https://www.yahoo.com/news/rick-perry-hi...58820.html

Quote:Here’s a little economics lesson: supply and demand. You put the supply out there and the demand will follow,” Perry said, according to Market Intelligence reporter Taylor Kuykendall.

Another great hire by the president.

Not his best day.

The guy on Yahoo is the one who gets it wrong. His very words:

Quote:The law, of course, states that as supply increases the price will tend to drop

And what will happen when prices drop? People will use more and thus demand will increase.

We have seen this time and again with gasoline. Supply increases, prices fall and people drive more increasing demand.

Here's a suggestion CB. Don't rely on some Yahoo guy to tell you what to think. Do it for yourself.

wow, yeah.... the writer is a moron

First lets note that he's the Energy Secretary, not secretary of education and he's speaking at a coal plant and not about economics in general.

Second, when it comes to energy, put the supply out there (whether it be coal or gas or solar) and the demand will follow. This is precisely the business model for electric cars etc... but suddenly when Perry says it about coal, he's an idiot.

Even though everyone else in the world mocked the statement for its wrongness I knew before coming here that y'all would be defending it.

(07-07-2017 09:50 AM)tennis2k4 Wrote:  Even though everyone else in the world mocked the statement for its wrongness I knew before coming here that y'all would be defending it.

1) everyone in the world also mocked 'the earth is round' at one point. Popularity doesn't equal 'correct'.

2) most of the people mocking it are doing so only for humor or snark. Such is our world today.

3) the AVERAGE person in the world is a moron who wouldn't understand basic economic anyway... hence the drive for higher income taxes on the wealthy without considering that they already avoid these taxes and a $15 min wage without any consideration about companies reducing employment

If 'what everyone else things' is where you derive your economic lessons from, you're lost.

(07-07-2017 10:07 AM)Hambone10 Wrote:  

(07-07-2017 09:50 AM)tennis2k4 Wrote:  Even though everyone else in the world mocked the statement for its wrongness I knew before coming here that y'all would be defending it.

1) everyone in the world also mocked 'the earth is round' at one point. Popularity doesn't equal 'correct'.

2) most of the people mocking it are doing so only for humor or snark. Such is our world today.

3) the AVERAGE person in the world is a moron who wouldn't understand basic economic anyway... hence the drive for higher income taxes on the wealthy without considering that they already avoid these taxes and a $15 min wage without any consideration about companies reducing employment

If 'what everyone else things' is where you derive your economic lessons from, you're lost.

the ancient greeks knew the world was round and western civilization even during the time of columbus knew the world was round. you literally can't have any real naval infrastructure without understanding the world is round. you appear to be banking on a myth that completely butchers history and taking that as fact.

(07-07-2017 09:50 AM)tennis2k4 Wrote:  Even though everyone else in the world mocked the statement for its wrongness I knew before coming here that y'all would be defending it.

So you're saying that when gasoline supplies increase, and prices at the pump fall, people won't drive more.

Another example. Do you think that Las Vegas would have all that neon if it weren't for the power generated from the Hoover Dam? The supply came first. There are also many cases where manufacturing plants chose to locate near hydro power because it was less expensive.

As Salon wrote:

Quote:modern economists who argue that supplying a product does not necessarily create demand for it.

And therein lies the fallacy. It may not necessarily create demand but in the case of energy, the facts are that it does.

(07-07-2017 09:36 AM)LeFlâneur Wrote:  The guy on Yahoo is the one who gets it wrong. His very words:

Quote:The law, of course, states that as supply increases the price will tend to drop

And what will happen when prices drop? People will use more and thus demand will increase.

We have seen this time and again with gasoline. Supply increases, prices fall and people drive more increasing demand.

Here's a suggestion CB. Don't rely on some Yahoo guy to tell you what to think. Do it for yourself.

LOL
So the price of gas determines how much I use. Sorry, I'm not sure it works like that. Guess I'm not going to drive to work because the price of gas is too high. Or maybe I want plan a trip because it's possible the price will go back up. When I plan a trip the price of gas isn't a factor. No one can predict gas prices. The best you can do is seek a cheap gas station. Just came back from Oregon where the price of gas is still high compared to Alabama. Didn't stop me from driving around to see the sights. If I couldn't afford to go, I wouldn't go. Period.

(07-07-2017 10:21 AM)cb4029 Wrote:  

(07-07-2017 09:36 AM)LeFlâneur Wrote:  The guy on Yahoo is the one who gets it wrong. His very words:

Quote:The law, of course, states that as supply increases the price will tend to drop

And what will happen when prices drop? People will use more and thus demand will increase.

We have seen this time and again with gasoline. Supply increases, prices fall and people drive more increasing demand.

Here's a suggestion CB. Don't rely on some Yahoo guy to tell you what to think. Do it for yourself.

LOL
So the price of gas determines how much I use. Sorry, I'm not sure it works like that.

Working in the auto insurance business, I can tell you it works EXACTLY like that.

Actually, the writer and Perry can both be right. The law of supply and demand are heavily dependent upon each other and are thus NOT mutually exclusive. It's seen more readily in microeconomics because the intro macro course tends to focus almost exclusively on the demand side only. Rick Perry may very well be correct OR, he may be wrong. Since this was a political speech, he's "close enough". What is not taken into account are other economic factors such as price elasticity and whether a good is thought of as a superior or inferior good. On top of that, new products that are brought to market can be supply driven OR demand driven. Some companies will create such an innovative product that no one thought possible and based on available supply the demand will follow. I believe the original smart phone was a newly designed product that created its own market. Wouldn't that be supply seeking out demand? In fact, I think tech is typically a supply lead product more often than not - especially new inventions and/or innovations.

(07-07-2017 10:23 AM)UofMstateU Wrote:  

(07-07-2017 10:21 AM)cb4029 Wrote:  

(07-07-2017 09:36 AM)LeFlâneur Wrote:  The guy on Yahoo is the one who gets it wrong. His very words:

Quote:The law, of course, states that as supply increases the price will tend to drop

And what will happen when prices drop? People will use more and thus demand will increase.

We have seen this time and again with gasoline. Supply increases, prices fall and people drive more increasing demand.

Here's a suggestion CB. Don't rely on some Yahoo guy to tell you what to think. Do it for yourself.

LOL
So the price of gas determines how much I use. Sorry, I'm not sure it works like that.

Working in the auto insurance business, I can tell you it works EXACTLY like that.

This is so basic it is terrifying folks don't get it.

It's damn near impossible to defend Rick Perry's intellect.

(07-07-2017 10:42 AM)miko33 Wrote:  Actually, the writer and Perry can both be right.

Actually they can't.... Perry's premise doesn't discount the writers... The writer's premise discount's Perry's.

Said differently... the moment he implies that Perry is wrong, you can't then say that they both can be right.

It's a minor correction but it goes to the nature of discourse in this country... where you can't merely have a different perspective than someone else, but they have to be 'wrong' in order for you to be right... or something has to be true literally 100% of the time in order for someone to imply that it is a generally accepted fact.


Case in point:

(07-07-2017 10:15 AM)john01992 Wrote:  

(07-07-2017 10:07 AM)Hambone10 Wrote:  1) everyone in the world also mocked 'the earth is round' at one point. Popularity doesn't equal 'correct'.

2) most of the people mocking it are doing so only for humor or snark. Such is our world today.

3) the AVERAGE person in the world is a moron who wouldn't understand basic economic anyway... hence the drive for higher income taxes on the wealthy without considering that they already avoid these taxes and a $15 min wage without any consideration about companies reducing employment

If 'what everyone else things' is where you derive your economic lessons from, you're lost.

the ancient greeks knew the world was round and western civilization even during the time of columbus knew the world was round. you literally can't have any real naval infrastructure without understanding the world is round. you appear to be banking on a myth that completely butchers history and taking that as fact.

So once again, you add words to what i said in order to create a pointless argument?

My comment was in response to Tennis' opinion that the only people IN THE WORLD who aren't mocking Perry's comments are on this forum. Unlike you, I didn't feel the need to correct something so demonstrably untrue (there are hundreds of blogs where the same conversation is taking place) because I don't parse words when I know very clearly what someone meant... but instead chose to take issue is with his implied characterization that 'popularity' of an opinion (whether it is 'everyone else' or 'the majority' or whatever else) somehow matters to it's veracity.

Your pedantic correction actually proves my point... I didn't put any time constraint on my comment so the fact that Columbus's belief was widely held at the time doesn't in any way disprove that he was mocked for his belief... and despite their mocking, he was right. It doesn't have to be 'everyone' because I didn't say anything about Columbus OR the ancient Greeks.

Same here... despite the mocking of what Tennis erroneously describes as 'everyone else in the world', Perry is generally correct.

of course, rather than discuss the topic, you attack me on this pointless drivel.

I think he was thinking about his college days.

"Girl, you put that supply out there. Da man will follow."

(07-07-2017 10:07 AM)Hambone10 Wrote:  

(07-07-2017 09:50 AM)tennis2k4 Wrote:  Even though everyone else in the world mocked the statement for its wrongness I knew before coming here that y'all would be defending it.

1) everyone in the world also mocked 'the earth is round' at one point. Popularity doesn't equal 'correct'.

2) most of the people mocking it are doing so only for humor or snark. Such is our world today.

3) the AVERAGE person in the world is a moron who wouldn't understand basic economic anyway... hence the drive for higher income taxes on the wealthy without considering that they already avoid these taxes and a $15 min wage without any consideration about companies reducing employment

If 'what everyone else things' is where you derive your economic lessons from, you're lost.

they're completely lost like a whisper....

(07-07-2017 09:36 AM)LeFlâneur Wrote:  The guy on Yahoo is the one who gets it wrong. His very words:

Quote:The law, of course, states that as supply increases the price will tend to drop

And what will happen when prices drop? People will use more and thus demand will increase.

We have seen this time and again with gasoline. Supply increases, prices fall and people drive more increasing demand.

Here's a suggestion CB. Don't rely on some Yahoo guy to tell you what to think. Do it for yourself.

It would also increase savings in some areas, which is a huge issue in America right now. We don't really save that much as a society.

(07-07-2017 12:36 PM)Hambone10 Wrote:  

(07-07-2017 10:42 AM)miko33 Wrote:  Actually, the writer and Perry can both be right.

Actually they can't.... Perry's premise doesn't discount the writers... The writer's premise discount's Perry's.

Said differently... the moment he implies that Perry is wrong, you can't then say that they both can be right.

It's a minor correction but it goes to the nature of discourse in this country... where you can't merely have a different perspective than someone else, but they have to be 'wrong' in order for you to be right... or something has to be true literally 100% of the time in order for someone to imply that it is a generally accepted fact.


Case in point:

(07-07-2017 10:15 AM)john01992 Wrote:  

(07-07-2017 10:07 AM)Hambone10 Wrote:  1) everyone in the world also mocked 'the earth is round' at one point. Popularity doesn't equal 'correct'.

2) most of the people mocking it are doing so only for humor or snark. Such is our world today.

3) the AVERAGE person in the world is a moron who wouldn't understand basic economic anyway... hence the drive for higher income taxes on the wealthy without considering that they already avoid these taxes and a $15 min wage without any consideration about companies reducing employment

If 'what everyone else things' is where you derive your economic lessons from, you're lost.

the ancient greeks knew the world was round and western civilization even during the time of columbus knew the world was round. you literally can't have any real naval infrastructure without understanding the world is round. you appear to be banking on a myth that completely butchers history and taking that as fact.

So once again, you add words to what i said in order to create a pointless argument?

My comment was in response to Tennis' opinion that the only people IN THE WORLD who aren't mocking Perry's comments are on this forum. Unlike you, I didn't feel the need to correct something so demonstrably untrue (there are hundreds of blogs where the same conversation is taking place) because I don't parse words when I know very clearly what someone meant... but instead chose to take issue is with his implied characterization that 'popularity' of an opinion (whether it is 'everyone else' or 'the majority' or whatever else) somehow matters to it's veracity.

Your pedantic correction actually proves my point... I didn't put any time constraint on my comment so the fact that Columbus's belief was widely held at the time doesn't in any way disprove that he was mocked for his belief... and despite their mocking, he was right. It doesn't have to be 'everyone' because I didn't say anything about Columbus OR the ancient Greeks.

Same here... despite the mocking of what Tennis erroneously describes as 'everyone else in the world', Perry is generally correct.

of course, rather than discuss the topic, you attack me on this pointless drivel.

well he should have been mocked. he was wrong and he went against the scientific consensus of both 1492 and 2017 and refused to admit he was wrong even when faced with overwhelming scientific evidence he still went to his deathbed believing otherwise.

columbus did not prove nor convince the world that the world was round. the greeks proved that and western europe had long accepted that. He believed the world was 1/4th the size that the greeks accurately measured it to be so IDK how you can say he was "right."

His comments actually explain the success of the iPhone.

In a commodity like oil...The price can indeed affect demand. Customers that have previously shifted to competitive "alternative" energy sources will most likely return to cheap oil products if the price drops enough to justify it. This is what I believe Perry was addressing..but..he did not do a very good job of relaying that though IMO.