MARKETING MUDDLE NO SUBSTITUTE FOR ELEMENTARY ECONOMICS
VW Staff post on Value Walk HERE
“Velocity Of Money: Demand In The Current Moment by Miller Howard Investments”
“WE ALL LEARN, IN ECON 101, that the prices of goods and services are set in the marketplace by the “invisible hand” within whose palm sits Supply and Demand, two figures always battling for supremacy in the never-ending dialectic through which prices are determined. Conservatives embrace the interaction of supply and demand with an almost religious fervor, asserting that the “hand” always produces optimum results that will balance resources and social needs, while progressives see the hand as a tool enabling the greediest to abscond with resources and the fruits of society’s labor. We’re not here to decide which position is ultimately correct, but we do know that within the remarkable landscape visible today, supply and demand aren’t always functioning as they used to, or as some might say, as they should.”
What a muddle! First, everything is “set” by something called an “invisible hand” which apparently has "within" its “palm” Supply and Demand. How do “VW staff” know this if they cannot see the “hand” or its “palm”?
Then there is a “battle” between said “supply an demand”, which determines “prices”, despite all prices, everywhere, being visible because no market can work without visible prices!
Moreover “Conservatives” believe this fairy story with “religious fervour” which “produces “optimum results” and “progressives” [Note: not capitalised!] “see the hand as a tool enabling the greediest to abscond with resources and the fruits of society’s labor.” How can ‘progressives’ “see” an “invisible hand” or it "absconding"?
No wonder the VW staffers cannot “decide which position is ultimately correct”!
Tip: Would be investors should steer clear of advice from such muddled people, even if they passed Econ 101.