alt Hacker NewsOf its still profitable to do so, considering opportunity costs for the capital, firms will continue to build. However, it's so expensive to build that these project wind up not becoming bankable very quickly. I think that's the underlying issue that needs to be addressed.
Correct -- this is what I'm pointing to.
The problem is the cost of inputs. Classic Baumol's disease. We cannot escape Baumol's disease by just saying "hurrr durr just gotta get people to finance projects into a market with falling prices!"