"Demand is expressed in terms of money (or traded goods or services), not mere desire for something"
With oil it's more need, than desire, but since demand is expressed in money, nothing to worry about. So what if demand is l mil barrels more than we (world) have, in order to keep the lights on, as long as the price goes to $200? Now, at 200, the lights will go back on, cuz we've satisfied the demand. Haven't got that 1M we need, but demand is satisfied. All is good. Especially if it gets paid in one dollar bills, so that the guy with the money can look good by giving them to the loser countries to burn in their generators.
If those countries had the money to buy oil on the world market they would be bidding up its price reducing other demand.
Not reducing demand, just reducing th next poor country's ability to buy. They still need to keep their lights on, they still need their transportation. If there isn't enuf supply to meet the demand, not the desire, somebody is left without a chair.
Of course, we could reduce demand by conservation, but that is such a boring way to go. Why, we may even have to carpool. |
