T.:

Do you know anything about John Say and his works?

S.:

As far as I remember, an admirer of Adam Smith, John Baptiste Say's      «Treatise on Political Economy» (1803) helped to introduce «The Wealth   of Nations» to his native France. In the course of explaining Smith's  theories and the role of markets in satisfying   human wants, his

      statement came to be known as Say's Law.

T.:

So, according to Say's Law, «production creates its own demand», in       other words, people produce and sell goods and services in order  to buy  the things they want. 

S.:

No doubt. And if buyers no longer want certain products, sellers will        stop producing   them and shift into something that is in demand.

Т.:

Now, if only those goods and services actually in demand are produced,       and the income received from the sale of those products is ultimately       used by managers and workers to buy the things they    want and need, it       follows that supply created its own demand.

S.:

Can we say in other words: there could be no such thing as        overproduction, or long-term unemployment?

Т.:

Temporary overproduction and unemployment, yes. Long term, never.       When was Say's Law put to rest?

S.:

The onset of the Great Depression of the 1930-s with its widespread         unemployment and overproduction that dragged on for years, finally        put Say's Law to rest.

T.:

Although some economists continued to agree with Say that «in the long        run», the market would bring supply, demand and unemployment into        balance, most agreed with the British economist J.M. Keynes who        pointed out that «in the long run we are all dead».

S.:

By that he meant pressing problems require immediate attention.        Besides they couldn't wait for long-term solutions.