Critical_Writing_Assignment_3 - 1 Running head...

This preview shows page 1 - 3 out of 6 pages.

1 “Running head: UNDERSTANDING SAY’S LAW IN ECONOMICS” Critical Writing Assignment 3 Research Questions Related to Say's Law Lynda Wilcox Liberty University
2 “Running head: UNDERSTANDING SAY’S LAW IN ECONOMICS” Introduction In this classical view, a significant factor related to Classical Economics is when a French economist Jean Baptist Say (1767-1832) created “Say’s Law” in 1803. Say’s Law which is also known as the Law of Markets, which was a cornerstone that was convincing enough to other classical economists that a long-standing depression remained impossible. Once Say’s Law was established, it was applicable to societies where producers such as peasant farmers, artisans, individual proprietors who were self-employed and either manufactured their products in their own workshops, or on their farms. J.B. Say’s belief on how the people worked was for obtaining goods and other services for the satisfaction of their wants. J.B. and other classical economist believed that the markets in this early 18 th century set-up eliminated constant surpluses or shortages. How would you define Say's Law? Provide context for your definition. For me, Say’s Law’s meaning is that supply will be a creation of its own demand. Per dictionary .com, Say’s Law defined is the principle propounded by Jean Baptiste Say, that the supply of goods is always matched by the demand for them (Dictionary, 2017). Say’s Law has various interpretations. The long-run version is that there cannot be overproduction of goods in general for a very long time because those who produce the goods, by their act of producing, produce the purchasing power to buy other goods. Say wrote: “How could it be possible that there should

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture