Trying to read the labor market in the US is nearly impossible right now. Some pockets are still facing higher unemployment rates as furloughed workers await getting called back to work (primarily in tourist destinations). In other places, like Gwinnett, businesses are struggling to fill vacancies. A popular opinion that circulates is that businesses cannot fill vacancies because they simply arent paying enough. Theres even an FDR quote circulating that if a business cannot afford to pay living wages, it shouldnt exist. (Living in quotes because its a semi-subjective wage rate.) Keep in mind that the average small business owner earned $73,000 (2017), while the average CEO earned $14.8 million (2019). Prompt: A friend of yours comments that if businesses would only increase the wages, the labor shortage would disappear. He blames businesses greed on their inability to fill vacancies.

1)To what extent are your friends opinions justified? In what ways do you think businesses pursuit of profits is contributing to the labor shortage in communities like Gwinnett?

2)What are other explanations behind the imbalance in the labor market? Thinking about your knowledge of cost curves and market structures, is greed the only factor?

3)If you were tasked with researching the contributing factors behind our current labor market shortage, what types of information would you seek? (Note, you are not determining the exact cause, but rather discussing the types or sources for information you might look up to determine which of the possible explanations is most reasonable.)