John's Laundromat Theory of Economics
After WW II, many veterans returned and started families. Many of those attending schools on the GI bill and others not attending schools lived in apartments or dorms which lacked in unit washer and dryers. An entrepreneur built a Laundromat in an area and did very well. Enough to buy a Cadillac, a second car for his wife and maybe a small boat. Seen by others as a good way to make money, soon a second person built a Laundromat. As the market hadn't substantially increased the new capacity gave the same customers a choice of which one to use. Any sane person can see this option reduced the profit generated by the first one. While continuing to operate, the first in town no longer can afford the boat and second car for his wife and the second one can only afford his Cadillac. After a third person built a laundromat, the money generated no longer paid a decent return on investment nor covered a reasonable wage for the entrepreneurs and they either closed, reduced maintenance or sold them to people willing to work for less. This theory holds true in all businesses be they steel mills, shopping centers, box stores for building supplies, or maritime companies.
We won't discuss what happens if government loans and grants are thrown into the scenario. John in Lansing, ILL
