Saving "the Market” out of Cambridge: “Fixed Supply”
Scene #1. Paul Samuelson and William Nordhaus, Economics (19 th and final ed.), p.159 Some goods or productive factors are completely fixed in amount, regardless of price. There is only one Mona Lisa by da Vinci. Nature’s original endowment land can be taken as fixed in amount. Scene #2 . Gregory Mankiw, Macroeconomics (8 th ed.), p.508 Panel (a) of Figure 17-5 shows how the … price of housing P H … is determined by the supply and demand for existing stock of houses. At any point in time, the supply of houses is fixed. Really amazing is how on Earth those household-name economists have so powerful blind spots in their eyes. Blindness #1 . There is no way to trade what is in the inventory aka “stock.” For instance, we, if not they, can by no means purchase Mona Liza or “the fixed stock at any point in time.” In the first place, the object must be put on the block possibly to be purchased. Blindness #2. In the second place, there in the world does ...