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You shouldn't wonder. Businesses need demand for something before they start making it. That doesn't need to be demand for something that exists, but if there w
by zanny 11y ago
You shouldn't wonder. Businesses need demand for something before they start making it. That doesn't need to be demand for something that exists, but if there were money out there for goods not yet made there would be more investment towards them.*
Since that is not the case, you can presume there is not money out there not yet tapped. Which, considering economic trends in recent decades towards wealth concentration in the same capitalist class who has nothing to spend money on except making more money nowadays, that should be no surprise.
When the consumers are getting poorer, their demand is dropping, not increasing, so there is no reason to ever try increasing supply. Just use monetary loopholes to profit more instead.
* : all relative to risk. There are of course things you could take large risks on and see incredible returns if you succeed, but you cannot predict or even guarantee success on them (gene therapy, new silicon fab tech, nuclear energy, new solar panel tech, better battery tech, AI, and way, way more). When the board is awash in cash from a perpetual money machine, and you could easily just do stock buybacks to make shareholders happy, you go with the no risk easy route to appease shareholders than taking the risk.