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CDAnderson

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  • Mar 12, 2010 @ 06:44am

    Supply Side Assumption - linear growth

    Great post on the economics of abundance. It brought to mind the standard supply and demand graph. In trying to combine the two ideas (abundance and the supply line) together, it appears that the standard graph assumes that supply only has linear growth or decline; which we know in times of access to new technological developments, that is not true (e.g. computers, youtube, cars, process breakthroughs, new materials, etc...). It seems that sudden curves in the supply line are the cause (direct or indirect!?) of a shock to the system, or paradigm shift. To me it seems the linear graph of supply and demand is a great exageration, as we know that demand at certain times can change drastically as well. Perhaps the purely numerically model with linear assumption, is too naive to match our present economical understanding. My intuition suggests that a new model should incorporate assumptions based on our cognitive, emotional, and social functioning.

    an interesting thought... mmmm