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lannan13
Posts: 23,111
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7/15/2016 4:54:44 AM
Posted: 4 months ago
At 7/14/2016 7:47:33 PM, harrytruman wrote:
http://commonsenseeconomics2.blogspot.com...

You seem to go more political than economic in many fields. In the second article you need to focus a lot more explaining the issues at hand, you can't spend a small amount and just move on to the next section.
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If the sky's the limit then why do we have footprints on the Moon? I'm shooting my aspirations for the stars.

"If you are going through hell, keep going." "Sir Winston Churchill

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Diqiucun_Cunmin
Posts: 2,710
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7/16/2016 6:07:10 PM
Posted: 4 months ago
Whenever you subsidize something, the price goes up.
?????
The thing is, I hate relativism. I hate relativism more than I hate everything else, excepting, maybe, fibreglass powerboats... What it overlooks, to put it briefly and crudely, is the fixed structure of human nature. - Jerry Fodor

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bballcrook21
Posts: 4,468
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7/16/2016 6:24:19 PM
Posted: 4 months ago
At 7/16/2016 6:07:10 PM, Diqiucun_Cunmin wrote:
Whenever you subsidize something, the price goes up.
?????

Marginal subsidies on production will shift the supply curve to the right until the vertical distance between the two supply curves is equal to the per unit subsidy; when other things remain equal, this will decrease price paid by the consumers (which is equal to the new market price) and increase the price received by the producers. Similarly, a marginal subsidy on consumption will shift the demand curve to the right; when other things remain equal, this will decrease the price paid by consumers and increase the price received by producers by the same amount as if the subsidy had been granted to producers. However, in this case, the new market price will be the price received by producers. The end result is that the lower price that consumers pay and the higher price that producers receive will be the same, regardless of how the subsidy is administered.
If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand. - Friedman

Underlying most arguments against the free market is a lack of belief in freedom itself. -Friedman

Nothing is so permanent as a temporary government program. - Friedman

Society will never be free until the last Democrat is strangled with the entrails of the last Communist.