Eduardo Garzón’s Housing Claim Ignites Debate on Spanish Economics

Dr. Garzón and the Supply Law: When More Output Raises Prices

Last Tuesday, UAM economist and professor Eduardo Garzón posted a tweet challenging microeconomic fundamentals: "If more housing is produced, prices rise." This statement, which directly contradicts the supply curve, has sparked intense debate on social media and specialized forums, where his error has been dissected and the quality of economic education in Spain questioned.

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The Supply Curve, According to Garzón
The original tweet showed a graph of housing production stagnating from 2012 onwards, while prices continued to rise. Garzón concluded that "producing less does not raise prices," but his reasoning inverts causality: in reality, supply responds to price, not the other way around. As a detailed analysis pointed out, the supply curve has a positive slope: higher prices create greater incentives to produce. Confusing correlation with causation is a textbook error.

Immigration, Demand, and Other Variables
Several critics noted that Garzón omitted the demographic factor: the arrival of half a million immigrants annually has skyrocketed demand, while housing supply has not grown at the same rate due to urban planning restrictions. The result is the observed price increase, but not due to excess production, but rather a deficit. The stagnation in construction since 2012, far from lowering costs, exacerbated the problem.

Incompetence or Manipulation?
Reactions are divided between those who consider Garzón incompetent with no basic knowledge and those who see him as a manipulator tweeting for his audience. "He’s not stupid, he’s a son of a bitch," summarized one critic, while others pointed out that, after all, he gets paid to say these things and has his position secured. The debate shifts toward endogamy in Spain’s public university system, where positions are often obtained through political affinity rather than merit.

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The lingering question is whether such a blatant claim can stand without academic consequences. Meanwhile, Dr. Garzón continues to teach, and his students, perhaps, are repeating the lesson.

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