alt Hacker NewsThis is how markets balance. When there is under supply prices go up and incentivize production. When there is oversupply production goes down. Prices converge on a small premium to the price of production.
This is how markets balance. When there is under supply prices go up and incentivize production. When there is oversupply production goes down. Prices converge on a small premium to the price of production.
Correct, and the argument being made here is that the convergence point on "small premium to price of production" actually sits at "unattainable for an increasing proportion of Americans."
Similar to how the convergence point on price for a platinum-bodied iPhone converges at "unattainable for enough people to support its production" and it therefore doesn't exist.
The difference being, obviously, that society can hum along just fine without platinum-bodied iPhones and it cannot hum along without housing.