CHOOSE

click on thumbnail to zoom

Rehabilitation of Say's Law, A

Average Rating:
Under a free market, there will be no systemic gluts or shortages absent government intervention.
Price: $18.00
Quantity:
 
  • TO SUPPORT MISES!

Description 

With A Rehabilitation of Say's Law, Professor William H. Hutt produced a magnificent work that Austrians would love to claim as one of their own, but that Hutt himself viewed as thoroughly classical in nature. The topic addressed here is Say's law: the view that macroeconomic activity tends toward stability — which is to say, under a free market there will be no systemic gluts or shortages absent government intervention.

J.M. Keynes considered the foundation of his own work his refutation of Say's law, for which (according to Hutt) he coined the phrase "supply creates its own demand." Hutt formulates the law, which he says is fundamental to all economic thinking, that "all power to demand is derived from production and supply." Hutt argues that there is no inherent flaw in the market that leads it to provide a deficiency in aggregate demand, contrary to what Keynes claimed.

Hutt's argument is that Say's law must be completely restored before the root of the Keynesian error can be seen and understood.

This book was originally published in 1974 and appears again in this edition for the first time.

Reviews

Average Rating:
(based on 2 reviews)

Showing 2 Reviews:

by Esuric
on 11/30/2009
JP
The demand for goods is never satiated, thus there can never be "inadequate demand" in the general sense, but only in the relative sense. Since productions are only bought with productions, relative overproduction's, caused by disturbing the price mechanism, must mean a depression in the exchange rate between that good (relatively abundant good) and other goods (relatively scarce goods). The time lag you seem to take issue with is not important. The point is that the economy will correct itself through the price mechanism. "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. Thence follows the other conclusion, which you refuse to admit; that if certain goods remain unsold, it is because other goods are not produced; and that it is production alone which opens markets to produce." -JP Say to Mr. Malthus.
by DINESH DESAI
on 8/8/2009
ECONOMIST
EX POST, SAY'S LAW IS A TAUTOLOGY. EX ANTE,IT IS A BEHAVIORAL RELATIONSHIP. OBVIOUSLY, PRODUCTION GENERATES INCOME AND INCOME GENERATES DEMAND. BUT, DOES IT GENERATE ENOUGH DEMAND TO ABSORB PRODUCTION? NOT IN THE REAL WORLD WE LIVE IN. THE MAJOR FLAW WITH SAY'S LAW IS THAT IT MAKES NO REFERENCE TO STRUCTURE OF PRODUCTION, INCOME DISTRIBUTION AND ECONOMIC TIME LAGS. DEMAND DEPENDS NOT ONLY ON THE LEVEL OF INCOME, BUT ALSO ON THE DISTRIBTUION OF INCOME.
Review and Rate this Item

If you would like to submit a video review of your own please contact the Mises Store.


ISBN 9781610160957
eISBN 9781610163507
Publisher Ludwig von Mises Institute
Publication Date [1974] 2007
Binding PB
Page Length 160

Even today, social scientists and historians continue to treat the Industrial Revolution as if it were the beginning of the end of civilization.
Price: $28.00
Who were the original and most passionate opponents of apartheid in South Africa?
Price: $18.00
The brevity of this essay is as notable as its power to persuade.
Price: $16.00
Under a free market, there will be no systemic gluts or shortages absent government intervention.
Price: $5.00