French President Endorses Say’s Law!
“L’offre crée même la demande. Supply even creates demand.” — J. B. Say
Earlier this month, François Hollande, the president of France who calls himself a “socialist,” endorsed Say’s law, the idea that production is more important than consumption if you want to grow the economy. This supply-side formula originally was propounded by the great French economist, Jean-Baptiste Say, in the early 19th century, and is commonly phrased “Supply creates its own demand.”
On January 14, 2014, President Hollande used Say’s maxim as a guide for the French economy of the future:
“Le temps est venu de régler le principal problème de la France : sa production. Oui, je dis bien sa production. Il nous faut produire plus, il nous faut produire mieux. C’est donc sur l’offre qu’il faut agir. Sur l’offre ! Ce n’est pas contradictoire avec la demande. L’offre crée même la demande.”
Translated, he stated: “The time has come to resolve the main problem of France: its production. Yes, I mean its production. We need to produce more, we must produce better: Supply even creates demand.”
This is quite an admission for a “socialist.”
Read more about how supply and demand will affect the world economy moving forward at Eagle Daily Investor.