Term of the day: White Elephant

One of the most interesting terms in economy is ”White Elephant” and it came from a traditional Asian practice when people that were disliked by the ruler received an white elephant (albino) which was considered sacred and it was forbidden to put it to work. Same in economy, an ”white elephant” is an asset or investment that is very costly to maintain and it is not profitable at all.

A very good example of an ”white elephant” asset is the Enron Dabhol power plant in India, that due to political reasons, was unused by the company and never made a cent of revenue to the company that built it in the middle of nowhere.

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