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Supply side is the "if you build it, they will come" idea. It's the idea that supply has a way of generating demand just like demand has a way of generating sup
by basetop 7y ago
Supply side is the "if you build it, they will come" idea. It's the idea that supply has a way of generating demand just like demand has a way of generating supply. Take smartphones. By making smartphones, an entire market was created. The supply created the market and all the apps, etc.
I may be mistaken but I think my economics professor said that supply side economics is the dominant economic theory. Rather than the demand side, it is the supply side that's moving the economy. The supply side tells you what to like, what you need and what to buy. But as all things, it's a bit of an oversimplification.
- msbarnett 7y ago> I may be mistaken but I think my economics professor said that supply side economics is the dominant economic theory. Rather than the demand side, it is the supply side that's moving the economy. It’s the politically dominant theory, insofar as it is the political dogma that provides justification for endless tax cuts on the wealthy and corporations and much bleating about how jobs are created by “job creators” rather than robust demand. In terms of actual academic economics at this point it has about as much rigour and seriousness as phrenology.
- KozmoNau7 7y agoSmartphones came about as a response to a demand, not something the supply side dreamed up out of thin air. Before smartphones, there were feature phones. Before those, there were PDAs and WAP on cellphones, and so on. A long history of carrying information with you and being able to access new information on the go. Smartphones are simply the latest iteration on a theme.