New entrants into hard to enter markets that require tons of capital, resources, and time to spin up manufacturing on?

Yea, just tell everyone to hold on and wait for good times to come when they can’t afford cars or food.

Rewarding new entrants with high profit margins is a good way to get enough people to pool capital together to make it happen.

Show me how many new auto companies and farmers entered the market then to solve the supply and costing issues that we continue to have.

The theory sounds great in an Econ 101 classroom, but is problematic in practice.

I don't really know anything about cars, but you can look up the farmer thing, there's generally been a trend of farmers exiting the market (due to other factors), but this has considerably slowed down/reversed in the last few years.

There have been quite a few new auto companies gaining popularity in the last few years.

As for farming I have no idea, but I also couldn't tell you who the biggest players in that industry are either.

Chinese car manufacturers have become quite popular with their extremely cheap EV offerings. They're just banned in the US. Egg prices are back to normal after tripling last year.