No More Shortage of Labor Than of Diamonds

Source: EconLog
by Pierre Lemieux

“It is an interesting phenomenon that a first-rate financial newspaper can, without adding a big smiley, run a major title like yesterday’s: ‘US Economy Added 428,000 Jobs in April Despite Worker Shortages.’ Imagine the number of new jobs created if there were no ‘shortage!’ At least in the economic sense of the word, there is no shortage of labor more than is a shortage of petroleum, ammo, or diamonds: these things are just expensive and more expensive than they have been in the recent past. One can define ‘shortage’ as one wants, but if is defined as ‘high price’ or ‘increasing price,’ we need another word for ‘unavailable at any market-determined price,’ which is how economics defines it.” (05/07/22)