I'm still not sure that I'm following with regards to the optional scarcity of labor....
Are you saying:
- Labor might be over-supplied within a particular market? (I would definitely agree with this, even though I would phrase it as a coordination problem.)
- Labor might be over-supplied in general? (I have a hard time imagining how this could possibly be so, since this would imply that there exists no desire in the entire world that is failing to be satisfied by labor.)
I hope I don't come off as being too nit-picky or belligerent, but sometimes the devil is in the details. :)