12 ms·
What you describe is called in engineering, a whipsaw, and when whipsaws get too chaotic they tear the machinery apart. When you stop taking it personally, and
by trod1234 1y ago
What you describe is called in engineering, a whipsaw, and when whipsaws get too chaotic they tear the machinery apart.
When you stop taking it personally, and ask yourself how and why these business leaders were able to do this and continue doing it for decades, you'll eventually narrow in on the fact that money-printing has played a critical role.
Then ask yourself what happens when legitimate producers who are immediately constrained by a loss(profit) function face off against producers who are unconstrained (through non-reserve debt issuance with loans out 100 years).
What happened to all the local video rental places after Blockbuster? What happened to all the local SuperMarts after Walmart? What happened with Food Deserts?
Large well funded companies came in, slashed prices under where it was profitable, and outspent until competitors shut down. There is a reason since the 70s business growth/adoption plans follow the same curves as ponzi schemes.
Until the fuel that drives the cycle is removed, no change can be expected; and if we are being honest, the people making these choices aren't the brightest people in the room.
Every producer requires labor, but some use their unconstrained nature to manipulate the factor markets towards wage suppression. This creates untenable whipsaws eventually.