ECON-350
August 8, 2018
Professor
CRITICAL WRITING ASSIGNMENT 3
1. How would you define Say’s Law? Provide context for your definition.
Saw’s law was and still is one of the deep-seated laws that not only stood out among
some of the challenges, this law connects with those of the French economists as well as
businessmen. Reviewing Say’s law, it represents inputs itself with the ambiguities and
generated to being one that is related to the underlying impressions about Hellenic
economics. In order to get a better understanding of Say’s law 1, it would only be best to
have clarity on what Say was actually saying about this law. Say mentioned in one of the
entries which states that, “there is only production that could be written or produced for the
demand for any items of products. However, there is mere situations that has been
established for one item that could only instantly have a command for those commodities”
(“Say, 1971”). If an individual would look at this from another angle, Say was speaking that
no matter how one view production, it is yet in a high call to be set on some type of footing.
If a company have the need for a high demand for a product, this only suppress the
merchandise and the worker’s service due to the lack of pay that was not created for them to
get the production done.
However, there was two economists name “James Mill and David Ricardo,” who came
up with the innovation catchphrase, “supplies make their own orders,” this was a theory of
classical solutions that connected to ignore that Say’s labor as complete. However, there was
another treatment that was extremely horrific of Say this was done by “John Maynard
Keynes in The General Theory.” John was not fond of Say’s Law or his work which he
thought it was not validation on no part. Yet, there was many authors who believed in Say but
they did not fail to realize and comprehend to have coordination of Say’s law that dealt in
market value of Say’s Agreement. The misunderstanding of the Law is taken back to the “XV
of Book I,” without studying how the treaties fit the completion for Say’s law. Say managed
to hand the situation of world business market of economics. In this world, there are calls for
high demands yet, living in this world when their rare meanings of what economics really is.
One active statement that Say proclaimed was the mere fact, for someone to want something,
that person have create something that no one else have before. People cannot just put Say’s
law in isolation, it brought value, it also produced the innovation for production and
exploration.
2. What is John Stuart Mill’s “take on Say’s Law?
Looking at Say’s Law and how it is asserted with the intensions that if products are
accessible for people, then those individuals who purchase the products that the same of
objective is for the people to get what they need. Say agrees that it is those same
commodities of production that is extended, and other items are made in the market with
precise calculations of material. There was a statement (“Sowell, 2006, p.135”) stated, “John
Mill who governs that creation is not imprudent, it is only incompatible.” Nevertheless,
Stuart Mills was yet a supporter of Say’s Law. Mills stated in his own words,
“It is to be said that there is a demand for commodities to the methods of liquidation. Individuals
that decide to purchase items, have the demand of wanting more of that very same product
which make it a mean for demand. To every seller, there will be a buyer which makes the buyers
unavoidable. The question is asked, is it possible to double the product that is productive in power
for other countries? The supply should only double in every market, and people should by the
same token double their buying authority,” (“Mills, 1909”).
Mills captured the ability of translating Say’s law with the quality with upstanding devotion
of personality. Sowell made other statements concerning Mills translation about Say. Sowell
(“2006”) states, “there was a request from Mill to “provide commerce that is reachable to
groups for the near future.” Those statements made Say rethink his theory and grabbed that
attention of Mills as well. Say’s revamp of his theory posed the question, it the theory
receives that money could be a commodity, will the production hold the foundation? Several
researchers have made collections on that very same thing and a lot of them follow and agree
to what Stuart Mill stated.
3. How would you describe a country’s savings rate and its effect on the country’s
growth rate?
When it comes to saving and growing rates they could be similar and closely related by
means of being a cycle of life. There is an article “Saving and growth: a
reinterpretation,” written by “Carroll and Weil,” (“Modigliani, 1970) this article debated
that the setting of life-cycle is conducted on positive role of the relationship between
growth and savings. Nevertheless, (“Bosworth, 1993”) showed the negative side and the
effectiveness of how working-class people will have an increase on market and not at
their will to have a negative consumption of the decrease in savings (“Carroll & Weill,
1994”). However, there are so many younger individuals who are outnumbering the older
population, there will be more people putting monies up for their retirement, rather than
spending more of their working money on unnecessary things. When people add to their
investment, it only makes their investment increase which will leave the general side of
saving on the positive side. If investments never occur, investments cannot have an
increase for the quality or quantity for savings. Therefore, in order to have a noteworthy
as a part of the saving and growing field, an individual must have the desire to invest in
order to have the desire to invest there must be some type of interesting innovation of
Carroll, Christopher D. & Weil, David N. (1994). Saving and growth: a reinterpretation.
Retrieved from
http://www.econ2.jhu.edu/people/ccarroll/CarrollWeilSavingAndGrowth.pdf
Mill, John Stuart. Principles of Political Economy with some of their Applications to Social
Philosophy. William J. Ashley, ed. 1909. Library of Economics and Liberty. Retrieved
from the World Wide Web: http://www.econlib.org/library/Mill/mlP43.html
Sowell, Thomas. (2006). On Classical Economics. Yale University Press. New Haven, Conn.
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