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Politics : Formerly About Advanced Micro Devices
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To: TimF who wrote (761829)1/6/2014 5:29:24 PM
From: neolib  Read Replies (1) of 1573852
 
But the real problem is that supply and demand form a closed-loop. Hand-waving with words is an exceedingly poor way to analyze such systems. Take a class in feedback control systems and that will become clear.

Much of the argument in economics comes down to where you think the "input" vs the "output" is in a closed loop system. Is it demand or supply, consumption or production? Well, in a system that forms a loop, it can be a bit nutty to think there is a "true" start to the loop and a "true" exit to the loop. Its still a loop. So answering questions about say raising minimum wage and whether that just results in renormalization is pretty bogus. Saying it in words lets you say whatever you think is plausible, and everyone can do the same (with their particular bent). Unfortunately to understand what the actual effect is you have to either have an exceptional model or simply run some experiments.
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