You’re so close to hitting the fundamental truth here.
A landlord evicts someone who cannot pay rent because there are other people who can pay rent.
Employees leave if an employer pays too low if there are other, better-paying options available.
As there are typically, though not always, more available workers than available jobs at a given pay rate, the workers lack the employer demand necessary to set pricing wholesale.
The reason wages have been rising lately is because employers have been unable to find workers at previous salaries. There are most definitely businesses that have folded because of this - the business model for those companies did not account for higher wages, and raising prices was not possible in the interim.
That’s the actual interplay between these market forces, and yes, the reason that unionization is effective (and often necessary) in raising wages. It’s why collective bargaining is an essential control on labor markets
You’re so close to hitting the fundamental truth here.
A landlord evicts someone who cannot pay rent because there are other people who can pay rent.
Employees leave if an employer pays too low if there are other, better-paying options available.
As there are typically, though not always, more available workers than available jobs at a given pay rate, the workers lack the employer demand necessary to set pricing wholesale.
The reason wages have been rising lately is because employers have been unable to find workers at previous salaries. There are most definitely businesses that have folded because of this - the business model for those companies did not account for higher wages, and raising prices was not possible in the interim.
That’s the actual interplay between these market forces, and yes, the reason that unionization is effective (and often necessary) in raising wages. It’s why collective bargaining is an essential control on labor markets