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Your example of solar energy is true if solar energy is kept only to houses, but maybe in the process of massive production of solar panels, those panels will h
by S4M 12y ago
Your example of solar energy is true if solar energy is kept only to houses, but maybe in the process of massive production of solar panels, those panels will have been made more efficient, making it possible to use solar energy to (partially) power different things - for example trains, planes or cars (I have no clue if that would be possible) - creating a continuous demand for solar panels.
- x1798DE 12y agoWell the point is that it's a knowledge problem of how to best allocate resources. It's certainly possible that it wasn't an over-investment writ large just because a given company went out of business, but the point I was trying to make was that, because post facto you ignore sunk costs, from the perspective of someone coming around after a bust, there's all of a sudden a whole bunch of "free" infrastructure that they can build from, but this can lead you to the incorrect conclusion that it was a good idea to build all this infrastructure in the first place (and thus something you'd want to happen again). What you're actually doing is reducing the dead-weight loss from over-investment by utilizing the leftover assets, chances are it won't be a net positive, overall.