Markets are great ways of organizing human activity because they are really efficient. They’re flexible, filled with rational actors who move quickly to meet demand with supply. That goes for markets in goods such as oil, and in markets for services such as labor. If there is a shortage of labor, the theory goes, companies increase pay and benefits to make them more attractive and lure more applicants. If there’s a surplus of labor, employees will lower their asking wages. And technology enables this process to happen quickly. Need a driver? Summon one via Uber instantly.
