Economic Illiteracy Elected Obama
This is not a new piece though I just stumbled upon it when surfing.... it's spot on with my beliefs and states them much better than I am capable of doing. It's from Civil Society Trust. Here's an excerpt....
"What is fundamentally not understood amongst an apparent majority of voters is that entrepreneurs and their financiers, (often being one in the same), create jobs. They perform the vital discovery mechanism of demand assessment and supply a potential solution, risking their own resources to do so."
One of the statements that the author makes that is often misunderstood is that supply must come before demand. People often say, how can you supply something that you don't know the need(not demand) exists for. This is proof of the economic illiteracy of the person who says this. Demand is not need, demand is the actual purchasing of a product or service at a given price level, not whether you want it or need it. If you are unable to pay the price at which the good or service sells, then that's not demand, that's just want or desire. Also, in order to 'demand' something, you have to supply the needed good or service that supplies you with the money to purchase it. Money is simply the medium by which we trade our own goods and services for those of others through markets. Any time the government intervenes, they create a higher price or lower demand through taxation or regulation, unless they are 'subsidizing,' which simply means they are redistributing goods or services from somewhere else, and as a result they are intervening in another transaction or set of transactions, creating a domino effect of interventions in market transactions.