29
Feb
2016
Join Liberty Classroom, Get Free *Choice*
You believe in free choice, right? Prove it. You are powerless to resist Tom’s offer.
But for real, you have to sign up TODAY, Feb. 29. Don’t let your reason interfere with what your emotions want. Act now before it’s too late.
I joined that program a few years ago and downloaded probably 100+ lectures by some guy named Jeffrey M. Herbener who is chairman of the department of economics at Grove City College and associate editor of the Quarterly Journal of Austrian Economics. In one of the lectures, Prof. Herbener said that when an entrepreneur brings a product to market and he realizes that he cannot get the price for his product that he expected, he will decide to either cut prices, or withhold the product for a later sale and cut production. I had always believed that very same thing for decades and I thought Prof. Herbener’s lectures were excellent.
However, “Lord Keynes” says that Austrians insist that the only option available for such an entrepreneur is to slash prices and if you don’t know that, that makes you a loathsome “vulgar internet Austrian”. In fact, that make you utterly stark raving mad and ignorant.
http://socialdemocracy21stcentury.blogspot.com/2014/07/what-is-vulgar-internet-austrianism.html
Since Prof. Herbener has been exposed by the unerring “Lord Keynes” as a “vulgar internet Austrian”, can I get my money back?
That post points out your monumentally ignorant comment here:
A 20 year unsustainable Keynesian boom would have had ‘market clearing prices’ for 20 years right up until the bottom drops out.”
http://mikenormaneconomics.blogspot.com/2013/01/lord-keynes-debunking-austrian.html?showComment=1359199941427#c5328116548878528365
You’ve never disavowed that.
And as for the issue at hand, yes, some Austrians acknowledge the use of inventories and capacity utility and price rigidity, but this only underlines how stupid is their belief that real world markets have a strong and effective tendency to economic coordination via clearing through flexible wages and prices, if in fact most businesses do not do that.
In Detroit, when times are good, the media will constantly trumpet that a particular model car is flying out the show room doors and that the manufacturer cannot meet demand. So they are adding another shift at the auto plant. TIMES ARE GOOD!
When those sales are made and sustained due to artificial credit creation, the sales are at “market clearing prices” until the bust occurs. The term does not distinguish between artificial and unsustainable “market clearing prices” and prices which are not induced by artificial credit creation.
I stand by the statement in the context in which it was made.
Give up, LK.
“a particular model car is flying out the show room doors and that the manufacturer cannot meet demand. … When those sales are made and sustained due to artificial credit creation, the sales are at “market clearing prices” until the bust occurs. “
lol… And I bet neither Bob Murphy nor anyone here will EVER correct or challenge this statement. Perhaps some will even defend it as true, This is how much of a joke the comments section of this blog is.
Bob Roddis is pointing out that many manufacturers do not in fact adjust their price, they adjust supply instead. Many here deny this obvious fact, so Bob is correcting them.
I know of no Austrians who deny that producers adjust supply instead of price when they see fit. The assertion that they do not (or that Austrians believe they do not) came from one of LK’s typically false hallucinations. He needs to apologize for the baseless insult and then go away.
LK just to clarify, I have been really busy and don’t bother trying to referee your disputes with BR. If I did, I would have long ago told you to stop calling people “idiotic” etc.
I don’t think his adversaries are notably polite but in fairness I do have to agree that LK uses abusive terms like “cretin”, “dolt” or “idiot” more than anyone else here.
LK, call them internet Austrians. Res ipso loquitur.
“LK uses abusive terms like “cretin”, “dolt” or “idiot” more than anyone else here.”
More than anyone else? Hey Ken B., point out where somebody other than L.K. has EVER used any of those terms when describing L.K.