What you want is predictability and stability. The bullwhip effect of supply chain disruptions alternate between shortages and gluts, and they both cause economic damage.
Having a glut of a product or resource destroys manufacturing capability as employees get furloughed, factories shut down, and talent is lost. ...it then creates a shortage when demand picks up and so on.
Markets are good at reacting if the future is predictive, but if it is unexpected, then there is damage in both shortages and gluts.
Importantly, the more complex and deep a supply chain is, the more unpredictable and magnified the bullwhip effect becomes, even when you expect gluts/shortages. This is because every participant in the chain attempts to cushion themselves from the shocks by stockpiling and timing their sales.
In a perfect system, you are more correct than you give yourself credit for. This is not that. In case you haven't noticed, a GPU costs more than the rest of the components of a PC combined. And that's because of so-called market and or supply chain inefficiencies (which I'm supposed to, as a consumer, take on the chin).
In spite of political, personal, or professional neglect, (don't care which one) chip companies are posting gargantuan earnings YOY and seem to be doing fine.
On the other hand, my sibling can't afford a car or a non-pre-built computer.
I guess it's not clear in your post, but who exactly are we looking out for here? The furloughed talent? The "market"?
And regardless, how is that my problem?
Again, I would love to have a level headed discussion about this, but please be honest about who truly loses in an oversupplied market.
BTW, because I see this here a lot: just because the whole "it's more complicated than you think" rationale is not a commonly accepted logical fallacy, doesn't mean that it's not bullshit all the same.
Having a glut of a product or resource destroys manufacturing capability as employees get furloughed, factories shut down, and talent is lost. ...it then creates a shortage when demand picks up and so on.
Markets are good at reacting if the future is predictive, but if it is unexpected, then there is damage in both shortages and gluts.
Importantly, the more complex and deep a supply chain is, the more unpredictable and magnified the bullwhip effect becomes, even when you expect gluts/shortages. This is because every participant in the chain attempts to cushion themselves from the shocks by stockpiling and timing their sales.