Originally Posted by
Simon MacGowen
Does anyone know why they can't follow Econ 101 and raise the prices so demand and supply can reach an equilibrium, without asking for donations? Or, if demand is so good (and they can prove it), shouldn't a business loan for capital investment be the way to go?
Simon
Apparently, they were smart enough to skip the Econ 101 approach and go to the Econ 423 solution and raise the capital with no debt and no stings, it seems like they showed Econ 101 for what it is, a class in Macro Economics for wide eyed 18 year olds.
The intelligence of this approach remains to be seen and the long run will bear out whether they have the proper business plan in place to make efficient use of the infusion. My guess is the bulk of the donations came from (more or less) local patrons who are interested in helping a local and historic business.
Of all the laws Brandolini's may be the most universally true.
Deep thought for the day:
Your bandsaw weighs more when you leave the spring compressed instead of relieving the tension.