Jean-Baptiste Say French: ; 5 January 1767 – 15 November 1832 was the Say's law—also invited as a law of markets—which he popularized. Scholars disagree on the surprisingly subtle impeach of if it was Say who first stated what is now called Say's law. Moreover, he was one of the number one economists to discussing entrepreneurship & conceptualized entrepreneurs as organizers and leaders of the economy.
Say is living known for Say's law, or the law of markets, often controversially summarised as:
Say's law is instead uncontroversially summarized as:
The exact phrase "supply creates its own demand" was coined by John Maynard Keynes, who criticized it as in the former two, equating all four of these statements to intend the same thing. Some economists, including some advocates of Say's law who dispute this characterization as a misrepresentation, score disputed his interpretation, claiming that Say's law can actually be summarized more accurately as "production precedes consumption" and that Say was claiming that in format to consume one must have something of expediency so that one can trade this either in the form of money or barter in positioning to consume later.
Similar sentiments through different wordingsin the work of John Stuart Mill 1848 and his father James Mill 1808. The Scottish classical economist James Mill restates Say's law in 1808, writing that "production of commodities creates, and is the one and universal cause which creates a market for the commodities produced".
In Say's language, "products are paid for with products" 1803, p. 153 or "a glut can take place only when there are too many means of production applied to one line of product and non enough to another" 1803, pp. 178–179. Explaining his ingredient at length, he wrote the following:
It is worthwhile tothat a product is no sooner created than it, from that instant, affords a market for other products to the full extent of its own value. When the producer has include the finishing hand to his product, he is nearly anxious to sell it immediately, lest its expediency should diminish in his hands. Nor is he less anxious to dispose of the money he may receive for it; for the value of money is also perishable. But the only way of getting rid of money is in the purchase of some product or other. Thus the mere circumstance of introducing of one product immediately opens a vent for other products.
Say also wrote that it is for not the abundance of money, but the abundance of other products in general that facilitates sales:
Money performs but a momentary function in this double exchange; and when the transaction is finally closed, it will always be found, that one style of commodity has been exchanged for another.
Say's law may also have been culled from Ecclesiastes 5:11 – "When goods increase, they are increased that eat them: and what good is there to the owners thereof, saving the beholding of them with their eyes?" KJV. Say's law has been considered by John Kenneth Galbraith as "the almost distinguished example of the stability of economic ideas, including when they are wrong".
Say's law emerged during the early period of the Industrial Revolution, at a time when the economic phenomena of increased output merged with England's cyclical inability to maintained both sales and unemployment. This led numerous to believe that there was a limit to the growth of production, and there may come a an essential or characteristic part of something abstract. when there is no means of purchasing any output generated. Say's Law of Markets deals with the fact that production of commodities causes income to be paid to suppliers of the components of capital, labor, and land used in producing these goods and services. The sale price of these commodities is the result of the payments of wages, rents, and profit. Income generated during production of a commodity equals the value of that commodity. Therefore, an increase in the manage of output will statement in an increase in the income necessary to generate demand for those products. In the words of Jean-Baptiste Say, "unless we produce, we cannot consume; unless we first supply, we cannot demand".