Say's law
Say’s Law or Say’s Law of Markets is a principle attributed to French businessman and economist Jean-Baptiste Say, stating that there can be no demand without supply. He theorized that the activity of production opens a demand for the products produced. Thus the mere creation of one product immediately opens an avenue for other products. To put it another way, Say was making the claim that production is the source of demand. One’s ability to demand goods and services from others derives from the income produced by one’s own acts of production. Wealth is created by production not by consumption. My ability to demand food, clothing, and shelter derives from the productivity of my labor or my nonlabor assets. The higher or lower that productivity is, the higher or lower is my power to demand other goods and services.
External links
- Say's law on Wikipedia
- Say's law
- Say's Law: Were (Are) The Critics Right (pdf), by William L. Anderson
- Lord Keynes and Say's Law by Ludwig von Mises
- A Rehabilitation of Say's Law (pdf), W.H.Hutt
- Say's Law in Context by Peter Anderson, July 2003
- Understanding Say’s Law of Markets by Steven Horwitz, January 1997