Monday, October 22, 2012

Demand, not supply, drives capitalism

No serious business will expand based on having money to invest. The extra capacity would increase costs. Only when there is demand for that extra capacity will business expand. It seems obvious, but we still hear lots of supply-side talk about giving the "job-creators" more money.

The fossil-fuel industry is responding to very strong demand. Billions of people want to live the sprawl lifestyle. Attacking the fossil-fuel industry is not a solution. We must create an alternative.

If we make cities car-free, clean, and safe, people will choose them over sprawl. The first step is to make buses fare-free.