Demand-Side Economics

Here’s an item I saw in the Washington Post over the weekend, buried in their “In the Loop” section way in the back, that should be of interest to the conspiracy-minded among you:

The GOP Home Shopping Network: That most lamentable duct tape suggestion last week by a Homeland Security official — which drove countless panicked citizens out to buy the product — has been widely derided as useless and pretty crazy…. But maybe not so crazy. Turns out that nearly half — 46 percent to be precise — of the duct tape sold in this country is manufactured by a company in Avon, Ohio. And the founder of that company, that would be Jack Kahl, gave how much to the Republican National Committee and other GOP committees in the 2000 election cycle? Would that be more than $100,000?

Well, as it turns out, even in the 2000 cycle a $100,000 contribution was pretty small change (and it got even worse in 2002, as you’d expect). It doesn’t even get you into the top 100 individual contributors! It is a significant chunk of change, though; for example, it’s twice as much as disgraced Enron President Jeffrey Skilling contributed in the same cycle. It’s heartening to see the Administration is so concerned about the welfare of even the least rich rich people in the country. President Bush truly knows how to look out for the little guy.



June 30, 2005
1:21 pm

What happened to the depreciation on the demand side?
The economics profession does not tell the American people how much they loose on depreciation of automobiles each year. There are 200,000,000 cars in the US so that should be a lot of depreciation. They are either morons or liars.


May 31, 2014
11:56 am

That PBS site is long gone, try this:

So decades go by and Economics PhDs and Nobel Prize winners continue to ignore the depreciation of durable consumer goods. I suppose they would look pretty stupid to be bringing it up now.