The toilet paper thing didn't really happen though because there is so much shit people can produce at a time and the demand never increased if you scaled it to a 2 weeks period. There was enough stock in warehouses that 3 days later every store had a full stock again and the prices never increased.
Did we live through the same pandemic? At least where I live, there was shortages for weeks, and scarce for months.
There was a real manufacturing shift that had to happen in the transition from commercial toilet paper to residential, which is made by totally different machines. The problem was real. It’s just that someone, seeing that real problem, triggered a panic buy that resulted in cleared shelves and a misallocation of the actual supply, making everything worse for everyone.
In the present case, OpenAI just took 40% of the world’s supply off the market. That is massive, and will have implications for RAM availability for many industries. As a result, every other company immediately bought up as much supply as they could.
Cars during Covid is probably the closer comparison, actually. A combined supply-drop followed by demand-shock resulting in skyrocketing prices and empty inventory.
Perhaps a quantity below "a single company causes enough of a spike in global demand that it'll have demonstrable impact in nearly every single industry"
And usually trade regulators would be the entity to start being concerned.
I assume you're on a quest to assert a "let a completely unregulated free market roar" position, but do recognize that global supply issues of critical components have negative market effects, especially when it'll have some impact on nearly every industry except perhaps lawn care.
> I assume you're on a quest to assert a "let a completely unregulated free market roar" position
No. I’m genuinely curious, because I agree with you about how critical these components are. I ask because it doesn’t seem to me like the answers are immediately straightforward and wanted to hear serious replies to those questions.
How much is too much? It’s like porn: you know it when you see it.
Basically one company (or a cabal of companies) shouldn’t be allowed to exert enough market-moving pressure on inventories as to disrupt other industries depending on this supply.
Sam Altman masterfully negotiated a guaranteed supply of chips for OpenAI, and there is nothing wrong with that, by itself. But there are now a dozen other industries getting rekked as collateral damage, and that shouldn’t be something one man or one company can do.
> The toilet paper thing didn't really happen [...]
Yes, it did.
> [...] because there is so much shit people can produce at a time and the demand never increased if you scaled it to a 2 weeks period. There was enough stock in warehouses that 3 days later every store had a full stock again and the prices never increased.
No, there wasn't in lots of places, and demand for the kind of toilet paper that fits on home dispensers did increase (and demand for the kind of big rolls used exclusively in institutional settings decreased, and shifting between those two for manufacturing is not quick), and there were extended supply issues in many places. (This was certainly true where I lived, but I would expect it had lots of regional variance, because supply chains are regional, the share of workers that were moved home because of either the practicality of remote work or workplaces being shutdown varied regionally because of both policy and industry differences, and because the share of workplaces that use industrial style TP vs TP compatible with home style dispensers probably also varies considerably.)
I literally had a friend mail us a crate of TP in our time of need. Thankfully they had access to industrial suppliers.
Though you're right that the prices didn't skyrocket, as that would have been considered price gouging during an emergency, which would have been PR suicide at a minimum if not actually illegal.
