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This story plays out so often that here should be a law about it: Supply lags demand, prices soar, everybody hears about it, everybody pours in, supply surges,
by vvrm 2y ago
This story plays out so often that here should be a law about it: Supply lags demand, prices soar, everybody hears about it, everybody pours in, supply surges, demand normalizes, supply overshoots demand, prices collapse. Already happened to software engineering, data science. Keeps happening to hardware production every few years. Sounds like AI research is headed that way too.
- ahartman00 2y ago"The boom and bust cycle is a process of economic expansion and contraction that occurs repeatedly. The boom and bust cycle is a key characteristic of capitalist economies and is sometimes synonymous with the business cycle." [1] Somewhat similar is the bullwhip effect[2], although there isnt a long supply chain for labor. 1. https://www.investopedia.com/terms/b/boom-and-bust-cycle.asp https://www.investopedia.com/terms/b/boom-and-bust-cycle.asp 2. https://www.investopedia.com/bullwhip-effect-definition-5499228 https://www.investopedia.com/bullwhip-effect-definition-5499...
- dcreater 2y agoThere is https://www.economicshelp.org/blog/glossary/cobweb-theory/ https://www.economicshelp.org/blog/glossary/cobweb-theory/