Resource Bottleneck Paradox

During periods of explosive demand, the limiting factor is rarely market size or technological capability, but rather scarce boundary resources such as energy, raw materials, and talent that are not capital-intensive. When all market participants simultaneously compete for the same limited resource, the industry's total throughput becomes constrained by its weakest link—a concrete manifestation of Goodhart's Law at the resource allocation level.

Read the daily articles behind this idea on the Chinese edition.