Say's Law

by ZihuaRob ⌂ @, Zihuatanejo, México, Tuesday, December 03, 2019, 12:46 (694 days ago) @ Oeste Hermoso

There is an economic argument that supply creates demand. That was the basis for the Laffer Curve, supply side economics etc.

I believe it's a losing argument in this case, counselor, but you're welcome to try to make it. The only place your argument holds water is relevant to the collusion between U.S. doctors and Big Pharma cooperating to get so many hundreds of thousands of people addicted to their damn opioid pills. A uniquely U.S. situation because of their for-profit so-called "health care" system that is no such thing, especially if you're poor but not poor enough.

The "build it and they will come" approach by developers has left us with a lot of pink elephants and unprofitable ventures, Disney World notwithstanding. Now AMLO wants to build his "Tren Maya", and he claims that it has been deemed profitable by leading investment firms, but the devil's in the details. Where the profits are is in the construction. After it's built it's very unlikely it will remain profitable, but the investors will have already received their profits because they will have been paid for the construction and ancillary work. Doesn't mean the concessionaires will make any money. Personally I think it's a huge waste of resources and that tour buses can do the same thing more profitably while spreading around the wealth better.

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