Xan wrote: ↑Fri Jan 07, 2022 2:28 pm
"A former McDonald's CEO warns that a surge in retiring baby boomers amid ongoing hiring struggles will lead to a 'catastrophe'":
https://www.businessinsider.com/boomer- ... nsi-2022-1
Which asset(s) would a "major shortfall of workers" cause to rise and fall? And what would it do to inflation?
I don't know......but I do know that there is no such thing as a "major shortfall of workers" or a "shortage of workers". What there
IS is a shortage of workers at the crappy wages McDonald's (and more than a few other fast food restaurants) would prefer to pay.
If they raised their wages they would find that at the new higher wage there wasn't a shortage of workers any more. If there was still a shortage at that wage they would need to raise it until the market cleared.
It's like they have forgotten how basic supply and demand works or something. For instance, if they served mediocre to outrightly nasty food, had rude employees who didn't even care if the customer's order was correct or not, the place was never clean, and they charged twice what Burger King did they would soon find themselves without any customers...but that wouldn't be a "customer shortage" per se, it would merely
be a shortage of customers at the prices McDonald's was asking and/or at the quality of product they were trying to sell! The same applies to the so-called "labor shortage". If they find themselves lacking employees for a given pay level they are offering, they either need to raise their pay, offer more perks and benefits, offer more regular and secure scheduling, or else accept that they will either have less than the amount of employees they desire and/or less than the quality of employees they desire.
Simple supply and demand 101. A third grader could understand this. I don't know why a former CEO of McDonald's can't seem to grasp it.