Business versus vanity project…

Over the last few days, I’ve watched a handful of news segments and read several stories all striving to make a common point – that businesses from local mom and pop restaurants to heavy industry are having difficulty filling vacant positions.

Some of these stories cite the “Amazon Effect,” that has entry level new hires streaming to fill openings in warehousing and distribution. Others lay the blame with too much free money passed out in the form of federal stimulus payments and increased unemployment.

It seems to me that the most straightforward way to resolve this particular imbalance between the demand for these workers and their limited supply is to increase wages to the point where there are enough people to fill vacancies. 

Admittedly, I’m not a fancy big city economist, but raising wages feels like a fairly basic, tried and true way to attract people into a particular job or even into an entire segment of the workforce.  Yes, it means in some cases the products and services being offered by those businesses will cost more, but if your business can’t generate the revenue necessary to hire people to do the work, you have more of a vanity project than a business anyway.

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