Criticism of Says Law

Criticism of Say’s Law:

Keynes has evidently exposed the weakness of Say’s law. In the year 1936, Keynes brought regarding a revolution in economic theory attacking Say’s law. In the year1930’s, Great depression and its effects illustrated that the classical theory of employment was wrong and its foundation, that is the Say’s Law was not acceptable. Keynes launched a vigorous attack on the Say’s Law. The major points of criticism of the law are as follows:

A. Huge Depression makes Say’s law unpopular.

B. Each and every incomes earned are not forever spent on consumption.

C. Likewise whatever is saved is not automatically spend.

D. The Law depends on wrong analysis of market.

E. This suffers from the myth of aggregation

F. Aggregate demand and aggregate supply are not always equivalent.

G. Rate of interest is not the equilibrating factor.

H. Capitalist system is not self-adjusting perpetually.

I. Ideal competition is an unrealistic assumption.

J. Money is the main force in economy.

K. The law is suitable merely for long period

L. Say’s law holds goods merely in a barter economy

Say’s law has no legitimacy and employs now, critics point out. Though, the classical theory relied on Say’s law to guarantee that there would always be full-employment as an outcome of equality among aggregate demand and supply. In short there can’t be deficiency of aggregate demand. Even when there is any unemployment, the market mechanism would restore complete employment.


Latest technology based Economics Online Tutoring Assistance

Tutors, at the, take pledge to provide full satisfaction and assurance in Theory of Income Determination help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Theory of Income Determination, project ideas and tutorials. We provide email based Theory of Income Determination help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Theory of Income Determination. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Economics Homework help and assignment help services. They use their experience, as they have solved thousands of Economics assignments, which may help you to solve your complex issues of Theory of Income Determination. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.