Post by RichardWest on Jan 10, 2022 18:51:10 GMT
I was talking to a friend recently about current prices being low. Everything is low – from research to construction units to power to aluminum. I started playing in the summer of 2020. I’m possibly wrong, but I don’t remember seeing power available at $0.233 on a regular basis ever. Prices are very, very low right now; and I think most of this can be attributed to food.
Most of the people that are currently titans in the food industry were not previously in the plantation-based sectors when restaurants came on the scene. When they brought all their capital to the food industry at the change, we saw a natural transfer of wealth from one part of the economy to another. This is nothing new to the game.
When aerospace was created, we saw a massive transfer of wealth as well. Perhaps someone was in the auto industry, and then started making planes. At the end of the day, their reliance on oil-based, bauxite-based, and minerals-based products stayed the same. Underpinning all of that, the demand for power stayed the same in general, as oil, bauxite, and minerals take a lot of power. So maybe someone went from producing tools, petrol, or construction units and started making planes. The end products changed, but they still relied on those base products.
Fast forward to late 2021, that shift works out very differently. With the introduction of aerospace, there was a shift but demand remained. Now, that person goes from making planes to hamburgers. Burgers ultimately rely on plantations, just like planes depend on rigs/mines. This was completely intended in the game design.
The unforeseen consequence of this is the structural shift in the economy. With restaurants initially being the most profitable sector for multiple months in a row, the shift was dramatic. Capital and demand flowed to the plantation sector with no return in sight. There has never been a sector introduced that relied on different base products but was the most profitable item in the game.
The person making burgers has no logical reason to invest in something outside of the inputs for burgers for the most part. Previously capital was flowing toward mines/rigs and keeping demand high. It is for this reason that I say the low prices across various sectors are structural and not cyclical. Cyclical is caused due to a change in the economy (like a recession, for example). Structural is permanent until new wealth is created.
Most of the people that are currently titans in the food industry were not previously in the plantation-based sectors when restaurants came on the scene. When they brought all their capital to the food industry at the change, we saw a natural transfer of wealth from one part of the economy to another. This is nothing new to the game.
When aerospace was created, we saw a massive transfer of wealth as well. Perhaps someone was in the auto industry, and then started making planes. At the end of the day, their reliance on oil-based, bauxite-based, and minerals-based products stayed the same. Underpinning all of that, the demand for power stayed the same in general, as oil, bauxite, and minerals take a lot of power. So maybe someone went from producing tools, petrol, or construction units and started making planes. The end products changed, but they still relied on those base products.
Fast forward to late 2021, that shift works out very differently. With the introduction of aerospace, there was a shift but demand remained. Now, that person goes from making planes to hamburgers. Burgers ultimately rely on plantations, just like planes depend on rigs/mines. This was completely intended in the game design.
The unforeseen consequence of this is the structural shift in the economy. With restaurants initially being the most profitable sector for multiple months in a row, the shift was dramatic. Capital and demand flowed to the plantation sector with no return in sight. There has never been a sector introduced that relied on different base products but was the most profitable item in the game.
The person making burgers has no logical reason to invest in something outside of the inputs for burgers for the most part. Previously capital was flowing toward mines/rigs and keeping demand high. It is for this reason that I say the low prices across various sectors are structural and not cyclical. Cyclical is caused due to a change in the economy (like a recession, for example). Structural is permanent until new wealth is created.
