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Politics : The Obama - Clinton Disaster -- Ignore unavailable to you. Want to Upgrade?


To: stock bull who wrote (52434)7/7/2011 1:28:38 PM
From: Follies1 Recommendation  Respond to of 103300
 
The demand might be offshore. Or the demand might be corporations which have profits.



To: stock bull who wrote (52434)7/7/2011 1:40:44 PM
From: John  Read Replies (1) | Respond to of 103300
 
I think the point that you are missing is that corporations conduct extensive research to determine latent demand before initiating new products/services.

During their research, they determine what consumers need, what they want, what they can afford, how often they can afford it, the quality they will expect, etc.

The underlying demand for (presently) non-existent products or services is called latent demand. This form of demand is what drives the R&D process for new products/services. Dale's comments were correct in asserting the idea that additional capital from lower taxes would help corporations to develop and bring new products/services to market and satisfy latent demand.

The method you are advocating is what Michael Savage correctly refers to as "trickle up poverty." The United States has experienced that for nearly three years now under such a plan from Obama. -ng-

Think of it this way, if all low-income workers in the United States were suddenly millionaires, what would happen to the rate of inflation?



To: stock bull who wrote (52434)7/7/2011 2:24:02 PM
From: grusum  Respond to of 103300
 
My question addressed the issue of demand.

Say's law: supply creates its own demand.

there was no demand for automobiles before henry ford started to make them. as a matter of fact he wasn't selling many at first. that's when he decided he had to build cheaper cars and he decided to pay his workers enough to buy one. that's when the production line was born.