3 ms·

Also known as induced demand, and why adding a lane on the highway doesn’t help for long https://en.wikipedia.org/wiki/Induced_demand https://en.wikipedia.org/

• sefrost 1y ago
  I feel that I understand the leverage paradox concept, and the induced demand concept, but I don't understand how they are the same concept. Can you explain the connection a little more?
  • EGreg 1y ago
    More leverage = more productivity = more supply of good and services The induced remand for more goods and services therefore fills the gap, and causes people to work just as hard as before -- similarly to how a highway remains full after adding a lane