Wednesday, May 14, 2008

Is Supply and Demand Too Hard to Understand?

Thomas Sowell doesn't think so:

Some people think that the reason the public misunderstands so many issues is that these issues are too "complex" for most voters. But is that really so?

With all the commotion in the media and in politics about the high price of gasoline, is there really some terribly complex explanation?

Is there anything complex about the fact that with two countries-- India and China-- having rapid economic growth, and with combined populations 8 times that of the United States, they are creating an increased demand for the world's oil supply?

Politicians have reasons for spouting economic nonsense on the campaign trail. As Sowell points out, their job is to get votes, not make economic sense.

Sowell is a national treasure. Read the whole thing.

No comments: