Thursday, 1 August 2013

And Econ 101 dies (updated)

The Stuff website is reporting that Labour's housing spokesperson Phil Twyford said,
"It is based on the notion that increasing supply of houses at any price will somehow bring down prices. This is trickle-down economics at its most dubious."

Yes Phil increasing supply does lower price. Assuming that demand is not totally elastic, just draw a supply and demand diagram and move the supply curve out to the right, price goes down. Its Econ 101 stuff.

And these people want us to vote for them!!

Update: Matt Nolan at TVHE got to this one first. Sorry, what? he rightly asks.


Matt Nolan said...

Indeed - wtf

Mark Hubbard said...

Laughing and laughing.

And the MP's voting for GCSB Bill have no idea how computer security works, plus I've had two MP's tell me three days after passing the Psychoactive Substances Act that no animals are to be tested.

There's far more ignorance than representation happening in the Fortress of Legislation.