Reply #37: You're Conflating "Demand" with "Anticipated Demand" [View All]

I agree with you that demand is undervalued, and that economic discussion nowdays is way too supply-oriented. It's just that supply and demand are two sides of the same coin -- they always go together.

It's perfectly true that all economic activity arises from demand. It's just as true that it all arises from supply. If the supply isn't there, no amount of demand will stimulate the economy. Desperately poor countries all over the world are bursting with demand and it does them no good without the business infrastructure (investment) needed for a robust economy.

To put it another way, consumer need only becomes demand when the consumer has purchasing power. And that money generally comes from being employed by an business or other investor.