Discover and read the best of Twitter Threads about #sayslaw

Most recents (1)

There is some confusion about how the #market economy works. Simply put: production drives it, but #consumption is the intended outcome. It is false, but a common misconception, to think consumption drives it. It means one overlooks the core problem of economizing production,
which is solved by market allocation. Consumption as driver might apply for production for oneself, such as Robinson Crusoe on his deserted island, but it is different in a market setting. We do produce in order to consume, but we typically produce specific goods, which, through
sale, earn us an income that we can then spend on goods to consume. What goods do we consume? Those produced by others and acquired through purchases using the money we earned. This means our consumption, and what we wish to consume, is not the driver of the economy. Consumption
Read 11 tweets

Related hashtags

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!