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You did a great job of making the case against neoliberal capitalism. Why should anyone tolerate a system that incentivizes hostage taking? It makes far more se

You did a great job of making the case against neoliberal capitalism. Why should anyone tolerate a system that incentivizes hostage taking? It makes far more sense to have a working government that goes "hey, we need to diversify this sector" and creates the proper incentives for capital to chase.

csdvrx 5y ago
> It makes far more sense to have a working government that goes "hey, we need to diversify this sector" and creates the proper incentives for capital to chase. Except governments have no incentive to look at such opportunities in advances. A capitalist company has a profit motive to look at everything that can go wrong, and react accordingly and quickly. See the MTT GPU as an example of such response: they bought PowerVR when it made sense to. Now GPUs are in shortage because there are priced too low, because they have only 2 manufacturers who don't want to get a bad reputation of "predatory pricing". New entrants may care less, and even a GPU that's only competitive to the 1070 may sell if it's more easily available. I do not think a bailout of PowerVR would have had such results. It may also have come with strings attached, reducing the flexibility needed.
- arrosenberg 5y ago
  > A capitalist company has a profit motive to look at everything that can go wrong, and react accordingly and quickly. My suggestion also involved capitalist companies. If what you are saying us true, why is the supply chain so messed up? Why didn’t the laissez faire proponents foresee this and react? There is plenty of profit to be made, where are the new entrants? Im not familiar with the specific company mentioned, but GPUs are in shortage because the market became concentrated (the end result of neoliberal economics) and a supply shock inevitably broke it. Everything you mention about pricing is a post hoc effect of that. A more interventionist government would see that and use antitrust laws and subsidies to create a more robust marketplace, while neoliberals go “this is fine” while the room is in fire.

csdvrx 5y ago

> It makes far more sense to have a working government that goes "hey, we need to diversify this sector" and creates the proper incentives for capital to chase. Except governments have no incentive to look at such opportunities in advances. A capitalist company has a profit motive to look at everything that can go wrong, and react accordingly and quickly. See the MTT GPU as an example of such response: they bought PowerVR when it made sense to. Now GPUs are in shortage because there are priced too low, because they have only 2 manufacturers who don't want to get a bad reputation of "predatory pricing". New entrants may care less, and even a GPU that's only competitive to the 1070 may sell if it's more easily available. I do not think a bailout of PowerVR would have had such results. It may also have come with strings attached, reducing the flexibility needed.

arrosenberg 5y ago
> A capitalist company has a profit motive to look at everything that can go wrong, and react accordingly and quickly. My suggestion also involved capitalist companies. If what you are saying us true, why is the supply chain so messed up? Why didn’t the laissez faire proponents foresee this and react? There is plenty of profit to be made, where are the new entrants? Im not familiar with the specific company mentioned, but GPUs are in shortage because the market became concentrated (the end result of neoliberal economics) and a supply shock inevitably broke it. Everything you mention about pricing is a post hoc effect of that. A more interventionist government would see that and use antitrust laws and subsidies to create a more robust marketplace, while neoliberals go “this is fine” while the room is in fire.