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> Please help me, what real value does an investment like this yield for the economy as a whole? Think of it instead like parcel deliveries. It should be plain
by solatic 6y ago
> Please help me, what real value does an investment like this yield for the economy as a whole?
Think of it instead like parcel deliveries. It should be plainly clear that delivering a package in two days is more valuable than delivering a package in a week, that delivering a package overnight even moreso. Oftentimes, an item is only valuable if we receive it as soon as possible - if we had to wait a month to receive a package, the whole arrangement might not have been worth it in the first place.
Furthermore, it is also plainly clear that delivery is worth more for more valuable items. This is typically communicated in the price of insuring a shipment, but plain common sense explains why people are willing to pay hundreds of dollars in delivery charges for automobiles but not for a box of tissues.
If you understand that logistics is valuable, that speed makes logistics more valuable, and that logistics is made more valuable by the value of the goods transported by it, then it really should not be such a stretch of the imagination to understand how the logistics of capital plays by exactly the same rules; it is only a question of degree and scale.