From The Washington Post:
“Speaking at a coal-fired power plant in Maidsville, W.Va., on Thursday, Energy Secretary Rick Perry made a strange argument about supply and demand, seeming to confuse the relationship between two of the essential forces in the economy.
“Here’s a little economics lesson: supply and demand,” Perry said, according to Taylor Kuykendall of Standard & Poor’s. “You put the supply out there, and demand will follow.”
If Perry was suggesting that no matter how much coal the industry produces, there will be demand for it, he was clearly mistaken.”
A lot of economics “experts” out there have been getting all over Mr. Secretary for these comments. Unfortunately for them, he’s not totally wrong. There’s been plenty of times when supply creates more demand.
Let me give a few examples:
Picture this, you’re out partying all day with the guys and you’re about to call it quits. The boot and rally has already been used as a lifeline too often today and you’re out of resources. It’s time to give it up. But then a brother heroically comes flying in with your next Natty. He has increased your supply. Do you just refuse it like a chump? No chance. Suddenly your demand has increased. You grab that shit and keep it going because that’s what a true champion does.
Here’s another example for you. It’s $12 all you can eat apps at TGI Fridays. They increased the supply of food I can eat to create demand from college kids who want to go into hibernation for the rest of the day. All of that news about how college kids are ruining chain restaurants is inaccurate. They’re not going out of business because of our absence. They’re losing money because we’re going in, ordering $300 in apps, and eating them dead broke.
On syllabus day, if you go, your professor says there will be periodic pop quizzes once a week. They are increasing the supply of quizzes because they know their class sucks and nobody wants to be there. At that point, my demand for showing up to a trash 100 level history class has to match that. Or at least I will try a little harder to schedule out which days I can miss so as to continue my streak of academic mediocrity.
There’s a girl who is willing to touch your piece versus the girl who will not. Which one are you spending more time with? Increase the supply and my demand to be around you will increase as well. Simple math, ladies.
You see, Rick Perry may not be the sharpest tool in the shed and may be misinformed on many things but not this time. This time he hit the nail on the head..
[via The Washington Post]
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