But at what point does someone try to solve the shortage by baking more bread? If the price rises, more people will open bakeries.
Economics answers 2 questions:
1) Who gets what today?
2) What should people prepare for tomorrow?
Regulating an excessive focus on (1) will get bad results on (2) because it makes it less sensible to be come a baker.
I'm not writing software because I believe there is a philosophical shortage of software. I do it because there are decent odds that I'll be overpaid relative to the work I put need to put in. Those odds are resulting in a lot of software being written.
Economics answers 2 questions:
1) Who gets what today?
2) What should people prepare for tomorrow?
Regulating an excessive focus on (1) will get bad results on (2) because it makes it less sensible to be come a baker.
I'm not writing software because I believe there is a philosophical shortage of software. I do it because there are decent odds that I'll be overpaid relative to the work I put need to put in. Those odds are resulting in a lot of software being written.