hoosier_daddy

much of recent production cost reductions are due to Chinese manufacturing which trade significant environmental damage for increased productivity.

This is called friction.

It is part of the Supply & Demand model. Governments and other factors add friction which impact the elasticity of supply and demand curve.

Modern Capitalist societies are not pure, governments can drive friction through regulations, fees, taxes, codes, and a million other factors.

This was a great podcast and well worth a listen. It answers most of the questions I see folks asking here.