Scoresby on Nostr: Austrians don't differ on this point. Demand is what matters. Keynesians are the ones ...
Austrians don't differ on this point. Demand is what matters. Keynesians are the ones who somehow think there being more of a thing can change its price.
We all agree the labor theory of value doesn't make sense: just because someone works hard on something doesn't mean anyone else will be willing to pay for it.
You are suggesting a supply theory: how much there is of a thing determines the price.
You suggest that the more of a thing there is, the lower the price.
Is the opposite true? The less there is of a thing, the higher the price?
My kid just made a one-of-a-kind painting, but it is not worth very much.
Humans have mined more than 200,000 tones of gold. Yet, a tiny amount is worth much more than my kids picture.
How do you explain this?
We all agree the labor theory of value doesn't make sense: just because someone works hard on something doesn't mean anyone else will be willing to pay for it.
You are suggesting a supply theory: how much there is of a thing determines the price.
You suggest that the more of a thing there is, the lower the price.
Is the opposite true? The less there is of a thing, the higher the price?
My kid just made a one-of-a-kind painting, but it is not worth very much.
Humans have mined more than 200,000 tones of gold. Yet, a tiny amount is worth much more than my kids picture.
How do you explain this?