English Petrol Travails
What is going on in England? There are long lines at gas stations and motorists are not allowed to fill ‘er up; they are limited to only a few gallons of gasoline, each. The fuel pumps are in operation. The refineries there are functioning well. There are plenty of trucks fully capable of transmitting the fuel from wholesalers to retailers. The problem? You had better be sitting down for this or you’ll keel right over: there are simply not enough drivers available to transport the fuel to where it is most needed.
Say what? There are millions of motorists in that country. Of course, not that many are capable of driving the heavy tanker trucks; however, more than enough are! But, still, there is something rotten in Denmark, well, England. Either that, or what we teach in introductory economics is all wrong.
What is the lesson stemming from econ 101? It is that whenever there is a shortage, as there is now for English truck drivers, this means demand is greater than supply. And what is supposed to happen when that takes place? Prices, or in this case wages, which are the price of labor, are supposed to rise. These, in turn, are comprised of money payments, salary, plus working conditions. But neither has occurred. Working conditions, in the form of clean rest stops for long distance haulers, have actually deteriorated, and take-home pay has not increased.
Why not? Where is the money for these raises supposed to come from? They are pre
Article from LewRockwell