sudden muse on economical theory

I read from a book that we have been focusing too much on demand for the economy. Contrary to Kenysian economics, our economy does not grow because we spend more, but rather we spend more because the economy grows. Supply is thus the key factor.

A thought about whiteboards popped into my head. Let’s imagine a white board on a wall asking for people’s comments about a certain matter. We could give people markers to write on it (the government giving people money to spend), but what would happen if it ran out of space? People would stop writing. Say the whiteboard is able to expand now, people would keep writing on!


Leave a comment

Filed under Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s