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As demand goes down, supply will too. There comes a point where it isn't worth making something anymore. Those that demand it still will miss out. To me, this i
by adamzerner 11y ago
As demand goes down, supply will too. There comes a point where it isn't worth making something anymore. Those that demand it still will miss out. To me, this is an acceptable outcome of capitalism.
But I don't think that's what the article is saying. I think it's saying, "There's a difference between wanting and liking (https://en.wikipedia.org/wiki/Incentive_salience https://en.wikipedia.org/wiki/Incentive_salience). Demand is determined by wanting, not liking, and so that's what the market responds to. People don't do a good job of wanting what they like, and thus the market is reducing supply too quickly."
Ie. plastic circles (and their analogs) really make people happy. If people were smarter, they'd realize this demand for them would be higher. But because they're mistaken, supply falls too quickly.
I agree, but don't know of a solution.