Jean Baptiste Say

Jean Baptiste-Say was born in 1767 in Lyon, died in 1832 in Paris. As an enthusiast of the revolution idea in 1789, he became the editor-in-chief of the new daily " Le decade philosophique, litteraire et politique". After fulfilling various public functions he was a lecturer in economics, in particular in Conservatoire des Arts et Metiers and College de France.

Being deeply influenced by Adam Smith, he was the supporter of economic liberalism and the division of labour. However, what distinguished him from the classical English school, was a more optimistic vision of capital economy.

Achievements

Jean Baptiste Say is best known for his book "A Treatise on Political Economy" published in 1803, in which he introduced the concept of "Say's Law". Say's Law states that supply creates its own demand, meaning that the production of goods and services generates income and spending, thus stimulating demand for other goods and services. This concept is considered a fundamental principle of classical economics. Say also introduced the concept of "the law of markets", which states that prices tend to move towards equilibrium, and he was an advocate of free trade and the division of labor. Say's work had a significant influence on the development of economic thought in the 19th century.

Theory of Value-Utility

In contrast to the classical English school, Say negates the value of labour theory and claims that the utility of things is the basis of its value. In his work entitled "A Treatise on Political Economy" he stated the following: " Although price is the measure of value of things, and their value the measure of their utility, it would be absurd to draw the interference, that by forcibly raising their price, their utility can be augmented. Exchangeable value, or price, is an index of the recognized utility of a thing."

Say's Law of Markets

Say's law of the markets is based on four basic assumptions: aggregate supply creates its own aggregate demand, supply creates its own demand, supply constitutes its own demand and inherent in supply is the necessary means for its own consumption.

Major works

• A treatise on political economy (1803)
• Catechisme d'economie politique (1815)

Jean Baptiste Say — recommended articles

Thorstein Veblen — Adam Smith — Full employment — John Richard Hicks — David Ricardo — IS-LM model — Milton Friedman — Economics — Arthur Okun

References

• Say, J. B., & Biddle, C. C. (1851). A treatise on political economy. J. Grigg.
• Jean-Baptiste Say @ Wikipedia.

Author: Sławomir Pytel