Re: (OPE-L) Say's Law in Marxian Theories?

From: A.B.Trigg (A.B.Trigg@OPEN.AC.UK)
Date: Tue Mar 02 2004 - 07:21:47 EST

I don't argue that supply creates its own demand at the macro level. The problem at the macro level is that investment increases capacity but does not automatically create sufficient demand to establish balanced growth (this at least is the Domar interpretation of Marx's reproduction schemes). However, whilst Say's Law would assume this problem away, if it were to hold, I think it may also assume away the problem of disproportionality: since supply and demand are perfectly matched if the departments of production are in balance. Does this make any sense?

	-----Original Message----- 
	From: paul cockshott [mailto:clyder@GN.APC.ORG] 
	Sent: Tue 02/03/2004 10:53 
	Subject: Re: (OPE-L) Say's Law in Marxian Theories?

	I take it you are not supporting the idea that supply
	creates its own demand at the macro level?
	-----Original Message-----
	From: OPE-L [mailto:OPE-L@SUS.CSUCHICO.EDU] On Behalf Of ajit sinha
	Sent: 02 March 2004 07:35
	Subject: Re: (OPE-L) Say's Law in Marxian Theories?
	Can you explain a little more about
	disproportionality? It could be
	argued that proportionality between the departments of
	production requires
	that they are in balance: that supply and demand are
	equal. If supply
	creates its own demand (Say's Law), then this means
	there cannot be
	disproportionality. I agree that general
	overproduction is distinct from
	this, however.
	Supply does not have to create a demand of equal
	amount of its own kind. Say's law is more of a macro
	level proposition. It only opposes a theoretical
	possibility of a general glut. Cheers, ajit sinha
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