The stickiness of prices and wages in the downward direction prevents the economy's resources from being fully employed and thereby prevents the economy from returning to the natural level of real GDP. Thus, the Keynesian theory is a rejection of Say's Law and the notion that the economy is self-regulating.
www.cliffsnotes.com/WileyCDA/CliffsReviewTopic/The-Keyn... www.cliffsnotes.com/WileyCDA/CliffsReviewTopic/The-Keynesian-Theory.topicArticleId-9789,articleId-9742.html
Say's law - Wikipedia, the free encyclopedia
Say's law , or the law of markets , is an economic proposition attributed to French businessman and economist Jean-Baptiste Say (1767–1832), which states that in a free market economy goods and ser...
en.wikipedia.org/wiki/Say's_law
The exuberant epithets which these admirers have bestowed upon his work cannot obscure the fact that Keynes did not refute Say's Law. He rejected it emotionally, but he did not advance a single tenable argument to invalidate its rationale.
mises.org/story/1803
sayslaw.PDF (PDF File)
That this law has been debated in academic and government circles would be an understatement. Indeed, much of the economic discussion of the 1980 U.S. Presidential campaign between Jimmy Carter and Ronald Reagan centered upon a resurrection of Say’s Law. ... SAY AND HIS LAW; J.B. ... Keynes would challenge 134 years later:
www.mises.org/journals/scholar/sayslaw.pdf www.mises.org/journals/scholar/sayslaw.pdf
But Hoover, Roosevelt, and Keynes had it all backwards. The proper economic principle is called "Say's Law," for Jean Baptiste Say (1767-1832), that "supply creates demand." This means that "overproduction" in a free economy is actually impossible.
www.friesian.com/sayslaw.htm www.friesian.com/sayslaw.htm
The rejection of this law, they declare, is the gist of all Keynes's teachings; all other propositions of his doctrine follow with logical necessity from this fundamental insight and must collapse if the futility of his attack on Say's Law can be demonstrated.[1]
laissez-fairerepublic.com/SaysLawofMarkets.html laissez-fairerepublic.com/SaysLawofMarkets.html
Only Bruce Littleboy's "Say's Law" paper fully appreciates the critical link between Keynes's representation of Say's Law and the "classics," and his central concern about the phenomenon of large scale job losses.
eh.net/bookreviews/library/0706
Keynes mischaracterized Say's Law of Markets as "supply creates its own demand" and said that the law states that there is no obstacle to full employment and that full employment is the rule. Observing that full employment does not exist, Keynes concluded that Say's Law does not hold.
www.quebecoislibre.org/06/060212-4.htm
Use Say's Law in a Sentence ... See web results for Say's Law ... Did keynes reject s...
dictionary.reference.com/browse/Say's+Law dictionary.reference.com/browse/Say's+Law
Subverting Say's Law: Keynes, Commons and Harlan McCracken Steven Kates RMIT University Harlan Linneus McCracken is possibly the least known economist of the twentieth century relative to the level of influence he has had.
hes-conference2009.com/papers/SUN3D-Kates.pdf