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That is something economists have major disagreements about. Classical economists (see Say's law) would argue that the production of a product creates the marke
by NoPiece 11y ago
That is something economists have major disagreements about. Classical economists (see Say's law) would argue that the production of a product creates the market/demand for it.
- brational 11y agoYea and that makes sense for products that are actual necessities. It is bullshit if applied to an arbitrary "product".
- Joeri 11y agoThat's obviously false as plenty of goods are never sold but destroyed instead because nobody wanted them. Production follows demand, any businessman will tell you. Maybe if a few economists actually learned about business we wouldn't have so many recessions.
- the_why_of_y 11y agoIt's an interesting debate, and the position I find convincing is that Say's law usually holds... except (rarely) when it does not, such as in the recent financial crisis. Believing that it always holds automatically is a fallacy of Classical economics. It's interesting that Jean-Baptiste Say himself was willing to learn from history. http://delong.typepad.com/sdj/2010/07/after-the-british-financial-crisis-and-depression-of-1825-6-jean-baptiste-say-was-too-smart-to-believe-in-says-law.html http://delong.typepad.com/sdj/2010/07/after-the-british-fina...