> Normally this wouldn't be a problem: prices would go up, supply would eventually increase and everybody would be okay.

This sounds like economic dogma based on pointing at some future equilibrium.

I like the saying that goes something like "life is what is happens when you are waiting for the future". In the same way, it seems to me that equilibrium is increasingly less common for many of us.

Markets are dynamic systems, and there are sub-fields of economics that recognize this. The message doesn't always get out unfortunately.

> But with AI being massively subsidized by nation-states and investors, there's no price that is too high for these supplies.

This feels like more dogma: find a convenient scape-goat: governments.

Time to wake up to what history has shown us! Markets naturally reflect boom and bust cycles, irrationality of people, and various other market failures. None of these are news to competent economists, by the way. Be careful from whence you get your economic "analysis".

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pixl97 2 hours ago | parent [-]

Yes, this is why the prices of housing has dropped dramatically. The market stepped up and filled the demand needed and now everyone can afford a place to live

.....

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torton 21 minutes ago | parent | next [-]

The housing market is a textbook example of the opposite of a free market. In most markets, anything that does not "improve the character of the neighbourhood" is impossible to build by design.

	▲	pixl97 11 minutes ago \| parent [-]
		Most chunks of the computing market should be thought of as a text book example of a 'free' market that operates with collusion with the few well monied "competitors" ensuring they don't put each other out of business. Lets say you wanted to jump into the hard drive producing market. It's going to take you a few years to get there and a lot of billions of dollars. By the time you're close to producing units the existing players will suddenly drop the prices to the point where you cannot produce profits for as long as they need to. Aka, your competitors can collude longer than you can remain solvent. And yes, in two decades you will win the court case against them. And other than a fine nothing will happen because they're are so few manufactures that they are too big to fail.

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xpe 2 hours ago | parent | prev [-]

I can't tell if the comment is above is sarcastic or serious: it could go either way.

	▲	pixl97 2 hours ago \| parent [-]
		This is 100% serious as it has not gone this way in the US. Housing prices keep going up in general and NIMBYism has stopped a massive amount of density growth.