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Of 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 pr
by wnc3141 6mo ago
Of 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.
- estearum 6mo agoCorrect -- 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!"