Dave’s Strange and Unusual World

February 12, 2009

Market Economics

Filed under: Politics — dangrdave @ 5:03 pm

So, U.S. retail sales were shown to have grown by .9 percent in January (here).  That is because people are starting to demand more for less from merchants who traditionally gave less for more.  Simple economics explains that when demand for a thing – an overpriced thing – falls, there will exist an over-supply.  In order to sell the surplus, the price must be lowered.  Eventually, supply and demand will be equal and will reflect their true respective values.

Can it be that the economy, without a stimu-less package, is beginning to correct itself the way that it is supposed to correct itself – through simple free-market economics?  Can it be that O has been trying to ram the stimu-less package through BEFORE simple free-market economics – Adam Smith’s “invisible hand” – have had a fair chance to right themselves?  Does there also exist the possibility that our economy is so resilient that it may be able to withstand the harmful effects of the stimu-less package and right itself DESPITE O’s socialistic intrusion on its functioning, leaving room for the false public belief that O’s stimu-less package will have had something to do with a correction that would have occured anyway, ceteris paribus?

It’s something to think about…


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