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> The economy is a giant Jenga tower […] A Jenga tower is in unstable equilibrium. Push it a little bit away from its resting configuration and it collapses.
by zopa 4y ago
> The economy is a giant Jenga tower […]
A Jenga tower is in unstable equilibrium. Push it a little bit away from its resting configuration and it collapses.
The economy is in stable equilibrium, mostly, more or less. Push it by increasing the price of some commodity, which happens all the time, and buyers look for alternatives and efficiencies, which dampens the effect of the push. In all likelihood things settle in a new equilibrium not far at all from the first.
It’s a much more resilient system than you’re giving it credit for. Totally different dynamics than the party game.