Business leaders often say that there is a “shortage” of skilled workers, and so they argue that immigrants need to be brought in to do these jobs. For example, an AP article was entitled “New York farmers fear a shortage of skilled workers,” and went on to point out that a special U.S. visa program, the H-2A program, “allows employers to hire foreign workers temporarily if they show that they were not able to find U.S. workers for the jobs.”(Source: Thompson, Carolyn. May 13, 2008. N.Y. farmers fear a shortage of skilled workers. Associated Press.)
a. How do unregulated markets cure a “labor shortage” when there are no immigrants to boost the labor supply?
b. Why are businesses reluctant to let unregulated markets cure the shortage?