Say law - Introduction Classical economists are the thinkers of economics who developed their theories in the late 18th century and early-mid-19th

Say law - Introduction Classical economists are the...

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Introduction Classical economists are the thinkers of economics who developed their theories in the late 18 th century and early-mid-19 th century. The foremost economic thinkers of this period include; Jean Say, David Ricardo, Robert Malthus, Adam Smith, and John Mill. These individuals developed a theory where prices govern the decisions regarding investment, production, and distribution all created by the forces of demand and supply. The classical economists were economic liberals advocating for the liberty of the market, to them the role of the state was to ensure the general welfare of her people this paper will discuss the classical economists who were criticized by Keynes on the Say’s law and their money theory. It will also scrutinize how he disagrees with them and provide his approach to their theories. finally, it will look at the weaknesses and strengths of Keynes approach Says law of the market is a theory propagated by a classical economist Jean-Baptise Say, it states that production is the source of demand. To him, the ability to demand something is financed by supplying a distinct commodity. The law was propagated by classical economist and journalist from France at around 1803. Jean-Baptiste Say , became more influential because it dealt with how wealth is created in the society, and natural surroundings towards economic activities.as argued by Say, In the market, one must have commodities or something to sell for you to get means of buying. Therefore, the source of demand is not money but rather the production itself. The ability of an individual to demand goods and services from other people is based on the income that the person produces through his acts of productions. The law of the market is contrary to the mercantilist viewpoint that the source of wealth is money. It encourages the outlook that the government should take on laissez-faire economics , and the free market
should be left and not interfered. Say’s law also still exists in a modern Neoclassical economic, which has an assumption that all markets clear.

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