Posted on 07/06/2017 4:08:41 PM PDT by Timpanagos1
Yes We’re talking about energy here, not widgets.
IMHO, not so.Supply side economics is the opposite of Keynesian economics, which says that the government should subsidize demand by printing money.
“Yes We’re talking about energy here, not widgets.”
There is no S&P Widget Index, but there is an Energy Index at it trades like any other index or commodity.
an increase in the supply of coal will bring its price down relative to other forms of competing energy thereby creating an increased demand for the cheaper energy. If it is cheap enough, the overabundance of cheap energy will provide fuel for increased industrial/economic activity and will ultimately drive down the cost of the competing forms of energy which also has the potential to stimulate economic activity. Humans require energy the way a crackhead requires cocaine. the more available it is, the more of it they will come to require.
If you put supply out at a cheaper price to competing sources of energy, demand will follow. Perry was right but my beloved ex-governor is not eloquent.
But as we have learned the past few years, the price of production is a moving target and has fallen dramatically.
Pet Rocks.
Yep, I remember the clammer for them before they hit the market...
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