tag:blogger.com,1999:blog-2098432983500045934.post3867685378625717605..comments2024-03-12T22:19:32.339-04:00Comments on The New Arthurian Economics: Say's Law and Say's Other LawThe Arthurianhttp://www.blogger.com/profile/16501331051089400601noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-2098432983500045934.post-48691384716706534622017-12-28T06:42:31.778-05:002017-12-28T06:42:31.778-05:00Tom Hickey understood my point exactly, saying: &q...<br /><a href="http://mikenormaneconomics.blogspot.com/2017/12/the-arthurian-says-law-and-says-other.html" rel="nofollow">Tom Hickey</a> understood my point exactly, saying: "<b>Say understood that supply and demand are reciprocal and mutually reinforcing</b>."<br /><br />Today, in the 760-page PDF <a href="http://digamo.free.fr/blaug62.pdf" rel="nofollow">Economic Theory in Retrospect</a> I find Mark Blaug quoting <a href="http://www.econlib.org/library/Smith/smWN1.html#I.2.3" rel="nofollow">Adam Smith</a>:<br /><br />"<b>the certainty of being able to exchange all that surplus part of the produce of his own labour, which is over and above his own consumption, for such parts of the produce of other men's labour as he may have occasion for, encourages every man to apply himself to a particular occupation, and to cultivate and bring to perfection whatever talent or genius he may possess for that particular species of business.</b>"<br /><br />Apparently there <i>was</i> some tendency to think that supply creates its own demand.<br /><br />But no. It is one thing to be certain that if I have any excess, I can trade it for other things I might want. It is something else entirely to say that no one would ever want to save any of his (or her) excess for a rainy day.<br /><br />The certainty that I <b>can</b> exchange all my stuff for other stuff is not the same as the certainty that I <b>will</b> do so.<br /><br />Supply does not create effective demand.<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.com