Global Oversupply Is bad?

The Wall Street Journal has an article about the global oversupply of almost everything: commodities, capital, labor, finished goods. It’s not that simple, of course, but normally oversupply triggers in contraction, inflation or … deflation, or …. “The ‘science’ of economics is all based on shortages.”

Quotation marks added on the word science because economics is no more a science than psychology or cooking. All are closer to art than science … or maybe crystal ball gazing. Arguably cooking is closest of those three to being a science; it’s controlled and repeatable, usually.

Now that I’ve offended everyone …

Advertisements