Economics lesson for the low information liberals

Shy Guy said:
It seems shouting ignorant is ILA's way of saying he disagrees with me, but doesn't know why. At least Damo can form a cohesive, if deceptive thought. ;)
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I am merely pointing out facts. Reality and basic truths have no impact on you because you are a closed minded ideologue. Damo can afford to be patient with like you are a five year old. I prefer to call you what you are; ignorant of economics.
 
I find that most Republicans do not understand anything more than textbook basic economics. ITs much more complicated and less cut and dry than the "basics of economics".

Oil prices for example do not follow the very simple rule of supply and demand. The prices are set by what the people will or can afford to pay, the fulcuation is not based on increasing or decreasing supply (although the oil companies try to claim that). A tax on gas does not result in a 1 for 1 price increase for example. An oil tanker spilling its load should not result in a price increase of gas because it barely affects the huge supply. When the profits of a company are so HUGE, its clear that the price of the product is not set based on supply and demand but set by how much they can get away with charging for the product, because they would still operate at a smaller profit margin if they were forced to do so.
 
Jarod said:
I find that most Republicans do not understand anything more than textbook basic economics. ITs much more complicated and less cut and dry than the "basics of economics".

Oil prices for example do not follow the very simple rule of supply and demand. The prices are set by what the people will or can afford to pay, the fulcuation is not based on increasing or decreasing supply (although the oil companies try to claim that). A tax on gas does not result in a 1 for 1 price increase for example. An oil tanker spilling its load should not result in a price increase of gas because it barely affects the huge supply. When the profits of a company are so HUGE, its clear that the price of the product is not set based on supply and demand but set by how much they can get away with charging for the product, because they would still operate at a smaller profit margin if they were forced to do so.
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It is interesting that you liberals have a long list of people who can get by with less money. But it is never the gobblement.
 
Jarod writes:Oil prices for example do not follow the very simple rule of supply and demand. The prices are set by what the people will or can afford to pay...


LOL you don't even have a grasp on simple concepts like supply and demand.

You are so ignorant you don't realize "what people are willing to pay" is DEMAND!
 
I Love America said:
What inflation? We are told by Ben BernanQE that there isn't inflation. Are you saying we are experiencing inflation?

Next?
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The minimum wage was re-established in the United States in 1938 (pursuant to the Fair Labor Standards Act), once again at $0.25 per hour ($4.10 in 2012 dollars[SUP][60][/SUP]). The minimum wage had its highest purchasing value ever in 1968, when it was $1.60 per hour ($10.64 in 2012 dollars[SUP][60][/SUP]). From January 1981 to April 1990, the minimum wage was frozen at $3.35 per hour, then a record-setting wage freeze. From September 1, 1997 through July 23, 2007, the federal minimum wage remained constant at $5.15 per hour, breaking the old record.

http://en.wikipedia.org/wiki/List_of_U.S._minimum_wages
 
tinfoil said:
Jarod writes:Oil prices for example do not follow the very simple rule of supply and demand. The prices are set by what the people will or can afford to pay...


LOL you don't even have a grasp on simple concepts like supply and demand.

You are so ignorant you don't realize "what people are willing to pay" is DEMAND!
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But that is not currently affected by the supply.
 
Jarod said:
1) All things are not equal. 2) not always, if your customer is willing the increased price... Demand stays the same.
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Wrong....your customer will ALWAYS look for some way to cut his expenses in the face of rising costs....just as you do in your everyday like....
If the price of gas go up, the customer will drive less whenever possible....the cost of food, waste less, its not only simple math, it human nature.
 
Jarod said:
But that is not currently affected by the supply.
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So what? Supply and demand are not mutually exclusive. What does supply have to do with demand? They are two independent factors used to determine the price to sell a product at. WTF are you even trying to say with your assertion?
 
tinfoil said:
So what? Supply and demand are not mutually exclusive. What does supply have to do with demand? They are two independent factors used to determine the price to sell a product at. WTF are you even trying to say with your assertion?
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He reasons like a liberal and common sense and logic don't have a place in it.

Its why they mis-interpreted the thread about the scans that have shown that brain regions associated with risk and uncertainty, such as the fear-processing amygdala, differ in structure in liberals and conservatives.
They shoot, then aim.
 
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Shy Guy said:
Inversely. If you increase the demand for goods, by increasing the living standards of the poor, supply has to keep up and more workers are needed for it to do so.
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Raising the minimum wage doesn't change the money available for purchase of goods. If you take an extra $1 per hour and give it to those on minimum wage, that dollar comes from someone else. It doesn't magically appear.
 
Shy Guy said:
And what "self-created crisis" is this? An increase in the minimum wage is a means to an end. Simply another measure in the ever necessary war against poverty, class disparity and class stagnancy.
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So past increases in minimum wage have reduced poverty?
 
Superfreak said:
overall that is correct... but if you look at food/energy/clothing... you know, those things that affect us daily, there is inflation.
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It's correct. Period. Full stop. CPI for all items from Jan. 2012 to Jan. 2013 was 1.6%. If you exclude food and energy, it actually increases to 1.9%. No matter how you slice it, inflation is below the target (which is actually treated as a ceiling and not a target at all).


http://www.bls.gov/news.release/cpi.nr0.htm
 
Dungheap said:
It's correct. Period. Full stop. CPI for all items from Jan. 2012 to Jan. 2013 was 1.6%. If you exclude food and energy, it actually increases to 1.9%. No matter how you slice it, inflation is below the target (which is actually treated as a ceiling and not a target at all).


http://www.bls.gov/news.release/cpi.nr0.htm
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LMAO... poor Dung... doesn't want to look at what actually effects our daily lives, just wants to chant his little line and be done. Housing accounts for about 40% of the CPI number. How many people are effected on a daily basis by the changes in housing prices? Does it effect the amount of their mortgage payments? Nope.

Now, do food, energy and clothing fluctuations effect people on a daily basis? Do those changes alter their purchasing power? Of course. But dung doesn't want to address this...
 
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