‚??L‚??offre cr√©e m√™me la demande. Supply even creates demand.‚?Ě — J. B. Say
Earlier this month, Fran√ßois Hollande, the president of France who calls himself a ‚??socialist,‚?Ě 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.‚?Ě
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 r√©gler le principal probl√®me 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 cr√©e m√™me la demande.‚?Ě
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.‚?Ě
This is quite an admission for a ‚??socialist.‚?Ě
Read more about how supply and demand will affect the world economy moving forward at Eagle Daily Investor.