Article
Does Demand Create Supply?
Does Demand Create Supply?
Authored by Frank Shostak via Mises Institute,
By popular thinking, increases in demand cause economic growth. According to such thought, whenever the economy falls into a recession what is required is to strengthen demand. Since government is seen as an important part of total demand, what is then required is to increase government outlays, thereby lifting overall demand and hence increasing economic growth.
According to the popular view, it is also possible to strengthen overall demand through the inflationary increases in money supply. With more money in their...
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