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A law is a universal truth. If you find that empirical evidence disproves it, clearly it is not universal, and you cannot call it a law without suffixing it wit
by Joeri 8y ago
A law is a universal truth. If you find that empirical evidence disproves it, clearly it is not universal, and you cannot call it a law without suffixing it with exceptions.
Following from this, supply and demand is a tendency, not a law.
- zip1234 8y agoAlso, the poster has not applied the law. He is saying that because the labor supply in the US is low, wages should be up. However, the US can outsource functions, which means that the labor supply is bigger than the US.
- logicchains 8y agoAnyone who'd read even an introductory economics text would know that such laws are defined "ceteris paribus", meaning all other things being equal. Like in physics: the fact that a law that assumes something is a perfect sphere doesn't work perfectly when something is not a perfect sphere doesn't disprove the law, it just shows that it alone isn't sufficient to model complex phenomena.
- hellogoodbyeeee 8y agoThe law of supply and demand is a law, but many people don't understand that it is a law in a very basic economic model with major assumptions. If you remove the assumptions in real life, then of course the law will no longer always hold.