Quote:
Originally Posted by Shazam
That's a misanalysis.
The goal was to shove the traffic up. Because what would happen is that NB traffic would get stuck on the bridge, since there was exactly one NB lane, so by the time you made it to the 10 Ave lights, there was hardly any traffic. Just getting to the 24th Ave lights took forever.
$87 million was also to rehabilitate the bridge. I'm going to go on a limb and say that most of that money was for the rehabilitation and additional lane. I mean maybe the original design of the bridge shouldn't have of all things an exit lane.
I find the notion of induced demand comical. By that asinine logic all you'd have to do to make money is open a business and wait for the customers to start buying.
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To your point of induced demand your example is absolutely correct. In the absense of a business people won’t buy anything from you and the overall spending will be done somewhere else. If you open up a business some people will buy that good from you and more overall goods will be sold in the market. You hit induced demand exactly correct.
Now whether that induced demand and canabalized demand are enough to make money on your business is an open question but opening a business does create more demand and more sales for the widget being sold because access to the widget has improved.