Date: Tue Mar 02 2004 - 19:05:27 EST
Quoting "A.B.Trigg" <A.B.Trigg@OPEN.AC.UK>: > Paul. > 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? > Andrew. Yes basically it does make sense. The reality of course is that suppliers in dept 1 do not know what the demand for their product in dept 2 will be in a dynamic situation so supply and demand are not in balance. > > -----Original Message----- > From: paul cockshott [mailto:clyder@GN.APC.ORG] > Sent: Tue 02/03/2004 10:53 > To: OPE-L@SUS.CSUCHICO.EDU > Cc: > 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 > To: OPE-L@SUS.CSUCHICO.EDU > Subject: Re: (OPE-L) Say's Law in Marxian Theories? > > Ajit. > 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. > Andrew. > _________________ > > 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 > > > __________________________________ > Do you Yahoo!? > Yahoo! Search - Find what you re looking for faster > http://search.yahoo.com > > > ---------------------------------------------------------------- This message was sent using IMP, the Internet Messaging Program.
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