Message from @Sophie

Discord ID: 685148636711354378


2020-03-04 20:24:27 UTC  

I'm familiar, but there's nothing with 'schools' anymore.

2020-03-04 20:24:29 UTC  

When he learns the subject matter he can debate in earnest

2020-03-04 20:25:06 UTC  

r

2020-03-05 09:49:40 UTC  

This is you.

2020-03-05 13:51:23 UTC  

Lol

2020-03-05 13:51:47 UTC  

That’s an amusing thing for the person with less education to send

2020-03-05 13:52:02 UTC  

But maybe you only thought you understood the effect 😉

2020-03-05 14:58:16 UTC  

Looks like the stock market hadn’t stabilized, it was just responding to expectations of a rate cut

2020-03-05 14:58:35 UTC  

What vindication for anyone who said we need a few days more data

2020-03-05 14:58:37 UTC  

Weird.

2020-03-05 15:06:24 UTC  

The stock market fell when the fed cut rates

2020-03-05 15:07:26 UTC  

> That’s an amusing thing for the person with less education to send

https://en.m.wikipedia.org/wiki/Dunning–Kruger_effect

2020-03-05 15:08:40 UTC  

@Sophie this is pretty much peak dunning Kruger effect. You’re assessing your economics as if you have a large depth of understanding, however when talked about: price controls, supply and demand, “capitalism”, “Keynesian economics”, new deal and corporate taxation for examples - there is no understanding.

2020-03-05 15:34:20 UTC  

...

2020-03-05 15:34:35 UTC  

You misapplied the theory

2020-03-05 15:34:51 UTC  

This is absolutely peak dunning Kruger

2020-03-05 15:35:00 UTC  

You’ve taken some economics

2020-03-05 15:35:17 UTC  

So you think the theories you understand apply universally as you understand them

2020-03-05 15:35:29 UTC  

But if you go back to our price control discussion, you can see clearly

2020-03-05 15:36:04 UTC  

You keep wanting to take it back to the theory, but are unable to synthesize outcomes for the specific situation

2020-03-05 15:36:35 UTC  

We can go ahead and revisit it if you’d like- what keeps the firm in question from producing the full level of need?

2020-03-05 16:29:31 UTC  

A price max applied below the equilibrium results in lower supply but higher demand. That’s a shortage. The firm is producing less to compensate the reduction in profits.

2020-03-05 16:29:47 UTC  

This is econ 101

2020-03-05 16:29:59 UTC  

This is why you see price controls causing shortages and surplus waste.

2020-03-05 16:30:13 UTC  

A good example is the paper I linked on drug shortages in Europe countries.

2020-03-05 16:30:30 UTC  

Again, you’re failing to consider the actual situation

2020-03-05 16:30:44 UTC  

And making bad assumptions about the shape of the curve

2020-03-05 16:31:07 UTC  

The shape is irrelevant, the point on the curve where PMAX is - is below the equilibrium

2020-03-05 16:31:19 UTC  

That causes shortages - it doesn’t matter if it’s a vaccine or a laser gun

2020-03-05 16:31:48 UTC  

That’s not correct

2020-03-05 16:32:24 UTC  

If a consumer is permanently removed from demand after ANY consumption, it changes your assumptions about the curve

2020-03-05 16:32:48 UTC  

You’re imagining a scenario in which there is indefinite demand in the long term

2020-03-05 16:33:08 UTC  

But if someone receives a vaccine tomorrow, they’re no longer generating demand, forever

2020-03-05 16:33:34 UTC  

You can’t compare it to other drugs, you can’t compare it to food, you can’t compare it to laser guns

2020-03-05 16:33:40 UTC  

You have to live in reality sometimes

2020-03-05 16:34:05 UTC  

Normally you’d talk about this as extremely inelastic demand

2020-03-05 16:34:07 UTC  

BUT

2020-03-05 16:34:18 UTC  

Because someone is REMOVED FROM THE DEMAND CURVE when they consume

2020-03-05 16:34:38 UTC  

The demand curve jumps to the left every time there’s consumption

2020-03-05 16:35:11 UTC  

So what actually happens is that without price controls, you’re only fulfilling part of the NEED even if you’re fulfilling equilibrium demand