Say’s law is an influential idea still being controversial amongst contemporary economists, the law derived from his magnus opus A Treatise on Political Economy (Or the Production, Distribution and Consumption of Wealth). The volume is divided into 3 books, the first one concerns production. Say discussed the nature of production which is to generate goods and service for sale, thus creating demands. He then distinguished between, productive use of capital, industry and property vs unproductive usage. He shattered many early misconceptions such as economics is a zero-sum game, money is lost through trading and government as a means of production. Say’s law derived from the first volume where he stated:
As each of us can only purchase the productions of others with his own productions – as the value we can buy is equal to the value we can produce, the more men can produce, the more they will purchase.
He also…
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