However badly the one-time pillars of the American news industry misunderstand economics, they cannot escape it. The law of supply and demand, like the gods of the copybook headings, will assert itself. This is very bad news for the industry, which in turn is struggling to cope.
Supply creates demand (or, better, creates offers to exchange). The fundamental error of Keynesianism is the bizarre assumption that demand can create its own supply. But demanders with nothing to offer in exchange – demanders who have not yet created “supply” – are simply toddlers screeching for more candy. They have created nothing but annoyance, and will be offered what others can supply only at sufferance. Only those who have already created goods or services, who have created some supply, can be meaningful demanders, and then will sensibly make “demands” only of those who have themselves created some supply, something to exchange.