Say's Law is really just an understanding of the reciprocal nature of supply=demand. (Though supply=demand wasn't technically coined till Alfred Marshall in the 1890's)
Again, it doesn't guarantee that the creator of 1 billion eight tracks that they will recoup their investment. It does guarantee that creating those eight tracks demanded resources (spurring economic activity), and that additionally the creator will do everything in his power to unload those 8 tracks. Even if it's scrapping them for parts after exhausting eBay and collectors.
A failed business is not proof that the market doesn't work.
Also, your definition of supply and demand are pretty schlocky. Not the actual definitions that would work for an economic explanation of supply and demand. The demand curve is the willingness to pay for a certain product at any given price point. Supply is the willingness to sell a certain product at a given price point.
Disconnects can and frequently happen. Supply and demand simply means that those disconnects will cause businesses to fail and slowly gravitate towards the natural equilibrium.
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Date: 22/3/11 22:59 (UTC)Again, it doesn't guarantee that the creator of 1 billion eight tracks that they will recoup their investment. It does guarantee that creating those eight tracks demanded resources (spurring economic activity), and that additionally the creator will do everything in his power to unload those 8 tracks. Even if it's scrapping them for parts after exhausting eBay and collectors.
A failed business is not proof that the market doesn't work.
Also, your definition of supply and demand are pretty schlocky. Not the actual definitions that would work for an economic explanation of supply and demand. The demand curve is the willingness to pay for a certain product at any given price point. Supply is the willingness to sell a certain product at a given price point.
Disconnects can and frequently happen. Supply and demand simply means that those disconnects will cause businesses to fail and slowly gravitate towards the natural equilibrium.