Re: Chicken and the egg - Saab General Bulletin Board - Saabnet.com
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Re: Chicken and the egg
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Posted by Reality (more from Reality) on Fri, 25 May 2012 10:00:35 Share Post by Email
In Reply to: Chicken and the egg, MI-Roger [Profile/Gallery] , Fri, 25 May 2012 09:39:12
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Q: Why would Apple or FoxConn build massive production lines for building iPod/iPhone/iPad before when not a single one had been sold, and the products were mere figments of Jobs' imagination? Heck, why would he hire the designers?

A: The individual entreprenuer is very capable of discounting future profit stream forward to current cash value. That's why any investment is made. In fact, the very massive internet build-out in the 19990's proved that the private sector is capable of building infrastructure and building it much faster than governments.

Edison and Westinghouse both built electric networks on their dimes, in hopes of signing up future customers. That's how AC vs. DC was hashed out in the market place. If the government had been in the business back then building one centralized network, Edison's existing reputation would have won the day in a political hearing, and we'd probably have a DC network for households for much longer than the historical case.

CNG gas conversion kits are quite popular where/when the price ratio between the two fuels is significant. Electric "cars" are quite popular on golf courses, indoor warehouses and tourist spots. E85 fuel makes little sense as even the corn farmers are using diesel instead of E85 fuel on their own fields right there. Alleged lack of infrastructure is not the hinderance; economic calculation is. The government subsidy to loot taxpayers to subsidize what's uneconomic only serves to produce even more economic inefficiency and waste.

The very idea that a monopolistic government can discount future stream of profit into current cash value more correctly than competitive risk-taking in the market place is very much erroneous. What the government officials are good at calculating is how to maximize profitable contracts to cronies, buy votes and get away with it.

posted by 75.67.1...

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