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Comment by Straw

Why should they? If demand for X goes up, and price goes up, the whole point of the price system is to incentivize all users of X to use less and producers of X to make more.

Here's an example where the benefit is obvious:

Say I set up a desalination plant for a city with water shortages. I use a lot of electricity; this drives up electricity prices. But I also sell the more scarce water, lowering the price of water. If I make more selling the water, then to first order I'm helping people overall- they value the water more than the electricity. Perhaps I put other, less efficient desalination plants out of use, or simply other uses of electricity that people value less than the water I provide.

parent Straw 3 months ago

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