Hillary: "Businesses don't create jobs" (user search)
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  Hillary: "Businesses don't create jobs" (search mode)
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Author Topic: Hillary: "Businesses don't create jobs"  (Read 3014 times)
tpfkaw
wormyguy
Junior Chimp
*****
Posts: 9,118
United States


Political Matrix
E: -0.58, S: 1.65

« on: October 26, 2014, 04:26:51 PM »

Well, duh. Jobs are actually created by savvy investments in cattle futures.
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tpfkaw
wormyguy
Junior Chimp
*****
Posts: 9,118
United States


Political Matrix
E: -0.58, S: 1.65

« Reply #1 on: October 26, 2014, 07:10:36 PM »

She's absolutely right. Consumer demand creates jobs which is not directly in businesses control.

Actually, precisely the opposite. How much demand was there for iPhones, before Apple invented them? (Or, for that matter, how did the fact that iPhones were being supplied affect demand for Blackberries?)

Introducing a supply of a good or service reveals consumer preferences and spontaneously creates an efficient market in that product. As a corollary, artificially restricting the supply of a good or service conceals consumer preferences and transfers demand to less-preferred substitutes. For example, the East German government created artificially high demand for its government-produced "Trabants" by artificially restricting the supply of all other automobiles. When those restrictions were removed, demand for Trabants instantly fell to its market level of zero, except as a novelty item.

There may have been, hypothetically, a high latent level of demand for iPhones in the year 1997, or for VW Golfs in East Germany. But that hypothetical demand could not possibly have created supply, because it was not possible to supply the hypothetically-preferred items. Price signals are revealed by supplying a product or service; the fact that there might be hypothetical demand for a product or service tells us nothing about prices.
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tpfkaw
wormyguy
Junior Chimp
*****
Posts: 9,118
United States


Political Matrix
E: -0.58, S: 1.65

« Reply #2 on: October 26, 2014, 07:50:24 PM »

She's absolutely right. Consumer demand creates jobs which is not directly in businesses control.

Actually, precisely the opposite. How much demand was there for iPhones, before Apple invented them? (Or, for that matter, how did the fact that iPhones were being supplied affect demand for Blackberries?)

A ton. The demand for cellphones was huge before the iPhone, which it supplanted, and landline phones had huge demand prior. A nice landline phone used to be a Christmas gift back in the old days.  The iPhone was created to built on consumer demand for phones that were cooler and more technologically advanced than the last.

I'm not going to bother reading the rest of your post because it derailed already.

What's the price of an iPhone in 1997? It's impossible to know, because that market did not exist. What's the price of an iPhone in 2007? $399

Supply reveals demand. It is impossible for demand to reveal supply without time travel. To claim otherwise is pure economic quackery on the same level as the labor theory of value or the ideas of Warren Mosler.

If you don't understand the economic concepts I'm talking about, I would suggest you take my word for it instead of making yourself look foolish.
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