tag:blogger.com,1999:blog-6245381193993153721.post2236498933016690576..comments2024-03-17T00:23:24.896-07:00Comments on Social Democracy for the 21st Century: A Realist Alternative to the Modern Left: Jean-Baptiste Say and “Say’s Law”Lord Keyneshttp://www.blogger.com/profile/06556863604205200159noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6245381193993153721.post-61847578032028805452012-09-16T08:45:05.122-07:002012-09-16T08:45:05.122-07:00...Thus Say's law does not imply full employme...<i>...Thus Say's law does not imply full employment.</i><br /><br />That also is the conclusion of A. Heertje, 2004. “On Say’s Law,” in Tony Aspromourgos and John Lodewijks (eds.), <i>History and Political Economy. Essays in Honour of P.D. Groenewegen</i>. Routledge, London. 44–56.Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-69003548093477186742012-09-14T08:45:13.577-07:002012-09-14T08:45:13.577-07:00Oh and a final note. In Say's version, the rat...Oh and a final note. In Say's version, the rate of interest is not an equilibrating force the way it is in neoclassical versions.Nathaniel Clinehttps://www.blogger.com/profile/06942129307934660181noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-45113498929766918682012-09-14T08:42:43.113-07:002012-09-14T08:42:43.113-07:00Just a few points.
Say does indeed have a versio...Just a few points. <br /><br />Say does indeed have a version of endogenous money - more closely related to the "real bills doctrine" than the version you have in mind. For example, "There is always money enough to conduct the circulation and mutual interchange of other values, when those values really exist."<br /><br />Second, it is worth remembering that although Say's law as he formulated it assumes that production will always find a vent, it is not necessary that the amount of production will be sufficient to employ all workers. Thus Say's law does not imply full employment.<br /><br />Finally, just a quick note on saving. As Keynes pointed out, it is not even required that people save money just for precautionary motives. I could be saving up for a car, but unless GM knows this, they can't make production plans. I could be saving for future consumption, but as far as the market is concerned, it is not for any particular future consumption. Nathaniel Clinehttps://www.blogger.com/profile/06942129307934660181noreply@blogger.com