when efficiency goes up, consumption also goes up. In other words,
when something gets better, easier, more efficient, demand goes up.
Why does this matter? Because it explains why technology enables
better products that don’t just serve existing demand better but
also radically induce more demand.
My favorite example is TikTok. Among many other things, TikTok
improved the distribution efficiency of contents. This resulted in
increased demand and consumption of content and, as a result,
more creators and suppliers of content.