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What is the main difference between Keynes law and Say's law? 1. Keynes' law invented the Quantity theory of money, and said the government should
What is the main difference between Keynes law and Say's law?
1. | Keynes' law invented the Quantity theory of money, and said the government should not print more money in a slowdown. Say's Law said we don't need money, and should use gold coins and foreign currency to pay our bills. | |
2. | Keynes and Say's laws are identical and agree on everything. All economists agree on the same economic theory, and so we do not have recessions any more ever. | |
3. | Keynes' law states demand will create its own supply, that infusing the right amount of money into the economy will increase demand back to its prior level, curing a recession. Say's Law says the opposite, that supply creates its own demand, by supporting capital investment and business expansion of supply, there is more income and lower prices for workeers, so they will raise demand back up. | |
4. | Say's law states demand will create its own supply. Keynes' Law says the opposite, that supply creates its own demand. |
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