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But if we created it at the dramatically and artificially increased demand that it has right now, it would be disastrous for that industry once this panic subsi
by EdgarVerona 7y ago
But if we created it at the dramatically and artificially increased demand that it has right now, it would be disastrous for that industry once this panic subsides. Imagine the increase in infrastructure these companies would have to build to keep up with this fake supply. The workers, the real estate, the building of supply chains and machinery. Now imagine what happens to that industry when suddenly the market's demand tanks back to a reasonable level, and there's suddenly not only far more capacity for production that is now unprofitable, there's a huge backlog of supply already in the hands of consumers.
This situation is just as bad for the manufacturer as it is for the consumer.
- logicchains 7y agoThe manufacturers aren't stupid. If they're capable of running a profitable manufacturing company they're capable of realising the demand won't last forever, and not investing an amount that would cost them too much when the demand dies back down.
- EdgarVerona 7y agoI was about to respond to you with the same response I made below - but it turns out we're basically having the same conversation twice. I'll refer to our other conversation below instead of repeating myself.