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How do you get to the conclusion that producers will want to reduce their output? If anything they will increase it, since the feedback loop that tells them wh
by xondono 7y ago
How do you get to the conclusion that producers will want to reduce their output?
If anything they will increase it, since the feedback loop that tells them when to cut back is now way slower, and most consumer facing would rather overproduce than lose sales.
- paganel 7y ago> How do you get to the conclusion that producers will want to reduce their output? An output that just sits as additional inventory doesn't actually produce any revenues, at some point it becomes economically rational to reduce said output to levels that make sense again (i.e. that don't sit in deposits collecting dust instead of being in customers' hands half a world away).