In response to:

Understanding Economics

nee Wrote: Sep 26, 2012 10:06 AM
Fletch!!!! Where you been, man? I tried to keep up with you and even emailed you but got no answer...some of the originals are still around... nice to see you posting, again! And, as usual, spot on!!
Here's a question: If there's a disaster, a war, a severe drought or some other calamity that restricts future supplies of a commodity -- such as oil, coffee or corn -- what is the intelligent thing for people to do right away? If you said "use less now and try to produce more," you'd be absolutely correct. That's not rocket science, but understanding the machinery involved in getting people to do so is a bit more challenging.

The best way to get people to use less and produce more is to allow prices to rise. For example, say a...