How can you push supply? They would not build it unless there was some demand to meet it. They could build larger flats but they would cost more. There is apparently a market for people that want to live in a specific neighborhood at a certain budget.
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.
> 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.
Smartphones 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.
My neighborhood, going rate for a whole standalone house is around $2200/month, while an apartment might be $1500. I'm just guessing that's the most they can get in both cases, so demand is setting the price, not features. So clearly, if you're a landlord, it's most profitable to buy a building and divide it into as many $1500 units as possible.
Quite. The supply argument implicitly assumes that there is no limit on the amount of money available to express demand - and the sound of hollow laughter is now heard in the background from the working class.
Frankly, it always made me wonder who actually does the shopping and pays the bills, in economics households, because it clearly isn't the Professors in question.
