â??Lâ??offre crĂ©e mĂȘme la demande. Supply even creates demand.â? — J. B. Say
Earlier this month, FranĂ§ois Hollande, the president of France who calls himself a â??socialist,â? endorsed Sayâ??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 â??Supply creates its own demand.â?
On January 14, 2014, President Hollande used Sayâ??s maxim as a guide for the French economy of the future:
â??Le temps est venu de rĂ©gler le principal problĂšme de la France : sa production. Oui, je dis bien sa production. Il nous faut produire plus, il nous faut produire mieux. Câ??est donc sur lâ??offre quâ??il faut agir. Sur lâ??offre ! Ce nâ??est pas contradictoire avec la demande. Lâ??offre crĂ©e mĂȘme la demande.â?
Translated, he stated: â??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.â?
This is quite an admission for a â??socialist.â?
Read more about how supply and demand will affect the world economy moving forward at Eagle Daily Investor.