's a shortage of goods it can take a while to ramp up production. If it's a shortage of skilled labor it can take a while for people to learn those skills. Either way it's fundamentally the same type of problem.
- vjvjvjvjghv 1y agoThe market alone doesn’t work well with things like training that had feedback loops of several years. In German there is the term “Schweinezyklus”. It goes like this: * companies complain about lack of trained workers * more people start training * after a few years companies complain about too many workers and don’t hire them * people stop training * companies complain about lack of trained workers I was part of this in the 90s in mechanical engineering. When I started studying the job market was great. When I finished there were no jobs. Luckily I could jump to programming. I think we are seeing the same with CS now. Too many people jumped into it.
- Ajedi32 1y agoPredicting the future is indeed famously difficult, which is why even markets have a hard time with forecasting and responding to demand years into the future. I don't think such over corrections are a market failure, just a lack of omniscience.