Say's Law

Say's Law definition - business

Say's Law

The principle of Jean Baptiste Say (1767-1832) and fellow classical economists that posits that supply creates its own demand. The basis of Say's Law is that there can be no general glut of goods, because additional supply will create additional demand: Who would work to create more goods and services unless they intended to spend their income on other goods and services? The principle holds up better in a barter economy than in a modern economy.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.