Jean-Baptiste Say

Jean-Baptiste Say

• Classic liberal views and favoured free trade and deregulation
• Strongly influenced by Adam Smith
• Say’s law

• Supply leads to demand
• During recession, production always declines before demand vice versa during booms
• Believes that capital – “the supply side” is the only way to improve social conditions – the capital for new production/capital for greater productivity
• Believes that social spending to improve demand are unsustainable and lead to negative consequences

• May have written his works as he was raised in a protestant family, thus blocking him from being an official minister in France

Context:

Personal context

Born in 1767 Lyon died 1832 Paris

Sent to Britain to complete commercial education

• Industrial revolution
• Employed in a sugar merchant firm

When returning to Paris worked in life insurance for Etienne Claviere who was a Financier and politician during French revolution

• Financial crisis in France

• France responded to the crisis by increasing taxes and borrowing money in an attempt to decrease fiscal shortages

Global context:

Industrial revolution (1760-1820)

• economy going through upscaling and manufacturing is rising
• redefining social ties (work, leisure and family)

The enlightenment

• promotion of science and learning
• mercantilism

• regulation of internal and external trade to promote own interest
• zero sum game

When returning to Paris worked in life insurance for Etienne Claviere who was a Financier and politician during French revolution

• Financial crisis in France

• France responded to the crisis by increasing taxes and borrowing money in an attempt to decrease fiscal shortages

Value of a commodity

Marx labour theory:

• The value of a commodity is determined by the amount of labour power invested in it

• However, the entrepreneur exploits labourers and pays them less or charges people more than the amount of actual labour invested to make a profit

• Therefore, capital is an ever-expanding continuous cycle.

Says contents:

• The value of a commodity – is dependent on the ability to satisfy the needs of the consumer

Similarly, Sahlins: