Speaking at a coal-fired power plant in Maidsville, W.Va., on Thursday, Energy Secretary Rick Perry made a strange argument about supply and demand, seeming to confuse the relationship between two of the essential forces in the economy.
Here's a little economics lesson: supply and demand, Perry said, according to Taylor Kuykendall of Standard & Poor's. You put the supply out there, and demand will follow.
People often talk about supply and demand in economics, but not in the way Perry used the terms. In essence, supply refers to whether goods and services are readily available on the market, and demand refers to how badly consumers want those products. Just supplying a product does not create demand for it.
If Perry was suggesting that no matter how much coal the industry produces, there will be demand for it, he was clearly mistaken. Of course, demand for coal or any other item is not infinite. People will only buy so much of it at a given price, and producers will only be able to sell more if they bring down the price.
Oh look Rick Perry continues to be an ignorant idiot. How utterly unexpected. I'm glad Trump scraped the bottom of the barrel to staff his agencies with terrible people.
via International Skeptics Forum http://ift.tt/2twMqbQ