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What happens when the citizens of say, Stockton, can't afford to pay the rates citizens of Mountain View are willing to pay? Does their town just die?
by brewdad 4y ago
What happens when the citizens of say, Stockton, can't afford to pay the rates citizens of Mountain View are willing to pay? Does their town just die?
- singron 4y agoIs water $100/gallon in this scenario? What is the price of water where you would decide you aren't willing to pay and society isn't already some post-apocalyptic hellscape? This is the same reason we don't contemplate heating fuel prices suddenly rising 1000x until entire towns die in their homes from hypothermia. That event would imply the kind of prior economic collapse that makes guns a lot more valuable than money. In reality, scarcity causes a minor rise in price, some less valuable demand becomes infeasible (e.g. alfalfa), some alternative supplies become more feasible (e.g. loss-reduction, desalination, long distance transport), and the price reaches equilibrium well before the point where we start killing each other.