Noah and the infinite dimensional economy

Here he goes through the normal canard about smooth demand and smooth supply for the aggregate economy, demonstrates that the smoothies believe in a demand short fall.

What really happened? We ran out of oil, and large partitions of suppliers dropped out of the market. For the remaining suppliers input prices dropped and their gains grew. The remaining suppliers delivered more goods less often resulting in lower prices, the economies of scale effect.

Again and again, we must all remember than in 250 years of economic theory economists still do not understand the economies of scale effect, the main driving component of the industrial revolution.

To see this effect, look how bad the smooth assumption has caused major revision errors in GDP estimates. They keep getting it wrong and the downward revisions are increasing.