Comments on: Economic oversimplication

By: irmel

irmel — Mon, 30 May 2011 10:48:41 +0000

Well, I wonder what you think as a dotcom venture – currently I´m working for a touroperator that does all of it´s sellling through internet/telephone and currently 55 people have a living off of that. So things are always more complicated than they seem

By: Jimmy Adams

Jimmy Adams — Wed, 23 Feb 2011 00:40:46 +0000

Say’s Law, correctly stated, is the foundation of all true macroeconomic principles.

Rather than expound here, please follow the link: http://wafflestreetbook.com/

By: Jacob

Jacob — Tue, 22 Feb 2011 16:50:08 +0000

@LifeAndMyFinances – Human inventiveness is a limited resource like everything else. Inventions don’t just happen because someone “needs” it. You throw money at R&D people, they start thinking about it and they may or may not succeed. No guarantee. Also, no money, no research. Research requires a very stable environment and a surplus of resources. Very little research takes place, when “supply” is low, because researchers are busy doing other things to feed themselves.

By: Julien

Julien — Tue, 22 Feb 2011 14:31:12 +0000

Actually, needs are ever present. Say’s law simply states that once one’s production increase, so does the number of goods that are available to trade to satisfy his other needs, thus driving up demand for other goods. In other words, if we promote entrepreneurs and service/goods providers (or simply let them be), they will create more efficient and productive companies, employing more people and producing wealth, which drives trade and drives the real cost of living down.

Conversely, Keynes’ law suggests that if we provide he consumer with easy, cheap credit to fuel his consumption, he will consume more and drive entrepreneurs to produce more. The problem with that approach, I believe, is that it completely distorts the market, promotes bubbles and increases costs without increasing wealth. I think the recent housing bubble is a marvelous example of Keynes’ law in action.

Then again, I am consciously oversimplifying, and am probably missing something like 3 years of grad school to really understand

By: LifeAndMyFinances

LifeAndMyFinances — Tue, 22 Feb 2011 11:34:06 +0000

I agree with Keynes’ theory. If there is no need for a product or service, then supply will not take place. If there is a need, someone will invent this item and initiate supply. Why do you think this is incorrect?

By: AlexK

AlexK — Wed, 12 Nov 2008 21:03:08 +0000

So I’m confused, are you telling us to buy or sell?

Just kididng. We need to just let the creative destruction happen. These bailouts are like slowly pulling off a band-aid, I’d rather just get it over with.