Silicon Valley employers underbid for skilled labor and are able to hire less of it than they want; describe this state of affairs as a “shortage.” 7,413rd in a continuing series: https://www.mercurynews.com/2018/02/25/hidden-cost-of-housing-how-a-shortage-of-construction-workers-is-making-our-crisis-worse/amp/?__twitter_impression=true … (It wasn’t tech this time!)
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Capitalists have responded to this by going to working class people and offering them higher wages and better working conditions. Those unconscionable bastards!pic.twitter.com/LU2DKT1JOQ
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The construction industry has long-since decided in the US that it doesn’t want to pay for staffing/market mismatch risk. Instead, it keeps permanent staffing low and hires through subcontractors. This keeps cost low during lulls. That was a choice. The bill now due.
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That isn’t me even having schadenfreude that is just the capitalist in me having aesthetic distaste for crying in capitalism. There’s a way to lock in labor cheap in future years. We call it “employment.” It is a very easy technology to execute on.
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Replying to @patio11
Forgive me if the analogy's not meant to go that deep - locked in as long as they don't negotiate a higher salary or leave for a higher paying job during more competitive times?
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Wages are sticky in both directions; it is not the case that all workers will negotiate a 50% increase in base comp even if new market norm would be that. Inertia / like the team / don’t want to move / loyalty / etc.
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Replying to @patio11
Gotcha! The inertia is part of lock in so the analogy holds
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