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The government is often the cause of scarcity. If price sky rocket, investors will increases production until prices are lower. Government can mess with this
by treeman79 5y ago
The government is often the cause of scarcity.
If price sky rocket, investors will increases production until prices are lower.
Government can mess with this by limit prices causing investors to stay away, meaning fewer chips get built, thus ensuing a temporary problem gets worse.
- NicoJuicy 5y agoYou can't increase production of semiconductors within 3-4 years. Those assembly lines are highly specialized and extremely efficient. After all this time, the best they can do is 1% extra efficiency per month.
- treeman79 5y agoAnd factories were big and owned by the evil rich, so Russia socialized them. Thus leading to decades long shortages for all but the very rich. A short term (1-5) year problem is no reason to takes steps to ensure a generational problem. Free market is brutal about improving efficiency and growing with demand.