Is it slow for everyone

@gentleroger i would like to point out the 200 moving into the town of 5000 doesn’t mean 200 new jobs open up over night, maybe 10 at max? 5 would be a better answer. Remember the town of 5000 is most likely capable of handling more people before it’s infrastructure starts being over taxed.

what will happen more likely is if the industries in this small town let’s say the local foundry is running at 75% because not enough citizens to fill in all the spots then wages will go up to attract new employees.

but if the foundry is at full capacity and 195 people suddenly come in then wages go down because that foundry now has over abundance of employees to choose from.

it’s all supply and demand.


Right now being a truck driver is so easy that it took me 2 hours of training, and 2 weeks of paperwork to be an owner operator for the past 2 years. With that being said since it’s easy and not a lot of restrictions on being a truck driver and no need to know the language at all to be one it becomes a magnet for new immigrants to get into. This over supply of labor and not enough freight for everyone is what causes rates to go down.

now this ain’t the only reason for the industry going down.

other factors are in play, brokers undercutting each other, double brokering, closed loop giant ecommerce business models, closed loop giant retailers.


I can for sure tell you there are products that Get to peoples houses that a single broker has not touched

days of the brokers are outnumbered, days of owner ops are outnumbered.

Company drivers will continue but trucking is a dying industry for the middle class. It is quickly becoming a minimum wage job.

 

I get what you are saying. My point was simply that it is not a fixed ratio equation. Before the 200 magically arrive in this closed economy, everything is at equilibrium. There are A foundry jobs, B construction jobs, C farming jobs, D grocery jobs, E restaurant/entertainment so on and so forth for a total of 5,000 jobs. If you suddenly have 5,200 people and still only 5,000 jobs, yes wages would experience downward pressure. But those 200 people will increase consumption, requiring an increase in production, which will increase the demand for labor. There will be short term disruptions but the system will return to equilibrium.

In the "real world" there is no such thing as market equilibrium as there are too many factors that are in play.

In other news a worker at the steel plant I am at just walked by my truck. He smelled so bad I could smell him with my windows rolled up.