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by EGreg 296 days ago
Also known as induced demand, and why adding a lane on the highway doesn’t help for long

https://en.wikipedia.org/wiki/Induced_demand

1 comments

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?
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