Supply and Demand

My friend and I were discussing Ron Paul supporters and I pointed out that after learning the basic tenents of Adam Smith's "Supply and Demand " the Libertarians as well as the Tea Partiers and most Republicons believe themselves to be experts on economics with the sole basis for their expertise being the refrain "Free Market". In actuality the Free Maket is much like Newton's First Law of Motion , "An object in motion tends to stay in motion" which only works in a vacuum.

At this point we realized that the only place a strictly free market works is inside the minds of said Libertarians, Tea partiers, ans Republicons. If this is true then there must be vacuum inside their skull cavity. When vacuum is surrounded by non-vacuum it is the nature of the vaccum to suck.

This is scientific proof that Libertaians, Tea Partiers, and Republicons Suck.

xunergos's picture
xunergos 2 years 18 weeks ago

Once again "only in a vaccum.". By the way VACUUMS DON"T EXIST except theoretically or in small closed systems. So how can you prove your theory? You can't. You never will. So we should base our economys on unprovable theories because you want them to be true. At best the circumstances you describe are propensities of market forces as extra-normal influences approach zero. In small closed systems these are provable however in the vast system you describe their are so many extra-normal forces at play that skew the market away from it's vacuumous simplicity that in the end adherence to the concept of a "free market" seems either simpleminded or driven by a vested interest. throwing up your hands and reverting to "free market" when the complexity of multi-variate problems are overwhelming does not make it the correct answer, only the easy answer. Occams Razor may say that the easy solution is usually the correct one but it is not always the correct one

Calperson's picture
Calperson 2 years 18 weeks ago

The problem with Economic discussions today is that people tend to look at it like "physics" or "mathematics". In truth something like the US economy is a massive organism, the product of hundreds of millions of people making thousands of personal financial decisions every single day. The decision to buy this or that, or to not buy at all. Unintended and unforeseen consequences cloud all government decisions that try to steer this massive ship. The most effective and successful system is to allow the good citizens the freedom to make up their own minds about which products are best for themselves and their families. Freedom is not just an economic system but an entire outlook on life itself. In a free economy, where no man or group of men can use physical coercion against anyone, economic power can be achieved only by voluntary means: by the voluntary choice and agreement of all those who participate in the process of production and trade. In a free market, all prices, wages, and profits are determined, not by the arbitrary whim of the rich or of the poor, not by anyone’s “greed” or by anyone’s need, but by the law of supply and demand. The mechanism of a free market reflects and sums up all the economic choices and decisions made by all the participants. Men trade their goods or services by mutual consent to mutual advantage, according to their own independent, families judgment. A man can grow rich only if he is able to offer better values, better products or services, at a lower price than others are able to offer.

Wealth, in a free market, is achieved by a free, general, “democratic” vote, by the sales and the purchases of every individual who takes part in the economic life of the country. Whenever you buy one product rather than another, you are voting for the success of some manufacturer. And, in this type of voting, every man votes only on those matters which he is qualified to judge: on his own preferences, interests, and needs. No one has the power to decide for others or to substitute his judgment for theirs; no one has the power to appoint himself “the voice of the public” and to leave the public voiceless and disfranchised.

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