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About: Supply creates its own demand     Goto   Sponge   NotDistinct   Permalink

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"Supply creates its own demand" is the formulation of Say's law. The rejection of this doctrine is a central component of The General Theory of Employment, Interest and Money (1936) and a central tenet of Keynesian economics. See Principle of effective demand, which is an affirmative form of the negation of Say's law. Keynes's rejection of Say's law has on the whole been accepted within mainstream economics since the 1940s and 1950s in the neoclassical synthesis, but debate continues between Keynesian economists and neoclassical economists (see saltwater and freshwater economics).