this post was submitted on 30 Apr 2026
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Ok I think I get it now, it is basically the flaw behind resource allocation through capitalism. The cost of supplying these mining towns does not match their ability to pay for those supplies after the mine goes bust. Do I have that right?
Functionally, yeah.
There's a virtuous cycle of commerce that can emerge out of a professional services or manufacturing sector if people are willing to invest in it. But if you see the economy as extractive, you stop putting money in as soon as you assume there's no more wealth to pull out.
Its an interesting way to frame the problem compared to how it might be typically framed as "not enough jobs" or "wages aren't high enough" or the new favorite among Canadian politicians of a "productivity crisis"