Shortages

Then there is the dynamic of bank run-like panics, which induce shortages by drawing down inventories. One home builder wrote me about shortages in his industry, noting that a lack of supplies “are, predictably creating further shortages, reminiscent of the toilet paper shortages in 2020: once someone finds black pipe or whatever, they buy way more than needed since they might not find it again. I’m as guilty as anyone; I have 50 stoves sitting in a storage unit since I’ll need them at some point. Meanwhile, a 54 unit project is in suspended animation while I wait for the Packaged Terminal Air Conditioners that won’t be in until next year.”

The article also talked about various shortages, particularly related to COVID, and linked to https://reddit.com/r/shortages

The newsletter, btw, has a left wing economic perspective but I find it’s often OK.

There are some harsh comments on Matt Stoller at https://www.reddit.com/r/Shortages/comments/pl7ucn/matt_stoller_on_shortages/

From Counterfeit Capitalism: Why a Monopolized Economy Leads to Inflation and Shortages - by Matt Stoller - BIG by Matt Stoller

I’ve lived in Washington, D.C. for fifteen years, and one of the many unacknowledged changes has been the disappearance of taxis. While the city has good public transportation, you could jump into a taxi for a reasonably priced convenient ride around commercial areas. Around 2012, Uber and Lyft came into the market, and for the next seven years, it got even better, with cheaper Uber fares within minutes. At the time, everyone knew that Uber, and its tech economy cousins, were heavily subsidized by investors, with Uber losing up to $1 million a week. But the cheap rides were too good a deal to pass up.

It couldn’t last forever, and it didn’t. Slowly, cabs, under pressure from ride shares, disappeared. Taxis had been a reasonable business in D.C., and the drivers had middle class lifestyles, but there was a tipping point, and the industry collapsed. Similarly, driving for Uber, once a reasonable side job, became worse as the firm cut the amount paid to drivers. Now, cabs are mostly gone. And today, ride shares are often a ten to twenty minute wait, and more expensive. It’s not just a D.C. problem; nationally, Uber/Lyft prices up 92% over the last year and a half. And at least in Washington, cabs, though they could now go back to their previous pricing, have not returned. In other words, there is both inflation, and in some ways, a shortage of taxi services.

if there is high demand for taxi services and prices are way up, why isn’t capital coming in to the taxi market to take advantage of the profit potential?

https://www.tiktok.com/@morning_noonan_night/video/7007091483702512902

Book publishers having major trouble printing books.

https://www.tiktok.com/@mrwilliamsprek/video/7003115521126190342

Teachers quitting partly due to not enough other teachers so working conditions are worse.

i remember another tiktok video about fast food working conditions being worse cuz too few employees