I think your view of the world is often that of an overly enthusiastic 1st year econ studen that just learned about supply and demand and the invisible hand and thinks it directly applies to all things, no real-world adjustements needed, people can be accurately modelled as rational economic agents, etc.
I think your view of the world is often that of an overly enthusiastic 1st year econ studen that just learned about supply and demand and the invisible hand and thinks it directly applies to all things, no real-world adjustements needed, people can be accurately modelled as rational economic agents, etc.
But here I think this simple but useful framework would work better than your somewhat contrived "some people are cheap, some corporations are cheap" point. If you increase taxes or regulatory burdens, you decrease the benefit that economic agents (be they individuals or corporations) derive from their economic activity (all things being equal), and as a consequence they lower the amount of energy or money they invest in this activity — they simply do less. The supply curve shifts left!
Bryan,
I think your view of the world is often that of an overly enthusiastic 1st year econ studen that just learned about supply and demand and the invisible hand and thinks it directly applies to all things, no real-world adjustements needed, people can be accurately modelled as rational economic agents, etc.
But here I think this simple but useful framework would work better than your somewhat contrived "some people are cheap, some corporations are cheap" point. If you increase taxes or regulatory burdens, you decrease the benefit that economic agents (be they individuals or corporations) derive from their economic activity (all things being equal), and as a consequence they lower the amount of energy or money they invest in this activity — they simply do less. The supply curve shifts left!