(08-18-2024, 03:26 PM)mikesez Wrote:

(08-18-2024, 01:19 PM)Lucky2Last Wrote: Most people on this board are using economic models that are not used by modern economic strategist. We are almost exclusively using MMT, and supply-side economics just doesn't fit that system. In addition to MMT, businesses are using a demand driven model, one in which they don't meet demand, but, rather, create demand. Our economy is [BLEEP].

MMT is a macroeconomic theory or model.
The discussion of individual business behavior and price gouging law is a microeconomic question.
I think MMT as a theory may prove to be true for large economies that have their own currency, however, neither party in the US is ready to behave as if it's true and the voters aren't ready either.  MMT theory says that inflation rates in the 2 to 5% range are acceptable, and if they get higher than that, the best thing to do to slow it down is raise taxes, not increase interest rates.  No one's going to vote for that anytime soon!

The other half of what you said is true though, most large businesses that you've heard of think of themselves as creating their own demand. Moving price to respond to changes in demand is considered an admission of failure in most C-suites, it seems.

I don't know enough about the economy to get into the weeds on it. My point is that businesses are operating on a demand-side economic model that is propped up and supported by the government, because advisors are increasingly buying into MMT. That should be fairly straight forward. Good to know you've at least googled the topic, because the last time we spoke in person, you didn't know anything about it.

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