Earlier quoted context omitted.
> the futures market should never determine if a factory is operating But what about washing machine futures ? Or more realistically, how much is shutting down the factory going to cost the washing machine manufacturer in terms of employee compensation, lost employees (more hiring and training), washing machine brand losses in the market, failure to deliver on existing contracts, and similar? They can't claim force m…
True... but that has to be compared with those same set of losses the car factory up the street will suffer if they don't get the chips... If there is only enough chips for one factory to run, someone has to shutdown and take those losses. And the shutdown factory should be the one with less to lose, not the one who didn't buy futures in time.
Economists be like "guys, your doing it wrong - not maximising profit", economy be like "nah, your theories incomplete".