Department of Energy Secretary Rick Perry was at a coal plant in West Virginia yesterday. He said this:
“Here’s a little economics lesson: supply and demand. You put the supply out there and the demand will follow.”
Just so we’re clear. THIS IS THE OPPOSITE OF HOW ECONOMICS WORKS.
Supply does not produce demand, especially for a commodity like coal. DEMAND PRODUCED SUPPLY.
He went on to say:
“Many times an increased supply increases prices, because the demand becomes so overwhelming. That’s how demand works.”
Just so we’re clear. THIS IS ALSO OPPOSITE OF HOW ECONOMICS WORKS.
As supply increases, prices go down, especially for a commodity like coal.
This is the same man who proposed the elimination of the Department of Energy during his Presidential run and only later found out that a huge chunk of the Department of Energy’s $30 billion budget is dedicated to developing, maintaining, refurbishing and safely keep the nation’s nuclear stockpile; combatting nuclear proliferation and maintaining and rebuilding nuclear production facilities.
Armed with this newfound information (he thought the DOE was the champion of the gas and oil industry), Trump put him in charge of the department that he once thought should not exist.
Sadly, Rick Perry also appears to believe in the Field of Dreams economic theory:
“If you build it…”
Tell this to New Coke. The Edsel. The Zune. Lifesaver’s soda. Ben-Gay’s aspirin.
All products that were produced in great supply, only to fail to find a demand.
By Perry’s logic, all I need to do is start knitting piles of polyester penis warmers, and customers will be lining up by the hundreds, cash in hand.
Why do so many people in government have to be so dumb?
