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Toyota aren't constrained in how many cars they can make a year (well, more or less, and under normal circumstances), housing developers are much more constrain
by dagw 4y ago
Toyota aren't constrained in how many cars they can make a year (well, more or less, and under normal circumstances), housing developers are much more constrained.
In a world (kind of like the one we live in right now...) where Toyota only had components to build 500k cars a year then they'll make 300k luxury cars and 200k regular cars and buying cheap low end cars becomes almost impossible.
If the market equilibrium in an unrestricted market is 2mil:300k, or roughly 6:1, regular to luxury cars then an argument could be made that regulations should be but in place to retain that market equilibrium even during a restricted market, assuming we believe it is important that everyone can own a car.
- Schiendelman 4y agoThe restriction on the market is largely arbitrary - people “don’t wanna” let other people build apartments on land they own. The only real reason they do this is regulatory capture - if someone who owns land slows housing production on other people’s land, theirs is worth more.