Is the Nursing Market Malfunctioning?

May 2, 2008 7:53 AM by Don Mathews

Studies of the nursing market forecast that the shortage will get worse in the coming years. But the real question is this: has something happened to the price mechanism in the market for nurses? To assert that the United States is suffering from a nursing shortage that will not only persist but grow worse for years to come is to assert that the nursing market is malfunctioning. Is the price mechanism in the nursing market broken?

Contrary to the many articles and studies, the price mechanism in the nursing market is not malfunctioning. It is working in textbook-like fashion. The increasing demand for nurses is driving nursing compensation up, which in turn is bringing more nurses into the market. Such is not the stuff of shortages but of market prices coordinating the allocation of scarce resources exceptionally well -- and in reality, not just theory. FULL ARTICLE

How the Shrimp Tariff Backfired

August 1, 2007 8:05 AM by Don Mathews

Entrepreneurs are not easily thwarted by government intervention. Sometimes entrepreneurs respond so creatively that they render the interventionist measure almost meaningless. A classic example of an entrepreneurial response to state-sponsored plunder is the case of the US anti-dumping tariff on imported shrimp. Total shrimp imports to the United States have increased by 14 percent since the tariff was imposed, while domestic shrimp prices have decreased by 9 percent. Also, US shrimp imports from the six countries targeted by the tariff have increased by almost 20 percent since the tariff was imposed. FULL ARTICLE

The Fallacies of Shrimp Protectionism

June 28, 2004 7:34 AM by Don Mathews

The U.S. shrimping industry must be thriving. Or so one would think. Only a generation ago, shrimp were all but considered a delicacy and came at a steep price, but today, fresh and frozen shrimp are readily available at grocery stores, never mind restaurants, and Americans are taking full advantage of the abundance. In 2003, Americans consumed 1.1 billion pounds of shrimp, up from 685 million pounds in 1994 and 287 million pounds in 1970. [Full Article]