Willmeister said:
So a person develops a product to specificially become rich... that's interesting. That means any can become rich then. If it's this desire to make money that is what drives one to innovate, why then, the need to supply demand suddenly is irrelevant. So, necessity isn't the mother of invention after all. It's greed.
Interesting.
Interesting how you start out with a premise and come to a completely illogical solution.
We live in a world with imperfect information, and inventors aren't mind readers. Inventors sit around and try to brainstorm what they THINK people want, what they NEED.
When the inventor is correct, he ends up providing a product that has huge demand, and he's got a winner.
When he fails, such as thinking that millions of people have a
burning desire to buy petfood online, he fails, and he business goes belly up.
The investor might be driven by greed (if he is inventing for OTHER PEOPLE), but his success is driven by neccessity of the consumers of the product.
An investor might be driven by his OWN NEED, and he might invent something strictly for himself, but since he didn't consider other people, he viewpoint might be warped, such as people who think online Petfood might be a good idea and "I would use it! And surely if I like it, so too will millions more!"
Moreover, there is a further imperfection. People often don't know what they need. Was the internet a "neccessity" for the average person before 1990? No. Now, most people here can't live without it, like electricty or water.
Each time some new-fangled invention comes to the market, people have no idea if they "need it" or not, so there are always early adopters, he buy before the rest of everyone. So even bad ideas can make money, but when it appears the general population isn't picking it up, because the early adopters thought it sucked, the company is in trouble.
Your problem is you have a very binary static view of way the economy works, driven by your need to put things into rigid categories according to your limited worldview (it's all greed and fear man! And we Canadians don't have any of that, we're morally better creatures) and your need to find some chink in the armor of capitalism, which pulled us out of the jungles and brought us to the point we are at today.