Updating Say’s Law For Modern Times

This article argues that Keynes’ dismissal of Say’s law in 1936 has led to the current economic and monetary crisis. By rejecting market reality, Keynes invented macroeconomics and emphasized the role of the state. The flaws in macroeconomics, the state theory of money, misleading statistics, and misplaced fears of a general glut are discussed. Say’s law, which links production to demand, challenges the belief that recessions can reduce price inflation. The mainstream’s adherence to macroeconomic theories hampers reasoned debate, leaving a final crisis as the only solution to challenge these dogmas.