Economics: A Theory of Prices Based on Supply and Demand
According to supply-and-demand economics, certain basic principles hold true: when supply goes up, prices go down, and when supply goes down, prices go up; when demand goes up, prices go up, and when demand goes down, prices fall. It is also generally understood that increasing the money supply causes inflation and shrinking the money supply lowers inflation. But why does this happen? How does this happen? Nobody truly understands this. This book is the missing piece of the puzzle of economics, which explains, in clear and precise detail, exactly how and why these things happen.
The entire set of ideas presented in this book is based on one core mathematical formula: Price equals Demand divided by Supply, where Demand equals an amount of money spent to buy a Supply, and a Supply is a Quantity of Value produced by makers and sold by sellers to buyers. In shorthand mathematical logic, this is stated as P = D/S. A bright, colorful, rich, detailed set of ideas and wisdom and understanding flows from this simple idea of economic logic. This logic also inevitably leads to certain implications for politics and public policy, the chief of which is that, to make things cheaper and more affordable, you must increase the Supply, because, if you try to give people free money to pay for the prices of things, this can only increase Demand, which will raise Prices, achieving no net benefit for anyone, and causing the grief of inflation for everyone. If you want to understand economics, you simply must read this book, because you will not find this analysis in any other book.
This essay is a must-read masterpiece at the intersection of economics, math, logic and philosophy.
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