|
|
 Originally Posted by a500lbgorilla
Tyler's brother very cleverly understood supply and demand. He showed it when he once deflated the supply and inflated the demand for aluminum by buying up huge orders of them and putting them in storage.
It's a neat fantasy, but it doesn't actually work. Consumers (and producers) move to alternatives. The long run supply of aluminum is higher than otherwise while the long run supply of alternatives is lower (not accounting for growth of both from innovation). Engagement diamonds are the closest real world example we have to your illustration, but it isn't analogous since the high cost is the allure. Besides, the greater the "natural" demand for aluminum, the more your supply restrictor loses when he doesn't sell. It's just like how the best way to punish racists is to keep it legal for them to hurt themselves by not hiring or servicing productive/paying black people.
Your tycoon sounds like more of a bad businessman who needs a good market to kick his ass.
|
Reply With Quote