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2024-09-11 17:39:43 UTC

Cykonot on Nostr: When people say there's a "supply issue," that's often understood as a kind of limit ...

When people say there's a "supply issue," that's often understood as a kind of limit on production. It implies that, if you give manufacturers more money, they will decrease prices. But that's naive: people try to maximize THE RATE of return on investment. If you blindly subsidize capitalists, they'll take the money, and just invest elsewhere; giving handouts to a cartel does not make them increase production or decrease prices.

It's a market issue, not a production issue. Fix incentives.