Comment by usefulcat
11 days ago
Economically, producing less to start with is not very different from what is currently done, destroying excess inventory. Therefore I don't think it's at all a given that prices will go up.
11 days ago
Economically, producing less to start with is not very different from what is currently done, destroying excess inventory. Therefore I don't think it's at all a given that prices will go up.
Destroying the inventory has a cost though.
Setting up the production line is the expensive part, firing things off it once it’s running is what’s cheap.
Storing stock is very expensive too.
This incentivizes what’s happening if you’re making cheap clothes.