Law of Supply and Demand

The centerpiece of the laws of economics is the law of supply and demand that controls prices for consumers without government regulations. It exists somewhat for consumers who buy groceries. The classic example of how this works is when beef prices are high, consumers buy chicken. Merchants and beef producers observe beef sales plummeting and they lower the price of beef until it normalizes. This worked with education and healthcare before government started subsidizing these industries. Government subsidies allowed the providers of education and healthcare to raise prices to the unsustainable levels we see today.

When a military base opens in a new town, rents double overnight.  This is the law of supply and demand at work. When investment dollars flood in to the stock market, stock prices rise, the S&P 500 average rises, the DOW average rises. When investment dollars leave the stock market, the averages fall.

When government takes actions that corrupt the laws of economics, voters need to be wary. In the case of Social Security, Medicare, Medicaid and other subsidies, government causes prices to consumers for healthcare and education to rise without ever adjusting. It is a trap that ends in bankruptcy.

Norb Leahy, Dunwoody GA Tea Party Leader