Economics is about relationships. These can never be reduced to supply and demand. When I go out to breakfast that is one kind of relationship. I am being fed, I am appreciative of that, I pay. When I teach that's a very different relationship. I am challenging, setting up puzzles, the student is perhaps confused even angry at first. A Market Driven university, a Market Driven health-care plan, a Market Driven work place all pretend that the various relationships involving work offered and accepted can be reduced to supply and demand. That is our number one error. There is no such thing as supply and demand.
Posted by Abhay Burjor Ghiara at 11/15/2009