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The law of supply and demand strikes again, this time with truckers for Walmart

It seems to me that the law of supply and demand stops working from time to time. But I think that is wrong, and pieces like this remind me that I am wrong: How Walmart has successfully recruited truck drivers amid a labor shortage crisis.

The reason I think it stops working is because I see wage growth stagnating in many places. But I also see productivity stagnating too, and I think there is a relationship between that. There is some elasticity there that allows wage growth to stagnate but in return productivity growth stagnates too.

In Walmart’s case, the elasticity is gone: if they can’t get truckers, they lose business. It’s simple.  But for businesses without such hard and fast metrics, you might just continue to see slack productivity and slack wage growth.

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