I have often made the point that supply and demand do not drive an economy. They are not like hydraulic forces that cause an engine to spin.
The incredulous often attack the observation by sputtering something like, “But-but-but, the Law of Supply and Demand is a fundamental principle of economics!” Strictly speaking, however, this isn’t true. The so-called law was really just an early attempt to formulate a theory of prices — a failed attempt, as it turns out. You can use the Law of Supply and Demand to explain the price at which a certain good sells, but you can’t use it to explain why some goods sell at higher prices than others. A fundamental theory of prices should be able to do that.
More fundamental than supply and demand is the relationship between production and consumption, which the article explores. If there is a law of production and consumption it is: Production always comes before consumption.