Why is supply and demand so controversial on DPSubmitted by Menschken on Mon, 11/11/2013 - 22:19
I'm not sure where everyone's getting their economic mythology these days, but when someone says that an influx of labor being sold at a price below the prevailing wage height in any given field will lower the average wage for that field, where is the controversy?
It's simple supply/demand dynamics. You might believe that in the long run the wage will rebound, but as a matter of direct effect, adding supply to a market at a lower selling price than the existing supply up for sale will lower the price.
It seems like a lot of pseudo educated people deny this basic economic law and actually believe that an influx of cheap labor into a market has no downward pressure on wage rates.
Please limit your thoughts to the direct concept without any extraneous political opinion thrown in or any emotional replies.