If market economies are that simple, why are wages that bad in parts of Europe? Are the business owners just greedy? Is that really what you think?

see this reply: https://news.ycombinator.com/item?id=18508361

If you think they're that simple, why don't you move somewhere dirt cheap, then call up some developers elsewhere and offer them competitive wages to move to that area?

Show us all how it's done! You have that kind of money, right?

In reality, needing developers doesn't suddenly mean you have lots of money with which to pay those developers.

Market economies are that simple, but the market doesn't stop at the borders of any single European country. Personally I'm happy being an employee for now and have no desire to move or start a company. But if you're asking a bank to finance hiring more developers then you're really barking up the wrong tree. You need to find investors with a different risk profile.

As it turns out, those investors are generally in the successful areas, though... so, they're not around to ask. I mean, am I wrong?

You're right that banks aren't going to be excited about that, but if you have no local billionaires looking to take a risk, what are you supposed to do? Move to an area with lots of investors? That just reinforces the cycle of low wages in the area you moved from, it doesn't break it.

Lack of mature capital markets is a legitimate problem in some countries. But that's completely separate from any labor shortage.

It’s a common misconception but there are rich folks in poor countries, and they can be potentially be persuaded to invest locally.

Then why aren't they already investing? Why does their local economy not already have companies paying high enough wages to attract highly talented developers, due to their careful investments? Those wealthy individuals can be convinced, perhaps, but only if they're open to idea and the risk to their own personal estate.

Sometimes the country is disfunctional. Sometimes those in power are profiting from it.