Supply Side Economics is Illegal Communism

Anyone who preaches Illegal, Supply Side economics violates Sheriff's Law and is a traitor. Some idiot like Dennis Corgill, in the Reagan Administration came up with Supply Side economics. You see supply side economics is another way for arguing for a command and control, communist, dictated economy. Supply Side, wrongly argues, that you should not consider the Demand Function in a economy or a business. You see, central economic, or supply side business planning, like they had in the Soviet Union, simply uses violence and terror to implement a dictated economy where all the consumers or customers are told what to buy, at what price, with the government using coercive force to make sure this happens. The government is the price and supply regulator, and the cosumers have no choice in what they buy, and have no choice regarding what price they might pay. For example, in a supply side regime, if you went into the grocery store, you would be told what type of bread to buy, and at what price. In a regulated capitalist market, with both supply and demand, you, the consumer have the right to comparison shop between different products, and thus have the right to buy which loaf of bread, or steak, or chicken, you want to. Assuming that the Federal Reserve is making low interest or no interest small business loans, if you and enough of your friends are pissed off enough that the cost of bread is too high, and the quality too low, then you can start your own business and compete with the losers who don't know how to produce a good loaf of bread at a reasonable cost. Thus, we can see in any transaction for the sale of goods, there is a buyer (demand) and a seller (supply), and withouth both, there is no transaction. Ronald Reagan was a communist spy out of South Africa and Vladivostok, Soviet Union, who did his best to destroy the Republican Party, and America.
Perpetual (C)Copyright (2011 C.E.) by Anthony J. Fejfar and Neothomism, P.C., (PA)
and The American Public as a Public Domain Copyright.

Economies of Scale in Retail Sales

Some persons think, wrongly, that a business has a duty to maximize profits by selling goods and services for the maximum amount possible. In fact, this is wrong. You see, in microeconomics there is such a thing as elasticity of demand. In many product markets the price charged has a significant effect of the demand curve, that is, when the price charged becomes too high, most people stop buying the product. Also, it is also often true that when the price charged for a product is lower, many more people will buy the product. When more people buy the product at a lower price, this is called economies of scale. Also, when more goods or products are manufactured and sold, the cost of production for each individual product decreases. This is another example of economies of scale. For now, let us consider the situation where economy of scales developes from a lower price being charged for the product in the retail market.

Monthly Sales 1,000 Widgets at $100 each,
Model A for gross monthly income on sales of $100,000

Monthly Sales 5,000 Widgets at $80 each,
Model B for gross monthly income on sales of $400,000

As you can see, under Model A, each Widget is sold for the higher price of $100 each, with gross sales of $100,000, while under Model B, each Widget is sold for the lower price of $80 per Widget, with gross $400,000. Thus it is clear that in the situation above, which may be very common in the real world, the business makes $300,000 more a month by selling each Widget for the lower price of of $80 a Widget rather than the higher price of $100 per Widget. This proves that in many instances it is quite possible that a business will make much more money by charging a lower price per product when economies of scale with an elastic demand curve are involved.