Wealthion · Monday, August 31, 2026
The speaker argues that adaptation is not a viable solution for managing supply constraints or deficits. Instead, the default mechanism for market clearing in such situations is demand reduction, which can occur through significantly higher prices or logistical limitations.
“But the bottom line, the part that I think your viewers and investors need to understand is that adaptation is not a solution.”
“And ultimately the solution is, you make the constraint go away, which doesn't mean you ever go back to where you were, or you cut the demand.”
“and the answer is no, they never do because the default is demand reduction.”