supply elasticities are always and everywhere, zerohttps://twitter.com/FreedomWorks/status/1056685807300435969 …
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Replying to @eigenrobot
pretty clear that subsidies increase prices, though, innit? because now the market will bear more. obverse of how everyone who works at Walmart is on food stamps: given food stamps the labor market can work for less so it does
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Replying to @chaosprime @eigenrobot
last time i posted about that several people corrected me that Important Economic Laws dictate that the opposite must happen which absolutely confirmed me in the observation
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Replying to @chaosprime @eigenrobot
i mean, okay, supply elasticity, but the subsidy now forms an absolute floor to the price, and if the subsidy is elastic you don't even need to compete to collect it. normally price reduction relies on greed overcoming natural instincts to cartelism but that's shot now
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Replying to @chaosprime @eigenrobot
Are you counting the subsidy as part of the price? If so then they should increase prices for consumers... but not necessarily the per-unit price. Surplus production to get subsidies isn't valuable to the consumer, see butter mountain and wine lake in EU
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Replying to @SOXCITEDTOTWEET @eigenrobot
yeah, i should have specified consumer subsidies not producer subsidies
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Replying to @chaosprime @SOXCITEDTOTWEET
I don't think I substantially object to any of this, only the specific 1:1 price increase struck me as really dumb
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lol yeah that's fair
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