I’ve heard this statement a lot. Is it true, and if so, how would it be true should there be a decreasing amount of supply or increasing amount of demand?
Generally, yes. Through increased capital and technological improvements supply usually increases over time. In conjunction with free market money like gold or silver whose supply remains relatively constant the overall price level decreases. All of this happens ceteris paribus of course with many factors that could disrupt this whole process.
Thank you for the quick answer.
Can you or anyone elaborate or direct me to where I can learn more about this, and “exogenous price shocks?”
Thanks.
Earthquakes, hurricanes, oil price hikes &c. all fit under the rubric.
Rothbard’s Man, Economy and State is a great place to learn about everything economic.
Yes, yes and yes.
What’s his opinion on evolutionary game theory?
Not necessarily. It’s possible to have a free market and a retrogressing economy. Only in a progressing economy do the prices of consumer goods fall over time.
Population growth also increases demand and profit.
Very true.
What’s the relevance here? Seriously.
I’m curious, apparently he’s the expert on all things economic…
Mises was. Rothbard was a system builder. Still not sure what this has to do with the pure theory of economics…
I would assume there would be an increase in supply (especially if its a product people would want…more and more businesses would start to make it)…
at the very same time…I would assume demand would slowly decrease…as more and more people would have the product already.
Of course, when government gets in the way…they will steal the supply or resources…so supply will decrease from what it could naturally be without government (an entity stealing from people).
Thank you, all.