tag:blogger.com,1999:blog-3758330678390419129.post2417909938367975801..comments2024-02-13T02:39:22.756-05:00Comments on EconomicPolicyJournal.com: The Truth About Say's Law With a Nod to John Maynard KeynesRobert Wenzelhttp://www.blogger.com/profile/14296920597416905488noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-3758330678390419129.post-48812010105549989922017-07-10T22:46:46.357-04:002017-07-10T22:46:46.357-04:00I think the purest version of Say's Law is:
&...I think the purest version of Say's Law is:<br /><br />"Demand is derived from supply."<br /><br />Sooooo, if someone produces (supplies) something that no one values, there will be exactly that degree of demand - none. The amount of "value" that a person (A) can demand is established by the "value" that a potential seller (B) attaches to whatever A offers in Anonymoushttps://www.blogger.com/profile/14753173182816634630noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-62621492613280903782017-07-10T13:50:06.719-04:002017-07-10T13:50:06.719-04:00I agree here with The NAPster and steveZ. The dist...I agree here with The NAPster and steveZ. The distinction that we must produce something or supply something that people want is key. Many average people, and among them some leading Keynesians, imply that businesses simply produce whatever they want, and people will buy whatever it is that was produced; no less do they imply that the businessman picks his rate of profit, and people still buy. ToMLXhttps://www.blogger.com/profile/14006868646273705940noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-85095313164814126052017-07-09T15:42:43.672-04:002017-07-09T15:42:43.672-04:00I'm saying of course markets will clear. Nobod...I'm saying of course markets will clear. Nobody will deny that. <br /><br />But that's what a recession is: all (or a significant portion of) prices falling. The money cranks want to print to prevent this, to increase demand. Hence their attack on Say's law.steveZhttps://www.blogger.com/profile/00598248557573036202noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-35700114770338948082017-07-09T13:58:50.741-04:002017-07-09T13:58:50.741-04:00How would that eliminate the business cycle?How would that eliminate the business cycle?Bobhttps://www.blogger.com/profile/00745714502408028624noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-30568530779876039122017-07-09T13:40:27.868-04:002017-07-09T13:40:27.868-04:00Sure but if everyone accepted that, by definition ...Sure but if everyone accepted that, by definition there would be no such thing as a recession.steveZhttps://www.blogger.com/profile/00598248557573036202noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-70208061002270275062017-07-09T13:05:36.546-04:002017-07-09T13:05:36.546-04:00And that price could be negative. I'll charge ...And that price could be negative. I'll charge you $50 to haul it away.Bobhttps://www.blogger.com/profile/00745714502408028624noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-51643670147707704962017-07-09T12:10:44.774-04:002017-07-09T12:10:44.774-04:00I hereby bid one dollar. Markets clear. It is alwa...I hereby bid one dollar. Markets clear. It is always a function of price. Robert Wenzelhttps://www.blogger.com/profile/14296920597416905488noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-83337007654011457082017-07-09T12:08:55.411-04:002017-07-09T12:08:55.411-04:00"Economic goods"?
Value is surly subjec..."Economic goods"?<br /><br />Value is surly subjective. How do you square that circle?<br /><br />This is exactly why we should use Rothbard's rendition:<br /><br />Supply of X constitutes demand for Y,Z,etc.<br /><br />The answer is right there. You produced X, but the owner of Y doesn't want X. You must produce Z (or whatever the owner of Y desires) in order to trade.<br /><brsteveZhttps://www.blogger.com/profile/00598248557573036202noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-43890795619405990322017-07-09T12:08:55.029-04:002017-07-09T12:08:55.029-04:00Yes, you do cover that in your post, but the words...Yes, you do cover that in your post, but the words "economic goods" don't appear in the phrase "Supply creates its own demand." Maybe some of the confusion that surrounds Say's Law -- such as you highlight in your subsequent piece about the CNN article on Rick Perry -- is because formulations are too pithy. It would be like saying "Fiat money causes the businessThe NAPsterhttps://www.blogger.com/profile/16631781625841157567noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-55977572067432243522017-07-09T12:01:48.718-04:002017-07-09T12:01:48.718-04:00Could be argued that your rendition plays into the...Could be argued that your rendition plays into the money crank's theory:<br /><br />Economic downturn- your BMW sits, unsold. They say, "it's ok RW, we've read JMK and are printing your demand right now!"<br /><br />How do you explain reality to them using your version of Say's law?<br /><br /><br /><br />steveZhttps://www.blogger.com/profile/00598248557573036202noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-18468455554186917722017-07-09T08:41:05.165-04:002017-07-09T08:41:05.165-04:00Well, thanks for your pithy comment but I cover th...Well, thanks for your pithy comment but I cover that when I state it applies only to "economic goods."Robert Wenzelhttps://www.blogger.com/profile/14296920597416905488noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-14587017689302391452017-07-09T08:04:09.338-04:002017-07-09T08:04:09.338-04:00How does the pithy formulation "Supply create...How does the pithy formulation "Supply creates its own demand" deal with entrepreneurial error, i.e., production of a good that no one wants (or no one within the entrepreneur's realistic reach)?<br /><br />I thought one important aspect of Say's Law is that in a world of specialization (i.e., no autarky) and voluntary exchange, in order to obtain something one desires but did The NAPsterhttps://www.blogger.com/profile/16631781625841157567noreply@blogger.com