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So the orange line is utilization. Up here we had like 90 utilization.

Low utilization, prices will decrease.

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Allocation .. of scarce resources.

Low utilization, you have kind of the opposite situation.

So up here this is 90 utilization and then down here this is 70 utilization.

Capacity utilization is driven by demand.

This orange line represents capacity utilization.

He's only running at 25 utilization.

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So high utilization of capacity, it leads to prices increasing.

So those are the two side effects of high utilization.

And the traditional notion of capacity utilization, and this is what my brain does when someone mentions it, is I think of industrial capacity utilization.

On top of that, if they get close to fully utilization,

And capacity utilization had really preceded that.

INTERVlEWER Speaking of allocation of society's resources,

Most of them were about resources.

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So they are four critical resources you need to think about as we just we talk about their physical resources, final resources, human resources, and intellectual resources.

They wanted to get to nearly 100 percent of the energy utilization.

I'm fully utilized, right? I have 100 utilization.

It is rich in mineral resources, natural mineral resources.

The ocean affords various kinds of resources.

The resources of the earth are limited.

It's also a massive saving of resources.

Western world a quarter of the resources.

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It's resources that people need, not money. Access to resources.

In a service based economy, the best measure of utilization really is unemployment.

My answer is, just watch the capacity utilization numbers.

Capacity utilization drives inflation. We can all buy that.

Let's say it has a slight impact on utilization.

So, as long as we have a pretty high utilization and people debate on what is the level of utilization in lot of industries where it makes sense to raise prices.

A couple of days ago, I made these videos on cupcake economics, where I talked about what happens when the cupcake factories have high utilization or low utilization.

And going back to where we started this video, in terms of capacity utilization and what that might do to prices, this tells us that labor utilization is

And human resources are like natural resources they're often buried deep.

Our country is running short of energy resources.

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