Rick Perry: "You put the supply out there and the demand will follow"
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  Rick Perry: "You put the supply out there and the demand will follow"
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Author Topic: Rick Perry: "You put the supply out there and the demand will follow"  (Read 1491 times)
Skunk
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« Reply #25 on: July 07, 2017, 01:33:22 AM »


The most terrifying thing in this entire thread thus far.
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mencken
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« Reply #26 on: July 07, 2017, 01:39:57 AM »


The demand is not necessarily for the good or service that particular business happens to be selling.
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Crumpets
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« Reply #27 on: July 07, 2017, 02:10:43 AM »

Hence why everyone in the Soviet Union owns multiple sewing machines and why 1987 was the year they really turned their economy around. Smiley
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pbrower2a
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« Reply #28 on: July 07, 2017, 02:18:06 AM »

Having thought about this a bit further, I can see idea behind Say's Law.  The neoclassical view is that the only way to grow an economy operating at full potential output in the long run is to increase its productive capacity.  This can be through additional or better plant and equipment, it can be through (hopefully) a more educated or more skilled work force, it can be through better infrastructure or it can be through successful new techniques (for instance, the automation of the assembly line, or before that, the non automated assembly line, and before that the use of standardized parts.)

Beyond any question, productivity is essential to solving some basic problems. But with that productivity one must have a market to decide what to produce -- and just as importantly, what not to produce. Commies were able to rush through the early stages of industrial development, only to get stuck there producing stuff nobody wanted. The central planners of the USSR and other related entities made great mistakes in connecting production with human desires.

But as we enter an era of surplus in almost everything, we might no longer solve many problems with greater productivity.

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What happens is that those who make money (workers and suppliers) themselves get funds for buying stuff.  But just because I work in a pharmaceutical facility that produces insulin does not mean that I will buy it if I am not a diabetic.

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Under the circumstances, all that could save 'coal' as an industry is subsidies from the government or mandated use contrary to market costs.
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mvd10
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« Reply #29 on: July 07, 2017, 02:24:16 AM »


This. Quick poll: Everyone who thinks Perry had Say's Law in mind raise your hand. <crickets>

Everyone who thinks he was just relying on good old discredited supply side theories now raise em'

The vote is unanimous (among anyone with an IQ greater than a toad).

When I read the title I immediately thought about Say's law so I hope the US secretary of energy and former governor of Texas atleast has some basic knowledge about economics...

But yeah, Say's law has been discredited in the 30s and I believe the Austrians are the only ones who still believe it. Let's just be moderate hero's and agree on the fact that supply sometimes can create demand and demand sometimes can create supply.


Say's law doesn't say that this counts for every market though. Overproduction in some markets can be compensated by shortages in other markets. The only thing that doesn't happen is a general glut. Which is why even Say's law wouldn't have saved coal (like Adam said).
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Torie
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« Reply #30 on: July 07, 2017, 05:39:11 AM »


This. Quick poll: Everyone who thinks Perry had Say's Law in mind raise your hand. <crickets>

Everyone who thinks he was just relying on good old discredited supply side theories now raise em'

The vote is unanimous (among anyone with an IQ greater than a toad).


I take my cue from this squib in the article: "It isn't entirely clear what Perry meant -- and the Department of Energy did not respond to a request for clarification ... "

And my opinion when it comes to Perry, is that it really isn't worth one's time to try and find out what he meant. Perhaps he was trying to elucidate the substitutability of goods concept.  One thing that is clear is that Perry would make for a very poor lawyer. Who knew? 
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Alabama_Indy10
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« Reply #31 on: July 07, 2017, 09:37:27 AM »

When you think about it, it's kinda true regarding trends. Who knew you needed a fidget spinner until they were made you saw everyone else with one.
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Badger
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« Reply #32 on: July 07, 2017, 07:54:10 PM »

When you think about it, it's kinda true regarding trends. Who knew you needed a fidget spinner until they were made you saw everyone else with one.

You didn't quite win the thread with that post, but you at least get bronze. Smiley
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Indy Texas
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« Reply #33 on: July 07, 2017, 09:00:52 PM »

Hence why everyone in the Soviet Union owns multiple sewing machines and why 1987 was the year they really turned their economy around. Smiley

Secretary Perry will soon be announcing higher coal quotas for President Trump's 2018-2023 Five Year Plan.

Any miner who exceeds his per capita quota will be awarded the Andrew Jackson Star of Freedom, given a bonus equivalent to a year's wages, and given preferential entry for his children to study mining and metallurgical engineering at the state university of their choice.
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Alabama_Indy10
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« Reply #34 on: July 07, 2017, 10:15:46 PM »

When you think about it, it's kinda true regarding trends. Who knew you needed a fidget spinner until they were made you saw everyone else with one.

You didn't quite win the thread with that post, but you at least get bronze. Smiley

Woo hoo! I will now accept my accolades Smiley
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