I Don't Understand

I've seen comments and posts in other places about nannies complaining about their market value, and the complaints that those who work for less harm what they want to make, or how they want to dictate what consumers pay.

It's valid, to a degree. I can see someone being upset about their value having gone down. The bottom line is, this happens in the market all the time. None of us ever get, or keep, what we would like to maintain in anything. Housing values fluctuate. Prices of other services, and goods, fluctuate. It's called supply and demand. And when you're the consumer, and prices go down, you like it.

The concept is very simple. When the demand for a particular service, or item, is high and the supply is not high enough to keep up with that demand, premium price ensues. When demand is low, and supply is plenty, the price goes down.

It does get broken down a bit more than that oversimplified paragraph. Let's have an economics lesson, shall we?

1. If demand increases and supply remains unchanged then higher equilibrium price and unchanged quantity. (this means that if more parents suddenly want to hire nannies but more nannies have not entered the market, then nanny wages may go up a bit as parents compete for nannies)
2. If demand decreases and supply remains the same then lower equilibrium price and unchanged quantity. (if less people want/need nannies say, due to a recession ~ahem~ then there will be an overabundance of nannies in the market and the wages one is willing to work for to land a hard-to-get job will be lower - cheaper - as the nannies compete for jobs)
3. If supply increases and demand remains unchanged then lower equilibrium price and higher quantity. (if a buncha nannies suddenly enter the market to compete in the unchanging demand for nannies by parents, wages will decrease as even more nannies compete for the same jobs)
4. If supply decreases and demand remains the same then higher price and lower quantity. (if nannies suddenly decided to pursue other career options and left the market, but the same number of parents need nannies, then wages for nannies will go up because there are fewer nannies to go around and parents want to make sure they attract and keep one; also, nannies will realize if a family does not give them the wage they desire that they have a slew of other families who may )

I get really irked at nannies who try to dictate to others who are willing to work for a certain price that they can not do so because of what THEY want. I get irked at nannies who dictate that parents can not hire someone with qualifications that they (the nannies) do not deem high enough, at a price that both parties agree to, because THEY want to make a certain amount of money at all times. It's like saying, "unless you pay what I think you should pay, then you can NOT have a nanny or personal care provider in your home, even if you and that person mutually agree on the price. I should dictate the pay, not the market. And because of that, people who do not want their kids in daycare should have to do so unless they pay what I say. People who are willing to work for $10/hour (or minimum wage) should NOT be able to get a job as a nanny, which may have more flexibility than another job for the same amount, because I do not like the fact that my field is competitive."  Supply and demand dictates this.

Now, I understand  the whole issue with illegal immigrants, or migrant workers in general. In some areas, this is a big factor in the supply and demand force. If they're legal, what are you gonna do? Bottom line is, you've got supply and demand still at work, and yes it sucks, but it's still how it works. You are only worth what consumers dictate in their willingness to pay, not what you dictate. If consumers are not willing to pay beyond a certain price for services that they can get much cheaper, and with which they are satisfied, then why shouldn't they? I understand it's less than what high-end nannies want, and I understand the complaints.

I just think telling people they can not hire who they want, at the price they want if the supply is there is presumptuous. Lots of people have been out of jobs, and making ends meet in the best ways they know. This means nannies willing to work for less, and parents not willing to pay premium price for the same service they can get cheaper elsewhere.

If two people have an agreement, it's no one else's business. If I am absolutely fine to work for less than $10 an hour, who are you to tell me I can not?? To say two people can not enter into a legal arrangement because it does not measure up to your own standards is arrogant.

Lots of people have lost a lot during the recession. Suck it up and take the hit like everyone else has.

You're not exempt.