Esim - The U.S. Market - Stock Companies flood market with unsold goods/drastic price drop
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Hey America. Attuma here. Sorry I haven't been posting articles in the last month. I haven't had time due to real life issues.

Now, I wanted to talk about the new stock market module and its current effect on the product market.


As you may know, the price of products has drastically dropped. This may be good to you. It may be bad to you. But to the total well-being of the US economy in the long-run, this drop is awful.

You may also know the cause of this price drop. If you would see the product market and look at any of the raw material items being sold, you may notice a raise in the number of items being sold. Over-production is the cause. In this case, multiple quality 5 companies producing at a full rate. This isn't a problem. Not by itself. If you take a closer look, you may notice that the number of people selling over a 1000 goods at once has increased. Low demand is the cause. In this case, not enough people are buying that product. This is a problem, even by itself. But add over-production in, and you speed up the process. More goods are made than bought. And this will eventually lead to the effect of mass price deduction.

Let's say their were 3 companies, A, B, and C. They are all iron companies. They are producing at a high rate, but not many people are buying their goods. To counter this, A reduces the price of his iron. People now buy his stuff. B notices that sales have utterly stopped. Then he sees all the business happening at A. Investigating, he finds that A reduced his price. So B copies this move, but lowers the price even cheaper. C then notices his sales stopped, sees all of the business at B. finds out about the price of B's iron has dropped, and mimicks B's move, going even cheaper.

Previous article:
The U.S. Market - The Iron is Ours! (13 years ago)

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