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Demand crunches spur supply chain capacity improvements when the market is left alone from populist interventions.
by nfw2 3mo ago
Demand crunches spur supply chain capacity improvements when the market is left alone from populist interventions.
- throwawayqqq11 3mo agoDo you regard delusional billionaire circular funding as populist intervention too?
- CraigJPerry 3mo agoSounds like a certainty stated like that. So not like toilet paper during covid? what if the market was hard to enter? What if the inputs aren't available? What if the costs of the inputs rises? What if the capital for expansion isn't available? What if the manufacturers don't expect demand to persist? What if there's a shortage of skilled labour? What if it takes years to expand supply? What if there wasn't effective competition? I'm not sure it's as certain as you seem to claim.
- atmavatar 3mo agoWith consumer brands (e.g., Crucial) being shuttered in the wake of AI companies buying up all available RAM production capacity, it's difficult to imagine consumer RAM production even returning to normal anytime soon. It seems all but assured that it will require the AI bubble to burst plus several years to return to normalcy, particularly as RAM manufacturers have also been repeatedly caught price fixing.
- danaris 3mo agoThat only happens if the producers don't a) believe the crunch is caused by a bubble that's going to pop in a few months, or b) see the crunch as primarily an opportunity to rake in enormous short-term profits.
- surgical_fire 3mo agoAhh the "free market" fable. Like any fable it is a cute story. It is also bullshit.
- andrekandre 3mo ago> Demand crunches spur supply chain capacity improvements when the market is left alone from populist interventions. what happens when the supply is from a cartel or a monopsony?