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The problem here, it appears to me, are differing
Posted on: December 22, 2016 at 21:09:59 CT
JeffB MU
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understandings of the term "demand".
You are using it in the sense of something that people want.
Says et al is using it in the sense of "something that people are willing and able to pay for with something of sufficient value for the producer of what they want to willingly accept as payment".
People living in grass huts in the jungle would have high demand for air conditioned homes under your definition of demand. Per Says and the Austrian economists there would be virtually zero demand for some company's air conditioners there if the people could only offer a few vegetables and some monkey meat in return.
What Says is saying is that the people in the jungle would have to produce something first in order to be able to pay for the things that they want. If they found a diamond mine on their property and were able to produce large quantities of quality diamonds the demand for air conditioned homes and Mercedes Benz SUVs would jump dramatically.
They would want all of those things whether they produced anything or not. From the standpoint of the sellers of the items they wanted there would be "no demand" if they couldn't pay for the things that they wanted.
You are using it in the sense of something that people want.
Says et al is using it in the sense of "something that people are willing and able to pay for with something of sufficient value for the producer of what they want to willingly accept as payment".
People living in grass huts in the jungle would have high demand for air conditioned homes under your definition of demand. Per Says and the Austrian economists there would be virtually zero demand for some company's air conditioners there if the people could only offer a few vegetables and some monkey meat in return.
What Says is saying is that the people in the jungle would have to produce something first in order to be able to pay for the things that they want. If they found a diamond mine on their property and were able to produce large quantities of quality diamonds the demand for air conditioned homes and Mercedes Benz SUVs would jump dramatically.
They would want all of those things whether they produced anything or not. From the standpoint of the sellers of the items they wanted there would be "no demand" if they couldn't pay for the things that they wanted.
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The problem here, it appears to me, are differing - JeffB MU - 12/22 21:09:59