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A wonderfully clear explanation of Say's Law

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secondhander
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I stumbled onto this article today. Say's Law is a little difficult to wrap your head around at first, mostly because most people don't understand it themselves and give you a definition that's not quite right. This is the best explanation of it I've found to date. It's very simple, actually. I wanted to share:

 

http://www.fee.org/the_freeman/detail/understanding-says-law-of-markets#axzz2bEeGvME1

Edited by secondhander
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You might know this already, but some of Say's books are available online. I've read that his "Treatise" was a popular text book at one point in U.S. history.

 

Say's law notes the primacy of production. That's pretty foundational in economics.

 

However, there is a second source of demand: promises to produce (aka credit). I'm not sure whether Say address this.

Edited by softwareNerd
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Here also is a good explanation of Say's Law: https://smilingdavesblog.wordpress.com/2012/12/12/smiling-dave-on-says-law/

 

Smiling Dave is seeking to correct the view of Horowitz (the first article I posted), but so far I think they are really in agreement more than disagreement. I haven't finished Smiling Dave's article, but it struck me as a fairly clear explanation as well, so I added the link to it.

Edited by secondhander
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