Supply and Demand


nurse times; font-size: 16px;”>by Ronald W. Kirk

viagra buy times; font-size: 16px;”>Every school child once learned the meaning of supply and demand, though not so much now. Understanding it is central to prosperity.  Supply and demand at its root is a law of economic balance. Ideally, it means that people are free to produce, buy and sell. Abundance depends on having all three elements freely working together.

A free system of supply and demand needs producers, sellers and buyers. When a smart entrepreneur realizes that others need stuff, he invests to produce it and presents it to the marketplace. The entrepreneur risks his time, strength and money. If people don’t want or can’t afford his goods or services, he gains nothing and loses his investment. His risk justifies his gain. Buyer and seller both benefit from an agreeable price.

To maximize the benefits of this system, everyone should be productive. We must work and produce to have money to spend. With many would-be suppliers guessing what people might want, even inventing new things for people to desire, a multitude of new products and services arise to meet our neighbors’ product and service demands. The more productivity, the more prosperity.

As suppliers recognize what people want, more and more people will attempt to supply the same things as others already do, to compete. In order to get the buyers’ attention, suppliers typically do one or both of two things: They lower prices and they increase quality so that people will want their products and services. Pretty soon, with everyone competing to lower prices and raise quality, the best balance between quality and price arises, something like a pendulum winding down to become still at the bottom, or water finding its level. Where liberty prevails, people can usually find someone to create nicer things at greater prices if they desire. Some people will sacrifice ordinary quality to get a better price. As demands change, so does supply. The healthy marketplace means something for everyone.

A catch: All commerce has a moral component. Your and my well-being depends on the protection of all our neighbors’ freedom, property and pursuit of productivity. If people are not free to invest or free to enjoy the fruit of their labor, they will not produce. Then there will be nothing to buy.

If a central government tries to control what people want and ought to have, a healthy and diverse market becomes increasingly difficult. The centrally planned economy of the U.S.S.R. never did get the toilet paper supply right. No one can guess that well.

Civil government now tells us that we are entitled to something for nothing. They buy votes at the producers’ expense through taxation and regulation. But theft, private or public, destroys prosperity because it destroys the productivity that makes goods and services affordable, and success breeds success. Instead, the American dream—our beautiful and diverse marketplace—is drying up as public theft destroys the general ability to produce and acquire. Having requires producing. Producing requires liberty and justice, a big reversal of the current trend.

A just, free and prosperous society must also be generous. Private philanthropy removes the excuse of government to confiscate wealth in order to redistribute it.

All in all, the law of free supply and demand, among a moral and generous people, works toward producing the best possible result for the most people. Producers provide for their families and workers. Buyers get the good stuff they want and need. In the end, supply and demand is all about working hard, living well, enjoying good stuff, and making good choices. When the marketplace is safe and free, we can do all of these things.


Ron Kirk—ordained minister, landscape architect, editor and author—is a life-long student and teacher of relational government and economy from a Biblical view. He wrote the recent Nordskog Publishing title Thy Will Be Done: When All Nations Call God Blessed—a what-if regarding a fulfilled Christian faith. Ron and Christina are parents of five children and twelve grandchildren, most still living in Ventura County where they grew up.  His book: Thy Will Be Done is available on Amazon:


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William "Bill" Hicks
William "Bill" Hicks
6 years ago

When you have a political administration that wounds or kills any one of these factors in a free enterprise system, free enterprise will eventually not exist.