Friday, September 12, 2014

Supply-side and Demand-side

The strongest collectivity entails the maximum well-being of each of its members.  Hence, an 'Economy' is the organized effort to satisfy fundamental needs, e. g. food, shelter, etc.  So, since the production of goods in an Economy, as defined, is determined by physiological necessity, the system can be classified as 'Demand-side', which does not preclude competition as an effective means to that end.  On that basis, 'Supply-side' Economics, i. e. in which Supply determines Demand, pertains to an inessential sphere of social activity, regardless of how refined arguments promoting it are, e. g. the Lafler Curve.  Thus, Supply-side categories should not be conflated with Demand-side ones, e. g. subsuming someone seeking life-saving medicine under the same 'Consumer' rubric as someone shopping for a Rolls-Royce.  Such confusion, rampant in contemporary United States, and is a symptom of Political weakness. 

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