Richard@DecisionSkills wrote:Beloved wrote: The idea is to cause a glut of people trained in a specific field so the salaries can be kept down.
The statement is a contradiction. Low salaries takes care of any glut, i.e. the low salaries takes care of demand for the courses. It is the basic principle of supply and demand.
When real estate is booming, everyone wants to be a real estate agent. Try causing an artificial glut of real estate agents in a down housing market. Ain't gonna happen no matter how many commercials you produce.
I'm not an economist, and some people think economics is not a true science, but:
IMO, it may be harder to hide the truth in the housing market, unlike hiding the true demand for a certain career.
With the low salaries, there may be a time lag between the artificial demand and the people taken in by the scam. Possibly this lag is what makes this work.
"DEFINITION OF 'PRICE STICKINESS'
The resistance of a price (or set of prices) to change, despite changes in the broad economy that suggest a different price is optimal. "Sticky" is a general economics term that can apply to any financial variable that is resistant to change. When applied to prices, it means that the prices charged for certain goods are reluctant to change despite changes in input cost or demand patterns.
Price stickiness can also occur in just one direction, as in "sticky-up" or "sticky-down". A price that is sticky-up, for instance, can move up rather easily but will only will move down with pronounced effort."
Or else it works because 'there is a sucker born every minute, and two to take him.'
The schools talk about career field shortages to pull in students and thereby profit. The companies talk about career field shortages so they can pick and choose among the many applicants they have lured in.
And car dealers talk about how they are overstocked with new vehicles or have "a shortage of used cars", implying that they can be taken advantage of. It is the gullible buyer who will be taken advantage of.