We have discussed the probable reasons why the negative impacts of labor shortages have gotten more problematic recently. In many years, the US corporations have relocated their production capacities to countries with low labor cost. As results, one can easily finds household stuff made in other countries, rather than the US. While this move is justifiable from the profit maximization according to the new-classical point of view– it is actually a delayed of inflation to occur in the US. The problem of inflation should have happened a decade ago or longer, but it got absorbed by other countries, for example in the Southeast Asia. The population in these countries are the real heroes who have shouldered the US consumers from paying higher prices. This past summer, AAEA did a simple on-the-ground survey of product origins. It was not a shocking to find, aside from the produce, more than 90 % stuff were sold at one of the national chains are made in China. Though, the economic analyses show that labor shortages are the culprits of why the US cannot increase its national product in a fastest rate, it is obvious that the industry sector has chosen a short-cut to achieve the Wall Street’s expectation by relocating their production outside the country. These strategies are fine in the short-run, but proved to be costly in the long-run, as it is shown now.

So, when the developing countries make progress in their economy, so do their bargaining power. They will ask more for their own labor, or there will be no output produced. As labor are more expensive overseas, then corporation simply passed those extra cost to their end-consumers in the US market.

Well, hopefully the two isles see the lights, and the reasons why inflation is skyrocketed, and why the border is broken. No need to bus people to NYC. Accommodate them to rise long-horn cattle, or to grow strawberries, or whatever that produce something counted to add into the GDP.