If the law of Supply and Demand dictates that high demand + low supply = higher prices/rates, why aren’t companies/industries suffering from large scale labor shortages offering suitably higher wages to mitigate the shortage? Contrarily, some of them seem to be figthing this obvious solution tooth and nail. Shouldn’t any businessperson worth their salt realise the labor market has changed beyond their control?
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because people with no work can’t afford to continue living in their homes and paying for their food. When those kinds of pressures exist you do not have a purely free market where the law of supply and demand will be the controlling factor. The law of not starving to death in the cold is going to be a big influence on what people are willing to accept as far as payment goes.
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