- Someone wants a car and ask the car dealer
- car dealer orders 3 just in case because shortage
- distributor orders 6 for the same reason
- factory makes 12 because parts are short in stock
Result: cars in demand 1, cars in stock 12. No more just in time production and huge demand imbalance.
[1]https://web.archive.org/web/20220627205956/https://www.washi...
If anything you don’t want demand destruction if we are anticipating such a drastic increase in supply.
It’s just a basket of goods.
The question of how many people can afford this basket is a different question.
And that question’s name is demand.
To get the prices back to the original we need to bring down by 10% the *global* demand.
That means that the US needs to cut 50% their oil consumption (demand) if they are to act alone.
These are not realistic things.
That's like saying that by pointing my fan to blow onto the road, I can move the cars.
In theory and all else being equal, yes. In practice, cars have drivers that steer to stay on the road.
Similarly, other countries around the globe have their own central banks that regulate their local money supply to achieve their own goals.