Re: ECON: Advertising
Tue, 26 Jan 1999 15:45:01 -0700

Harvey writes:
>Most of the free-thinkers on this group and in the Libertarian Party
>like to blast the mainstream public for being sheep, following the herd,
>and doing what they're told.

That's a far cry from the claim that commercial advocacy somehow "makes" people buy things, or creates out of thin air a desire for some product.

The obvious (and economic) explanation for the success of advertising is that it provides information (or arguably, in some cases, disinformation) on which people base decisions on how to allocate their wealth. The illusion of demand "creation" arises from that fact that there can be no actual market demand for something that's not known to exist. Another way to look at it is as an activation of "latent" demand.

>I'm afraid that this list is no more immune to spinning and political
>posturing than any other.

That's evident, unfortunately.