People don't just build 1 thing for a house nor can they afford a $20k failure.
If you take Fred who saves up $10k for a major purchase for his house each year.
If there is a 10% chance of a failure, then Fred will have a 53% chance of bankruptcy in 7 years.
You can't run an economy where everyone is bankrupt.
A man saving 10K per year goes bankrupt if he doesn’t spend it productively? That’s what you’re trying to say?
People don't just build 1 thing for a house nor can they afford a $20k failure.
If you take Fred who saves up $10k for a major purchase for his house each year.
If there is a 10% chance of a failure, then Fred will have a 53% chance of bankruptcy in 7 years.
You can't run an economy where everyone is bankrupt.