Lesson unlearned Oct 30, 2009
Say's law (supply creates its one demand) holds only with full employment. Without global full employment, comparative advantage in free trade is merely Say's law internationalized. (Asia Times Online)
The bill will fall duefor crisis failures Aug 13, 2009
The Keynesian model rejects Say's law (crudely put, the principle that supply constitutes demand) and the Walras price mechanism (on market equilibrium) as a way out of the depression. It assumes unlimited supply of oil, food and everything else, and calls instead for outright deployment of fiscal policy to re-establish aggregate demand at its boom level. (Asia Times Online)
Are Republicans the Economic Pessimists? Jul 31, 2009
People forget Say's Law of Markets, which argues that we produce in order to consume. So if industrial and service production levels are poised to rise - because of an improvement in profits - then consumer and family incomes also will rise to provide the spending stimulus. (CBS News)
Dollar's futurein US hands Jul 2, 2009
"Neo-liberal globalization has promoted the illusion that trade is a win-win transaction for all, based on the Ricardian model of comparative advantage. Yet economists recognize that without global full employment, comparative advantage is merely Say's Law internationalized. Say's Law states that supply creates its own demand, but only under full employment, a pre-condition supply-siders conveniently ignore. After two decades, this illusion has been shattered by concrete data: poverty has... (Asia Times Online)
Lovely dividends May 5, 2009
And for some reason, it reminds me of Say's Law, which is popularly stated as "Supply creates its own demand", which I assume has to do with the wages and other expenses received during production causing increases in demand for some things, like hookers outside army bases on payday. But I am not so sure it is true, because I once had a garage full of ashtrays I had made of dried dog turds, and I am here to unequivocally tell you that supply does NOT necessarily create its own demand. (Asia Times Online)
