Demand Side Economics

Demand Side Economics
  • Demand side economics is the powering of an economy by customer demand (disposable income etc) while supply side economics, by supplier production (low interest rates etc).
  • On a more personal scale, ponder: did you buy that smartphone because you need it (demand side economics), or did the maker do some great marketing (supply side economics)?
  • In this (backyard economics) post, we explore demand side economics further afield.

Digital Bank
  • Last week, just as we noted not much seems to be happening with digital banks, news arrived point-of-sale supplier Square has launched a new industrial bank, with an initial aim to provide business loans.
  • In contrast to digital banks which are usually established to then acquire customers (suppliers looking for customers), Square's bank offers new services to existing customers who might be seeking bridge loans, trade financing etc (customers looking for suppliers).
  • An example of 'demand side economics'. Ditto Shopfy Capital.