tag:blogger.com,1999:blog-6245381193993153721.post2119462206861884243..comments2024-03-28T17:08:15.784-07:00Comments on Social Democracy for the 21st Century: A Realist Alternative to the Modern Left: Reply to Academic Agent on Austrian Economics and Price RigidityLord Keyneshttp://www.blogger.com/profile/06556863604205200159noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6245381193993153721.post-54740830014492951102021-09-20T18:42:59.459-07:002021-09-20T18:42:59.459-07:00Hi LK. I know an economist youtuber called Econobo...Hi LK. I know an economist youtuber called Econoboi who wants to contact you and make a youtube collab video with you someday. <br />His contacts: <br /><br />Reddit: https://Reddit.com/r/Econoboi<br />Twitter: https://twitter.com/Econoboi <br />Discord: https://discord.gg/JshRBdUspZ BZhttps://www.blogger.com/profile/02639095987526290064noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-7652351008150495812021-04-04T00:03:45.375-07:002021-04-04T00:03:45.375-07:00"The division of labour, headed by entreprene...<i>"The division of labour, headed by entrepreneurs, adjusts to what people want just as relative prices do. Supply and demand graphs don't capture this dynamic process, but at least they remind you that the variable at play is the price, which businesses adjust to achieve equilibrium."</i><br /><br />This is just another way of saying that demand drives production and employment, which is a key Keynesian insight. Pathetic that you cannot see that your rambling comment means that there cannot be a strong tendency to supply and demand equilibrium via highly flexible prices which IS required in Austrian theory for there to be a tendency towards Mises' final state of rest and economic coordination.Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-21467221375434979352021-03-28T10:54:56.942-07:002021-03-28T10:54:56.942-07:00There's no reason, that mark-up pricing can...There's no reason, that mark-up pricing can't co-exist with supply-and-demand any more than the existence of use-value renders exchange value impossible. <br /><br />This comment sums up a host of my objections on the topic: "Mark-up prices don't invalidate Austrian price theory. Entrepreneurs set prices and if they can't sell their stocks they must lower the prices. If they can't make an acceptable mark-up to compensate interest (yes, I have read all your posts on Austrian interest theory and I still disagree) or make a profit they will withdraw. Suppliers will have unsold stocks and have to lower their prices - but if they can't make a profit they will withdraw from production to and switch to higher-profit supplier industries. Hence their suppliers will have to lower prices and etcetera, revenues determining the number of people who can be employed in each industry. I don't think I have to fully explain, but I think you get the picture. The division of labour, headed by entrepreneurs, adjusts to what people want just as relative prices do. Supply and demand graphs don't capture this dynamic process, but at least they remind you that the variable at play is the price, which businesses adjust to achieve equilibrium. But equilibrium isn't to be understood in the stationary sense when Austrians use the term, it is meant to be understood in the sense of the attainment of one's highest end (or coordination of production plans under the division of labour)."<br /><br />Although I'm not an austrian I consider their analysis to be more essential in this question: yours is true too but theirs is truer. <br /><br />In addition, inflation may not decrease during recessions but the rate of inflation may very well do so: GDP goes down in recessions so inflation measures -GPD measured relative to production (which during depressions also declines as a rate) -may only decrease as to its rate, indeed, even increasing as an absolute magnitude.agricolushttps://www.blogger.com/profile/08076832686384441500noreply@blogger.com