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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: Ali Chen who wrote (13844)9/23/2003 3:08:16 AM
From: gpowellRead Replies (1) of 306849
 
You have a fixed pie mentality.

That may not mean anything to you, I assume you come from a different culture. You see society as divided into roles and classes with a limited capacity for wealth creation. In economic terms, you see diminishing returns to scale.

That isn't necessarily the way it works. I won't get into it on this thread but goods tend to spawn complimentary goods. Each good offered on the market is a demand for other goods, so that the successful production of a good makes other productions successful.

A growing economy follows a stochastic expansion path on which each additional production creates a market for already existing products and for the new products created at later points of time. Thus, the structure of markets tends to become more complex over time – producing increasing returns to scale.
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