▲ | sefrost 6 days ago | |
I feel that I understand the leverage paradox concept, and the induced demand concept, but I don't understand how they are the same concept. Can you explain the connection a little more? | ||
▲ | EGreg 6 days ago | parent [-] | |
More leverage = more productivity = more supply of good and services The induced remand for more goods and services therefore fills the gap, and causes people to work just as hard as before -- similarly to how a highway remains full after adding a lane |