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March 11, 2005
automatic markets
I see that we have a new line coming from Canberra about the skills shortages in the economy. The shortages are now a product of a strong economy and presumably low employment. So says the PM.
It is a temporary glitch in the automatic workings of the economic system. Things will be back to equilibrium as soon as the capacity constraints are cleared:
The new 'growth created the skill shortages' line absolves the federal government from any responsibility about Australia running out of skilled workers due to its failure to invest in education and training during the 1990s.
The new line implies a notion of automaticity within market processes. Things will come right at some future stage, because markets are all about equilibrium, and disequilibria is only a temporary blip.
Posted by Gary Sauer-Thompson at March 11, 2005 01:31 PM
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