[OT] Ameros will clog the tubes - was Re: Network Neutrality

Von Fugal von at fugal.net
Fri Dec 5 11:36:34 MST 2008

<quote name="Nicholas Leippe" date="Fri,  5 Dec 2008 at 11:20 -0700">
> On Friday 05 December 2008 10:58:33 am Von Fugal wrote:
> > > However, you're forgetting, that with a static currency supply, the per
> > > capita purchasing power has now decreased inversely proportional to the
> > > increase in capita.
> >
> > The money supply per capita has decreased, but not the purchasing power.
> > Because rememeber, there's increased supply, so the purchasing power of
> > a given amount of money goes UP, that means I actually need less money,
> > hence it's just fine that new producers are absorbing some of the money
> > supply. Just look, they are aqcuiring that money fairly by supplying
> > something in return!
> >
> > > Now what have we got? We've just lowered the demand--the demand curve
> > > shifts to the left, lowering both the price,
> >
> > Yes, the price lowers.
> >
> > > and the number of goods exchanged
> >
> > No, the demand is still the same.
> No. Number of goods exchanged is just like price--determined by the supply and 
> demand curves. The number of goods exchanged may increase, but if the increase 
> in demand is less than the increase in supply, that means that the number of 
> goods exchanged _per capita_ has decreased--thus per capita they are less 
> wealthy.
I'm probably confusing per capita (people) with per capita (production).
If it's people, then people have very well defined needs and wants, for
which the demand curve doesn't change over time. If the cost goes down
(more supply) then the demand (not the curve) actually goes up, not
down. So I see an increase in exchange, not a decrease.

If it's product, then the ideal is always for all product to be
exchanged. In fact it's impossible to have less product than what's
being exchanged, and if you have more product than what's being
exchanged then you must lower the price, the lower price increases
demand, and you exchange all you produce. So the ration of exchange to
per capita production is _always_ 1:1, if not, then you're losing money
and will probably go out of business, replaced by someone who does
exchange all they produce, maintiaining that 1:1.

The cost doesn't determine the demand curve. The demand curve
determines the cost. Price doesn't even determine the cost. The supply
of money vs the demand of money (what things cost) determines price.
Starting with a given supply demand curve, you get a cost. Going from
that cost you then get a price. It's a DAG, yo.

Supply and demand curves are already curves. The cost/demand
relationship is already encoded in the curve. So sure, cost effects
demand, but it does _not_ effect the demand _curve_.

I apologize, I have been sloppy myself with the distinction of supply
demand curves and actual supply and demand.

Von Fugal
Government is a disease that masquerades as its own cure
-- Robert Lefevre
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