A Benjamin Cole post
Advances in production and information have created an ongoing surfeit of goods, argues Kevin O’Marah, in a Forbes March 17 op-ed.
O’Marah makes a good case that the incredible U.S. retail network—think WalMart—can easily meet any increase in demand. O’Marah concludes that inflation is dead. O’Marah could have gone further: thanks to the globalization of the U.S. supply-side, the idea of demand outstripping supply is outdated.
No longer does a Big Steel, or Big Auto, set prices. Steel, autos and consumer goods come from all over the world into the United States, and the domestic market is saturated with product.
With the passing exception of oil (a peculiar market dominated by global thug states), it is difficult to conceive of a product or good in short supply, rationed by higher prices.
Anyway, Inflation Paves The Way To Higher Supply
Supply-side improvements are always a good…
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