Demand side perspectives

The modern, capitalist, market economy is powered by demand. Demand for products, goods and services. And what drives these demand? Some would like to say, marketing, advertising. But more fundamentally, social comparison, desire for affliation/connection.

So the idea of market competition gets turned on demand itself. In other words, the seller turns to the buyer and say, “He’s got this, so you have got to get it.” This mechanism is so widespread and so completely ignored by economics that at a macro-level, it overturns more fundamental notions of allocative efficiency. The fact that demand is in itself premised upon the actions and long-term strategies of supply, makes the equilibrium in the market impossible to pin down.

There is no long term convergent points and what development has come to be is simply the ability for supply to generate more and more of its own demand.