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by ddxxdd 1832 days ago
Did you read the article? The lumber companies DID plan ahead using their knowledge and experience, it just turned out to be wrong.

I'm curious to see what economic system would be able to foresee a drastic increase in the demand for lumber during the pandemic-induced depression, despite all the evidence suggesting that the opposite would happen.

1 comments

That’s not how I read the infographic. I read as: wood bug ruins a bunch of trees then human speculators shorted the lumber market which caused sawmills to close. The problem here is humans being able to profit off of volatility in commodities during a crisis. I’m entertaining a solution that prevents humans from being able to do this by including built-in buffers that apply consistently and equally without human intervention.

Demand didn't skyrocket, it simply stayed the same but because humans tried to preempt things sawmills closed and boom now there’s no supply to meet the existing demand so prices skyrocketed.