3 ms·
On the one hand, this is technically true. On the other, this is effectively because the gains to such a large windfall cannot be captured by a single entity: A
by cwillu 4y ago
On the one hand, this is technically true. On the other, this is effectively because the gains to such a large windfall cannot be captured by a single entity: Aluminium becoming so cheap as to become a nearly disposable material is a massively _good_ thing.
It's not inconceivable that having platinum become plentiful might also be such a boon.
- kibwen 4y agoSure, but using aluminum as an example, if we take the modern production of aluminum (as a proxy for underlying demand) and multiply by the price of aluminum in the 1800s (when it was so incredibly precious that it was chosen to cap the Washington Monument), we would expect the modern aluminum industry to have revenues of around $100 trillion, or about 1000x what it actually has. The point is just that one cannot assume a resource extraction industry's future profitability without taking into consideration how increased supply will also lower the price of the product.
- actionfromafar 4y agoHow much economic benefit / efficiency did aluminium bring vs had it not existed? Impossible to tell, but a ton more than what aluminium industry pulls in.