What "Supply and Demand" have to do with "Capitalism":

Discussion in 'Economy' started by rdean, Oct 11, 2011.

  1. rdean
    Online

    rdean rddean

    Joined:
    Aug 9, 2009
    Messages:
    60,066
    Thanks Received:
    6,882
    Trophy Points:
    1,840
    Location:
    chicago
    Ratings:
    +14,908
    [​IMG]

    Features of capitalism
    In a capitalist system private households need goods. They buy these goods from the income that they have. Some households have more income than others. Sometimes only one member of a household has a job, at other times both husband and wife go to work. Then they have more money to buy goods. This is the demand side of the economy.

    On the other side companies and businesses offer private households goods and services. They produce the goods that they think consumers will want to buy. To do this they need workers to produce these goods and services. This is the supply side of the economy.

    Companies and households get together at markets. Here they exchange goods, services and jobs (labour). A market is a place where people buy and sell things. In a capitalist society the prices of goods, services and labour are determined by supply and demand. If a lot of people want to buy a certain product its price will go up. Products that are mass produced usually have low prices.

    Capitalism | How governments regulate the economy | Supply and Demand | History of Capitalism

    English-Online
    Articles in Easy, Understandable English for Learners


    I found this especially for "anti science" and "anti education" USMB Republicans who don't believe that anyone who says "Supply and Demand" understands "Capitalism".

    I really believe they are worth "salvaging". They just need a little education and then their positions can possibly become "coherent".

    This is why their saying, "Corporations make jobs" is retarded. Without "demand", corporations won't make jobs. They are not charities. When people don't have money, there is no demand, which means "no jobs". There has to be a "demand".

    This is why we need to rebuild America. Rebuilding America's infrastructure will also rebuild America's economy. Why? Because people will have jobs. That means they will have disposable income. That means "demand". THEN comes "supply". A rebuilt infrastructure will generate even more jobs. Corporations are attracted to easy and inexpensive transportation, electricity, roads and bridges. Yes Virginia, it's just that simple and that's how it really works in real life.
     
    • Thank You! Thank You! x 1
  2. Mr. H.
    Offline

    Mr. H. Diamond Member

    Joined:
    Aug 19, 2009
    Messages:
    44,117
    Thanks Received:
    9,265
    Trophy Points:
    2,030
    Location:
    A warm place with no memory.
    Ratings:
    +15,390
    Before you go piling more crap on top of crap, could you address another one of your threads...?

     
  3. rdean
    Online

    rdean rddean

    Joined:
    Aug 9, 2009
    Messages:
    60,066
    Thanks Received:
    6,882
    Trophy Points:
    1,840
    Location:
    chicago
    Ratings:
    +14,908
    You got most of the buzz words, but sometimes in the wrong order. Corporations spend less on "development" than you would think. For the most part, corporations grow by buying up other companies. This is why a partnership between Universities, government and business works best. Most companies buy or lease the fruits of research. Also, you never once mentioned "demand". You don't build a company without demand, I don't care who you imagine yourself to be. Without demand, there is no company. None. Squat. Zero.
     
    • Thank You! Thank You! x 1
  4. Quantum Windbag
    Offline

    Quantum Windbag Gold Member

    Joined:
    May 9, 2010
    Messages:
    58,308
    Thanks Received:
    5,014
    Trophy Points:
    245
    Ratings:
    +5,221
    Without schools America would not produce idiots.
     
  5. william the wie
    Offline

    william the wie Gold Member

    Joined:
    Nov 18, 2009
    Messages:
    7,274
    Thanks Received:
    673
    Trophy Points:
    175
    Ratings:
    +1,604
    the logistic map for the supply of anything is the end of a parabola pointing up. After stimulating demand goes on for a while shortages and bottlenecks develop that causes supply to decline.
     
  6. rdean
    Online

    rdean rddean

    Joined:
    Aug 9, 2009
    Messages:
    60,066
    Thanks Received:
    6,882
    Trophy Points:
    1,840
    Location:
    chicago
    Ratings:
    +14,908
    You can't be saying what I think you're saying.

    Shortages and bottlenecks are at the beginning, not the end. That's why you develop a process.
     
  7. rdean
    Online

    rdean rddean

    Joined:
    Aug 9, 2009
    Messages:
    60,066
    Thanks Received:
    6,882
    Trophy Points:
    1,840
    Location:
    chicago
    Ratings:
    +14,908
    You didn't go to school and you're an idiot.
     
  8. Care4all
    Offline

    Care4all Warrior Princess Supporting Member

    Joined:
    Mar 24, 2007
    Messages:
    32,740
    Thanks Received:
    6,617
    Trophy Points:
    1,170
    Location:
    Maine
    Ratings:
    +11,080
    then prices go up, till the next ''Joe or Josephine business/person'' comes in and makes more to take up the slack....then prices fall....

    it really isn't as easy as all that though....there are a lot of miscalculations of what people will be demanding a year from now, yet with production in China, and the shipping time to land the goods here along with customs taking time, the lead time could be 6-12 months...so buyers have a very hard job, they analyze everything, from here to high heaven to be as accurate or opportunistic as possible before they order the goods or have the goods produced, but as the saying goes, 20% of ones merchandise, drives 80% of ones business...(.thus buyers for retail operations and product marketing managers for whole sale operations, make a lot more mistakes at that 'supply guesstimate', than an outsider would think.....)
     
    • Thank You! Thank You! x 1
  9. sassmcghee
    Offline

    sassmcghee Member

    Joined:
    Oct 28, 2010
    Messages:
    42
    Thanks Received:
    14
    Trophy Points:
    6
    Location:
    Washington state
    Ratings:
    +14
    When you say
    can you explain specifically what you are proposing? What is your plan?
     
  10. mudwhistle
    Online

    mudwhistle Diamond Member

    Joined:
    Jul 21, 2009
    Messages:
    65,252
    Thanks Received:
    11,923
    Trophy Points:
    2,070
    Location:
    Wetwang With Fimber, Yorkshire
    Ratings:
    +26,186
    Supply and Demand are present even in a Socialist society.

    When everyone has equal and unlimited access to services the price goes up. In a Capitalist Society the price dictates the demand and vice-verse. In a Socialist society the demand remains constant which means the price will continue to go up until the service runs out or people stop using it or the government runs out of money. This means the government has to ether limit benefits, pick winners and losers, raise taxes, or discourage demand or maybe even all of the above.

    The goal in a Capitalist society is to stimulate as much demand as possible while in a Socialist Society you want as little demand as possible. The less beneficiaries that actually use benefits the better. The perfect situation is if there is no demand yet revenues remain constant. Any Socialist Society that tries to stimulate demand is cutting it's own throat.......like the Obama Administration does.
     
    Last edited: Oct 12, 2011

Share This Page

Search tags for this page

capitalism and supply and demand

,

capitalism supply and demand

,

capitalist demand and supply

,

features of capitalist demand and supply

,

in capitalism supply and demand should accomplish