Nature of Competition: All the Follies of Ineffective Demand
In a sense, macroeconomics is founded on the sham notion of “ ineffective aggregate demand .” There in Here on earth, “There ain't no such thing as IAD ” ( TANSTAIAD ). By definition , 1) “Effectiveness” means the right means to the defined end. In other words, all demand is effective as the end of each or all: I demand this because I demand this, no questions to be asked. Put differently effectiveness addresses the kind as opposed to efficiency or sufficiency the degree. Each and every demand is justified and entitled in the Republic. 2) In economics, “demand” never means wish, hope, dream, admiration, preference, trust or firm belief. The invisible and accordingly invincible hand does not let free-riders in the market. “The empty -handed, thou shalt not enter! I’m the only invisible in my territory.” 3) In each market, the demand curve is always separated from the supply cu...