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A comment on Electric vehicle battery costs rapidly declining, Tesla cited as leading. Parent comment

Re:Electric vehicle battery costs rapidly declining, Tesla c... by narrator on Tuesday June 07, 2016 @05:52PM (#11858240)
This ties neatly into another common economic fallacy: That capital is homogenous. Highly productive capital equipment is specialized, and requires long lead times for its production. It cannot quickly be repurposed for other uses. Thus, it's important that demand is genuine and not the result of "stimulus" that will waste a lot of capital equipment when stimulus is withdrawn.
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Re:Electric vehicle battery costs rapidly declining, Tesla c... by Brakenshire on Tuesday June 07, 2016 @06:46PM (#11858621)
That's why you use stimulus to fill in short periods of slack up to the baseline economic capacity, but not on top. In other words, why you apply stimulus counter-cyclically. It's a good point about stimulus spending within a particular part of the economy, though.
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