What's worse, I hear this awful argument deployed under the flag of a cause I believe in: more public transport, less roads. Guess what? If we deploy more public transport, I bet people will use it more, too! Does that mean we shouldn't? Ugh. It's so dumb it almost feels like it has to be a false flag, but I've heard it from people who I know believe what they say, so I think it's just a meme at this point. A pejorative that people throw at cars without thinking about what they are saying.
"Cars are bad at scaling throughput" is the argument we need. Not this "induced demand" garbage.