Comment: Yea, the ABCT might be beyond most people's level of interest

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Yea, the ABCT might be beyond most people's level of interest

But I think most people intuitively understand the idea of the falling demand curve: lower prices for widgets means more widgets get sold.

If they ask you about all those empty homes sitting out there, and what should be done about it, I think they would understand if you explained that falling prices will clear the market - no need for any government intervention. However, this becomes difficult when it comes to labor. People might be fine with home prices falling, but they see falling wages as unacceptable. You can remind them that the alternative to lower wages is outright unemployment, but then they can respond by saying we should have make-work projects. And then to debunk that, you'd have to explain how profitability is the only criterion for the usefulness of some enterprise, and so make-work projects are counterproductive. But in saying this you might arouse their hatred of profit, which has been drilled into them through media and schooling - and now you've become in their eyes an apologist for the evil greedy capitalists. :-(

...plus, by this point in the conversation, they've probably lost interest anyway. Unfortunately, everything in economics relates to everything else, and if your interlocutor is persistent enough in his questioning, you have to practically explain all of economic theory to answer one little question, and most people don't care enough to hear it out.

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."