A Little Something About Economics

There are two basic concepts of economics:  SUPPLY and DEMAND...

Supply refers to what is being produced or manufactured and delivered to the marketplace for purchase.

Demand refers to what the general public wants to buy and do they have the money to buy an item.

This does not really refer to the wealthy people but to 80-90% of the people who have an average amount of income...  so, the wealthy and the poor are for the most part excluded when we are talking about economics and supply and demand.

If we stimulate the supply side (produce more products) but we do not increase the demand or increase the money for people to buy, the products will go unsold and prices will drop...  (Theoretically)

If we stimulate the demand side (increase people's money) but do not increase the supply, then prices will increase and quite possibly will cause inflation.  (Theoretically)

So, based upon this basic description then one should stimulate both the supply side as well as the demand side simultaneously so that economic growth takes place as both sides grow together.

However, if both sides grow together, the worker will never really get ahead financially as their pay could increase 3% while at the same time prices increase 3%...

When this happens, the public must find different ways to increase their revenue greater than price increases.  This can be done by:

• increasing one's education
• find other sources of income
• changing jobs
• relocating to another state
• cut one's expenses

Republicans believe in stimulating supply

Democrats believe in stimulating demand

One other concern to this issue is immigration....  By allowing more people into this country, the government is essentially increasing the demand without increasing the supply...  this causes prices to increase...

The general public needs to understand and appreciate the basics of economics so that they can intelligently make decisions that will dramatically influence their lives and their future.