Says law of market

Say’s Law of Markets may be a theory from classical economics that contends that the capacity to provide and subsequently generate revenue could be a prerequisite for the capacity to form a buying deal.

Say argued that a buyer must first have produced something to sell so as to own the time to get. Therefore, instead of money itself, output is that the source of demand.

According to Say’s Law, government policy should stimulate (but not restrict) production instead of promoting consumption because output is that the key to economic process and prosperity.

The mercantilist concept that money is that the source of wealth was challenged by Say’s Law. in keeping with Say’s Law, money only is a method of exchange for the worth of previously produced goods as new ones are created and dropped at market. As these new goods are sold, money income is generated, which successively fuels demand for future purchases of other goods in an ongoing process of production and indirect exchange. To say, money was just a tool for moving actual economic products, not a goal in and of itself.